The Missing Middles

24th October 2018
arrow down

Small and growing businesses (SGBs) contribute to significant positive impact in emerging economies – creating jobs, driving inclusive economic growth, sparking innovative technologies, and providing underserved populations access to essential goods and services – but they struggle to access the capital they need to reach their full potential. According to the International Finance Corporation, SGBs in emerging markets face a $930 billion financing gap. Many are stuck squarely in the “missing middle”: too big for microfinance, too small or risky for traditional bank lending, and lack the growth, return, and exit potential sought by venture capitalists.