Abstract

Since 94% of businees entetprises are composed by small and middle sized companies, and also 45% ‎of the country's total employment is made up of these types of institutions, The stability and ‎sustainability of these firms is important for economic growth in countries, Therefore, the purpose of ‎the present study is to identify the traditional financing instruments, introducing new financing tools ‎at each stage of the business life cycle including creation, growth, maturity, and decline. The research ‎method is a qualitative research which is applied in terms of applied and descriptive method and has ‎tried to use the library resources and researches and interviews with experts and owners of these firms ‎to analyze the contents and lifecycle of small and middle sized businesses. Research outcomes ‎suggest that traditional financing methods do not have the necessary flexibility and, in addition to the ‎problem of availability, they cause an increase in the financial risk of these institutions. Using ‎modern financing tools such as: Nanofinance, Microfinance and Macrofinance, and collective ‎financing Creates more flexibility and will reduce the financial risk of these institutions. According ‎to the results of the research, there should be a proportion and fittingness between the financing ‎method and the characteristics of each stage of the business life cycle‎‎‎‎‎‎‎‎‎‎.