G20 Seoul Summit promotes innovative finance models for SMEs

17:02, November 12, 2010      

Email | Print | Subscribe | Comments | Forum 

The G20 Seoul Summit and Ashoka, a working community of social entrepreneurs, on Friday introduced 14 innovative finance models dedicated to unleashing the potential of small and medium-sized enterprises (SMEs) in emerging markets.

The impact of the finance models covers a wide range of strategies including training, risk management, visibility and access to new markets, said Ashoka Vice President Bill Carter during the summit.

He said 80 percent of SMEs in low income economies are caught in a finance trap and their needs to grow exceed the capability of most micro finance institutions.

"At the same time, these SMEs are not yet significant enough to access major financing from commercial banks," he said.

Carter said the G20, through the Rockefeller foundation, asked Ashoka to seek solutions to this challenge by using their open- source and transparent online platform.

The 14 winning finance models were selected through independent judges from over 300 candidates in more than 30 countries in the world.

"There are many insights and useful examples in the work of these 14 winners. Their solutions are on track to direct billions and billions of dollars to small enterprises in low income economies around the world," said Carter.

They offer new ways of linking enterprises to prospective investors, changing the rules to simplify and standardize loans, and new ways to evaluate the ongoing ability of the enterprise to service a loan, he said.

The SME sector is vital to the world economy and the role of SME businesses is increasingly viewed as that of a powerhouse of employment, innovation and entrepreneurial spirit, as well as a large source of investment, particularly in emerging markets, according to a discussion report on "nurturing SME sector" for the G20 Business Summit.

The G-20 summit was launched two years ago in the wake of the financial crisis with an aim to save the world from falling into a prolonged recession and preventing a recurrence of worldwide downturns in the future.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion