SME Finance in Chile : Enhancing Efficiency of Support Programs

This review of small and medium-sized enterprise (SME) finance support programs aims to enhance the efficiency of SME finance support in Chile. Chile’s good economic policies have successfully promoted growth, but inequality has remained high. Supp...

Full description

Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/327171608240487791/SME-finance-in-Chile-enhancing-efficiency-of-support-programs
http://hdl.handle.net/10986/34954
id okr-10986-34954
recordtype oai_dc
spelling okr-10986-349542021-04-23T14:02:12Z SME Finance in Chile : Enhancing Efficiency of Support Programs World Bank SMALL AND MEDIUM SIZE ENTERPRISE SME FINANCE PRIVATE SECTOR DEVELOPMENT ACCESS TO FINANCE MICROENTERPRISES MICROFINANCE BUSINESS CYCLE CYCLICALITY STATE FINANCIAL AGENCY RISK MANAGEMENT This review of small and medium-sized enterprise (SME) finance support programs aims to enhance the efficiency of SME finance support in Chile. Chile’s good economic policies have successfully promoted growth, but inequality has remained high. Supporting access to finance for SMEs is an important part of developing more equal opportunities in Chile. The purpose of the analysis is to identify options for strengthening corporacion de fomento de la produccion (CORFO’s) role in addressing the SME finance gaps arising from market failures. The study focuses on determining if the various partial credit guarantee (PCG) programs are efficient and optimal in their design and how CORFO’s role can be expanded to support SMEs. To achieve a new more complex role, the study also considered that CORFO as an institution needed to be more self-contained and autonomous in terms of financial risks and reserving, and have a corporate structure more akin to a public owned corporation rather than a budget supported state agency. In order for the programs to have the desired effects, they must adequately address the gap, be effectively implemented, and be cost efficient. The paper is organized as follows: section one gives summary, section two gives introduction. Section three analyzes the gap in finance for SMEs in Chile to establish the relevance of the programs. Section four provides an overview of programs in support of SME finance, the implementation effectiveness, and the associated costs. Sections five to seven presents recommendations. 2020-12-18T21:26:17Z 2020-12-18T21:26:17Z 2015-08 Report http://documents.worldbank.org/curated/en/327171608240487791/SME-finance-in-Chile-enhancing-efficiency-of-support-programs http://hdl.handle.net/10986/34954 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Sector Study Latin America & Caribbean Chile
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SMALL AND MEDIUM SIZE ENTERPRISE
SME FINANCE
PRIVATE SECTOR DEVELOPMENT
ACCESS TO FINANCE
MICROENTERPRISES
MICROFINANCE
BUSINESS CYCLE
CYCLICALITY
STATE FINANCIAL AGENCY
RISK MANAGEMENT
spellingShingle SMALL AND MEDIUM SIZE ENTERPRISE
SME FINANCE
PRIVATE SECTOR DEVELOPMENT
ACCESS TO FINANCE
MICROENTERPRISES
MICROFINANCE
BUSINESS CYCLE
CYCLICALITY
STATE FINANCIAL AGENCY
RISK MANAGEMENT
World Bank
SME Finance in Chile : Enhancing Efficiency of Support Programs
geographic_facet Latin America & Caribbean
Chile
description This review of small and medium-sized enterprise (SME) finance support programs aims to enhance the efficiency of SME finance support in Chile. Chile’s good economic policies have successfully promoted growth, but inequality has remained high. Supporting access to finance for SMEs is an important part of developing more equal opportunities in Chile. The purpose of the analysis is to identify options for strengthening corporacion de fomento de la produccion (CORFO’s) role in addressing the SME finance gaps arising from market failures. The study focuses on determining if the various partial credit guarantee (PCG) programs are efficient and optimal in their design and how CORFO’s role can be expanded to support SMEs. To achieve a new more complex role, the study also considered that CORFO as an institution needed to be more self-contained and autonomous in terms of financial risks and reserving, and have a corporate structure more akin to a public owned corporation rather than a budget supported state agency. In order for the programs to have the desired effects, they must adequately address the gap, be effectively implemented, and be cost efficient. The paper is organized as follows: section one gives summary, section two gives introduction. Section three analyzes the gap in finance for SMEs in Chile to establish the relevance of the programs. Section four provides an overview of programs in support of SME finance, the implementation effectiveness, and the associated costs. Sections five to seven presents recommendations.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title SME Finance in Chile : Enhancing Efficiency of Support Programs
title_short SME Finance in Chile : Enhancing Efficiency of Support Programs
title_full SME Finance in Chile : Enhancing Efficiency of Support Programs
title_fullStr SME Finance in Chile : Enhancing Efficiency of Support Programs
title_full_unstemmed SME Finance in Chile : Enhancing Efficiency of Support Programs
title_sort sme finance in chile : enhancing efficiency of support programs
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/327171608240487791/SME-finance-in-Chile-enhancing-efficiency-of-support-programs
http://hdl.handle.net/10986/34954
_version_ 1764482007305289728