NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

I’ve just posted up several recent news stories about financing for SME development. Most of these came from the Business in Development Network, which promotes poverty reduction through entrepreneurship in developing countries. The group maintains a great newsroom for those interested in similar articles.

Here’s what’s happening this week:

Bangladesh: Banks urged to support SMEs
The numerable packages in saving schemes, monthly deposit, loan schemes etc. have played a role to close the gap between bank and the cross-section of people. Still it is noticed that there has not been such banking packages to support the big client group belonging to small and medium enterprises.

China: Loans essential to SME development
SMEs face a lot of barriers to further development, with financing being one of the biggest problems. The enterprises usually have limited capital, so they need capital from other sources, one of which is banks.

East Africa: Development Bank to fund private sector projects
The East African Development Bank is to start financing development programs in partnership with the private sector. At the bank’s governing council meeting held recently in Kampala, proposals to develop a variety of development finance products were unveiled.

Ghana: Micro-credit banks give rich aspirations to the poor
After years of seeking small loans from loan sharks, family members and non-profit micro-credit programs, Ghanaians now have what they never had before: a full-service commercial bank for the poor.

Kenya: Small business gets Sh1.7bn fund
Kenya’s small and medium-sized businesses can tap into a Sh1.7 billion regional fund launched by a group of local and international companies. It will be made available in loans and business development assistance through managerial training.

Malaysia: SME Bank launches five new loan schemes
SME Bank has come up with five loan schemes specially designed to help different types of small- and medium- scale enterprises flourish in the years ahead.

South Africa: Government should support private investors
While there is government support at the company level for SMEs, there is practically no government support for private individuals wishing to invest in small businesses.