Access to Finance for MSMEs in Belize: Challenges and Opportunities

Accesible PDF image
Leslie, Winsome J.;
Mcmillan, Ian Michael;
May 2024
Belize has grown significantly in the post-pandemic era, but achieving sustainable and robust growth requires structural reforms to enhance private investment as an engine for growth. The expansion of entrepreneurship and the Micro, Small and Medium-sized firms (MSMEs) base have been a result of the transformation of the Belizean economy in the last decades. While MSMEs have the potential to boost productivity and sustainable growth if they are given the conditions to expand, at the same time MSMEs in Belize face several challenges that impact on the mortality rate of businesses. Constraints to access to productive financing is found to be a key factor behind a business closure. This document analyzes the factors of the ecosystem that influence the supply and the demand for financing for MSMEs and provides recommendations to unlock the MSMEs' potential through increased access to finance.