Small and medium-size enterprises (SMEs) create enormous value for economies, representing around 90% of all businesses, supporting more than half of global employment, and accounting for more than half of global GDP.
Many of our members and candidates work with SMEs — either within them or as trusted business advisers. When I speak to them about the challenges they face to grow and expand, one issue consistently comes up: access to financing. And they are not alone in raising this concern.
Their concern is echoed in official data. According to the World Bank Group, across 119 emerging markets and developing economies there is a supply-demand finance gap of about $5.7 trillion — equivalent to 19% of GDP and 20% of total private sector credit in those economies.
This is not a challenge we can brush under the carpet. And it is not just a problem for the individual businesses in question — it is a systemic issue with far-reaching consequences.
SMEs are the backbone of supply chains and play a critical role in driving innovation and strengthening economic resilience. When SMEs are held back, the ripple effects are felt across entire economies — productivity stalls, job creation suffers, and economic growth slows.
Finance professionals — particularly CGMA professionals — are uniquely positioned to help SMEs overcome these barriers.
Thanks to their training and ability to identify and clearly communicate both opportunities and risks, CGMA professionals are well placed to build investor confidence and trust — unlocking greater access to capital for SMEs.
Here’s how:
- Strengthening financial readiness: By improving forecasting, reporting, and financial controls, finance professionals help SMEs present stronger cases to lenders and investors.
- Navigating funding options: From traditional loans to alternative finance and public schemes, finance professionals guide SMEs through complex funding landscapes and help match needs with the right solutions.
- Building trust and transparency: Robust financial governance and assurance practices reduce perceived risk and build investor confidence.
- Driving strategic planning: Finance professionals help SMEs align funding with long-term goals, ensuring capital and finance are used effectively to support sustainable growth.
- Connecting to support networks: Through professional networks and partnerships, finance professionals can help SMEs access advisory services, mentoring, and peer learning.
Closing the finance gap for SMEs is a significant challenge. It will require collaboration, commitment, and coordinated action across both the public and private sectors. In providing SMEs not only with technical expertise, but with confidence, clarity, vision, and resilience they need to thrive, finance professionals are well equipped to lead the way.
Andrew Harding, FCMA, CGMA, is chief executive–Management Accounting at the Association of International Certified Professional Accountants.