Small enterprise finance – The engine for employment and income

Small enterprises play an important role in the economic and social development of a country.  They create jobs and make a significant contribution to a country's value added. For many people, setting up a small enterprise is their only chance for a secure livelihood. An important criterion in this respect is a financial sector that also takes account of the needs of small enterprises.

The SDC’s focus

The SDC supports institutions, initiatives and programmes that aim to offer a wide range of financial services for small enterprises (anywhere between 5 and 19 positions, depending on the country) on a cost-effective and economically sustainable basis.  To this end, the SDC's approaches include 'downscaling' and 'upgrading'.

  • Downscaling: Existing banks or other financial service providers, such as leasing companies, establish new business fields, product lines or sales channels that specialise in financial services for small enterprises.
  • Upgrading: Enabling existing microfinance institutions to address the requirements of small enterprises.

In addition, the SDC prioritises training for staff working in financial institutions and the provision of market information.

  • Training staff in financial institutions: The SDC promotes the enhancement of skills in financial institutions and the establishment of specialised training and consulting facilities.  Financial institutions must be enabled to offer financial services for small enterprises on a customer-oriented, profitable and competitive basis.
  • Market information: The SDC supports the development of methods and institutions that provide the financial market with information or services that improve decision-making and transparency, including credit and rating agencies, for example.

Background

Strong small enterprises are an important factor, not only for balanced economic growth, but also for social and political stability.  Yet small enterprises in developing and transition countries find it difficult to convince banks to take them seriously as clients. Most financial institutions are mainly interested in dealing with large companies.

The reason for this is, firstly, the relatively high costs entailed in granting loans, and, secondly, the risks to which lenders are exposed.  Financial institutions are often insufficiently informed with regard to the specific conditions prevailing in any given sector.  At the same time, many small enterprises fail to practise transparent accounting, have insufficient reserves and lack suitable collateral.  As a result, a comparatively detailed review is required before a loan can be granted.

Current challenges

Due to inadequate credit methodologies and in many cases a lack of interest by established financial institutes, small enterprises in many countries have only limited access to credit and other financial services.  To improve this situation, the requirements of small enterprises must be better addressed.  The range of products and services must be refined and made more flexible, appropriate credit methodologies must be developed and specific skills must be built up in financial institutions.  In addition to loans, small enterprises must be given access to other products and services, such as leasing, venture capital and payment methods.  Here, the key challenge to be tackled is the diversity of the small enterprise sector, both in terms of the size and type of businesses.  Finally, small enterprises must also use their own initiative to enhance their creditworthiness through transparent accounting, business plans and other measures.

Current projects

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DIKO - Réponse communautaire de protection et de renforcement de la résilience des populations affectées par les déplacements à Tillabéri

15.05.2025 - 14.05.2027

Les conflits armés dans la région de Tillabéri au Niger ne cessent d’accroitre le nombre de personnes déplacées internes et d’exposer les populations, notamment les femmes et les filles, à toutes formes de violence. A travers ce projet mené par une ONG nigérienne, la Suisse soutient la résilience des populations affectées via le renforcement de leurs moyens d’existence et des mécanismes communautaires de prévention et de réponse aux risques de protection.


Schools for Health (Shkollat për Shëndetin)

01.05.2025 - 31.12.2027

Nearly one third of the population in Albania is smoking, overweight or suffers from high blood pressure. Adopting healthy behaviours is crucial to combat non-communicable diseases. In the exit phase, the Ministries of Health and of Education will strengthen coordination mechanisms for health promotion in schools. Schools’ staff and healthcare professionals will implement jointly local action plans. Children, parents and communities will increasingly adopt healthy behaviours.


Programme d’Appui aux Organisations et Populations Pastorales (PAO2P3)

01.05.2025 - 30.04.2029

La Suisse soutient les populations pastorales afin qu’elles accèdent à des formations de qualité et à des opportunités d’emplois. Ces populations sont marginalisées par les politiques nationales et ré-gionales. Le programme PAO2P-3 vise la formation et l’emploi des jeunes (agro)pasteur-e-s dans les zones transfrontalières entre le Burkina Faso, le Bénin, le Mali, le Niger et le Togo. Il renforce leur résilience économique et contribue à réduire leur marginalisation et les conflits.


Towards Elimination of Malaria in Tanzania (TEMT)

01.05.2025 - 30.04.2030

Despite significant progress, Tanzania is still a major malaria-burdened country. It aspires to further accelerate progress towards malaria elimination through innovative strategies and investments in research, vaccine development, and multi-country collaborations. Switzerland supports capacity building, evidence creation, systems to strengthen vector control, case management, surveillance, monitoring and evaluation, multi-sectoral collaboration and cross-border initiatives upon request by the Government.


Sustaining Health Sector Reform in Ukraine Phase 2

01.05.2025 - 30.04.2029

Through a joint collaboration with the World Bank and World Health Organization, Switzerland contributes to strengthening resilience, reforms, and supporting the recovery of Ukraine’s health system in alignment with the Government of Ukraine’s priorities and the needs of the conflict-affected population. Phase 2 builds on a strong foundation and focuses on three pillars: governance and stewardship, health financing, and service delivery.


SSD: LHF/CVIDO, Intergrated Prot_FSL

01.05.2025 - 30.04.2026

Through the proposed project, Switzerland contributes to 2 local NGOs in the north west of South Sudan, in line with ongoing localization of aid efforts. The proposed intervention combines both protection and livelihoods interventions to address the urgent needs of refugees and returnees fleeing from the Sudan conflict and vulnerable host communities in Raja, a fairly remote and high need location with little humanitarian presence.


Smallholder SustaiNability Up-scaling Pro-gramme (SSNUP)

01.05.2025 - 30.04.2029

Recognising the gap in financing sustainable and resilient food systems globally, this multi-donor, public pri-vate partnership initiative is designed to catalyse private-sector investment in food systems, including from Swiss investors. By leveraging private investments and providing technical assistance to small and medium agribusiness enterprises, rural financial intermediaries and farmer organisations, the project promotes new income opportunities and better services for smallholder farmers and their application of more sustainable and nutrition-sensitive farm practices.


Resilient, Inclusive Markets in Moldova – Phase 2

01.05.2025 - 30.04.2029

Moldova’s growth continues being volatile and jobless. More and better jobs are needed for the rural population, disproportionately affected by the effects of extreme climate events and by the war in Ukraine. The project’s second phase will enhance an inclusive, competitive and resilient economic development, by improving regulatory frameworks and business support services which benefit economic activities in rural areas.


Development of WASH facilities and services in child-friendly schools in Abkhazia, Georgia

01.05.2025 - 30.04.2028

Since 2020, Swiss humanitarian assistance, in collaboration with UNICEF, has improved WASH facilities in nearly half of Abkhazian public schools, ensuring safer learning environments. The final phase will enhance sanitary and hygiene conditions in the remaining schools with critically inadequate sanitation, hindering learning and posing health risks for children. Additionally, it will introduce innovative and affordable sewage and fecal sludge treatment systems.


NRC : Education en situation d’urgence

01.04.2025 - 31.03.2029

Le Mali traverse une crise complexe et prolongée privant près de 600’000 enfants de protection et de leur droit fondamental à l’éducation. Déscolarisés, ils sont exposés à des risques accrus. Ce projet offre à plus de 24’000 enfants vulnérables des régions de Bandiagara, Douentza, Mopti et Tombouctou une opportunité éducative adaptée dans un environnement sûr et protecteur. Le renforcement des capacités éducatives et de gouvernance bénéficie à plusieurs milliers d’autres.


Fostering the economic resilience for small-scale female farmers in Samegrelo and Abkhazia through Farmer Field Schools

01.04.2025 - 31.03.2029

Switzerland  is  committed  to  support conflict  transformation in Georgia including  in the  break-away  region  of  Abkhazia.  Working  on  socio-economic  issues  affecting small-scale  female farmers in  Abkhazia  and  the neighbouring region  of  Samegrelo,  the  proposed  project  will enhance their agricultural and business skills, focusing on dairy, fruit, and vegetable production, processing and marketing. This should lead to increased incomes and reduced poverty rates.  


Protection and emergency care for vulnerable and unaccompanied minors

01.04.2025 - 31.07.2026

The number of migrants transiting through Bosnia and Herzegovina remains high with more than 25% of them being unaccompanied minors in need of essential care and special protection due to their vulnerabilities. As the state system is not yet able to fully address their needs, assistance from external actors remains crucial to provide adequate support to this vulnerable group of migrants and to safeguard their rights.

Object 1 – 12 of 1397