06.06.2012
Wealth, job creation and economic diversification are among the many benefits that result from enhancing the capacity of SMEs and improving their access to finance. In least developed countries, however, SMEs are perceived to have high credit risk since most are start-up businesses and don't have sufficient collateral to secure long-term loans. SME managers frequently lack key financial management competencies to produce bankable proposals as well as a clear understanding of borrowing requirements, while banks and financial-service providers often have insufficient time and resources to address SMEs' finance-related needs effectively.