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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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.


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.


Core Support to Ifakara Innovation Hub

01.04.2025 - 31.12.2028

Despite Tanzania's recognition of job creation, research and innovation as national priorities, skills and funding remain limited due to competing demands for public resources and infrastructure challenges. This contribution aims to provide catalytic financial resources to strengthen the Ifakara Innovation Hub (IIH), a nascent rural collaborative space to foster innovation, entrepreneurship, and community-driven solutions.


Reducing risk-factors for Non-Communicable Diseases in Ukraine (Act for Health), phase 2

01.03.2025 - 28.02.2029

Non-communicable diseases represent the most significant health problem in Ukraine and the situation worsened as a result of Russia’s military aggression. This disease burden threatens the country’s resilience, development, its human capital, and the capacity of its healthcare system. The Act for Health project is a flagship Swiss engagement that addresses the chronic disease burden through tailored and innovative approaches at all government levels, thereby supporting Ukraine’s recovery and reform path.


SER Culture for Democracy

01.03.2025 - 31.12.2028

Independent culture & arts are strong drivers for improved social cohesion, tolerance and democratic practice at the local level. Building on this potential CfD will support quality cultural and artistic initiatives, mainly outside of urban centers. Strengthening the resilience and strategic focus of independent cultural actors will open up more spaces for critical thinking and reflection and ultimately contribute to stronger foundations for social cohesion, tolerance and democracy in Serbia.


Smart Packaging Waste Management

01.03.2025 - 28.02.2029

Improper  waste  management  is  widespread  in  North  Macedonia  and  a  pressing  environmental  issue  threatening public health and environment. To address it Switzerland engages with Pakomak to enhance the effectiveness,  efficiency and  transparency  of  its packaging waste  recovery system1 through  digitalization and modernization of packaging waste selection2, collection, sorting, transportation and recycling. These efforts will significantly decrease the amount of waste disposed in landfills and contribute to the Green Agenda. 


Contribution à l’appel éclair de UNHAS Haiti 2025

28.02.2025 - 31.12.2025

Haiti fait face à une crise prolongée. L’accès des acteurs humanitaires aux territoires se rétrécit. Depuis novembre 2024, les vols commerciaux desservant Port-au-Prince sont arrêtés jusqu’à nouvel ordre. Les populations en besoin d’assistance augmentent. L’appui du bureau humanitaire facilitera des ponts aériens pour un accès vital aux populations affectées, le déploiement du personnel, le transport de biens vitaux et des évacuations médicales.


Kyrgyz Republic: Water Supply and Sanitation Universal Access Program (WASUAP)

20.02.2025 - 31.12.2029

The project will enhance the universal and sustainable access to water and sanitation in the Kyrgyz Republic by establishing a new sector of professional water service providers in the rural area and by building their capacities. This institutional reform will be accompanied by investments in the construction and upgrade of water supply systems and sanitation infrastructure in unserved and underserved settlements.


JIGITUGU+: Appui au renforcementd es competences des jeunes femmes et hommes ruraux dans le secteur agricole

01.02.2025 - 31.12.2028

A travers ce projet intégré, la Suisse veut contribuer à relever les défis des zones rurales du Mali en mobilisant les ressources locales. Il vise à renforcer la résilience, promouvoir l’éducation et l’emploi des jeunes et des femmes, et améliorer la sécurité alimentaire. En intégrant ces publics dans des systèmes éducatifs, professionnels et agricoles adaptés, le projet aspire à un impact durable, notamment par l’augmentation des revenus, la promotion de pratiques agroécologiques et le renforcement des institutions locales.


Clean Air Asia: Accelerating better air action in Asian cities - CABAC

22.01.2025 - 31.10.2027

Air pollution poses a significant challenge to public health, environmental sustainability and the climate, particularly in Asia. Switzerland has been supporting China through scientific exchanges in better identifying sources of pollution. The progress made by China is of interest to countries in the region facing similar challenges. Clean Air Asia, one of the few INGOs operating in China, will facilitate these knowledge exchanges, with a special focus on Mongolia, Indonesia, and Vietnam.  

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