Three Myths about SME Finance by CGAP

Our hands-on experience has revealed a number of mistaken assumptions about SME finance. I’ll highlight three core myths about SME finance:

• Myth #1: “There is a huge financing gap for SMEs – more funds are needed to close this gap”
• Myth #2: “Commercial banks know how to finance SMEs”
• Myth #3: “In order to foster economic growth it is important to provide finance to SMEs, no matter the method”