Closing the Global SME Finance Gap: Qamar Saleem on Innovation, Collaboration, and Opportunity

By Kekeletso Nkele, small.news Assistant

Q: Are there any sort of pockets of the world that you think are just particularly interesting to pay attention to as it relates to small business innovation and creating solutions that could meet the moment?

A: Certainly, even small countries see many innovations. Comparing developed and emerging worlds: developed markets have bureaus, data, transparency, systems, and collateral registry regimes.

Developed markets—the US, UK, Japan, Korea, and Canada—have robust ecosystems that support SMEs. The UK especially supports digital and alternative lenders, enabling their success.

In the US, UK, India, and China, over 30% of SME lending is by alternative and digital lenders. Other regions are catching up. India, for example, has advanced digital IDs and the India Stack, driving much innovation in the past decade.

Innovations thrive in African markets like Nigeria and Kenya, as well as in smaller markets like Rwanda and Ghana. Marketplaces, embedded finance, and telco data are common. Half of our award winners come from emerging markets.

Q: What do you think the role of maybe like private versus public is in trying to solve some of these really big systemic issues?

A: I group this into four buckets: SMEs need access to finance, markets, skills, and an enabling environment.

This business is complex. It needs a public-private partnership. Here are examples for each bucket.

In access to finance, a major issue for institutions is risk. Our recent survey confirmed risk as a top challenge. Risk mitigation, like credit guarantee schemes, is key. These can be government, private, or quasi-government-led. Such schemes boost institutional risk appetite and access. This is one example.

Market access ecosystems include Ex-Im banks, support mechanisms, ICC, trade players, export credit agencies, financial institutions, and regulators—all are key.

Public and private sectors need to collaborate on ongoing, practical skills development for SMEs. Without a strong enabling environment, success is not possible.

Here, the public sector is crucial. Our survey found licensing complexities in many countries. Many SMEs lack support ecosystems.

Many SMEs lack awareness of available resources. Regulators play a major role. Countries are now taking a holistic approach with national IDs, SME ministers, authorities, and stakeholder ecosystems.

Q: What do you need from people so that this vision of us working together globally can be realized?

A: We seek our network’s support in turning ideas into pilot projects and testing real solutions, not just exchanging knowledge. Our recent partnership with the Asian Development Bank on supply chain finance pilots is an example of collaborative problem-solving in action.

Some initiatives need sustained focus. My request: solve, share, and solve again—together.

Q: Why do you care about small businesses? Why would you work so hard to try to solve these big problems?

A: Beyond the main objectives, this is personal. I have worked in SME finance and met thousands of SMEs.

I understand their pain. I am passionate about this, beyond creating jobs or expanding access where needed.

Q: What’s the biggest risk that you see for small business owners?

A: I see two or three risks. One is margin compression. Costs rose 18% last year, but revenues did not. SMEs face pressure on revenue and costs.

Finance access is not growing quickly enough, which limits SME growth and job creation.

Policy and trade uncertainty are another risk. Tariffs and policy changes are key issues. Finally, AI and technology will change businesses.

Q: What do you think the opportunity for small business owners is right now in the midst of so much cosmic change?

A: The top opportunity for SMEs is to adopt new technologies, especially AI and machine learning, to boost growth and productivity.

SMEs need to digitize; it is no longer optional. That is where they will find the most opportunities. Shifting value chains are also creating opportunities for SMEs.

Many new aspects are developing, and new markets are forming. SMEs need to be aware of these opportunities and the sunrise industries they should enter.

Q: If you had a magic silver wand and you could use it to make one thing true for every single small business in the world right now, how would you use your silver wand?

A: If I could do one thing for SMEs, I would unlock trade globally. Addressing this can reduce both the $5.7 trillion finance gap and the $2.5 trillion trade gap that primarily affect SMEs. By enabling greater trade, e-commerce, and embedded finance, we open value chain opportunities that help close the SME finance gap.

It also works for regulators, allowing for inclusion. Many government procurement initiatives now look at the value chain. It also works for financial institutions.

It reduces risk and helps the ecosystem. I call it the five-corner model: SMEs, banks, tech players, regulators, and large corporations benefit.

Q: How do we support you?

A: We seek partners across the SME finance ecosystem: banks, fintechs, NBFIs, MFIs, insurers, and investors. If you are an innovator passionate about SME finance and want to help shape the global agenda, join us. Let’s create lasting solutions for SMEs worldwide.

My mission is to solve the SME finance problem. If there was ever a time in history, it is now, with the enabling factors in place. We have two sets of associations and affiliates. Affiliates also make in-kind, knowledge, and technical contributions. My call to people is to look at our network and join it.

Join us as we drive real change in SME finance. Let’s lead, link, and learn together. Be the catalyst shaping a global future for SMEs—your leadership and passion matter now more than ever.

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