Small and medium-sized enterprises (SMEs) comprise 99% of nonfinancial businesses in the euro area and employ 67% of the total labor force. In Asia, they account for almost 98% of all businesses and employ about 66% of the workforce. These businesses are vital to a country’s economy.

To survive, most SMEs need external funding. The most important direct sources are credit lines, bank loans, and leasing. Funds are essential—but where are they? What can be done to help SMEs? Danilo Mascia of Nottingham University Business School investigates.

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Read the working paper

https://www.adb.org/publications/young-enterprises-and-bank-credit-denials

About the author

Danilo Mascia is an assistant professor in banking at Nottingham University Business School, United Kingdom.

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