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ILO: new strategies needed to fund small businesses

17.10.2017 09:17 "Agro Perspectiva" (Kyiv) Small and medium companies (SMEs) play a crucial role in creating jobs, but they often don’t get enough outside funding, UN Radio says referring to the ILO (UN International Labour Organization) latest report called World Employment and Social Outlook 2017. The ILO report admits that a cut of 10% capital from bank loans meant that SMEs were likely to pay 1.3% less in wages; have 2.7% lower labour productivity, and incur higher labour costs. In meanwhile, Deborah Greenfield, ILO Deputy Director-General for Policy, urges more fresh initiatives to finance SMEs. As to her, policy-makers need to consider strategies that would help SMEs access new ways of fund-raising «including bank loans for their working capital, which can have strong benefits for both workers and employers».

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