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Think outside the stocks (and bonds): how capital markets indirectly contribute to SME finance

published on www.mfw4a.org, 26.03.2025

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SMEs are key to development, as they provide livelihoods and jobs for the majority of people in LMICs. Yet, their development is often hampered by constrained access to finance. SMEs mostly depend on bank loans for external finance. However, these have been insufficient to overcome SMEs’ financing constraints, especially in LMICs, such that it seems pertinent to consider other financing sources. Hence, this piece explores the role of capital markets for SME finance in LMICs and derives policy implications.

Über den IDOS-Autor

Sommer, Christoph

Ökonom

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