The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the eighth of which is "decent work and economic growth", namely: Promote inclusive and sustainable economic growth, employment and decent work for all. 

Under this major goal, there are twelve targets, the third of which is "Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services".

● Current Situation

About the World

Access to Finance is a Key Constraint to SMEs

Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. 

According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth, it is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries. 

Text and photo source: worldbank.org

About China

Promote Financial Services for SMEs

Over the past 40 years of reform and opening up, small and medium-sized enterprises have become an indispensable part of China's economic development and play an irreplaceable role in stabilizing growth, promoting innovation, increasing employment and improving people's livelihood. "Difficult and expensive financing" has been hindering the development, transformation and upgrading of small, medium-sized and micro enterprises. 

Photo source: baidu.com

In April 2021, the general office of China Banking and Insurance Regulatory Commission issued the Notice on Further Promoting High-quality Development of Financial Services for Small and Micro Enterprises in 2021 to further promote the high-quality development of financial services for small and micro enterprises.

Text source: gov.cn

●  Cases

About the World

World Bank Improves Financing Channels

World Bank Group launched an expansion project to improve financing channels for small, medium-sized and micro enterprises in central and northeast Africa, for creating sustainable employment and promoting private sector economic growth. The five-year plan was implemented in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, Tunisia, the West Bank and Gaza. 

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The World Bank Group and the International Finance Corporation provided targeted consultation and cooperation projects in the Netherlands, the United Kingdom, Sweden and Switzerland, mainly focusing on supporting women entrepreneurs and digital technology to for financial inclusion. The first 80 projects have been created 524,600 micro loans and 69,100 small and medium-sized enterprise loans with a total value of US $7.9 billion and 336867 jobs created.

Text source: mofcom.gov.cn

German Guarantee Banks 

The German government has always attached great importance to the development of small and medium-sized enterprises and provided full policy support including, financing and socialized service system. The German government has built a multi-level financing guarantee system. 

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Among them, the German Guarantee Bank, established in 1954, has the attribute of public welfare organization and mainly serves small, medium-sized and micro enterprises. A relatively perfect credit guarantee system has been set up in Germany with the joint efforts of the government, commercial banks and guarantee banks.

Text source: ce.cn

About China

Technology Empowers Financial Services

Major banks in Shenzhen actively responded to the situation caused by the Covid-19 pandemic and made efforts to improve their ability to assess enterprise risks.They build risk control platforms through technology empowerment to improve risk control level management, and accurately allocate funds to high-quality small, medium and micro enterprises and meanwhile controlling the non-performing rate of banks. The banks use advanced information and technology to provide customized product and service portfolio and break through the difficulties in the process of small, medium-sized and micro enterprises obtaining financial services, especially credit resources.

Ping An Bank cooperated with Manyun IOT in the field of financing, traffic cooperation, point exchange, Internet of things solutions and etc. They set up digital agricultural cloud stores for agricultural enterprises and provide guarantee and customized financing products and service solutions according to sales orders and monitoring data. Ping An developed special digital agricultural insurance products with flow resources such as portable banks and digital pocket to promote agricultural products.

Text source: southcn.com

Convenient Credit Loan

Small and medium-sized enterprises are the new force of China's national economic and social development, contributing 50% of taxes, 60% of GDP, 70% of technological innovation achievements, 80% of urban labor employment and 90% of the number of enterprises. As a useful exploration to solve the financing difficulties of China's small and medium-sized enterprises, Convenient Credit Loan is an important breakthrough to promote the supply side structural reform of China's financial service market.

Photo source:

Public Credit Center of Bao'an District Shenzhen and Shenzhen WeBank Credit Technology Co., Ltd. jointly built the online financing service project Convenient Credit Loan for small and medium-sized and micro enterprises. The project promoted the orderly resumption of work and production of enterprises and the healthy development of economy and society, and was rated as an excellent case of financial services for small and medium-sized and micro enterprises in 2020.

Text source: Bao’an Daily

●  Background

Sustainable Development Goals (SDGs) Initiated by the United Nations

On 1 January, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.