Advancing SME Financing Through Public-Private Partnerships and Low-Cost Lending: A Framework for Inclusive Growth

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@article{1703778,
      author = {Isaac Kayode Oyegbade, Abbey Ngochindo Igwe, Onyeka Chrisanctus Ofodile, Chima Azubuike},
      title = {Advancing SME Financing Through Public-Private Partnerships and Low-Cost Lending: A Framework for Inclusive Growth},
      journal = {Iconic Research And Engineering Journals},
      year = {2022},
      volume = {6},
      number = {2},
      pages = {289-302},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1703778.pdf},
      abstract = {This review explores the role of Public-Private Partnerships (PPPs) and low-cost lending mechanisms in advancing financing for Small and Medium Enterprises (SMEs), with a focus on fostering inclusive economic growth. SMEs play a pivotal role in driving innovation, creating jobs, and contributing to economic stability. However, they often face significant barriers in accessing affordable financing, which impedes their growth and sustainability. Public-Private Partnerships, through government and private sector collaboration, have emerged as an effective solution to bridge this financing gap. PPPs provide SMEs with access to capital, risk mitigation, and capacity-building support, enhancing their ability to thrive in competitive markets. Additionally, low-cost lending mechanisms, including microfinance institutions, development banks, and peer-to-peer lending platforms, offer affordable financial products that ease SMEs' financial burdens. This review examines various PPP models such as loan guarantees, co-financing, and joint ventures, and assesses the success of these approaches in different global contexts. It also investigates the mechanisms of low-cost lending and their contribution to enhancing SMEs' access to working capital and financing for growth. The review highlights the synergy between PPPs and low-cost lending, emphasizing their collective potential to create an inclusive financing ecosystem that empowers underserved groups, encourages entrepreneurship, and drives sustainable economic growth. Key policy recommendations include strengthening PPP frameworks, expanding low-cost lending programs, and integrating digital technologies to improve financing accessibility and transparency. This review concludes that advancing SME financing through these models is critical to achieving inclusive growth, fostering innovation, and enhancing economic resilience in both developing and developed economies.},
      keywords = {Small and medium enterprises (SME), Public-private partnerships, Low-cost lending, Inclusive growth},
      month = {August},
  }