Closing the Credit Gap for Micro, Small and Medium Enterprises, By Martin Hommes and Oya Pinar Ardic

Micro, small and medium enterprises (MSMEs) face many obstacles in developing countries, including cumbersome startup procedures, difficulties in accessing electricity, land, finance, and skilled labor, and political instability and corruption. But among all these issues, access to finance remains by far the most cited obstacle experienced by firms trying to formalize, grow, and increase productivity.