Latin American and Caribbean economies typically have a dual structure, where many small firms with low productivity, limited growth, and high informality coexist alongside a small number of larger, formal, highly productive, and fast-growing firms. 

Creating higher-quality, more productive jobs calls for increasing access to finance for MSMEs, which represent 99% of firms in LAC and employ two-thirds of the labor force, yet face the worldʼs second-largest finance gap. 

This DEBrief highlights the findings of three IDB Invest studies related to access to credit for MSMEs, productivity, and employment, which are part of its Development through the Private Sector series.