What is the role of credit in shaping various aspects of the dynamics of SMEs? Should policy measures be targeted to SMEs, and if so, how? Academic researchers and policy makers will share their expertise in addressing these two key issues at this year's DNB Annual Research Conference. The negative effect of the global financial crisis on credit to firms has reignited the debate about the impact of banks’ funding constraints on the overall performance of SMEs, with typically lesser access to alternative sources of credit.   Theoretical and empirical contributions will investigate the interaction between SMEs’ business decisions, credit conditions and the aggregate economy. Particular emphasis will be given to the cyclicality of credit conditions and its impact on SMEs, the impact of fiscal and monetary policy on business decisions of SMEs, the effect of structural reforms in labour and goods markets on SMEs, the effect of new banking regulation on SMEs’ access to credit.