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Excerpted from infoDev's study of Financing Technology Entrepreneurs and SMEs in Developing Countries: Challenges and Opportunities.
The executive summary of "Financing Technology Entrepreneurs and SMEs in Developing Countries: Challenges and Opportunities" will provide a quick glance at the issues surrounding the financing gap of SMEs in the developing world.
The general obstacles to financing (information asymmetries, high risk, high transactions costs, and a lack of collateral) are often exacerbated by the nature of ICT/ICTE firms. Additionally, a lack of diversity for funding opportunities and a number of demand-side constraints increase the size and severity of the financing gap. This gap is detailed both sectorally and by surveyed countries. Finally, this exective summary provides a brief overview of some measures that can be taken to alleviate this gap.
By Roberto Zavatta, Economisti Associati SRL in collaboration with Zernike Group BV and Meta Group SRL. Published June 2008.