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Improving business conditions - Increasing SME Access to Finance: A Four Pronged Approach

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OECD Development Centre
(Visit OECD's Website) Created in 1962 by the Organisation for Economic Co-operation and Development (OECD) in Paris, the Development Centre is an interface between OECD Member countries and the emerging and developing economies. The Development Centre occupies a unique place within the OECD and in the international community. It is a forum where countries come to share their experience of economic and social development policies. The Centre contributes expert analysis to the development policy debate. The objective is to help decision makers find policy solutions to stimulate growth and improve living conditions in developing and emerging economies.

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Improving business conditions - Increasing SME Access to Finance: A Four Pronged Approach

Improving business conditions, boosting the capacity of
SMEs, expanding the financial sector and strengthening
links between firms will permanently increase SMEs’ access
to finance.

Improving business conditions

Proper information, a key to deciding whether to make a
loan, would be helped by adopting clear accounting
standards, setting up independent, competent and reputable
accounting firms and creating more credit bureaux
supplying data on the solvency of firms.

An impartial legal system that can help settle contract
disputes, commercial law reform and drafting and clarifying
land titles, as well as effective bankruptcy procedures, are
vital for growth of the business sector.

A country’s tax laws can either coax small businesses into
the formal sector of the economy or keep them out of it.
Governments should also make sure that they pay SMEs
promptly, since public contracts are vital to the financial
security of these firms.





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