CGAP 33d ago

There are nearly 500 million Micro and Small Enterprises (MSEs) worldwide. They are the backbone of employment in emerging markets and developing economies. However, according to research by the International Trade Center (ITC), MSEs face a US$5 trillion financing gap, limiting their ability to grow, create jobs, and contribute to economic resilience. Bridging this gap is essential for inclusive economic development. As the financial sector undergoes rapid technological transformation, digital innovations—such as fintech lending models and alternative credit scoring—hold immense potential to bridge the finance gap. CGAP research examines the different segments within MSEs and explores how their credit trajectories differ, the unique barriers they face in accessing finance, and how tailored financial solutions can better serve their needs. In this video, CGAP outlines two key actions to make finance work for a diverse MSE ecosystem: ➡ Segmenting MSEs according to their unique needs and real-world contexts ➡ Blending digital tools with human support By focusing on these strategic priorities, donors and investors, fintechs and financial service providers can help MSEs deliver outsized impact in their communities. Read this paper to learn more: https://www.cgap.org/research/publication/big-futures-for-smallest-firms-finance-works-for-nano-micro-and-small About CGAP: CGAP is a global partnership dedicated to advancing the lives of people living in poverty through financial inclusion. Housed at the World Bank, CGAP works with partners to develop innovative solutions that expand access to financial services for underserved populations. Subscribe to CGAP's YouTube channel: www.youtube.com/@UCUO7nlegYLiGPNm5R0cfOiA #Finance, #Financialinclusion, #MicroAndSmallEnterprises, #MSEs, #CGAP, #WorldBankGroup