About Danilo Valerio MasciaDanilo Valerio Mascia is assistant professor in banking at the Nottingham University Business School – The University of Nottingham (United Kingdom).
By Danilo Valerio Mascia. Posted May 20, 2018
It is widely accepted that small and medium-sized enterprises (SMEs) represent the backbone of most economies. Not surprisingly, the story is mostly the same across the globe. For instance, Yoshino and Taghizadeh-Hesary (2014) report that SMEs account for almost 98% of all enterprises in Asia, offering jobs to around 66% of the workforce. In the European Union, the data offer a similar picture. In fact, SMEs represent 99% of all non-financial enterprises and account, on average, for 67% of total employment (European Commission 2017). Overall, such figures undoubtedly highlight how pivotal SMEs are for the functioning of the real economy.
Bank credit is a crucial financing tool for micro, small, and medium-sized enterprises (MSMEs) given their difficulty in entering equity markets. However, accessing bank credit is not as easy as one might think. Specifically, MSMEs often face difficulties when they need to provide valid collateral to loan officers (Cowan, Drexler, and Yañez, 2015).
Subscribe / Connect to Asia Pathways
- Agriculture and natural resources
- Capacity development
- Climate change
- Finance sector development
- Governance and public sector management
- Industry and trade
- Information and Communications Technology
- Private sector development
- Regional cooperation and integration
- Social development and protection
- Urban development
- Video Blog
- COVID-19 and policy responses through the lens of global asset markets and capital flows
- Overcoming the challenge of energy efficiency financing in Asia
- World competition among cities: City trends and the framing of a livable city
- Exploring the link between climate change and sovereign risk
- COVID-19 reminds us to prioritize “water supply, sanitation, and hygiene” (WASH) to reduce child mortality