Small Business, Big Growth : How investing in SMEs creates jobs

Small Business, Big Growth : How investing in SMEs creates jobs

This report presents an updated methodology to estimate the number of SME jobs created as a result of SME loans.5 It analyzes job multipliers across developing countries through a firm-level regression of annual employment change on loan size. Put simply, the framework presented here analyzes...

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Main Author: International Finance Corporation
Format: Report
Language:English
Published: Washington, DC 2022
Subjects:
SMALL AND MEDIUM ENTERPRISE (SME)
JOB CREATION
INFORMALITY
SME FUNDING GAP
ACCESS TO FINANCE
LOCAL BANK LENDING
Online Access:http://hdl.handle.net/10986/37842
id okr-10986-37842
recordtype oai_dc
spelling okr-10986-378422022-08-15T21:16:55Z Small Business, Big Growth : How investing in SMEs creates jobs International Finance Corporation SMALL AND MEDIUM ENTERPRISE (SME) JOB CREATION INFORMALITY SME FUNDING GAP ACCESS TO FINANCE LOCAL BANK LENDING This report presents an updated methodology to estimate the number of SME jobs created as a result of SME loans.5 It analyzes job multipliers across developing countries through a firm-level regression of annual employment change on loan size. Put simply, the framework presented here analyzes the relationship between the size of loans to SMEs and the jobs these enterprises create. This methodology builds on previous papers that found an association between access to finance and job growth, including Ayyagari et al. (2016),6 and draws on data from the World Bank Enterprise Survey (ES) and IFC’s own “tracer surveys” to develop a new SME jobs multiplier that would allow for the estimation of job creation effects that correlate with SME loan size.7 The use of tracer surveys has enabled IFC to analyze how the SME customers of a particular IFC partner financial institution have benefited from greater access to finance and generated positive developmental impacts such as greater SME growth, productivity, and female ownership. 2022-08-08T19:06:07Z 2022-08-08T19:06:07Z 2021-03 Report http://hdl.handle.net/10986/37842 en CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo International Finance Corporation Washington, DC Economic and Sector Work (ESW) Studies/Sector :: Thematic Studies :: Other Financial Sector Study Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SMALL AND MEDIUM ENTERPRISE (SME)
JOB CREATION
INFORMALITY
SME FUNDING GAP
ACCESS TO FINANCE
LOCAL BANK LENDING
spellingShingle SMALL AND MEDIUM ENTERPRISE (SME)
JOB CREATION
INFORMALITY
SME FUNDING GAP
ACCESS TO FINANCE
LOCAL BANK LENDING
International Finance Corporation
Small Business, Big Growth : How investing in SMEs creates jobs
description This report presents an updated methodology to estimate the number of SME jobs created as a result of SME loans.5 It analyzes job multipliers across developing countries through a firm-level regression of annual employment change on loan size. Put simply, the framework presented here analyzes the relationship between the size of loans to SMEs and the jobs these enterprises create. This methodology builds on previous papers that found an association between access to finance and job growth, including Ayyagari et al. (2016),6 and draws on data from the World Bank Enterprise Survey (ES) and IFC’s own “tracer surveys” to develop a new SME jobs multiplier that would allow for the estimation of job creation effects that correlate with SME loan size.7 The use of tracer surveys has enabled IFC to analyze how the SME customers of a particular IFC partner financial institution have benefited from greater access to finance and generated positive developmental impacts such as greater SME growth, productivity, and female ownership.
format Report
author International Finance Corporation
author_facet International Finance Corporation
author_sort International Finance Corporation
title Small Business, Big Growth : How investing in SMEs creates jobs
title_short Small Business, Big Growth : How investing in SMEs creates jobs
title_full Small Business, Big Growth : How investing in SMEs creates jobs
title_fullStr Small Business, Big Growth : How investing in SMEs creates jobs
title_full_unstemmed Small Business, Big Growth : How investing in SMEs creates jobs
title_sort small business, big growth : how investing in smes creates jobs
publisher Washington, DC
publishDate 2022
url http://hdl.handle.net/10986/37842
_version_ 1764487970567487488

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