In Developing Economies, Equity Beats Microfinance

This article from Fortune details the growing investor interest in small and growing businesses in emerging markets, including the new Global Entrepreneurship Program from the US State Department.

From original article:

"While MFIs [microfinance institutions] do play an important role in development, there is an even greater need to support small and medium-sized enterprises (SMEs), which have shown to have the greatest potential for job growth in most places around the world. These businesses can act as the catalysts for sustainable economic development, employment, and the production of affordable goods and services in both developed and developing countries.

"SMEs provide over 30% of total employment and generate 16% of GDP in low-income countries. In middle-income countries, SMEs capture an even larger share at 57% and 39%, respectively. But they are often considered too risky for commercial investment and need much more investment capital than can be provided by microfinance."