CONTENTS 1.  SMES’ VARYING FINANCIAL NEEDS: THE POLICY-MAKER’S PERSPECTIVE………………………………………………………………………... 1 1.1.  SME ACCESS TO FINANCE: A SUBREGIONAL COMPARISON……………………………… 1 1.2.  THE SME BUSINESS LIFE-CYCLE………………………………………………………. .  8 1.3.  WORKING CAPITAL: FUNDING DAY-TO-DAY OPERATIONS ……………………………… 9 1.4.  FIXED CAPITAL: FUNDING INVESTMENT………………………………………………. . 10 1.5.  BEYOND COLLATERAL: SUPPORTING THE GOOD AND RECYCLING THE BAD…………… 11 2.  MAPPING OUT SME FINANCE: DEBT PRODUCTS AND SERVICES………  14 2.1.   SME DEBT-FINANCING OPTIONS………………………………………………………  14 2.2.  THE ATTRACTIONS AND RISKS OF SME DEBT FINANCE (AND CREDIT GUARANTEE SCHEMES) ……………………………………………………………………………… 18 2.3.  SECURED TRANSACTIONS, CREDIT REPORTING AND THE USE OF ‘BIG DATA’…………  23 3.  MAPPING OUT SME FINANCE: EQUITY PRODUCTS AND SERVICES…… 27 3.1.  ADVANTAGES AND DISADVANTAGES OF EQUITY FINANCING OF SMES…………………………………………………………………………………..  27 3.2.    FORMS, ATTRACTIONS AND RISKS OF SME EQUITY FINANCE…………………………  28 3.3.    BUSINESS DEVELOPMENT SERVICES, AND BALANCING DEBT WITH EQUITY ………….  31 4.  SPECIALIST SME-FOCUSED BANKING: HELP OR HINDRANCE? ………..  33 4.1.   AN OVERVIEW OF SPECIALIST SME-FOCUSED BANKING IN THE REGION……………… 33 4.2.   INTRODUCING A FOUR-TIER NATIONAL SME FINANCE SYSTEM……………………….  36 4.3.  FINANCIAL SUPPORT DURING ECONOMIC DOWNTURNS………………………………..  38 4.4.   A BRIEF NOTE ON THE IMPACT OF SOCIETY, CULTURE AND TRADITION……………….  41 5.  CONCLUSIONS AND POLICY RECOMMENDATIONS…………………………. . 43