this is in crucially short supply for smes in developing countries on average of small businesses in low income countries rate access to finance as a major constraint on their operations compared with only of small businesses in high income countries in other estimates of the million to million formal and informal micro small and mediumsized enterprises msmes in developing countries about half are unserved or underserved by the formal finance sector especially by banks that dominate the sector today this signals a relatively significant demand by smes and a financing gap about of msmes in developing countries use cashondelivery services as a means of payment for their ecommerce transactions whereas in developed economies the use of cash payments is negligible as for bank lending although access to it is difficult for smes those that manage to obtain finance do so mostly through banks