Date post: | 29-Jan-2015 |
Category: |
Economy & Finance |
Upload: | sme-finance-forum |
View: | 112 times |
Download: | 0 times |
Alternative Finance for SMEsMatthew GamserHead, SME Finance Forum and Women’s Finance Hub
SME Finance Forum and Women’s Finance Hub
Promotes and disseminates knowledge and good practices to accelerate financial inclusion for SMEs and women entrepreneurs
Owned by G20 Global Partnership for Financial Inclusion (GPFI) and managed by the International Financial Corporation (IFC)
IFC SME Products
IFC MSME Financial Intermediary Portfolio, Jun 2013
Volume of MSME Loans by IFC MFI and SME Clients
MSME Finance Gap
45-55% of MSMEs have unmet financial needs
Access to Finance is a Major Constraint for SMEs
Challenges faced by HGSMEs in emerging economies
Challenges faced by formal SMEs in emerging economies
High Growth SMEs Create Disproportionate Number of Jobs in Emerging Economies
According to the Enterprise Survey, HGSMEs consist of 16.4% of SMEs but are responsible for 38% of job growth
SME Financing Needs Vary by Stage of Development
HGSMEs Need Innovative Financing Structures
Banks are not incentivized to seek out and back high-growth SMEs. Yet these high-growth firms have not yet reached the scale to access capital markets.
Private equity (PE) is incentivized to seek out high-growth SMEs, but reaches only a small fraction of them due to high transaction costs and information asymmetries.
Leasing
Supply Chain Finance
IFC provides essential working capital to firms in emerging economies, propelling goods through the economic value chain
Private Equity
Investments by PE funds in SMEs produced a growth rate of 18%, almost twice the rate of job growth in non-SMEs (9.7%)
Among IFC PE funds, there is a positive correlation between fund returns and job creation
Crowdfunding
Importance of Financial Infrastructure for SMEs
Investment Unlocked Through Moveable Collateral Projects Dwarfs IFC Direct Investment in China and Ghana
On the Web at
www.smefinanceforum.org
www.womensfinanhub.org
LinkedIn Group: SME Finance Forum
Twitter: @SMEFinanceForum