The World Bank's Development Research Group, in collaboration with its Finance and Markets Global Practice, in Kuala Lumpur has just produced a new Research & Policy Brief, entitled “Addressing the SME Finance Problem,” written by Facundo Abraham and Sergio Schmukler. It shows that although small and medium enterprises (SMEs) provide employment to a large share of the labor force in developed and developing countries, they receive limited external funding compared to large firms and face a substantial financing gap.
The Brief explores:
- Why are SMEs more financially constrained than larger firms?
- What are some feasible and innovative solutions to help SMEs obtain better access to finance?
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