What are the main complaints on social media about access to financing for SMEs in LAC?

As highlighted in ImpactoCAF - Support for SMEs for More Productive Countries, the lack of access to financing, or access under unfavorable conditions, is one of the main problems faced by small and medium-sized enterprises (SMEs) in Latin America and the Caribbean (LAC). One in three SMEs in the region report restrictions in accessing credit (IFC, 2017), while 20% say that lack of access to financing is a major limitation to their growth (WBES, 2009-2018).

To understand how people in the region perceive the issue of access to financing for SMEs, we analyzed the data collected by the Sustainable Development Citizen Monitor (MCDS), a tool created by CAF and Citibeats that allows real-time tracking of the opinions and complaints of Latin Americans and Caribbeans based on social media posts and blogs. The results from the platform suggest that difficulty in accessing financing is a common concern for the region’s citizens.

Between February and December 2023, the MCDS identified around 50,000 comments related to the financing needs and opportunities for SMEs, as well as the support needed for the consolidation of business projects. This set of comments represents 12% of all posts associated with the financing category and showed significant activity during the analyzed period.

Regarding citizens' opinions, one out of every two comments expresses a complaint, and this value does not vary much across LAC countries.

On the other hand, for 30% of the comments, the tool identifies social reasons that may be driving citizens' complaints. Most comments express concern about inflation levels (30%), dissatisfaction with political or socioeconomic issues (29%), and reflect some worries about the support from state institutions for SMEs (17%).

As described in ImpactoCAF, the lack of financing opportunities affects the growth and productivity potential of thousands of SMEs in the region. When an SME cannot access financing, its ability to increase production, employment, and sales is limited. It is also less likely to invest in fixed assets and technological innovation, which prevents them from increasing their productivity. Given the importance of SMEs in the region in terms of production and employment, the difficulties they face in accessing credit have implications for economic activity and citizens' living standards. Thus, as the analysis presented here suggests, financing for SMEs is a matter of concern for the region's inhabitants.