SME FINANCE

SME Finance

Increasing access to finance and technical assistance to small and medium enterprises (SMEs) is viewed as an economic development priority in both developed and emerging economies. SMEs contribute significantly to employment and GDP growth, and play an important role in fostering linkages between large and micro businesses throughout economic value chains.

Despite their importance to private sector development, SMEs often lack access to finance. Commercial banks in developing economies have traditionally preferred to earn high yields by investing in government securities and lending to large corporations, while microfinance institutions have focused on serving very small, easier-to-analyze micro-enterprises.

Increasing access to finance, coupled with support services, can help SMEs enhance the productivity and competitiveness of their business, develop new markets, and employ more people. Banks are increasingly recognizing this profitable growth opportunity and are developing more tailored methodologies to serve this important sector.

The Treetops partners have experience investing in emerging market SMEs, and are currently launching a specialized NBFI that will provide tailored financing and value-added support to SMEs in the region. We are also in the process of developing Romania’s first-ever SME Business Center, a “green” office space that is intended to serve as an “incubator” and help foster synergies between SME tenants.