Friday, April 04, 2014

Tweet

[IWS] ADB: ADB-OECD STUDY ON ENHANCING FINANCIAL ACCESSIBILITY FOR SMEs: LESSONS FROM RECENT CRISES [4 April 2014]

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

 

Asian Development Bank (ADB)

 

ADB-OECD STUDY ON ENHANCING FINANCIAL ACCESSIBILITY FOR SMEs: LESSONS FROM RECENT CRISES [4 April 2014]

http://www.adb.org/publications/adb-oecd-study-enhancing-financial-accessibility-smes-lessons-recent-crises

or

http://www.adb.org/sites/default/files/pub/2014/adb-oecd-study-enhancing-financial-accessibility-smes.pdf

[full-text, 209 pages]

 

Description

 

Improving small- and medium-sized enterprises (SME) access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies.

 

This report takes a comparative look at ADB and Organisation for Economic Co-operation and Development (OECD) experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development.

 

Conclusion

 

The study concludes that Asia’s largely bank-centered financial systems require reduction of the supply–demand gap in lending as a core policy pillar to improve SME access to finance. Diversification of financing models is another core policy pillar that can better serve various financing needs of SMEs and expand their financial accessibility, which includes the development of capital market financing for SMEs as a venue for providing long-term growth capital.

 

The study suggests five core elements to developing an SME capital market:

• demand creation focusing on target segments such as social enterprises and SMEs led by women, with design of a low-cost structure for SME access to capital markets;

• establishment of an investor base to provide initial risk capital for potential growth-oriented SMEs, especially through fostering the venture capital industry;

• strengthening market literacy for potential SME issuers and investors;

• investor protection mechanisms backed by proper laws and regulations; and

• facilitation measures for access to an SME market backed by a comprehensive policy support framework with well-organized policy coordination among regulators and line ministries responsible for SME sector development and access to finance.

 

Contents

• Foreword

• Emerging Trends in SME Finance and Policies

• Bank Lending Efficiency

• Diversified Financing Models

• Challenges for SME Access to Finance: Lessons from Experiences of ADB and OECD

 

 

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

 

 




Links to this post:

Create a Link



<< Home

This page is powered by Blogger. Isn't yours?