BusinessAnalysis
Why Small Businesses Are Sensitive to Interest Rates
The cost of credit can influence hiring, stock, expansion and the resilience of local firms.
Leila Haddad6 min read
Business topic
Small and medium-sized enterprises are independent businesses below certain size thresholds, and they make up the majority of firms in most economies.
SMEs employ a large share of the workforce but often have less financial flexibility than large firms, making them sensitive to credit and demand conditions.
The cost of credit can influence hiring, stock, expansion and the resilience of local firms.
This page is for informational purposes and does not constitute individualized financial advice.