Small Business, Big Growth: How Investing in SMEs Creates Jobs
This report aims to capture the key constraints that SMEs typically confront and provide a methodology better suited to measuring the job creation effects of SME finance initiatives by DFIs like IFC.
IN SUMMARY
- This report examines the relationship between SME loan size and job creation.
- Every $1 million loaned to SMEs in developing countries is associated with the creation of an average of 16.3 direct jobs created over two years.
- Extrapolating from the model shows that lending activities by IFC’s clients was related to the creation of an estimated 4.7 million to 6.1 million jobs in 2018.
