Without doubt, the presence of fairness capitalists in its diverse forms – personal equity investment, challenge capital, or maybe angel capital – will make a big impact in increasing the base of MSMEs, specially within the revolutionary zone where productivity and new products and services can allow access into the global cost chain.
It is a mechanism which could propel the increase of promising organisations. The challenges are many, but now not absolutely insurmountable. We need to possibly empower development finance establishments to play a more lively function in this area. And we ought to smash down the regulatory and legal obstacles that restriction the growth of the equity market.
(Benel D. Lagua is the executive vp on the Development Bank of the Philippines. He is an active FINEX member and a long time advise of danger-primarily based lending for SMEs. The views expressed herein are his own and does no longer necessarily mirror the opinion of his office as well as FINEX.)
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