International Finance Corporation2015-04-152015-04-152010-10https://hdl.handle.net/10986/21750Small 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.en-USCC BY-NC-ND 3.0 IGOACCESS INDICATORSACCESS TO BANK LOANSACCESS TO CAPITALACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGACCOUNTS RECEIVABLESALTERNATIVE FINANCINGALTERNATIVE INVESTMENTANGEL INVESTORSBALANCE SHEETBANK CREDITBANK FINANCINGBANK LENDINGBANK LOANBANK LOANSBANKING RELATIONSHIPBANKING SUPERVISIONBANKING SYSTEMSBANKRUPTCYBANKSBORROWERBORROWINGBRIBEBRIBESBUSINESS ANGELBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT BANKBUSINESS EXPERIENCEBUSINESS LENDINGBUSINESS LOANSBUSINESS PLANNINGBUSINESS PLANSCAPACITY BUILDINGCAPITAL FINANCECAPITAL FORMATIONCAPITAL MARKETSCAPITAL STRUCTURECASH FLOWCASH FLOWSCASH MANAGEMENTCOLLATERALCOLLATERAL REQUIREMENTSCOMMERCIAL BANKCOMMERCIAL BANKSCOMMUNITY BANKSCOMPLIANCE COSTCOMPLIANCE COSTSCORRUPTIONCREDIT BUREAUCREDIT BUREAUSCREDIT CRUNCHCREDIT CRUNCHESCREDIT FACILITIESCREDIT GAPCREDIT GUARANTEESCREDIT HISTORIESCREDIT HISTORYCREDIT INFORMATIONCREDIT INFORMATION SYSTEMSCREDIT PRODUCTSCREDIT REGISTRIESCREDIT REGISTRYCREDIT RELATIONSHIPCREDIT REPORTINGCREDIT REPORTSCREDITORCREDITWORTHINESSDEBTDEBT SECURITIESDEPOSITDEPOSIT ACCOUNTSDEPOSIT RELATIONSHIPSDEPOSITSDEVELOPMENT FINANCEDEVELOPMENT FINANCE INSTITUTIONSEARNINGSECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC POLICYECONOMIES OF SCALEELIGIBILITY CRITERIAEMPLOYEREMPLOYMENT GROWTHENTERPRISE DEVELOPMENTENTREPRENEURENTREPRENEURSENTREPRENEURSHIP FINANCINGEQUITY CAPITALEQUITY FINANCEEQUITY FINANCINGEQUITY FUNDSEQUITY INVESTMENTEQUITY INVESTMENTSEQUITY INVESTORSEXTERNAL FINANCEEXTERNAL FINANCINGFARMERSFINANCE ACCESSFINANCESFINANCIAL ACCESSFINANCIAL EDUCATIONFINANCIAL INFRASTRUCTUREFINANCIAL INFRASTRUCTURESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIATIONFINANCIAL KNOWLEDGEFINANCIAL LITERACYFINANCIAL MARKETSFINANCIAL NEEDSFINANCIAL PRODUCTFINANCIAL REGULATIONFINANCIAL REGULATORFINANCIAL REGULATORSFINANCIAL SERVICEFINANCING FACILITIESFINANCING NEEDSFISCAL POLICIESFIXED ASSETSFIXED CAPITALFIXED CAPITAL INVESTMENTFIXED COSTSFORMS OF CREDITGENDERGOVERNMENT INTERVENTIONSGOVERNMENT POLICIESGUARANTEE SCHEMESHUMAN CAPITALINCOME GROUPINFORMAL ECONOMYINFORMAL FINANCEINFORMAL FINANCINGINFORMATION INFRASTRUCTUREINFORMATION SYSTEMINITIAL PUBLIC OFFERINGINTEREST RATEINTEREST RATE CEILINGSINTEREST RATESINTERNAL FINANCEINTERNAL FINANCINGINTERNATIONAL FINANCEINVESTMENT BANKINVESTMENT CAPITALINVESTMENT DECISIONSINVESTMENT OPPORTUNITIESINVESTMENT VEHICLESJOB CREATIONKEY CHALLENGELACK OF ACCESSLENDERLENDERSLINE OF CREDITLOAN AMOUNTLOAN APPLICATIONLOAN APPLICATION PROCEDURESLOAN PORTFOLIOMANAGEMENT EDUCATIONMARKET DEVELOPMENTMFIMFISMICRO ENTERPRISESMICRO FINANCEMICRO FINANCE INSTITUTIONMICROFINANCEMICROFINANCE INSTITUTIONSMORAL HAZARDMULTINATIONALOBSTACLES TO GROWTHOPERATING COSTSOUTREACHOVERDRAFTOVERDRAFTSOVERHEAD COSTSPARTIAL CREDITPAYMENT DEFAULTPOLICY DESIGNPOLICY ENVIRONMENTPRIVATE CREDITPRIVATE EQUITYPROFITABILITYPROPERTY AS COLLATERALPROPRIETORSHIPSPUBLIC CREDITPUBLIC FINANCEPUBLIC FUNDSRATES OF RETURNSRECESSIONREPOSSESSIONRISK MANAGEMENTRISK MITIGATIONRISKY BORROWERSSAVINGSSHADOW ECONOMYSMALL BUSINESSSMALL BUSINESS OWNERSSMALL BUSINESSESSMALL ENTERPRISESMALL ENTERPRISESSMALL LOANSSOCIAL DEVELOPMENTSOCIAL SECURITYSOURCES OF FINANCESPECIAL FINANCINGSTART-UPSTECHNICAL ASSISTANCETERM CREDITSTRADE CREDITTRADE FINANCINGUNIONVENTURE CAPITALVENTURE CAPITALISTSWORKING CAPITALWorking PaperInternational Finance Corporation10.1596/21750