Publication: Colombia : Bank Financing to Small- and Medium-Sized Enterprises (SMEs) in Colombia
Date
2007-12
ISSN
Published
2007-12
Author(s)
World Bank
Abstract
Small-and Medium-Sized Enterprises
(SMEs) represent an important part of the Colombian economy,
although they are not well documented in official
statistics. In particular, there does not exist sufficient
periodic data as to their characteristics, evolution, or
overall contribution to the economy - in most cases, SMEs
tend to be bundled together with micro enterprises in
official statistics. The true size of the market is
understated due to informality. Lack of access to finance
has been cited as an important problem in recent surveys.
However, there are significant differences in perceptions as
to the size and causes of the financing gap. While there is
strong evidence to support its existence following the 1999
crisis, the significant growth of this market in recent
years raises some questions as to whether such perceptions
remain valid. One of the lessons of the last few years is
that banks will expand SME lending on their own accord - in
spite of the presence of important constraints - when they
perceive the attractiveness of this market and have begun to
saturate easier (in terms of business model) market segments
such as corporate and consumer lending. However, in order to
ensure the sustainable growth of this market, continued
strong macroeconomic performance and a stable and consistent
policy framework in the financial sector have been
identified as important considerations.
Citation
“World Bank. 2007. Colombia : Bank Financing to Small- and Medium-Sized Enterprises (SMEs) in Colombia. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/8dc72b09-1332-5356-8f52-065077397925 License: CC BY 3.0 IGO.”