DNVN - The Asian Development Bank (ADB) and the Mastercard Impact Fund, part of the Mastercard Center for Inclusive Growth, have just announced a partnership to facilitate access to capital for micro, small and medium enterprises (MSMEs) in the Asia-Pacific region.
“Micro, small, and medium-sized enterprises are the backbone of economies across Asia and the Pacific, yet many still struggle to access appropriate financial support,” said Bhargav Dasgupta, Vice President of Market Solutions at ADB. “By combining the resources and expertise of ADB and Mastercard, this program will unlock the potential of MSMEs, especially those led by women and those that contribute to climate change response, business empowerment, and inclusive and sustainable economic growth across the region.”
The program uses $5 million in funding from the Mastercard Impact Fund, contributing to ADB’s up to $1 billion in grants to support MSMEs.
The Asia-Pacific region accounts for 52% of all MSMEs that are currently under-financed, with an estimated $2.5 trillion gap. In the region, 43% of SMEs are under- or under-financed by financial institutions. In addition, 70% of women-owned businesses face significant challenges in accessing financial support. According to Harvard Business Review, in 2018, only 4% of total funding was allocated to women-owned businesses, falling to just 2% in 2021. The volume of transactions involving women-owned businesses remains low at just 6%.
The Mastercard Impact Fund will bolster ADB’s efforts to provide financing to MSMEs in the Asia-Pacific region by providing low-risk capital, incentives, and capacity-building support to financial institutions. Credit risk mitigation and technical assistance are expected to encourage financial institutions to provide loans to underserved MSMEs.
At least 50% of ADB’s total financing will go to women-led or -owned enterprises and small business climate finance projects over a four-year period. Initial target markets include: India, Malaysia, the Philippines, Thailand, Vietnam, and Georgia.
The partnership between Mastercard Impact Fund and ADB marks a significant step forward in addressing the critical financing needs of MSMEs in the region. By leveraging their expertise and resources, both organizations are committed to promoting sustainable development and inclusive prosperity for MSMEs in the Asia-Pacific region.
Ngan Phuong
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/ho-tro-tai-chinh-cho-cac-doanh-nghiep-sieu-nho/20241210021721406
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