Washington, DC, July 28, 2010
—IFC, a member of the World Bank Group, is supporting a unique competition launched by the Group of 20 to find the best models worldwide that catalyze finance for small and medium enterprises, aimed at giving small entrepreneurs a chance to grow their businesses.
Only an estimated 20 percent of small firms in low-income countries have access to credit. Small and medium enterprises are often too small to attract commercial bank or investor interest, but too large to benefit from microfinance products. To date, few scalable solutions to support this missing middle tier of businesses have been found
The G-20 SME Finance Challenge is an online competition to identify groundbreaking models that make public programs more effective in leveraging private finance for these smaller businesses. Initiated in partnership with Ashoka’s Changemakers, the program also receives support from the Rockefeller Foundation. .
“This is a unique opportunity for private companies and firms to find real solutions to the financing issues that small and medium businesses face,” said Peer Stein, IFC Access to Finance Advisory Services Leader.
Private financial institutions, investors, companies, foundations and civil society organizations are all invited to submit proposals. Successful entries will demonstrate innovation, leverage, scalability, social and economic impact, and sustainability. Up to 15 winners will be invited to the November G-20 Summit in Korea to be recognized for their innovative ideas and to be connected with donors and investors.
Rockefeller president Judith Rodin said, “By identifying the best financial solutions to support SMEs, the G-20 is playing a critical role in the global fight to create jobs and reduce poverty.”
The G-20 also is mobilizing the public share of the funding for implementing winning proposals. In addition to IFC, the World Bank, the Asian Development Bank, the Inter-American Development Bank Group, the African Development Bank and the European Bank for Reconstruction and Development have indicated their support for implementing scalable and sustainable SME financing proposals.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
