$300 Billion Funding Gap for SMEs in Southeast Asia Is Critical because they Account for 42% of Region’s GDP
July 27th, 2020 – Financing for SMEs is severely limited in certain regions of the world. Many different peer to peer (P2P) lending platforms have been launched in order to provide much-needed capital to small businesses.
The SME Finance Forum reveals that 41% of formal micro, small and medium enterprises (MSMEs) in emerging markets currently have unmet financing needs or requirements. This funding gap presently stands at around $5 trillion, which is notably 1.3x the current level of available financing.
The funding gap in Southeast (SE) Asia, which is one of the world’s most dynamic and fastest-growing regions, stands are roughly $300 billion.
This significant lack of funding isn’t simply a problem for specialized or small industries. It’s actually a problem affecting SE Asia’s core economy, which is (like in other parts of the world) driven by the SME sector.
A Deloitte study from 2015 revealed that SMEs accounted for 42% of the total GDP of the five ASEAN founding members – which includes Indonesia, Malaysia, Philippines, Singapore, and Thailand.
Written by Crowdfund Insider
Related Post
Equipping SMEs with the skills to...
SMEs and entrepreneurs heavily depend on skills to stay competitive and face greater challenges than larger firms in accessing and retaining...
The future of entrepreneurship with AI
AI-native startups are redefining the nature of entrepreneurship through accelerated scaling. With leaner teams, evolving funding dynamics, ...
Micro and small businesses can act...
In an international context where conflicts have reached their highest level since the Second World War, what role can micro, small, and med...
