$300 Billion Funding Gap for SMEs in Southeast Asia Is Critical because they Account for 42% of Region’s GDP
July 27th, 2020 – Financing for SMEs is severely limited in certain regions of the world. Many different peer to peer (P2P) lending platforms have been launched in order to provide much-needed capital to small businesses.
The SME Finance Forum reveals that 41% of formal micro, small and medium enterprises (MSMEs) in emerging markets currently have unmet financing needs or requirements. This funding gap presently stands at around $5 trillion, which is notably 1.3x the current level of available financing.
The funding gap in Southeast (SE) Asia, which is one of the world’s most dynamic and fastest-growing regions, stands are roughly $300 billion.
This significant lack of funding isn’t simply a problem for specialized or small industries. It’s actually a problem affecting SE Asia’s core economy, which is (like in other parts of the world) driven by the SME sector.
A Deloitte study from 2015 revealed that SMEs accounted for 42% of the total GDP of the five ASEAN founding members – which includes Indonesia, Malaysia, Philippines, Singapore, and Thailand.
Written by Crowdfund Insider
Related Post
Energy Prices and Their Impact on...
The structural disparity in electricity costs when compared to the European average is a growing concern for micro and small businesses thro...
First Report by the Observatory on...
The First Report by the Observatory on SMEs and Capital Markets highlights that Italian SMEs increasingly see capital markets as an opportun...
OpenAI launches new AI Accelerator for...
OpenAI has launched the EU Economic Blueprint 2.0, introducing a new set of initiatives aimed at accelerating AI adoption across Europe and ...
