Improving Access to Financing for Smaller Enterprises

Access to finance is critical to further enhance the competitiveness of Central Asia. Financial systems in the region are not yet globally integrated (except for Kazakhstan) and often do not provide a diverse range of financial products to local businesses. Moreover, there is still a gap in access to finance which disproportionately affects small and medium-sized enterprises (SMEs). This chapter concludes that in addition to pursuing reforms to improve the financial system as a whole, more support should be given specifically to institutions that specialise in financing the SME sector, and to targeted instruments such as guarantee schemes.