DNVN - The Asian Development Bank (ADB) and the Mastercard Impact Fund, part of the Mastercard Center for Inclusive Growth, have just announced a cooperation program to facilitate development for micro, small and medium-sized enterprises (MSMEs) in the Asia- Pacific region to access capital.
“Micro, small, and medium-sized enterprises are the backbone of economies across the Asia- Pacific region, yet many still struggle to access appropriate financial support,” said Bhargav Dasgupta, Vice President of Market Solutions at ADB. “By combining the resources and expertise of ADB and Mastercard, this program will unlock the potential of MSMEs, especially those led by women or those contributing to climate change response, business empowerment, and promoting inclusive and sustainable economic growth across the region.”
The program uses $5 million in funding from the Mastercard Impact Fund, contributing to ADB's $1 billion in grants to support MSMEs.
The Asia-Pacific region accounts for 52% of all MSMEs currently facing a financing gap, with an estimated funding gap of US$2.5 trillion. In the region, 43% of SMEs are under- or under-funded by financial institutions. In addition, 70% of women-owned businesses face significant challenges in accessing financial support. According to the Harvard Business Review, in 2018, only 4% of total funding was allocated to women-owned businesses, dropping to just 2% in 2021. Transaction volume related to women-owned businesses remains low at just 6%.
The Mastercard Impact Fund will boost ADB’s efforts to provide finance to MSMEs in the Asia-Pacific region by providing low-risk capital, incentives, and capacity-building support to financial institutions. Credit risk mitigation and technical assistance are expected to encourage financial institutions to provide loans to underserved MSMEs.
At least 50% of ADB’s total financing will go to women-led or -owned enterprises and small business climate finance projects over a four-year period. Initial target markets include: India, Malaysia, the Philippines, Thailand, Vietnam, and Georgia.
The partnership between Mastercard Impact Fund and ADB marks a significant step forward in addressing the critical financing needs of MSMEs in the region. By leveraging their expertise and resources, both organizations are committed to promoting sustainable development and inclusive prosperity for MSMEs in the Asia-Pacific region.
Ngan Phuong
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/ho-tro-tai-chinh-cho-cac-doanh-nghiep-sieu-nho/20241210021721406
![[Photo] Closing of the 13th Conference of the 13th Party Central Committee](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/10/08/1759893763535_ndo_br_a3-bnd-2504-jpg.webp)
Comment (0)