Looking Beyond the Pandemic: Building Back Better for MSME Finance

Author:

Troilo Mike1,Abe Masato2,Freeman Nick3

Affiliation:

1. The University of Tulsa, HELM 302-D, 800 S. Tucker Drive, Tulsa, OK 74104, USA

2. United Nations Multi-country Office for Micronesia

3. Independent Consultant

Abstract

This paper provides a conceptual overview of what a post-pandemic ecosystem for MSME financing might be, and how policymakers might apply it. Current COVID-19 emergency measures are not sustainable, and fintech and other technologies offer improvements for access to MSME finance worldwide. We offer a macro-perspective of how MSME financing might balance the competing interests of various stakeholders via the lens of ikigai. The Japanese term for fulfilment, and how fintech provides the “digital unlock” that has been missing to this point. We derive practical suggestions for policymakers from our theoretical framework, using real-world examples to transition from the abstract to the concrete.

Publisher

FOREX Publication

Subject

General Medicine

Reference59 articles.

1. Abe, Masato, Mike Troilo, and Orgil Batsaikhan (2015). Financing Small and Medium Enterprises in Asia and the Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2-32.

2. Arun, Avinash, and Helene Page (2016). The future of small business lending. Moody’s Analytics. Available from: https://www.moodysanalytics.com/risk-perspectives-magazine/convergence-risk-finance-accounting-cecl/principles-and-practices/future-of-small-business-lending.

3. Baker & McKenzie (2020). Beyond COVID-19: Supply chain resilience holds key to recovery. Available from: https://www.bakermckenzie.com/-/media/files/insight/publications/2020/04/covid19-global-economy.pdf.

4. Baker & McKenzie (2019). ESG regulatory reform: Impact on asset managers. Available from: https://www.bakermckenzie.com/-/media/images/insight/publications/2019/07/esg-regulatory-reforms/esg-reforms--implications-for-asset-managers.pdf.

5. Baxamusa, Mufaddal H., Sunil Mohanty, and Ramesh P. Rao (2016). Information Asymmetry about Investment Risk and Financing Choice. Journal of Business Finance and Accounting, 16(2), 243-264.

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