
IMF paper studies SME financing as source of Japanese recovery

Small and medium-sized enterprises (SMEs) could be a source of growth in Japan, but a number of factors are restricting their potential, according to a working paper published by the International Monetary Fund (IMF) in December.
Raphael Lam and Jongsoon Shin, the paper's authors, say SMEs are struggling to deal with high leverage and low profitability, partly as a result of the limited availability of risk capital. Solving this problem would increase investment and promote growth.
The authors
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