C2FO, the leading global working capital platform, has announced its collaboration with the Business 20 (B20) and its inclusion in a major policy paper released at the 2023 B20 meeting in New Delhi, India.
The B20 serves as the official dialogue forum between the global business community and the G20, which is the key forum for intergovernmental leaders worldwide.
The policy paper focuses on the challenges faced by micro, small, and medium-sized enterprises (MSMEs) in accessing working capital. It also provides actionable recommendations to global leaders for achieving sustainability targets and inclusive long-term employment and economic growth.
Led by Gianluca Riccio, CFA, the vice-chair of the Business at OECD (BIAC) Finance Committee, the initiative received guidance from various leaders across the private and public sectors globally. This marks the second consecutive year that a major policy paper from the B20 recognizes C2FO’s platform as a critical solution for the biggest challenges faced by MSMEs and the global economy.
Alexander “Sandy” Kemper, the CEO and founder of C2FO, emphasized the significance of MSMEs to the global economy and expressed his satisfaction in seeing their challenges and solutions addressed at such a prestigious global forum. Kemper highlighted C2FO’s commitment to working hand in hand with MSMEs and governments worldwide to address the need for working capital and drive economic growth and prosperity. As the paper’s recommendations are implemented, the global economy is expected to benefit.
The policy paper underlines the importance of working capital in fostering economic growth and job creation, citing various global studies. A recent study conducted by the Bank of Italy indicates that increasing working capital could lead to a growth boost of 0.5% to 0.7% in economic growth. Similarly, a study commissioned by C2FO from the McKinsey Global Institute in 2022 reveals that Mexico could experience a 1.1% growth in its gross domestic product (GDP) by implementing a working capital platform nationally.
Furthermore, an International Finance Corporation study highlights that providing $1 million in funding to small and medium enterprises (SMEs) leads to an average creation of 16.3 permanent jobs.
C2FO’s impact on MSMEs is not just theoretical; it is evident through the $300 billion in funding the platform has provided to businesses worldwide since its establishment. This milestone was achieved in July 2023. Over the past three years, more than $25 billion of this low-cost working capital has been allocated to nearly 30,000 businesses in 41 countries classified as “economies in transition” by the United Nations.
Basant Kaur, C2FO’s head of India, emphasized the company’s dedication to solving the challenges faced by MSMEs in every country. As part of its National Platforms for Working Capital initiative, C2FO became an official trade receivables discounting system (TReDS) approved by the Reserve Bank of India last year. C2FO’s customers and the nearly 200,000 suppliers on its platform in India recognize the company as a recognized global leader committed to creating opportunities for businesses.
In addition to its collaboration with the B20, C2FO is an active member of the SME Finance Forum, a global network engaging in dialogue about policy changes to promote SME financing worldwide.
CEO Alexander Kemper will be speaking on September 12th at the organization’s premier conference in Mumbai, India, where he will focus on the role of digital platforms in SME financing.
Ultimately, C2FO remains dedicated to ensuring that every business has access to the capital it needs to thrive. To learn more, visit c2fo.com.
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