In the last few years, there has been growing recognition of the importance of small and medium enterprises (SMEs) for job creation and economic development, not just in emerging economies but in developed countries as well. The impact of the financial crisis that began in 2008 highlighted the importance of access to finance for the SME sector as particularly in need of attention. 1 Notwithstanding this increase in interest, there is still limited information available on best practices to support SMEs, particularly on effective policy tools to support SME access to finance.

Research conducted under the aegis of the G-20 Global Partnership for Financial Inclusion (GPFI), IFC, and others during the last four years points to some clear findings. 2 SMEs are critical for job growth, but the level of growth depends significantly on SME access to finance, and on the so-called "gazelles," the fast-growing SMEs that produce the majority of new jobs.