Abstract
Micro, Small and Medium Enterprises (MSMEs) play a significant role in income generation, job creation, poverty reduction and reducing income inequality. However, MSMEs from developing countries are exposed to several challenges in their business operations. Among others, access to external financing has been cited to be the most pressing challenge for MSMEs in developing economies and Tanzania in particular. Using a desk review methodology, this paper explores in detail the causes of the problem and mechanisms currently put in place to address these. Briefly, the paper delineates how the structural mismatch between mainstream funding requirements and unique characteristics of MSMEs has led to market failure. It further provides insights on innovative financing strategy, which may be a better alternative to circumvent the problem.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Trade, Economics and Finance
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
