Scaling-Up SME Access to Financial Services in the Developing World
Small and medium enterprises (SMEs) play a major role in economic development, particularly in emerging countries. Access to finance remains a key constraint to SME development in emerging economies. Closing the credit gap for formal SMEs will be l...
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| Format: | Working Paper |
| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2010/10/24160982/scaling-up-sme-access-financial-services-developing-world http://hdl.handle.net/10986/21750 |
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okr-10986-21750 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCESS INDICATORS ACCESS TO BANK LOANS ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FINANCING ACCOUNTS RECEIVABLES ALTERNATIVE FINANCING ALTERNATIVE INVESTMENT ANGEL INVESTORS BALANCE SHEET BANK CREDIT BANK FINANCING BANK LENDING BANK LOAN BANK LOANS BANKING RELATIONSHIP BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BANKS BORROWER BORROWING BRIBE BRIBES BUSINESS ANGEL BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT BANK BUSINESS EXPERIENCE BUSINESS LENDING BUSINESS LOANS BUSINESS PLANNING BUSINESS PLANS CAPACITY BUILDING CAPITAL FINANCE CAPITAL FORMATION CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOW CASH FLOWS CASH MANAGEMENT COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKS COMMUNITY BANKS COMPLIANCE COST COMPLIANCE COSTS CORRUPTION CREDIT BUREAU CREDIT BUREAUS CREDIT CRUNCH CREDIT CRUNCHES CREDIT FACILITIES CREDIT GAP CREDIT GUARANTEES CREDIT HISTORIES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT PRODUCTS CREDIT REGISTRIES CREDIT REGISTRY CREDIT RELATIONSHIP CREDIT REPORTING CREDIT REPORTS CREDITOR CREDITWORTHINESS DEBT DEBT SECURITIES DEPOSIT DEPOSIT ACCOUNTS DEPOSIT RELATIONSHIPS DEPOSITS DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC POLICY ECONOMIES OF SCALE ELIGIBILITY CRITERIA EMPLOYER EMPLOYMENT GROWTH ENTERPRISE DEVELOPMENT ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP FINANCING EQUITY CAPITAL EQUITY FINANCE EQUITY FINANCING EQUITY FUNDS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY INVESTORS EXTERNAL FINANCE EXTERNAL FINANCING FARMERS FINANCE ACCESS FINANCES FINANCIAL ACCESS FINANCIAL EDUCATION FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL KNOWLEDGE FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCT FINANCIAL REGULATION FINANCIAL REGULATOR FINANCIAL REGULATORS FINANCIAL SERVICE FINANCING FACILITIES FINANCING NEEDS FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FIXED CAPITAL INVESTMENT FIXED COSTS FORMS OF CREDIT GENDER GOVERNMENT INTERVENTIONS GOVERNMENT POLICIES GUARANTEE SCHEMES HUMAN CAPITAL INCOME GROUP INFORMAL ECONOMY INFORMAL FINANCE INFORMAL FINANCING INFORMATION INFRASTRUCTURE INFORMATION SYSTEM INITIAL PUBLIC OFFERING INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNAL FINANCE INTERNAL FINANCING INTERNATIONAL FINANCE INVESTMENT BANK INVESTMENT CAPITAL INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT VEHICLES JOB CREATION KEY CHALLENGE LACK OF ACCESS LENDER LENDERS LINE OF CREDIT LOAN AMOUNT LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN PORTFOLIO MANAGEMENT EDUCATION MARKET DEVELOPMENT MFI MFIS MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICROFINANCE MICROFINANCE INSTITUTIONS MORAL HAZARD MULTINATIONAL OBSTACLES TO GROWTH OPERATING COSTS OUTREACH OVERDRAFT OVERDRAFTS OVERHEAD COSTS PARTIAL CREDIT PAYMENT DEFAULT POLICY DESIGN POLICY ENVIRONMENT PRIVATE CREDIT PRIVATE EQUITY PROFITABILITY PROPERTY AS COLLATERAL PROPRIETORSHIPS PUBLIC CREDIT PUBLIC FINANCE PUBLIC FUNDS RATES OF RETURNS RECESSION REPOSSESSION RISK MANAGEMENT RISK MITIGATION RISKY BORROWERS SAVINGS SHADOW ECONOMY SMALL BUSINESS SMALL BUSINESS OWNERS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SMALL LOANS SOCIAL DEVELOPMENT SOCIAL SECURITY SOURCES OF FINANCE SPECIAL FINANCING START-UPS TECHNICAL ASSISTANCE TERM CREDITS TRADE CREDIT TRADE FINANCING UNION VENTURE CAPITAL VENTURE CAPITALISTS WORKING CAPITAL |
| spellingShingle |
ACCESS INDICATORS ACCESS TO BANK LOANS ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FINANCING ACCOUNTS RECEIVABLES ALTERNATIVE FINANCING ALTERNATIVE INVESTMENT ANGEL INVESTORS BALANCE SHEET BANK CREDIT BANK FINANCING BANK LENDING BANK LOAN BANK LOANS BANKING RELATIONSHIP BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BANKS BORROWER BORROWING BRIBE BRIBES BUSINESS ANGEL BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT BANK BUSINESS EXPERIENCE BUSINESS LENDING BUSINESS LOANS BUSINESS PLANNING BUSINESS PLANS CAPACITY BUILDING CAPITAL FINANCE CAPITAL FORMATION CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOW CASH FLOWS CASH MANAGEMENT COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKS COMMUNITY BANKS COMPLIANCE COST COMPLIANCE COSTS CORRUPTION CREDIT BUREAU CREDIT BUREAUS CREDIT CRUNCH CREDIT CRUNCHES CREDIT FACILITIES CREDIT GAP CREDIT GUARANTEES CREDIT HISTORIES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT PRODUCTS CREDIT REGISTRIES CREDIT REGISTRY CREDIT RELATIONSHIP CREDIT REPORTING CREDIT REPORTS CREDITOR CREDITWORTHINESS DEBT DEBT SECURITIES DEPOSIT DEPOSIT ACCOUNTS DEPOSIT RELATIONSHIPS DEPOSITS DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC POLICY ECONOMIES OF SCALE ELIGIBILITY CRITERIA EMPLOYER EMPLOYMENT GROWTH ENTERPRISE DEVELOPMENT ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP FINANCING EQUITY CAPITAL EQUITY FINANCE EQUITY FINANCING EQUITY FUNDS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY INVESTORS EXTERNAL FINANCE EXTERNAL FINANCING FARMERS FINANCE ACCESS FINANCES FINANCIAL ACCESS FINANCIAL EDUCATION FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL KNOWLEDGE FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCT FINANCIAL REGULATION FINANCIAL REGULATOR FINANCIAL REGULATORS FINANCIAL SERVICE FINANCING FACILITIES FINANCING NEEDS FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FIXED CAPITAL INVESTMENT FIXED COSTS FORMS OF CREDIT GENDER GOVERNMENT INTERVENTIONS GOVERNMENT POLICIES GUARANTEE SCHEMES HUMAN CAPITAL INCOME GROUP INFORMAL ECONOMY INFORMAL FINANCE INFORMAL FINANCING INFORMATION INFRASTRUCTURE INFORMATION SYSTEM INITIAL PUBLIC OFFERING INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNAL FINANCE INTERNAL FINANCING INTERNATIONAL FINANCE INVESTMENT BANK INVESTMENT CAPITAL INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT VEHICLES JOB CREATION KEY CHALLENGE LACK OF ACCESS LENDER LENDERS LINE OF CREDIT LOAN AMOUNT LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN PORTFOLIO MANAGEMENT EDUCATION MARKET DEVELOPMENT MFI MFIS MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICROFINANCE MICROFINANCE INSTITUTIONS MORAL HAZARD MULTINATIONAL OBSTACLES TO GROWTH OPERATING COSTS OUTREACH OVERDRAFT OVERDRAFTS OVERHEAD COSTS PARTIAL CREDIT PAYMENT DEFAULT POLICY DESIGN POLICY ENVIRONMENT PRIVATE CREDIT PRIVATE EQUITY PROFITABILITY PROPERTY AS COLLATERAL PROPRIETORSHIPS PUBLIC CREDIT PUBLIC FINANCE PUBLIC FUNDS RATES OF RETURNS RECESSION REPOSSESSION RISK MANAGEMENT RISK MITIGATION RISKY BORROWERS SAVINGS SHADOW ECONOMY SMALL BUSINESS SMALL BUSINESS OWNERS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SMALL LOANS SOCIAL DEVELOPMENT SOCIAL SECURITY SOURCES OF FINANCE SPECIAL FINANCING START-UPS TECHNICAL ASSISTANCE TERM CREDITS TRADE CREDIT TRADE FINANCING UNION VENTURE CAPITAL VENTURE CAPITALISTS WORKING CAPITAL International Finance Corporation Scaling-Up SME Access to Financial Services in the Developing World |
| description |
Small and medium enterprises (SMEs) play
a major role in economic development, particularly in
emerging countries. Access to finance remains a key
constraint to SME development in emerging economies. Closing
the credit gap for formal SMEs will be less daunting than
for informal SMEs. The SME finance gap is the result of a
mismatch between the needs of the small firms and the supply
of financial services, which typically are easier for larger
firms to access. Deficiencies in the enabling environment
and residual market failures have motivated government
interventions to foster SME access to financing. The
stocktaking exercise confirms the rise in various parts of
the world of specific business models aimed at providing
financial services to SMEs in a cost-effective manner.
Effective SME financing models can be implemented in
different country and market environments, but greater
outreach is achieved in the most developed environments for
the financial sector. Although SME banking and microfinance
models are successfully being rolled out in an increasing
number of countries and regions, equity financing remains a
challenge in developing economies. The role of international
finance institutions (IFIs) and development finance
institutions (DFIs) to foster SME financing in the
developing world has been significant so far. Increasing
access to finance can only be successful if qualitative
aspects are taken into account. |
| format |
Working Paper |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Scaling-Up SME Access to Financial Services in the Developing World |
| title_short |
Scaling-Up SME Access to Financial Services in the Developing World |
| title_full |
Scaling-Up SME Access to Financial Services in the Developing World |
| title_fullStr |
Scaling-Up SME Access to Financial Services in the Developing World |
| title_full_unstemmed |
Scaling-Up SME Access to Financial Services in the Developing World |
| title_sort |
scaling-up sme access to financial services in the developing world |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2010/10/24160982/scaling-up-sme-access-financial-services-developing-world http://hdl.handle.net/10986/21750 |
| _version_ |
1764449117907451904 |
| spelling |
okr-10986-217502021-04-23T14:04:04Z Scaling-Up SME Access to Financial Services in the Developing World International Finance Corporation ACCESS INDICATORS ACCESS TO BANK LOANS ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FINANCING ACCOUNTS RECEIVABLES ALTERNATIVE FINANCING ALTERNATIVE INVESTMENT ANGEL INVESTORS BALANCE SHEET BANK CREDIT BANK FINANCING BANK LENDING BANK LOAN BANK LOANS BANKING RELATIONSHIP BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BANKS BORROWER BORROWING BRIBE BRIBES BUSINESS ANGEL BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT BANK BUSINESS EXPERIENCE BUSINESS LENDING BUSINESS LOANS BUSINESS PLANNING BUSINESS PLANS CAPACITY BUILDING CAPITAL FINANCE CAPITAL FORMATION CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOW CASH FLOWS CASH MANAGEMENT COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKS COMMUNITY BANKS COMPLIANCE COST COMPLIANCE COSTS CORRUPTION CREDIT BUREAU CREDIT BUREAUS CREDIT CRUNCH CREDIT CRUNCHES CREDIT FACILITIES CREDIT GAP CREDIT GUARANTEES CREDIT HISTORIES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT PRODUCTS CREDIT REGISTRIES CREDIT REGISTRY CREDIT RELATIONSHIP CREDIT REPORTING CREDIT REPORTS CREDITOR CREDITWORTHINESS DEBT DEBT SECURITIES DEPOSIT DEPOSIT ACCOUNTS DEPOSIT RELATIONSHIPS DEPOSITS DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC POLICY ECONOMIES OF SCALE ELIGIBILITY CRITERIA EMPLOYER EMPLOYMENT GROWTH ENTERPRISE DEVELOPMENT ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP FINANCING EQUITY CAPITAL EQUITY FINANCE EQUITY FINANCING EQUITY FUNDS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY INVESTORS EXTERNAL FINANCE EXTERNAL FINANCING FARMERS FINANCE ACCESS FINANCES FINANCIAL ACCESS FINANCIAL EDUCATION FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL KNOWLEDGE FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCT FINANCIAL REGULATION FINANCIAL REGULATOR FINANCIAL REGULATORS FINANCIAL SERVICE FINANCING FACILITIES FINANCING NEEDS FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FIXED CAPITAL INVESTMENT FIXED COSTS FORMS OF CREDIT GENDER GOVERNMENT INTERVENTIONS GOVERNMENT POLICIES GUARANTEE SCHEMES HUMAN CAPITAL INCOME GROUP INFORMAL ECONOMY INFORMAL FINANCE INFORMAL FINANCING INFORMATION INFRASTRUCTURE INFORMATION SYSTEM INITIAL PUBLIC OFFERING INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNAL FINANCE INTERNAL FINANCING INTERNATIONAL FINANCE INVESTMENT BANK INVESTMENT CAPITAL INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT VEHICLES JOB CREATION KEY CHALLENGE LACK OF ACCESS LENDER LENDERS LINE OF CREDIT LOAN AMOUNT LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN PORTFOLIO MANAGEMENT EDUCATION MARKET DEVELOPMENT MFI MFIS MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICROFINANCE MICROFINANCE INSTITUTIONS MORAL HAZARD MULTINATIONAL OBSTACLES TO GROWTH OPERATING COSTS OUTREACH OVERDRAFT OVERDRAFTS OVERHEAD COSTS PARTIAL CREDIT PAYMENT DEFAULT POLICY DESIGN POLICY ENVIRONMENT PRIVATE CREDIT PRIVATE EQUITY PROFITABILITY PROPERTY AS COLLATERAL PROPRIETORSHIPS PUBLIC CREDIT PUBLIC FINANCE PUBLIC FUNDS RATES OF RETURNS RECESSION REPOSSESSION RISK MANAGEMENT RISK MITIGATION RISKY BORROWERS SAVINGS SHADOW ECONOMY SMALL BUSINESS SMALL BUSINESS OWNERS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SMALL LOANS SOCIAL DEVELOPMENT SOCIAL SECURITY SOURCES OF FINANCE SPECIAL FINANCING START-UPS TECHNICAL ASSISTANCE TERM CREDITS TRADE CREDIT TRADE FINANCING UNION VENTURE CAPITAL VENTURE CAPITALISTS WORKING CAPITAL Small and medium enterprises (SMEs) play a major role in economic development, particularly in emerging countries. Access to finance remains a key constraint to SME development in emerging economies. Closing the credit gap for formal SMEs will be less daunting than for informal SMEs. The SME finance gap is the result of a mismatch between the needs of the small firms and the supply of financial services, which typically are easier for larger firms to access. Deficiencies in the enabling environment and residual market failures have motivated government interventions to foster SME access to financing. The stocktaking exercise confirms the rise in various parts of the world of specific business models aimed at providing financial services to SMEs in a cost-effective manner. Effective SME financing models can be implemented in different country and market environments, but greater outreach is achieved in the most developed environments for the financial sector. Although SME banking and microfinance models are successfully being rolled out in an increasing number of countries and regions, equity financing remains a challenge in developing economies. The role of international finance institutions (IFIs) and development finance institutions (DFIs) to foster SME financing in the developing world has been significant so far. Increasing access to finance can only be successful if qualitative aspects are taken into account. 2015-04-15T18:53:35Z 2015-04-15T18:53:35Z 2010-10 Working Paper http://documents.worldbank.org/curated/en/2010/10/24160982/scaling-up-sme-access-financial-services-developing-world http://hdl.handle.net/10986/21750 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ International Finance Corporation Washington, DC Publications & Research Publications & Research :: Working Paper |