‘The Missing Middle’: Providing Innovative Solutions to Financing SMEs in Nigeria

Small and medium enterprises (SMEs) play an important role in the development of a country: they form the backbone of modern economies and are crucial engines for development in their role as seedbeds of innovation, efficient producers and employers of labour. The Missing Middle is the financing gap in emerging markets that lies above micro-finance and below traditional institutional financing. This occurs because SMEs are too large to secure funds from micro-finance institutions and too small for mainstream private equity or commercial banks. Commercial banks in emerging markets typically view SMEs as high-risk investments which make it a challenge to get loans.

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