Nasr, SaharPearce, Douglas2017-06-132017-06-132012https://hdl.handle.net/10986/27098The Arab Spring in the Middle East and North Africa (MENA) region has brought to the forefront key challenges: the need to create job opportunities, equal access, a level playing field, transparency and accountability, and a fair and competitive environment. Crony capitalism, the privileged access of certain elites to favorable legal and regulatory treatment, access to markets, and the coincidence of political and economic power, was a major concern contributing to the uprising. Many saw privilege and corruption as the source of unemployment and inequality, effectively raising barriers to entry and growth for the majority of entrepreneurs. At the same time, practices such as connected lending and preferential land allocations, contributed to poor performance of key institutions, underpinning the market economy. It is critical for the MENA countries to achieve the aspirations of their people and attain sustainable and inclusive development by expanding private-led employment and creating entrepreneurship opportunities. This report assesses the supply and demand of financial services to small and medium enterprises (SMEs) in the MENA region, as well as the regulatory, institutional and policy environment that determines the cost, risk, and scale of SME finance. Emerging and promising SME finance models for banks, investors, government and regulators are outlined. These could significantly improve the outreach, viability, risk management, and development impacts of SME finance in the MENA region. SMEs need access to longer term credit products and equity, in addition to working capital loans and trade finance. They also need payment and card services, deposit facilities, liquidity management, risk management tools and insurance. The principal role of the state is as an enabler and regulator, providing the financial infrastructure, and legal and policy frameworks that financial institutions need to be able to meet the range of SME financial needs profitably. All this will contribute to attaining a more sustainable and inclusive system that can play a more important role in economic growth, and the regions prosperity.en-USCC BY 3.0 IGOACCESS TO BANK ACCOUNTSACCESS TO BANKINGACCESS TO BANKING SERVICESACCESS TO CREDITACCESS TO EMPLOYMENTACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGACCESS TO INFORMATIONACCESS TO INSURANCEACCESS TO MARKETSACCOUNTS RECEIVABLEADMINISTRATIVE COSTSADVANCED TECHNOLOGYADVISORY SERVICESAPPROVAL PROCESSESASSET FINANCINGAVAILABILITY OF CREDITBALANCE SHEETBANK ACCOUNTBANK ACCOUNTSBANK COMPETITIONBANK CREDITBANK LENDINGBANK LOANBANK LOANSBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKSBARRIERS TO ENTRYBIASESBORROWERBORROWINGBUSINESS ACTIVITYBUSINESS CREDITBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT SERVICESBUSINESS PLANCAPACITY BUILDINGCAPITAL ADEQUACYCAPITAL FORMATIONCAPITAL MARKETCAPITAL MARKETSCAPITAL STRUCTURECASH FLOWCASH MANAGEMENTCOLLATERALCOLLATERAL REQUIREMENTSCOMMERCIAL BANKSCONSUMER PROTECTIONCORRUPTIONCREDIT BUREAUCREDIT BUREAUSCREDIT FACILITIESCREDIT GAPCREDIT GUARANTEECREDIT HISTORYCREDIT INFORMATIONCREDIT INFORMATION SYSTEMCREDIT MARKETSCREDIT PRODUCTSCREDIT REGISTRIESCREDIT REPORTINGCREDIT RISKCREDIT SCORECREDIT SCORESCREDIT SCORINGCREDITORCREDITORSCREDITWORTHINESSCUSTOMER SERVICEDEBTDEPENDENCE ON TRADE CREDITDEPOSITDEPOSITSDEVELOPMENT BANKDEVELOPMENT CORPORATIONDISCLOSURE REQUIREMENTSDIVERSIFICATIONECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC EMPOWERMENTECONOMIC GROWTHELECTRONIC PAYMENTSELIGIBILITY CRITERIAEMPLOYEREMPLOYERSEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESEMPLOYMENT OPPORTUNITYENFORCEMENT MECHANISMSENTERPRISE DEVELOPMENTENTERPRISE REGISTRATIONENTREPRENEURENTREPRENEURSENTREPRENEURSHIP OPPORTUNITIESEQUAL ACCESSEQUITY CAPITALEQUITY FINANCEEQUITY FUNDSEQUITY INVESTMENTSEQUITY INVESTORSEXPENDITURESFINANCE COMPANIESFINANCIAL ACCESSFINANCIAL CHALLENGESFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL NEEDSFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL SERVICEFINANCIAL SYSTEMFINANCING NEEDSFIXED CAPITALGENDERGREATER ACCESSHIGH LEVELS OF ACCESSHUSBANDINEQUALITYINFORMAL ECONOMYINFORMATION ASYMMETRIESINFORMATION ASYMMETRYINSTITUTIONAL REFORMSINSURANCE PENETRATIONINTEREST RATESINTERNAL FUNDSINTERNATIONAL BANKINTERNATIONAL FINANCEJOB CREATIONJOB OPPORTUNITIESKEY CHALLENGESLACK OF ACCESSLENDERLENDING DECISIONSLENDING TECHNIQUELENDING TECHNIQUESLEVELS OF CREDITLINE OF CREDITLIQUIDITY RISKSLOANLOAN APPLICATIONLOAN OFFICERLOAN OFFICERSLOAN PORTFOLIOLOAN PORTFOLIOSMARKET CONSTRAINTSMARKET ECONOMIESMARKET ECONOMYMFIMICRO ENTERPRISESMICRO FINANCEMICRO FINANCE INSTITUTIONMICRO LENDINGMICROFINANCEMICROFINANCE INSTITUTIONSMONEYLENDERSMOVABLE COLLATERALMUTUAL FUNDSNEEDS OF WOMENNEW MARKETSONLINE COMMUNITYOUTREACHOVERDRAFTPAYMENT SERVICESPAYMENTS SERVICESPENETRATION RATEPENETRATION RATESPENSION FUNDSPOLICY ENVIRONMENTPRICE DISCOVERYPRIVATE CREDITPRIVATE EQUITYPRIVILEGED ACCESSPROFITABLE BUSINESSPROPERTY AS COLLATERALPUBLIC CREDITREGISTRATION REQUIREMENTSREGULATORY POLICYREPOSSESSIONRESERVE REQUIREMENTRESERVE REQUIREMENTSRETAIL BANKINGRETAIL BANKSRISK MANAGEMENTSMALL BUSINESSSMALL BUSINESS LENDINGSMALL ENTERPRISESMALL ENTERPRISESSMALL LOANSSOCIAL DEVELOPMENTSTART-UPSTART-UPSSTOCK MARKETSSUPPLY CHAINTERM CREDITTRADE CREDITTRANSACTION COSTSTREASURY BILLSUNEMPLOYMENTUNIONVENTURE CAPITALVENTURE CAPITAL FUNDVENTURE CAPITAL FUNDSVILLAGESWOMEN ENTREPRENEURSWOMEN IN BUSINESSWORKING CAPITALWorking PaperWorld Bank10.1596/27098