Small and medium enterprises (SMEs) play a critical role in global economic development. They are the engines of innovation and new job creation and yet they find it difficult to obtain financing.
Financing from banks has become increasingly expensive and therefore difficult to access. Given the importance of SMEs, we propose some innovative solutions to enable better access to financing.
We also take a closer look at the economic importance of SMEs, the financing market and the strengths and weaknesses of current capital market mechanisms. Looking forward, we outline recommendations that will be imperative to the future growth of SMEs.