Small and medium enterprises (SMEs) make up the largest portion of the employment base in many developing countries and, indeed, are often the foundation of the local private sector.  The entrepreneurs behind them—could and should – play a much larger role in development, but too often are held back by a lack of ready access to financing from local formal sector financial institutions. Viewing these smaller firms as costly, high-risk credit, many commercial banks avoid lending to them, concentrating instead on “safer” options such as financing larger local or multinational corporations. Or holding high-yield government bonds.  While understandable given current realities at many banks, this approach unfortunately dims the prospects for sustainable development by ignoring the necessity of a bottom-up capital formation – a key factor in the job creation necessary for reduction of poverty and income inequalities.  And we need not settle for it.  Proven models of profitable small business banking do exist that can be transferred from country to country, scaled up over time, and then replicated more widely for considerable development impact.  Our team in Small Business Project Inc. believes in this transformation.

Service offering: Small Business Project Inc. will work with international organizations to put in place programs that make finance available to small businesses by working with financial institutions and commercial banks.  The company will provide diagnostics services of financial institutions (FI) to assess whether FI has capabilities to downscale to small business lending.  Financial assessment of banks will assist to introduce lending programs directed to small businesses.  The services are as follows: (i) Assessment of Financial Environment, (ii) Access to Finance Program Design, (iii) Communication Strategy , (iv) Diagnostics , (v) Partnerships

Our SME lending experience will enable us to assist the private sector commercial banks to strengthen their operations and increase their exposure to SMEs.  The company provides macro-economic financial overview and identifies viable banking partners.  The product line includes: diagnostic and skill gap analysis; packaging the pitch to the financiers and bankers; market demand and supply assessment on new financial products, individual bank diagnostics and technical assistance program design.  This program is often used by the development institutions who are attempting to deepen the capital markets in the emerging markets.

Through effective communications strategies, Small Business Project Inc. has capabilities to stimulate both demand and supply of SME finance products through SME lending seminars and sharing of best practices in particular regions, bringing together international experts, bankers and small businesses.