GENEVA, Oct. 16 (Xinhua) -- The International Labour Organization (ILO) on Monday urged policy-makers to consider strategies that can help SMEs (small and medium-sized enterprises) get access to funds, including bank loans for their working capital.
"SMEs play a crucial role in creating jobs, but often lack access to the external funding they need," said Deborah Greenfield, ILO deputy director-general for policy.
Bank loans can help firms improve job quality and productivity, but are often difficult to get for SMEs, said the ILO.
The organization, said in a statement that greater access to funds for SMEs can have strong benefits for both workers and employers.
Enterprises using bank loans as a significant share of their working capital tend to have higher wages and productivity, and lower unit costs, said the ILO. It noted, however, that SMEs often cannot obtain or afford such financing.
"Policy-makers need to consider strategies that would help SMEs access such funds, including bank loans for their working capital, which can have strong benefits for both workers and employers," said Greenfield.
