Small and medium-sized enterprises (SMEs) form over 90 per cent of businesses in the ASEAN region and contribute to over 20 per cent of the economies’ GDP. Despite their steady business momentums, SMEs in the region still face a common growth obstacle – gaining access to financing – according to a study of five ASEAN economies by Deloitte.

When in need of financial assistance, SMEs will naturally turn to traditional sources of financing such as banks, venture capitalists and accredited investors. However, these conventional channels are more cautious about extending capital to SMEs, due to the higher risk involved.

It is thus important for SMEs to embrace alternative sources of capital, as a means to remain competitive in today’s uncertain and weak economy.