Small and medium-sized enterprises (SMEs) account for most employment and much of the production in emerging Asian economies. However, their potential to enhance growth, innovation, and productivity is often stymied by lack of access to finance as well as inadequate capacity and training. SMEs have difficulties accessing both traditional bank lending channels and capital markets. Their limited access to finance is mainly due to the small size of their business, lack of reliable data, lack of collateral, and market information asymmetries. Policy interventions and institutional developments that could ease these constraints on the supply side could contribute substantially to the growth potential of these countries. For example, development of comprehensive and integrated SME credit databases and credit-scoring methodologies could enable financial institutions to reliably score credit risk, thereby reducing asymmetry. Crowd funding and hometown investment trust funds provide better access to finance for small business in lieu of traditional capital markets. Training programs can help increase human capital. Financial education and training programs can also enhance the ability of SME owners to access capital.
Analyze supply-side policies that can promote access to finance by SMEs and generally foster higher SME productivity and growth.
This project covers four main topic areas:
- Technological improvement
- Skill development (education and vocational school, training for specific skills)
- Capital raising (improving financial access such as bank loans, moneylenders, crowd funding, and venture capital; improving credit databases; and tailoring banking regulation)
- Infrastructure development such as industrial zones, roads, railways, and ports
The first topic area focuses on ways to facilitate technology transfer to SMEs to improve their productivity. The second refers to development of human capital, including sector-specific training, management skills, and financial education. The third aspect refers to ways to reduce information asymmetries for SMEs, including development of credit registries, credit bureau, and credit-rating agencies; establishment of credit guarantee corporations; development of stock markets aimed at SMEs; and promotion of alternative funding platforms such as crowd funding and hometown investment trusts. The fourth area explores how infrastructure investment can attract SMEs and promote their development.
The project will gather country authorities, well-known scholars and experts on micro, small, and medium-sized enterprise credit databases and credit scoring. It will actively promote a discussion on the four main components above.
- Conference with experts, academics, and policy makers
- ADBI working papers
- A special journal issue
How to register
IFABS, University of Sheffield, University of Nottingham
Time of event
Day 1: 14:00 - 17:30
Day 2: 09:00 - 17:30