Mind the Gap; Alternative lenders become beacon of hope for SME community

August 24th, 2020 – The 2008 recession hit small and medium enterprises the hardest. Fewer businesses were founded, many had to lay off their staff and others didn’t make it through. Funding conditions were unfavourable but years later, small businesses could see the light at the end of the tunnel with better economic conditions favouring their turnaround.

We are however back in a situation today where small businesses are fighting for their survival. The Great Lockdown means that a fifth of small businesses are at risk of collapsing.

Access to financing for small and medium businesses has never been more critical.

The Great Lockdown – Small and medium sized enterprises, more commonly known to you and me as SMEs, are responsible for more than two thirds of all jobs worldwide. They have over the last two decades become the beacon of innovation, boosting economies across the world in particular in developing countries, and are the largest contributors to job creation and global economic development.

According to a study by the World Bank, prior to the pandemic 600 million was the number of estimated jobs needed by 2030 to absorb the growing global workforce, and who was expected to pick up the bill? SMEs.

From ‘The Great Recession’ to ‘The Great Lockdown’, here they are again, caught up in the height of the worst recession on record – with the likes of Italy, Spain, France and the UK shrinking in the last week by double digits, the biggest economic contraction in 25 years.

Over the years, we have relied heavily on SMEs to create jobs and drag economies out of recessions and crisis. This time should be no different – as long as they have the right access to finance and a strong liquidity backing.

More…https://www.globalbankingandfinance.com/mind-the-gap-alternative-lenders-become-beacon-of-hope-for-sme-community/

Written by Global Banking & Finance review