Big Futures for the Smallest Firms: Finance That Works for Nano, Micro and Small Enterprises

Micro and Small Enterprises (MSEs) represent nearly 500 million businesses worldwide and are the backbone of employment in emerging markets and developing economies. However, they face a $5 trillion financing gap, limiting their ability to grow, create jobs, and contribute to economic resilience. Bridging this gap is essential for inclusive economic development.  

This research examines the different segments within MSEs, with a strong emphasis on nano enterprises and women-led businesses. It explores how their credit trajectories differ, the unique barriers they face in accessing finance, and how tailored financial solutions can better serve their needs.

The findings are based on CGAP’s multi-year research under the MSE Finance project, drawing from field studies, interviews, partnerships with fintechs and financial institutions, pilot projects, and a community of practice. The research synthesizes insights from various research publications, providing key findings and a proposed future approach to improving financial inclusion for MSEs.