The financing of small and medium enterprises (SMEs) and equity markets can play a critical role in fostering economic productivity by financing innovation. That's the central premise of a new World Bank Group paper, which discusses the components of an SME-friendly market architecture and links to policies that foster a new class of investable equities.
More than 24 countries in emerging markets operate separate boards and exchanges aimed at SMEs, the paper says. But only a few SME exchanges function properly, providing coveted fresh capital and liquidity. The key steps to building an efficient exchange to provide risk capital for SMEs are addressed in detail.
Enterprises which are newly listed in emerging countries with also newly set up and regulated stock exchanges are hindered by a lack of market makers able to take the risk in represented a bid/offer on a listing. Its not just markets and a basic broking service that is required but market makers. In other words, secondary risk takers (behind the enterprise).
Posted by: Chris Moyseos | April 21, 2008 at 01:24 AM
What about a gateway to link social entrepreneurs in emerging market with investors in order to foster development, increase returns and create new dynamics? I would like to have your opinion!
Posted by: Beatrice | August 06, 2007 at 09:25 AM