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Small and Medium-Sized Enterprise Development
 
   
Across the world, small and medium-sized enterprises (SMEs) play an important role in sustaining domestic and regional economic growth, in addition to being important agents for alleviating poverty in developing countries.  FSVC’s SME-targeted assistance programs focus on work at the policy level to strengthen legal, regulatory, and institutional frameworks for business and financial sector institutions.  FSVC’s commercial banking assistance programs target building broader and more effective relationships between banks and SMEs.  This assistance has enabled bankers to bring about structural reform to strengthen or adopt risk management and credit policies and procedures in line with international best practices and to develop SME lending businesses strategically.  FSVC has also provided related assistance to non-bank financial institutions by providing targeted support to develop risk-scoring methodologies, domestic credit bureaus, and credit rating agencies as well as SME expansion through private equity investment and the capital markets.

Countries Served:
FSVC SME Experience
Key Indicators: 1999-2015
Projects Completed 203
Countries Served 22
Individuals Trained 8,874
Pro Bono Hours Delivered 23,479+


Afghanistan, Algeria, Azerbaijan, Bulgaria, Egypt, India, Indonesia, Jordan, Kazakhstan, Macedonia, Malawi, Morocco, Russia, South Africa, Tanzania, Tunisia, and Ukraine
  
Types of Activities: 

 -  Defining and Segmenting an SME Target Market;
-  Building a Meaningful Business Plan with Realistic Goals;
-  Developing and Implementing a Marketing Plan;
-  Establishing Customer Credit Histories;
-  Managing Risk by Strengthening Policies and Procedures;
-  Sales Training and the Development of a Robust Sales Culture;
-  Loan Operation, Loan Reporting System, and Problem Loan Management;
-  The Role of Effective Distribution Channels and Third-Party Sales Organizations;
-  SME Portfolio Management;
-  Developing an End-to-End Process Review;
-  Developing a Legal and Regulatory Infrastructure to Support SME Finance; and Human Resource Management

Our Accomplishments:

FSVC Volunteer Frederic Selinger trains participants to advise small businesses on financial services available to them in the Egyptian market.
Egypt – Egyptian Banking Institute (2009-2011):
In 2009, in partnership with the Egyptian Banking Institute, FSVC implemented a multi-phased SME Banking Certification Program for Egyptian bankers to upgrade their technical skills for providing products and services to SMEs. 
Facilitated by FSVC volunteer experts with deep SME Banking expertise, the program certified 11 bankers from four Egyptian commercial banks.  Program topics included strategic planning, operations, risk management, product development, and marketing to SMEs.  This comprehensive Certification Program provided participants a strong foundation in SME Banking, which will expand the capacity of each participating financial institution to reach into the underserved SME segment in Egypt.  As a result of this program, four Egyptian  Commercial Banks received a comprehensive education on the basic tenets of a strong SME Lending Program.  To date, two of the four banks participating in this program have reported notable organizational growth of their SME Units, and in turn, an expansion of their SME portfolios
 
Morocco - Attijariwafa Bank, BMCE Bank, BCP, Federation of SMEs (2006):
FSVC arranged for several senior bankers from Attijariwafa Bank, BMCE Bank, BCP, and the head of the Federation of SMEs to visit the United States and meet with banking staff with experience in developing and implementing SME lending programs in order to learn firsthand about successful private and public-sector models.  The delegation learned practical tools and systematic solutions for SME financing by examining current U.S. Banking practices and experiences.  The trip also built relationships between the SME Federation and the Moroccan bankers with the goal of boosting effective, efficient SME finance.