Digital Frontiers

Micro, Small & Medium Enterprises

ARTICLES

Focus on Digitisation and the Impact of COVID-19 on MSEs

The COVID-19 pandemic, termed ‘the Great Disruption’ hit the global economy in 2020. Whereas 2020 was defined by divergent impact within and between economies, 2021 will be defined by multispeed and divergent recovery in the global and local economy. Low-income countries continue to face grimmer economic prospects due to limited access to COVID-19 vaccines and…

Risk Sharing Facilities: Mobilizing Finance for Women-led MSMEs

Women-led MSMEs may be perceived as too small or too risky to attract finance. Risk sharing facilities (RSF) can reduce the perceived and real risks of lending to women entrepreneurs, who are underserved by the formal financial sector. The purpose of this toolkit by AFI is to assist members to conceptualize and design risk-sharing facilities…

LISTEN NOW: Designing for Empowerment: How can we inclusively serve micro-entrepreneurs to facilitate growth?

Micro, Small and Medium Enterprises (MSMEs) play a major role in most economies, particularly in developing countries. There are 160 000 million in developing and emerging markets and of this number, 87% are micro enterprises. In this webinar Elizabeth Friend, Ethel Mupambwa and Jackie O’Neil explore the key issues they face and how we can design…

Policy Catalogue on MSME Financing in Africa

Micro, Small and Medium Enterprises (MSMEs) have been cited as one of the strongest drivers of economic development, job creation and innovation globally. Given the multitude of MSMEs policies in Africa, governments have clearly acknowledged this challenge and are implementing policies aimed at supporting MSME’s access to finance and, by extension, growth. This policy catalogue…

Virtual Workshop: Assessment of the Impact of COVID-19 on Low- and Moderate-Income Populations, and Micro, Small, and Medium Enterprises

MSC (MicroSave Consulting), with support from the Swiss Capacity Building Facility (SCBF), conducted a workshop, “Assessment of the impact of COVID-19 on MSMEs in Asia and Africa” through a webinar on 28th January, 2021. In this webinar, panelists discussed the impact of the pandemic on financial health, especially of the MSME sector and low- and moderate-income…

A Policy Framework for Women-led MSME Access to Finance

Access to finance for women-led-MSMEs can lead to an increase in productive assets, productivity, and stronger economic growth, but access to finance is arguably the most binding constraint to their growth. This Policy Framework proposes six pillars that regulators can adopt to facilitate access to finance for women-led MSMEs. You can download the report here.…

Survey Report on Alternative Finance for MSMEs

MSMEs constitute 90 percent of all businesses and more than 50 percent of the employment globally. In emerging markets, formal MSMEs contribute up to 40 percent of national income. This report by AFI reflects on the economic and social importance of the MSME sector in emerging economies. It explores the significance of available research on…

Managing Risks (More) Effectively: Rethinking Insurance for MSMEs

MSMEs form the backbone of many economies globally and give rise to economic growth, employment and innovation. Whilst COVID-19 has especially exposed the vulnerable MSMEs to a high level of risk, the pandemic is just one infrequent and specific risk. Across the world there is a lack of adequate MSME insurance. This report by CENFRI  on…

Regional Policy Framework for Enhancing MSME Financing Ecosystem in Africa

The regional policy framework is intended to identify the best practices of MSME financing policy, explore pathways and enabling factors of implementable action plans, and provide policy recommendations to financial sector regulators with regard to access to finance for MSMEs in Africa.

Scoping and Assessment Report – MSME Access to Finance Ecosystem in Africa

The objective of this document is to provide a scope of what has to be addressed in a framework to enhance the MSME financing ecosystem in Africa, and to assess what the most important elements are. This document and the Policy Framework are best read together for a better understanding.

Alternative Credit Scoring of Micro-, Small and Medium-Sized Enterprises

MSMEs account for more than 98% of the business establishments in Hong Kong and employ about 46% of the workforce in the private sector. Yet many face significant challenges in securing a bank loan due to their lack of financial information and the significant burden faced by banks in conducting credit assessments and monitoring related…

COVID-19 and SME Failures

This paper estimates the impact of the COVID-19 crisis on business failures among small and medium size enterprises (SMEs) in seventeen countries using a large representative firm-level database. Done so by using a simple model of firm cost-minimization and measure each firm’s liquidity shortfall during and after COVID-19. The framework allows for a rich combination…

Promoting Digital and Innovative SME Financing

Access to finance is a critical barrier for SMEs to start, sustain and grow their businesses.  About half of formal SMEs do not have access to formal credit, and instead rely on internal funds, or cash from friends and family, to launch and initially run their business.  An extensive survey of SMEs in 135 countries…

G-20: Data Enhancement and Coordination in SME Finance Report

Annual aggregate data is captured annually for only a minority of the world’s countries by the IMF, OECD and others.  Little if any data is available at country level on financing for women entrepreneurs, young entrepreneurs or other key segments of interest to GPFI’s Financial Inclusion Action Plan.  Data collected by the IFIs and DFIs…

Global State of Small Business

The Global State of Small Business Report, based on the Future of Business Survey, is an ongoing research collaboration by Facebook, the Organisation for Economic Co-operation and Development (OECD), and the World Bank to survey small and medium-sized businesses around the world over a six-month period in the context of COVID-19. The aim of these…

Measuring Microfinance Impact: A Practitioner Perspective and Working Methodology

This paper results from a research project by the EIF on “Measuring Microfinance Impact in the EU. Policy recommendations for Financial and Social Inclusion” (MeMI). The aim of the project is to contribute to the debate whether microfinance is able to deliver the expected impact in terms of financial and social inclusion.

A Framework for Understanding the Financial Health of MSME Entrepreneurs

This paper presents CFI’s conceptual framework for understanding MSME financial health along with a survey instrument that measures indicators for each factor in the framework.

The Global State of Small Business Report

The Global State of Small Business Report, based on the Future of Business Survey, is an ongoing research collaboration by Facebook, the Organisation for Economic Co-operation and Development (OECD), and the World Bank to survey small and medium-sized businesses around the world over a six-month period in the context of COVID-19. The aim of these…

MSME Finance Gap Data

Micro, Small and Medium Enterprises (MSMEs) are one of the strongest drivers of economic development, innovation and employment. Access to finance is frequently identified as a critical barrier to growth for MSMEs. Creating opportunities for MSMEs in emerging markets is a key way to advance economic development and reduce poverty. The private and public sector…

Payment facilities and Africa’s platform ecosystem: What does the data tell us?

Digital platforms, also known as multi-sided marketplaces, are seamlessly matching customers to suppliers of goods and services in e-commerce and other emerging industries, thereby creating new pathways for individuals to participate in the digital economy. At the heart of the rapid rise of Africa’s digital platforms are the payment methods and channels that facilitate and…

Designing a Credit Facility for Women Entrepreneurs

In October 2012, the Government of Ethiopia launched the Women Entrepreneurship Development Project (WEDP), with the aim of increasing the earnings and employment of growth-oriented micro and small enterprises (MSEs) owned or partly-owned by women entrepreneurs in Ethiopia. In doing so, it created the first ever women entrepreneur focused line of credit in Africa, and…

G20 Action Plan on SME Financing: Self-Assessment Consolidated Progress Report 2019

This report represents the comparison of the 2019 self-reported responses against those provided by the G20 countries in 2017.

Unlocking Credit For Women-Owned Enterprises in Southeast Asia through Value Chain Digitization

This report by Women’s World Banking explores the answers to three key questions: Which value chains in Cambodia, Indonesia, the Philippines, and Vietnam represent priority opportunities to develop increased credit offerings for women-owned MSMEs (micro-, small- & medium-sized enterprises) through value chain digitization? What forms of value chain digitization would be best suited to women-owned…

Zooming in on Informal Savings Mechanisms in Zambia

This study of informal savings mechanisms (ISMs) and their users was conducted in three provinces of Zambia in 2019. Commissioned by the Savings at the Frontier (SatF) programme (a partnership between Mastercard Foundation and Oxford Policy Management) and Financial Sector Deepening Zambia (FSDZ) it was conducted by Oxford Policy Management in collaboration with Paul Rippey…

Sports betting and its Relationship to Digital Credit: A Case Study for East Africa

This research paper by Robinson Mbae and Edmond Machengete explores the relationship of sports betting with digital credit, looking at how these have prevailed, the common consumer and amounts bet and borrowed. It also explores the role of regulation and education, and why its impact on financial inclusion and exclusion. You can also watch a recording…

SME Financial Inclusion for Sustained Growth in the Middle East and Central Asia

This paper by the IMF offers empirical evidence that greater financial inclusion of small and medium enterprises (SMEs) can promote higher economic growth and employment, especially in the Middle East and Central Asia regions. Firstly the report shows that countries with higher SME financial inclusion exhibit more effective monetary policy transmission and tax collection. Secondly,…

Alternative data transforming SME finance

Access to financing remains one of the most significant constraints to the survival, growth, and productivity of micro, small, and medium enterprises (SMEs). The SME credit gap has proven to be an enduring structural feature across both developing and developed markets, even in countries that have enacted a variety of policy measures to support SMEs…

Emerging SMEs—Secrets to Growth from Micro to Small Enterprise

This analysis, conducted in three markets in Latin America and the Caribbean, highlights the characteristics of SME owners whose businesses have overcome significant hurdles and grown from their initial micro size.