This market research report includes a detailed segmentation of the MSME financing market by end users such as retail, hospitality, services, and heavy manufacturing. It outlines the market shares for key regions such as East Asia, South Asia, Latin America, Central and Eastern Europe, MENA, and sub-Saharan Africa. A comprehensive analysis of the leading vendors such as ICICI, Wells Fargo, and Standard Chartered is also included.
Technavio’s market research analysts estimate the global micro, small and medium enterprise financing market to grow at a CAGR of around 19% between 2015 and 2019. The adoption of improved risk management practices by the financial institutions is one of the key drivers for the growth of the global micro, small and medium enterprise (MSME) financing market. The East Asian region dominates the global MSME financing market, accounting for more than 45% of the total market share. Rapid technological progress and the implementation of credit bureaus compliant with the principles of regulatory authorities are the key growth drivers in this region.
The new market research report from Technavio provides a breakdown and analysis of the micro, small and medium enterprise financing by technology.
“The MSMEs are increasingly participating in cross border activities, including international trade, international investment, and participation in strategic alliances, partnerships, and networking arrangements with proper working capital management. The recent growth in the global industrial restructuring has augmented the growth potential of MSMEs, especially in sectors with strong globalization forces, and formulating strategies on global value chains through cross-border activities,” says Navin Rajendra, Lead Analyst, IT Services, Technavio Research.
Owing to their active engagement in the supply chains, SMEs are focusing towards better risk management models. Investment in risk management increases transparency beyond first-tier suppliers, ensures compliance, and minimizes risk. Whereas, the banks are also increasingly adopting better risk models to augment their lending capacity and boost investments in the MSMEs. Due to the strict credit appraisal process followed by lenders, the quality of MSME loans has improved over the years.
The major players in the global MSME financing market are ICICI, Wells Fargo, and Standard Chartered. The market is highly competitive with an established presence by banks in advanced markets such as the US and Europe. However, emerging markets such as China, India, Bangladesh, Thailand, and Nigeria provide ample opportunities for vendors to capture the market shares.
A more detailed analysis is available in the Technavio report Global Micro, Small and Medium Enterprise Financing Market – Market Research 2015-2019.
We can customize reports by other regions and specific segments upon request.
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