Abstract
Small and medium-sized enterprises (SMEs) are the backbone of economies around the world, contributing to employment, innovation and development. has a significant impact on small and medium-sized enterprises. However, financing small and medium-sized businesses remains one of the most pressing problems today, especially in developing countries. As one of the methods of financing small businesses, we can cite preferential loans. With their favorable conditions, preferential loans serve as a good tool for financing small businesses, and have emerged as a powerful tool for expanding the capabilities of small businesses and developing private entrepreneurship. This article discusses the impact of the preferential lending system on private entrepreneurship and their role in the development of small businesses.
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