Event: IMPACT= Driving SME investment in emerging economies

Small and medium-sized enterprises (SMEs) are the backbone of emerging economies, driving innovation and providing valuable employment opportunities. However, the lack of suitable finance is a well-known constraint on the growth of these businesses.
The SME financing gap in developing countries is estimated at $4.1 trillion. The answer seems obvious: increase supply. But the persistence of the problem tells us it is not so easily solved. The SME financing landscape is complex, and because the financing needs of these businesses are varied, the solutions must be varied too.
In this session we explored the challenges and opportunities for SME growth in emerging economies, and the role investors can play to create a thriving SME sector in these countries.
The discussion examined important questions: What are the barriers to success for SMEs in these markets? What is the most effective way to bridge the financing gap? How can we foster financial and business model innovation to meet the diverse needs of these businesses? And how do we measure the true development impact of improved access to finance for SMEs
Speakers included
Chair: Jonathan Leape, Executive Director, International Growth Centre and Associate Professor of Economics, London School of Economics
Steven Ayres, Development Economist, British International Investment
Tim Dobermann, Director of Research, International Growth Centre
Jacob Kholi, Chief Executive and Investment Officer, Growth Investment Partners Ghana
Hardika Shah, Chief Executive, Kinara Capital
Maria Smith, Chief Impact Officer, British International Investment
This event was delivered in partnership with the International Growth Centre (IGC) and drew on the findings of two recently published reports: the IGC's report on why SMEs matter and their impact in developing countries; and BII's report on financing SMEs, which looks at the ingredients to successfully support these businesses.