The Missing Middle - Market Opportunity

INVEST comprises a set of knowledge products and tools to support banks, funders, and supporters through the process of understanding SME markets and developing profitable value propositions. It is the acronym of the 6 key drivers of SME support success: Incentives, Non-Financial Services, Versatile Implementation, Embed Relationship Banking, Segmentation, and Technology.

Developed by Dalberg, ConsumerCentriX, and the Argidius Foundation, with the SME Finance Forum as an implementing partner, it equips funders and banks to make better-informed decisions, deploy technical assistance more strategically, and build profitable, inclusive SME portfolios.

Why INVEST?

  • The approach has already informed programs across Africa, Asia, and Latin America, mobilizing billions of dollars in SME finance.
  • Based on lessons from >20 SME Banking Programs around the world
  • INVEST is a freely available set of resources

The Financing Gap

Large Enterprises

Large enterprises are firms with 250+ employees, usually earning more than $15 million annually. They have full access to commercial bank credit, capital markets, and private equity.

Microenterprises

Microenterprises are firms with <10 employees, typically under $100,000 in annual revenue. They rely on microfinance or informal lenders. Over 60% have sufficient financing.

LARGE SME MICRO

“The Missing Middle”

SMEs are firms with 10–250 employees and revenues between $100,000–$15 million.

Around 44% are credit-constrained since they are often too large for microfinance but too risky for banks.

After 25 years of doing SME business, I can tell you this toolkit captures where we went wrong and what we’ve learned. It shows how to segment properly, design for business cycles, and build real relationships — not just lending.

Senior SME Banking Executive, South Asia

This is the first time I’ve seen such a comprehensive diagnostic for SME banking — it helps banks understand where they stand and how to move from transactions to real SME partnerships.

Advisory Services Lead, Development Finance Institution

From Missing Middle to Market Opportunity

To bridge this gap, we need a shift in perspective. Effective SME banking is a process, not a product.

When done well, profitable, multi-billion $ SME portfolios become reality

Representative growth of KCB Kenya's SME loan portfolio

$2.0 Bn
$1.5 Bn
$1.0 Bn
$500 m
$0
$4m
2017
$75m
2019
$350m
2021
$1.1 Bn
2024
$2.0 Bn
2027

Choose your path to get started

If you are a Financial Institution

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If you are a Technical Assistance Funder or Provider

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