| In Latin America and the Caribbean there are six million small and medium-scale enterprises. These companies are one of the major engines of economic growth in the region, generating roughly 50 percent of the region’s GDP. Nearly 90 percent of the companies in the manufacturing sector are small or medium-size; they employ half of the sector’s workforce. They also produce one-third of the region’s manufacturing output and account for 30 percent of all investment in the sector. But such companies are more vulnerable to economic cycles because of the difficulties they face in obtaining the financing they need to operate.
With the stiffening of global competition, large (even multinational) corporations in search of greater flexibility and lower overheads are calling on small, local, and specialized manufacturers for supplies and services. Exports of small and medium-size businesses around the world are increasing, following the fall of tariff barriers and quotas that previously prevented them from competing outside their domestic markets. And the communications and information revolution allows them to market their goods and services from pole to pole.
The seminar will focus on the need for a closer alliance between commercial banks and small and medium-size companies and on how to change the banks’ attitude toward the latter. Experts in the field will answer such key questions as:
- What is the essence of a good SME financing program?
- What are the best ways to provide them with financial support?
- How can banks foster SME creation and ensure their viability?
- What is the bankers’ point of view?
Contact: Jorge Roldán Jorgero@iadb.org
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