Financing SMEs, Serving Mankind

The SME segment, many of which are family-owned, contributes significantly to the supply of essential goods and services.

 

As implied by the principle of subsidiarity, small to medium-sized entities provide the strongest foundation for human fulfilment and talent development.

These companies generate their income locally.

They are not owned by foreign shareholders.

 

They are the framework and the "backbone" that support the local economy and the maintenance of services to the population.

To contribute to the development and protection of human dignity, BACKBONE lends to SMEs and clinics​

The SME-market opportunity

Improve access to goods and services in domestic markets

• Essential products and services are often unavailable or difficult to access in developing countries. Mainly focused on domestic markets, SMEs are trying to fill these market gaps.
• SMEs cater for a wide variety of local needs, many of which are essential, such as water, health, housing, education, energy, etc. all which represents significant market potential.

Provide growth potential good above average​

• SMEs often suffer from low return and face major obstacles to growth, but well-funded and accompanied, SMEs have a strong growth potential.
• Demographics of working population in low and middle-income countries shows highest growth in the world, driving demand for SME financial services

The ‘virtuous circle’ of community investing

Backbone adresses the lack of access to essential services by supporting local SMEs

Building and structuring the fabric of local livelihoods

• SMEs are generally created and managed by local entrepreneurs, thus stimulating local growth, livelihoods and community development
• SMEs typically source locally and help to structure local value chains

Create stable and decent jobs

Formal SMEs are the pillars of job creation in emerging countries:


• Formal jobs offer higher wages than informal ones for the same work
(e.g. 50% to 60% higher as observed in Ghana and Tanzania)
• Formal jobs are safer, provide access to training and social security.
• A regular private income allows families to anticipate the future, save,
thus improve its access to credit, housing and education.