Assessing the Financial Gap for Smaller Enterprises in the Developing World
This joint article by IFC and McKinsey finds that the unmet needs for credit by all emerging-market micro, small, and medium enterprises is significant, despite the importance of this sector to economic development and job creation.
In developing countries, formal micro, small, and medium enterprises represent about 45 percent of employment and about 33 percent of gross domestic product. Those percentages are even greater when including informal enterprises’ contributions. Despite their importance, more than two thirds of these businesses have no access to finance from the formal financial sector.
The article, Two Trillion and Counting, offers the first comprehensive assessment of the global credit gap, ranging from $2.1 trillion to $2.5 trillion, and some implications for public and private sector actors as they seek to close that gap.
Download the full article online.
For more information contact:
Leila Search, Program Officer
Phone: (202) 473-7511
E-mail: LSearch@ifc.org