These course is intended to provide SMEs with the knowledge about MSME financing, credit information sharing, the role of credit information service providers, credit Reports, credit Score, and dispute resolution process.
This primer provides a quick reference on the “Magna Carta for Micro, Small and Medium Enterprises (MSMEs)”, a landmark legislation that defines the current national policy to promote, support, strengthen and encourage the growth and development of MSMEs. Enacted by the Philippine Congress in 1991 as Republic Act 6977, and amended by Republic Act 8289 in 1997, and further amended by Republic Act 9501 in 2008, the law is geared towards the development of the Filipino entrepreneurial spirit by providing a business environment conducive for MSMEs.
The SME Finance Forum LinkedIn provides an opportunity for financial experts to view the latest news, reports, data and discussions regarding the SME finance field. The group is comprised of more than 11,000 bank executives, investors, advisory service providers and financial technology experts, who share knowledge, spur innovation, and promote the growth of SMEs.
A new report by Fraedom reveals banks are working to address SMEs globally. According to the report, 61 percent of senior executives in the banks view SMEs as their current biggest growth opportunity, with a strong bias towards the medium enterprises (50-249 employees). Fintechs are also stepping up and becoming a catalyst for growth for SMEs, they are providing them with access to proper funding.
The report covered:
Having sufficient access to finance is an important determinant for the development of an enterprise. It is a well-known phenomenon that SMEs face different challenges when accessing finance than large scale enterprises (LSEs). LSE’s for instance, have direct access to capital markets whereas for SMEs this holds to a lesser extent or they have no access at all. Ultimately, the specific financing needs of SMEs warrant specific policy attention.
Erik Feyen, Lead Financial Sector Economist, FCI and Michael Casey, author and senior advisor at MIT Media Lab's Digital Currency Initiative presented The Truth Machine: Blockchain and the Future of Everything on Nov 5. View Feyen's presentation slides from the discussion.
As of 2018, the number of countries publicly committed to promoting financial inclusion tops 90 and continues to grow. Many of these countries’ financial regulators and supervisors are explicitly tasked with implementing policies and strategies on financial inclusion (I) alongside their core responsibilities for promoting micro- and macroprudential stability (S), financial integrity (I), and protecting financial consumers (P), collectively referred to as I-SIP.
The ease with which customers access digital financial services (DFS) can make such implementations appear deceptively simple – with just a click on a mobile phone and a customer will be able to make payments, save money, access credit, and even become insured. Launching a digital channel is not a simple endeavor however. It requires a relevant strategy, the right technology solution, the operational know-how, and a very good understanding of customers.
Tips and tools are revealed on how SMEs should approach seeking finance along with strategies to improve their success with gaining finance.
Utilizing online resources and guides can help SMEs learn more about alternative finance options.
“Industry associations such as the Federation of Small Businesses and Enterprise Nation, as well as local growth hubs or chambers of commerce, could also be a great first point of contact for businesses keen to find out more about the options,” said Juliette Peyraud, Senior Account Manager at Spotcap UK.
Research from SME Finance Forum member Xero revealed, that SMEs in Australia would borrow $80 billion over the next year, if funding was available. According to the research, SMEs reasoning for difficulty borrowing from a lender include:
The Xero State of Lending report showed, one in five small business owners stating access to capital as the greatest hurdle or perceived threat for long-term growth aspirations.
