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Small and Medium Enterprises (SMEs), due to their distinct characteristics, face unique challenges with respect to access to finance, agency conflict, and information asymmetry. Further, these challenges get magnified in a state like Jammu & Kashmir, India, which is in the early stage of industrial reforms. The objective of this study was to critically investigate the facilitators and inhibitors of the financial practices of SMEs in Jammu district, Jammu & Kashmir, India.