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Submitted by Jonathan on
Is there anything to be learned from microfinance when trying to support SMEs? I am thinking about two things. On one hand, access to finance for SMEs might benefit from experiences in microfinance (reduce/modify collateral requirements? be more flexible? create new products?). On the other hand, at least at its beginning, microfinance developed in the absence of a "favorable institutional setting" (not that it's not important; I don't think MF would be where it is today if not for major institutional support). Of course creating/lending to microenterprises is very different from supporting and lending to SMEs. I'm just wondering how the two interact with each other.