Description

Small and medium-size enterprises (SMEs) form a large proportion of companies and employers worldwide. According to the World Bank, SMEs provide at least 45% of the jobs and 33% of the GDP in emerging economies alone. Although SMEs are important contributors to jobs and the growth of economies, they face significant constraints, including lack of access to finance. Given the importance of SMEs to economies, a number of multilateral institutions, governments, policymakers and private sector actors across developed and developing markets are focused on addressing the SME financing gap. Worldwide SME exchanges are gaining popularity as a financing means for the SMEs. SME markets promote and support SME listings, not just by facilitating access to capital, but also by providing an environment that enables SMEs to thrive. Most SME platforms are either an independent market within the exchange group or a separate board or segment within an existing exchange structure. Developing SME exchanges in emerging market countries (EMCs) is a more difficult challenge, largely because the size of the SMEs is so small. However, despite the odds emerging markets are also participating in trend. Bangladesh is also keen to launch its SME platform in the upcoming times in an attempt to promote the sector of the country which is a thriving arena.