Improving SME Access to Trade Credit and Financing in MENA
Small and medium enterprises (SMEs) in Middle East and North Africa (MENA), especially female entrepreneurs, face steep challenges in accessing finance and credit. This situation is now even more dire with the Covid-19 crisis. SMEs finance their ac...
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| Format: | Brief |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/446661606972783139/Improving-SME-Access-to-Trade-Credit-and-Financing-in-MENA http://hdl.handle.net/10986/34898 |
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okr-10986-348982021-04-23T14:02:11Z Improving SME Access to Trade Credit and Financing in MENA Dornel, Arnaud Ait Ali Slimane, Meriem Mohindra, Komal TRADE FINANCE SMALL AND MEDIUM SIZE ENTERPRISE SME FINANCE ACCESS TO FINANCE TRADE CREDIT PUBLIC POLICY Small and medium enterprises (SMEs) in Middle East and North Africa (MENA), especially female entrepreneurs, face steep challenges in accessing finance and credit. This situation is now even more dire with the Covid-19 crisis. SMEs finance their activities in three main ways: (i) shareholder funds from family, business partners, and investors (ii) payment facilities from suppliers and pre-payments from clients, known as inter-firm trade credit (in short “trade credit”), and (iii) credit facilities from banks and other financial institutions, of which a large chunk is for working capital. All these sources of funds are required for SMEs to conduct their activities in a financially sustainable manner. The focus of this quick note is on the latter aspects: SME access to inter-firm trade credit and bank facilities to finance trade. These have major implications for financial inclusion, private sector development, value chains, and ultimately, on employment and growth. IFC is already very active in this segment, notably in poorer and fragile countries with the support of the IDA Private Sector Window, but more can be done by the World Bank. The financing of trade and value chains also needs to be much better understood by policymakers in our MENA client countries. 2020-12-08T14:29:05Z 2020-12-08T14:29:05Z 2020-12 Brief http://documents.worldbank.org/curated/en/446661606972783139/Improving-SME-Access-to-Trade-Credit-and-Financing-in-MENA http://hdl.handle.net/10986/34898 English MENA Knowledge and Learning Quick Notes Series;No. 180 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief Middle East and North Africa Middle East North Africa |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
TRADE FINANCE SMALL AND MEDIUM SIZE ENTERPRISE SME FINANCE ACCESS TO FINANCE TRADE CREDIT PUBLIC POLICY |
| spellingShingle |
TRADE FINANCE SMALL AND MEDIUM SIZE ENTERPRISE SME FINANCE ACCESS TO FINANCE TRADE CREDIT PUBLIC POLICY Dornel, Arnaud Ait Ali Slimane, Meriem Mohindra, Komal Improving SME Access to Trade Credit and Financing in MENA |
| geographic_facet |
Middle East and North Africa Middle East North Africa |
| relation |
MENA Knowledge and Learning Quick Notes Series;No. 180 |
| description |
Small and medium enterprises (SMEs) in
Middle East and North Africa (MENA), especially female
entrepreneurs, face steep challenges in accessing finance
and credit. This situation is now even more dire with the
Covid-19 crisis. SMEs finance their activities in three main
ways: (i) shareholder funds from family, business partners,
and investors (ii) payment facilities from suppliers and
pre-payments from clients, known as inter-firm trade credit
(in short “trade credit”), and (iii) credit facilities from
banks and other financial institutions, of which a large
chunk is for working capital. All these sources of funds are
required for SMEs to conduct their activities in a
financially sustainable manner. The focus of this quick note
is on the latter aspects: SME access to inter-firm trade
credit and bank facilities to finance trade. These have
major implications for financial inclusion, private sector
development, value chains, and ultimately, on employment and
growth. IFC is already very active in this segment, notably
in poorer and fragile countries with the support of the IDA
Private Sector Window, but more can be done by the World
Bank. The financing of trade and value chains also needs to
be much better understood by policymakers in our MENA client countries. |
| format |
Brief |
| author |
Dornel, Arnaud Ait Ali Slimane, Meriem Mohindra, Komal |
| author_facet |
Dornel, Arnaud Ait Ali Slimane, Meriem Mohindra, Komal |
| author_sort |
Dornel, Arnaud |
| title |
Improving SME Access to Trade Credit and Financing in MENA |
| title_short |
Improving SME Access to Trade Credit and Financing in MENA |
| title_full |
Improving SME Access to Trade Credit and Financing in MENA |
| title_fullStr |
Improving SME Access to Trade Credit and Financing in MENA |
| title_full_unstemmed |
Improving SME Access to Trade Credit and Financing in MENA |
| title_sort |
improving sme access to trade credit and financing in mena |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/446661606972783139/Improving-SME-Access-to-Trade-Credit-and-Financing-in-MENA http://hdl.handle.net/10986/34898 |
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