Financing the middle market in high-risk and changing regulatory environments
Microfinance has proven an effective way to reach the poor, but financial services for the slightly larger ‘small firms’ are still largely lacking, even though it is this sector that has greater prospects for driving economic growth and providing employment. CHF International has begun to focus its efforts on this middle market sector, by founding non-bank financial institutions that lend to small businesses. This article describes two such companies, Express Finance in Romania and IMMDF in Iraq. The challenge in one case is to provide flexible banking services to small firms struggling with the challenges of transition to EU regulations, and in the other case with a dangerously insecure and volatile environment. In both cases flexible products and well-trained staff were important to provide business services to complement financial services.CFED (2004) Desktop Study on SMEs and Poverty Reduction, commissioned by the Ford Foundation's Affinity Group on Development Finance's SME Committee, CFED, http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm
de Ferranti, D. and Ody, A. J. (2007) Beyond Microfinance: Getting Capital to Small and Medium Enterprises to Fuel Faster Development, Policy Brief #159, The Brookings Institution, http://www.brookings.edu/comm/policybriefs/pb159.htm. http://www.brookings.edu/comm/policybriefs/pb159.htm
Duval, A. and Forster, S. (2006) Assessment of the Potential Role for World Bank in Microfinance in Iraq, draft not for circulation, World Bank, Washington DC.
Ministry of SME/CIPE (2002), 'Annual report on the SME sector in Romania 2001, National Agency for SMEs and Cooperatives and Center for International Private Enterprise Romania@Neostudio, a publication financed by the European Union.
National Agency for Regional Development (2000) Report on the Private Sector of Small and Medium-Sized Enterprises in Romania, November, National Agency of Regional Development.
OECD (2004) Promoting SMEs for Development: The Enabling Environment and Trade and Investment Capacity Building, summary of papers from the Second OECD Conference of Ministers Responsible for SMEs, 3-5 June, 2004, www.oecd.org www.oecd.org
CFED (2004) Desktop Study on SMEs and Poverty Reduction, commissioned by the Ford Foundation's Affinity Group on Development Finance's SME Committee, CFED, http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm
de Ferranti, D. and Ody, A. J. (2007) Beyond Microfinance: Getting Capital to Small and Medium Enterprises to Fuel Faster Development, Policy Brief #159, The Brookings Institution, http://www.brookings.edu/comm/policybriefs/pb159.htm. http://www.brookings.edu/comm/policybriefs/pb159.htm
Duval, A. and Forster, S. (2006) Assessment of the Potential Role for World Bank in Microfinance in Iraq, draft not for circulation, World Bank, Washington DC.
Ministry of SME/CIPE (2002), 'Annual report on the SME sector in Romania 2001, National Agency for SMEs and Cooperatives and Center for International Private Enterprise Romania@Neostudio, a publication financed by the European Union.
National Agency for Regional Development (2000) Report on the Private Sector of Small and Medium-Sized Enterprises in Romania, November, National Agency of Regional Development.
OECD (2004) Promoting SMEs for Development: The Enabling Environment and Trade and Investment Capacity Building, summary of papers from the Second OECD Conference of Ministers Responsible for SMEs, 3-5 June, 2004, www.oecd.org www.oecd.org
CFED (2004) Desktop Study on SMEs and Poverty Reduction, commissioned by the Ford Foundation's Affinity Group on Development Finance's SME Committee, CFED, http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm
de Ferranti, D. and Ody, A. J. (2007) Beyond Microfinance: Getting Capital to Small and Medium Enterprises to Fuel Faster Development, Policy Brief #159, The Brookings Institution, http://www.brookings.edu/comm/policybriefs/pb159.htm. http://www.brookings.edu/comm/policybriefs/pb159.htm
Duval, A. and Forster, S. (2006) Assessment of the Potential Role for World Bank in Microfinance in Iraq, draft not for circulation, World Bank, Washington DC.
Ministry of SME/CIPE (2002), 'Annual report on the SME sector in Romania 2001, National Agency for SMEs and Cooperatives and Center for International Private Enterprise Romania@Neostudio, a publication financed by the European Union.
National Agency for Regional Development (2000) Report on the Private Sector of Small and Medium-Sized Enterprises in Romania, November, National Agency of Regional Development.
OECD (2004) Promoting SMEs for Development: The Enabling Environment and Trade and Investment Capacity Building, summary of papers from the Second OECD Conference of Ministers Responsible for SMEs, 3-5 June, 2004, www.oecd.org www.oecd.org
CFED (2004) Desktop Study on SMEs and Poverty Reduction, commissioned by the Ford Foundation's Affinity Group on Development Finance's SME Committee, CFED, http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm http://ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm
de Ferranti, D. and Ody, A. J. (2007) Beyond Microfinance: Getting Capital to Small and Medium Enterprises to Fuel Faster Development, Policy Brief #159, The Brookings Institution, http://www.brookings.edu/comm/policybriefs/pb159.htm. http://www.brookings.edu/comm/policybriefs/pb159.htm
Duval, A. and Forster, S. (2006) Assessment of the Potential Role for World Bank in Microfinance in Iraq, draft not for circulation, World Bank, Washington DC.
Ministry of SME/CIPE (2002), 'Annual report on the SME sector in Romania 2001, National Agency for SMEs and Cooperatives and Center for International Private Enterprise Romania@Neostudio, a publication financed by the European Union.
National Agency for Regional Development (2000) Report on the Private Sector of Small and Medium-Sized Enterprises in Romania, November, National Agency of Regional Development.
OECD (2004) Promoting SMEs for Development: The Enabling Environment and Trade and Investment Capacity Building, summary of papers from the Second OECD Conference of Ministers Responsible for SMEs, 3-5 June, 2004, www.oecd.org www.oecd.org
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