Capacity building
SMEs in growth, it is important to understand and identify the potential bottlenecks.
Access to finance is certainly a major, but not the only obstacle to SME growth. In addition to fi-
Through its MSME Fund, a facility that provides
nance, capacity as well may be an impediment to
subsidies to potential and existing clients, BIO
sustainable SME growth. Capacity is –appropriate-
supports SMEs in further developing their tech-
ly in this context – a term that covers a wide range
nical and management capacity. Similarly, many
of areas. Technical capacity, market knowledge,
financial institutions – banks, private equity funds,
accounting know-how, financial and invest-
etc. – in developing countries have come to realize
ment planning and risk management are all im-
that the provision of financial services often needs
portant capabilities to successfully manage and
to be complemented with capacity development
grow a business. It is not uncommon for SMEs in
in order for businesses to achieve sustainable
the developing world to lack capacity in some of
growth.
these areas and, for an investor wishing to support 22 ANNUAL REPORT 2014 BIO
Fondo de desarrollo Local, Nicaragua