Policy highlights:

  • Inclusive business finance (IBF) refers to funding and other forms of capital that support the creation, growth and sustainability of entrepreneurs and smallholders, micro-, small- and medium-sized enterprises (MSMEs) that were previously excluded from financial markets. Instruments include: debt, equity, quasi-equity, grants, insurance, guarantees, development finance and shared risk instruments and mechanisms.

 

  • Companies can capture growth opportunities while supporting economic development within low income communities by providing intermediation for MSMEs within their value chain. In particular, the ‘missing middle’ represents a major gap in the financing pool and represents a significant opportunity for finance providers willing to support entities that are too large for micro-credit and too small for commercial credit from banks.
  • For development practitioners, an understanding of the segmented inclusive and business finance marketplace, along with insight into how to access and attract this capital for the benefit of low-income community development programmes, will both increase the effectiveness of aid resources and improve economic growth sustainability and inclusiveness in developing countries.
Connected themes
Share this post

Related items

youth at work 2 pager
Youth @ Work: 5 pathways for change

How to address the African missing job crisis through green and digital jobs, while assuring that none is left behind? INCLUDE's recently published evidence synthesis paper series provides a number of potential solutions: they were discussed in the webinar series Youth@Work, from which we present five key insights.

Maya Turolla Profile
AERC Regional Policy Forum summary

The AERC hosted a virtual Regional Policy Forum on 28 March 2022. The forum brought together key stakeholders who play important roles in shaping new research findings, paving new policy directions, and initiating innovative practices in the areas of youth and employment.

Getting up to speed with inclusive development

The INCLUDE team’s reading list: March 2022 Every month we share with our readers a…

cairo-workers
Identifying Economic Sectors to Create Employment for Youth in Africa: key findings from selected country cases

Growth Sectors for Youth Employment (GSYE) is an African Economic Research Consortium (AERC) collaborative research…

John_maara_Photo_
The world youngest continent is looking for work

The African continent is undergoing an important demographic transformation that will, for the better or the worse, drastically change its labor market. According to the World Bank, every year 12 million young people enter the job market while only 3 million formal jobs are created. With a median age of 25 years old, the African continent is the youngest in the world.

Maya Turolla Profile