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SME Financing

Analyzing best practices in SME Financing among our members

In the OECD area, small and medium-sized enterprises (SMEs) are the predominant form of enterprise, accounting for approximately 99% of all firms. They play a key role in national economies around the world and contribute substantially to (1) gross domestic product, (2) employment and (3) innovation.

In this project, we analyze best practices in SME Financing among our members. It covers a two-stage remit to undertake a feasibility and comparison study on current SME funding, eco-system development and support platforms.

The project is sponsored by Astana International Financial Centre.

The purpose of the SME Financing project is to lead the development of an enabling framework to –

  1. stimulate innovation and entrepreneurship; and
  2. create a business environment where SMEs can thrive by exploiting the necessary strategic resources (incl. access to finance, access to markets, management capacity, knowledge networks, and skills) to scale their businesses.

The WAIFC SME Financing Working Group has been established to identify and exchange best practices in the following areas:

  1. legal framework and risk evaluation;
  2. role of technology, SME platforms, and SME hubs;
  3. prudential banking constraints and policy measures;
  4. financing instruments, including alternative financing and other international financial centers’ experience in establishing capital market access for SMEs; and
  5. access to and sustainable engagement with a broad community of stakeholders, investors and financial hubs.

The objective of the SME Financing project is to identify best practices in:

  1. Legal ecosystem and risk evaluation
  2. The role of new FinTechs
  3. Prudential banking constraints
  4. Alternative financing and our members' experience in establishing SME banks
  5. The role of SME platforms – from crowdfunding, classic portals to multilateral trading facilities (MTFs)
  6. The role of SME hubs