Expanding Access to Financing for Micro, Small, and Medium-Size Enterprises in Russia by Leveraging Innovative Financial Solutions PDF Download
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Author: Eva Gutierrez
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The development of micro, small, and medium-size enterprises (SME) in Russia is a priority of the Russian government, which emphasizes the need of improving SME access to finance, along with other critical factors for SME growth. The objective of this policy note is to inform the Russian policy-makers about options to enhance their measures for improving SME access to finance, as a part of the overall government objective to increase the contribution of SMEs to the Russian economy. The policy note's audience is a broad group of Russian stakeholders, specifically economic policy makers and financial sector regulators, as well as SME support and development institutions, the financial sector, and the private sector. The policy note aims at informing the Russian stakeholders about: (1) alternative and complementary approaches to subsidized financing of SMEs, including policies to support development of an ecosystem of financial providers and innovative products, and (2) the evolving role of the SME development institutions in creating new markets for SME finance and crowding in private sector finance. The policy note has six chapters. Chapter one is the introduction. Chapter two provides an overview on SME access to finance in Russia. Chapter three discusses the development of the non-bank SME financing ecosystem in Russia by focusing on the regulatory approaches to non-bank financial institutions and products, drawing upon relevant international experience. Chapter four reviews international approaches to key challenges and policy responses for developing non-bank finance instruments for SMEs. Chapter five looks at the role of the SME development institutions in Russia and puts their activities in the context of international best practices. Chapter six concludes with recommendations on further enhancing SME access to finance.
Author: Eva Gutierrez
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The development of micro, small, and medium-size enterprises (SME) in Russia is a priority of the Russian government, which emphasizes the need of improving SME access to finance, along with other critical factors for SME growth. The objective of this policy note is to inform the Russian policy-makers about options to enhance their measures for improving SME access to finance, as a part of the overall government objective to increase the contribution of SMEs to the Russian economy. The policy note's audience is a broad group of Russian stakeholders, specifically economic policy makers and financial sector regulators, as well as SME support and development institutions, the financial sector, and the private sector. The policy note aims at informing the Russian stakeholders about: (1) alternative and complementary approaches to subsidized financing of SMEs, including policies to support development of an ecosystem of financial providers and innovative products, and (2) the evolving role of the SME development institutions in creating new markets for SME finance and crowding in private sector finance. The policy note has six chapters. Chapter one is the introduction. Chapter two provides an overview on SME access to finance in Russia. Chapter three discusses the development of the non-bank SME financing ecosystem in Russia by focusing on the regulatory approaches to non-bank financial institutions and products, drawing upon relevant international experience. Chapter four reviews international approaches to key challenges and policy responses for developing non-bank finance instruments for SMEs. Chapter five looks at the role of the SME development institutions in Russia and puts their activities in the context of international best practices. Chapter six concludes with recommendations on further enhancing SME access to finance.
Author: Sylvie K. Bossoutrot
Publisher: World Bank Publications
ISBN: 0821363875
Category : Business & Economics
Languages : en
Pages : 115
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Book Description
In Russia, small-scale entrepreneurship has emerged in response to the collapse of state-ownership and unemployment in the early 1990s. Small businesses typically lack adequate collateral and credit history, making them 'unbankable' by the mainstream financial sector. To fund their businesses, micro-entrepreneurs are forced to rely on funds from family and friends, or money lenders. Microfinance institutions of four types have emerged to meet the unfulfilled financing needs of micro-entrepreneurs: commercial banks, specialized NGO-type microfinance institutions, membership-based institutions (such as rural cooperatives and credits unions), and public funds. All four types have enjoyed significant growth in Russia in the past five years, but the industry is still at an early stage of development. Demand appears to far outweigh supply. 'Microfinance in Russia' provides an overview of microfinance in Russia to date, presenting industry trends and identifying key challenges to sustainable growth of the industry.
Author: Sylvie K. Bossoutrot
Publisher: World Bank Publications
ISBN:
Category : Business & Economics
Languages : en
Pages : 120
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Book Description
In Russia, small-scale entrepreneurship has emerged in response to the collapse of state-ownership and unemployment in the early 1990s. Small businesses typically lack adequate collateral and credit history, making them 'unbankable' by the mainstream financial sector. To fund their businesses, micro-entrepreneurs are forced to rely on funds from family and friends, or money lenders. Microfinance institutions of four types have emerged to meet the unfulfilled financing needs of micro-entrepreneurs: commercial banks, specialized NGO-type microfinance institutions, membership-based institutions (such as rural cooperatives and credits unions), and public funds. All four types have enjoyed significant growth in Russia in the past five years, but the industry is still at an early stage of development. Demand appears to far outweigh supply. 'Microfinance in Russia' provides an overview of microfinance in Russia to date, presenting industry trends and identifying key challenges to sustainable growth of the industry.
Author: Piotr Łasak
Publisher: Cognitione Foundation
ISBN: 8395900678
Category : Business & Economics
Languages : en
Pages : 199
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Book Description
PURPOSE: The traditional sources of financing (bank loans) cannot be treated as an essential source of financing for SMEs in developing countries. For this reason, this group of entities uses many alternative sources, from bootstrapping to microfinance and crowdfunding. During the last decade, a significant contribution in this area has been done by financial technology. The purpose of this study is threefold: 1) to present the role of financial technologies in financing SMEs, 2) to examine the role of entities based on financial technology in financing SMEs in developing countries, and 3) to consider other non-bank aspects of financing SMEs, leading to the improvement of the financial situation of these entities. The in-depth analysis of these entrepreneurial finance practices will be developed in the following papers presented in this Issue. METHODOLOGY: This study employs a theoretical approach based on a narrative literature review. The primary attention is focused on applying financial technology as a stimulant for the finance of SMEs in developing countries. FINDINGS: As a consequence of the financing gap for SMEs within the traditional financial system, these entities use non-bank financing based on financial technology. The research confirms that financial technology plays a crucial role in fostering the financial situation of SMEs in developing countries and providing greater financial inclusion for these entities. Both, financial technology and enterprises based on this technology contribute significantly to the improvement of efficiency of financing SMEs in emerging markets. They also provide a broader range of services, than were offered by the traditional financial sector. Regarding the other aspects of SME finance, it is essential to implement such ways of financing like microfinance services and crowdfunding. Such funding mechanisms, together with the budget process and the compliance under the conditions of e-tax systems, are important determinants of current entrepreneurial finance. IMPLICATIONS: The paper describes the financing of SMEs in developing countries. The in-depth picture of the SME’s financial situation, focusing on the technological development in this area, provides essential insight into this still poorly explored area. It also offers important premises for shaping the post-pandemic policy to support their further growth. ORIGINALITY/VALUE: Despite growing theoretical and empirical literature about entrepreneurial finance, this study aims to contribute to the role of financial technology in this area. The impact of financial technologies and the role of fintech-based entities on SME activity in developing countries are still poorly researched. Moreover, the research provides a brief overview of other SME funding sources and their determinants in this group of countries.
Author: Farhad Taghizadeh-hesary
Publisher: World Scientific
ISBN: 981123583X
Category : Business & Economics
Languages : en
Pages : 425
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Book Description
Successful startups and small businesses can play a significant role in economic growth and job creation. They also contribute to economic dynamism by spurring innovation and injecting competition. Startups are known to introduce new products and services that can create new value in the economy. It is notable that most startups exit within their first ten years, and most surviving young businesses do not grow but remain small. Startups and small businesses face several obstacles to their development. Accessing capital is a crucial constraint on their growth. Most startups and small businesses have difficulties getting the funds they need because of their lack of a performance track record and lack of collateral, making it difficult for lenders or investors to assess their risk. Besides, they are in the early stages of development and face a very high possibility of failure, which significantly raises financing and investment risk.Investment in Startups and Small Business Financing provides 12 thematic and case studies on new methods for bringing private investment (loans or equity) to startups and easing small businesses' access to finance (debt and capital). The contributors are senior-level policy experts and researchers from governments, think tanks, academia, and international organizations. The chapters are authored in a policy-oriented way to be understandable for the readers with a different background. This book is a precious source for the governments for adopting the right policies to develop small businesses and startups and valuable for the researchers in economics, business, and finance.
Author: Gail Buyske
Publisher: Cornell University Press
ISBN: 9780801445781
Category : Business & Economics
Languages : en
Pages : 246
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Book Description
Buyske analyzes three themes in economic development: the global growth of microfinance, banking sector development, and Russian entrepreneurship.
Author:
Publisher: World Bank Publications
ISBN: 0821371789
Category : Social Science
Languages : en
Pages : 122
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Book Description
This book's prime audience is government policy-makers. It provides a policy framework for governments to increase micro, small and medium enterprises' access to financial services?one which is based on empirical evidence from around the world. Financial sector policies in many developing countries often work against the ability of commercial financial institutions to serve this market segment, albeit, often unintentionally. The framework guides governments on how to best focus scarce resources on three things: ? developing an inclusive financial sector policy; ? building healthy financial ins
Author: Mr.Amadou N Sy
Publisher: International Monetary Fund
ISBN: 1484385667
Category : Business & Economics
Languages : en
Pages : 61
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Book Description
FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry. While it raises concerns on the emergence of vulnerabilities, FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain. Today, FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for the emergence of innovations in other sectors, such as agriculture and infrastructure.
Author: Franz Hubert
Publisher:
ISBN:
Category :
Languages : en
Pages : 21
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Book Description
Restricted access to finance is often stated as one of the main obstacles to the development of the SME sector in Russia. In this paper, we propose a new lending strategy that allows private banks to profitably increase financing of this sector in spite of being at a disadvantage compared to the state owned Sberbank. By building a reputation for tough liquidation in cases of financial distress private banks can overcome information asymmetries by self selection. However, this strategy can only work if (i) bankruptcy law allows for easy liquidation, (ii) the banking industry can sustain positive profit margins, and (iii) interest rates are not too high.
Author: Mr.Nicolas R Blancher
Publisher: International Monetary Fund
ISBN: 1484398173
Category : Business & Economics
Languages : en
Pages : 73
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Book Description
The importance of financial inclusion is increasingly recognized by policymakers around the world. Small and medium-sized enterprise (SME) financial inclusion, in particular, is at the core of the economic diversification and growth challenges many countries are facing. In the Middle East and Central Asia (MENAP and CCA) regions, SMEs represent an important share of firms, but the regions lag most others in terms of SME access to financing.
