The role of small business

Micro, small and medium enterprises (MSMEs) are the backbone of economic growth and are by far the largest employers in low-income countries (accounting for 78 percent of employment ), creating stable jobs, raising incomes, making connections to regional and global markets, moving people out of poverty, and often increasing access to critical goods and services for underserved communities.

In developing countries, there is significant evidence to show that small businesses suffer from low productivity which constrains economic impact. With a USD $5 trillion global credit gap for MSMEs, developing economies in particular are missing out on sustainable local jobs, goods and services due to small business financial constraints. These businesses are trapped in the "missing middle".

The Most Missing Middle

Recognising the needs of the credit gap known as the "missing middle", World Vision Australia and its microfinance subsidiary VisionFund International began providing loans and business coaching to high growth potential Small and Growing Businesses (SGBs) in Sri Lanka in 2015 using Australian Government funding, to reach the "most missing middle".

Following on from the successful pilot in Sri Lanka, World Vision and VisionFund have again teamed up to provide "missing middle" finance and business advisory services at scale across Myanmar and Ghana, both promising hubs for business in their regions. In addition to suitable finance, World Vision offers tailored one-on-one coaching to build the capacity of entrepreneurs to improve business practices and grow.

World Vision focuses on helping high-growth potential entrepreneurs, particularly women entrepreneurs, in the "most missing middle" to maximise their potential. This generates stable and inclusive employment in their local communities and facilitates increased trade flows through additional purchasing and processing in their local economies.