Improving business conditions - Increasing SME Access to Finance: A Four Pronged Approach
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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.
Improving business conditions Increasing SME Access to Finance A Four Pronged Approach - To learn more about this author, visit OECD Development Centre's Website.
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