Financing and reinforcing the financial sector
One of BIO’s major goals is to increase the access to finance for micro, small, and medium-sized enterprises (MSMEs). In this way, BIO empowers entrepreneurs and contributes to local economic growth.
Financial institutions are the main channel to serve the ‘missing
middle’, composed of businesses with capital needs of between USD 100
(micro-activity) to USD 500,000 (SMEs). They provide the necessary
market knowledge, distribution channels, products, processes, and
controls to adequately make this segment of the economy grow. That is
why BIO channels a significant part of its investments through financial
institutions, which, in turn, directly supports MSMEs.
In doing so, BIO urges these institutions to adhere to the Customer Protection Principles, and to high environmental and social standards. BIO also provides technical assistance to strengthen the institutions’ internal capacity and efficiency.