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 rural development
- Industry and Trade
- Information and Communications Technology
- Poverty Reduction
- Public-Private Partnership
- Regional Cooperation
- Social Development and Poverty
- Video Blog
- Tackling the challenge of growing inequality in Asia
- Fintech adaptation can bridge Asia’s SME financing divide
- Greater partnerships for the effective management of labor migration in Asia
- A step forward in attracting private sector financing for infrastructure projects
- The impact of trade opening on developing Asia: Evidence and policy implications
- Is female entrepreneurship a coping strategy during crises? on
- Do solar lights help kids do better in school? on
- Sustainable funding schemes for the development of waste management projects in Asia on
- Minimizing the Cost of Fecal Sludge Management through Co-Treatment on
- Energy Efficiency: The Cornerstone for Achieving SDG 7 on