SME Financing: When Micro Becomes Too Small
SMEs in developing countries have had great success due to microfinance. Growth in income and employment are a few of the key benefits SMEs have experienced. Katharina Sommerrock, Philanthropy Advisor at LGT writes for Finews.asia.
However, these benefits are short-lived due to limited financial opportunities for SMES in developing countries. They’ve matured far beyond commercial banks and microfinance institutions, which has impaired their access to funding.
SMEs are falling into a grey area labeled as the “Missing Middle,” which is highlighted mostly in low-income countries. Finance institutions are recognizing this gap and implementing measures to create appropriate financing services.