SMEs: It's not all about the money

Small and medium-sized enterprises are the powerhouses in most economies. But with many SMEs experiencing a squeeze on credit in the wake of the financial crisis, public debate has quite rightly focused on the need to get banks to lend more to this dynamic sector.

A 2011 report by the International Finance Corporation estimated that as many as 85 percent of SMEs worldwide suffer from credit constraints. Lack of finance is clearly a serious impediment to the development of SMEs, preventing them from playing their full role as engines in the economy.

Yet focusing exclusively on the availability of loans to help SMEs thrive and produce jobs would be misguided and could limit their growth potential.