Entrepreneurship is the driving force of the global economy. And yet, while entrepreneurs play an active role in every layer of society, their access to finance isn’t always the same.
The importance of the MSME sector to the economy is well recognized in academic and policy literature, as seen by works including the World Bank, IMF, and the OECD. However, It is also acknowledged that these actors in the economy may be under-served, especially in terms of finance.
Entrepreneurs invest necessary capital resources to expand their productivity, organize production into firms and industries, compete, and cooperate to create and distribute goods and services to consumers in the most efficient and profitable manner.
Access to capital is unanimously regarded as a fundamental driver of business growth, but due to the lack of a financing standard, MSME’s face difficulties attracting the proper finance amounts they need, at the right time – particularly the companies that do not yet have collateral or sustained and positive cash-flows.
The TRSB Standards promote the financing of these companies based on the quality of their products and services.