Researchers looked at 413 studies to understand what helps small businesses in developing countries get loans and financial help. They found that most programs focus on giving microloans to very small businesses and farmers, and these programs often improve people’s lives by increasing income and food security. However, there are big gaps in research about newer ways to access money, like digital banking, and about how these programs affect small and medium-sized businesses. The study shows that Africa and South Asia have the most research, but other regions need more studies to understand what works best.

The Quick Take

  • What they studied: What types of programs and policies help small business owners in developing countries get access to loans and financial services, and whether these programs actually help their businesses and lives improve.
  • Who participated: 413 different research studies from around the world, mostly focusing on very small businesses (like family farms and household businesses), with some looking at small and medium-sized companies. Most studies came from Africa and South Asia.
  • Key finding: Microloan programs are the most common type of financial help studied (238 studies), and they appear to improve people’s lives by increasing income, food security, and education. However, newer types of financial help like digital banking are barely studied, leaving big gaps in what we know.
  • What it means for you: If you’re a small business owner in a developing country, microloans and traditional lending programs have the most evidence of helping. However, digital financial services (like mobile banking) might be helpful but need more research to prove it. Talk to local financial advisors about what’s available in your area.

The Research Details

This is an ’evidence and gap map,’ which is like a giant library catalog for research. Instead of doing one new study, researchers searched through thousands of existing studies to find 413 that looked at how financial programs help small businesses in low- and middle-income countries. They looked at studies published in English with no time limit, searching multiple databases and checking references to make sure they found most of the relevant research.

The researchers organized these 413 studies by type of intervention (like microloans, new banking systems, financial education, or new laws) and by what they measured (like whether businesses grew, whether people earned more money, or whether families had better food security). They included both experimental studies (where some businesses got help and others didn’t, randomly chosen) and non-experimental studies (where researchers compared similar businesses, some with help and some without).

The final interactive map shows which combinations of interventions and outcomes have lots of research evidence and which ones have very little, helping identify where future research is needed most.

This approach is important because it gives a complete picture of what we know and don’t know about financial help for small businesses. Instead of just looking at one type of loan or one country, it shows patterns across hundreds of studies worldwide. This helps governments, nonprofits, and businesses decide which programs to invest in and where more research is needed.

This study is strong because it systematically searched multiple databases and included both published research and unpublished studies (gray literature) to avoid missing important work. The researchers clearly defined what studies to include and excluded low-quality studies without comparison groups. However, the quality varies among the 413 included studies—some used rigorous experimental designs while others used less strict methods. The map is most reliable for microloans (lots of evidence) and less reliable for newer digital financial services (very little evidence).

What the Results Show

Microloans and traditional lending products are by far the most studied intervention, appearing in 238 of the 413 studies. These programs show the strongest evidence of improving people’s lives, particularly for very small businesses and farmers. The research found that these programs tend to increase household income, improve food security, and help families afford education and better housing.

The second most common type of help studied is creating better financial systems and organizations (138 studies) that make it easier for small businesses to access loans. These include things like credit unions, microfinance institutions, and government programs that help banks lend to small businesses.

Welfare outcomes—meaning improvements in people’s lives like income, food security, health, education, and housing—have the most research evidence overall. This suggests that financial programs do help improve daily life, not just business performance. However, the research on small and medium-sized businesses is much thinner than for microenterprises, with only 59 studies looking at how these programs affect business growth and performance.

Geographically, most research comes from Sub-Saharan Africa (175 studies) and South Asia (142 studies), with much less evidence from other regions. This means we know more about what works in these areas but less about other parts of the developing world.

The research shows that 192 studies specifically looked at rural or remote areas, 126 focused on poor and disadvantaged populations, and 114 targeted women entrepreneurs. This suggests that financial programs are being designed to reach the most vulnerable people. Programs targeting women appear to have positive effects on both business outcomes and household welfare.

Demand-side programs (teaching people about financial literacy and money management) are relatively understudied with only a few studies examining their effects. This is a gap because financial education might help people use loans more effectively. Similarly, digital financial services like mobile banking and online lending are barely studied despite being increasingly important in developing countries.

This evidence map builds on previous research by showing the full landscape of what’s been studied. It confirms that microloans are a major focus in development work, but it also reveals important gaps. Previous reviews often focused on single types of interventions or single countries; this map shows patterns across the entire field. The finding that welfare outcomes are most studied aligns with development goals focused on poverty reduction and improving quality of life.

The study only included papers written in English, which may miss important research from non-English speaking countries. The quality of included studies varies widely—some used strong experimental designs while others used weaker methods, so not all evidence is equally reliable. The map shows what’s been studied but doesn’t rate how well different programs work compared to each other. Additionally, many studies are from Africa and South Asia, so the findings may not apply equally to other regions. Finally, the map was created in 2022, so very recent research and emerging financial technologies may not be fully represented.

The Bottom Line

If you’re a small business owner in a developing country: Microloans and traditional lending programs have strong evidence of helping businesses and improving lives (high confidence). Digital financial services like mobile banking may be helpful but need more research (low to moderate confidence). Financial education programs may help you use loans better, but more evidence is needed (low confidence). If you’re a policymaker: Focus on strengthening microfinance institutions and traditional lending systems in your region (high confidence). Consider investing in digital financial services as they grow, but monitor their effectiveness (moderate confidence). Ensure programs reach women and poor populations, as evidence suggests they benefit (moderate confidence).

Small business owners and farmers in developing countries should care about this research because it shows which types of financial help have the best evidence of working. Government officials and policymakers should use this to decide which programs to fund. Nonprofit organizations working on poverty reduction should consider these findings when designing programs. Investors and banks should understand what types of financial products work best for small businesses. However, people in wealthy developed countries may find this less directly relevant, as financial systems there are very different.

Most studies show that microloans and financial programs take 1-3 years to show clear effects on household income and business growth. Improvements in food security and education may take 2-5 years to become visible. Digital financial services are so new that we don’t have good data on timelines yet. Individual results vary greatly depending on the person’s skills, local market conditions, and how well the program is run.

Want to Apply This Research?

  • Track monthly business income and household expenses for 3-6 months before and after accessing a loan or financial service. Record: (1) Total monthly business revenue, (2) Total monthly household expenses, (3) Number of employees or family members working in the business, (4) Major purchases made (equipment, inventory, education). This creates a clear before-and-after picture of financial impact.
  • If using a financial app: Set up automatic savings goals for 10-20% of monthly business income. Use the app’s budgeting tools to track where money goes. Set reminders to review loan repayment schedules. If the app offers financial education content, complete one lesson per week about money management, business planning, or loan use. Connect with other small business owners through the app’s community features to learn what’s working for them.
  • Create a simple monthly dashboard in the app showing: (1) Business income trend (is it going up?), (2) Loan repayment status (on track?), (3) Savings progress (building emergency fund?), (4) Business growth metrics (more customers? bigger orders?). Review this dashboard monthly and adjust your business strategy based on what the numbers show. After 6 months, compare your situation to where you started to see if the financial help is actually making a difference in your life.

This research summary describes what studies have found about financial programs for small businesses in developing countries, but it is not financial advice. The effectiveness of any financial program depends on many factors including your local economy, personal skills, and specific circumstances. Before taking a loan or using any financial service, consult with local financial advisors, business mentors, or government small business offices who understand your specific situation. Results vary greatly from person to person, and some people may not benefit from these programs. This summary is for educational purposes only and should not replace professional financial or business advice.