Scaling-Up SME Access to Financial Services in the Developing World

This report provides a framework for the G-20 Leaders to understand gaps and challenges in small and medium enterprise (SME) financing. It reviews literature on SME financing in the developing world, discusses the analysis of 164 cases of SME finance interventions and provides recommendations for sustainable scaling-up of SME access to financial services.

The report explores the role of SMEs in economic development. It discusses non-financial and financial barriers to SME development, and examines why access to finance remains a major challenge for SMEs. It studies various SME finance models from around the world.

The report recommends that G-20 Leaders implement a four fold action plan for scaling-up SME financing. This involves:

• Endorsing recommendations for policymakers in developing countries to establish an enabling environment for SME access to finance;
• Establishing a global SME Finance Forum as a knowledge sharing and monitoring platform;
• Funding winners of the SME Finance Challenge, and establishing a long term, sustainable funding framework;
• Establishing a platform for collecting cross country SME finance data.