Small Business Loans Market to Reach $7.2 Trillion, Globally, by 2032 at 13% CAGR: Allied Market Research

The global small business loan market is experiencing growth due to several factors such as the increasing number of start-ups and small businesses, the growing availability of distinct loan options tailored to meet the unique needs of small businesses, and the rising technological revolution in lending processes.

/EIN News/ -- Wilmington, Delaware, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, “Global Small Business Loan Market by Loan Type (Small Loans and Micro Loans), Tenure (Short-Term Loans, Mid-Term Loans, and Long-Term Loans) and Application (Small Enterprises, Medium Enterprises, and Large Enterprises): Global Opportunity Analysis and Industry Forecast, 2024-2032”. The global small business loan market was valued at $2.46 trillion in 2023 and is estimated to reach $7.22 trillion by 2032, exhibiting a CAGR of 13.0% from 2024 to 2032. 

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Prime determinants of growth 

The global small business loan market is experiencing growth due to several factors such as the increasing number of start-ups and small businesses, the growing availability of distinct loan options tailored to meet the unique needs of small businesses, and the rising technological revolution in lending processes. However, the stringent loan approval processes for small businesses, high compliance costs for lenders, and limited financial literacy among small business owners hinder market growth to some extent. Moreover, the increasing government support to small businesses through loan guarantee programs, along with the surge in focus on expanding accessibility to credit for underserved populations offers remunerative opportunities for the expansion of the global small business loan market. 

Report coverage & details: 

Report Coverage	Details
Forecast Period	2024–2032
Base Year	2023
Market Size in 2023	$2.46 trillion
Market Size in 2032	$7.22 trillion
CAGR	13.0%
No. of Pages in Report	250
Segments covered	Loan Type, Tenure, Application, and Region
Drivers	Increasing number of start-ups and small businesses   Growing availability of distinct loan options tailored to meet the unique needs of small businesses    Rising technological revolution in lending processes
Opportunities	Increasing government support to small businesses through loan guarantee programs   Surge in focus on expanding accessibility to credit for underserved population
Restraints	Stringent loan approval processes for small businesses   High compliance costs for lenders

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The small loans segment is expected to grow faster throughout the forecast period. 

Based on the loan type, the small loan segment held the highest market share in 2023, accounting for nearly two-thirds of the global small business loan market revenue and is likely to retain its dominance throughout the forecast period. The demand for small loans is driven by the growing need for managing short-term financing to manage cash flow, purchase inventory, and cover operational expenses, along with the growing number of business renovation and upgrade projects. Further, the rise of fintech companies and alternative lending platforms has made it easier for small businesses to access small loans, resulting in a significant growth prospect for the small loan segment. 

The mid-term loan segment is expected to grow faster throughout the forecast period. 

Based on the tenure, the mid-term loans segment held the highest market share in 2023, accounting for about two-fifths of the global small business loan market revenue and is likely to retain its dominance throughout the forecast period. This can be attributed to the fact that small businesses may require medium-term loans to refinance existing debt or restructure their liabilities. This facilitates a reduction in monthly payments, securing lower interest rates, or extending the repayment period to improve cash flow management. Moreover, the growing need for equipment financing and the rising focus on improving financial forecasting are anticipated to drive down the demand for the mid-term loans market. 

The small business segment is expected to garner faster throughout the forecast period. 

Based on the application segment, the small business segment held the highest market share in 2023, accounting for almost three-fifths of the global small business loan market revenue, and is likely to retain its dominance throughout the forecast period. The increasing focus of small businesses in real estate and infrastructure investments, along with the ongoing trend of economic diversification strategies. As economies diversify, small businesses are emerging in new sectors, such as renewable energy, tech startups, and specialized manufacturing. These sectors often require significant initial investment, increasing the demand for loans. However, the small business segment is projected to manifest the highest CAGR between 2023 and 2032, owing to the globalization trends, supportive regulatory frameworks, and technological developments to compete more effectively with the larger firms. 

North America to maintain its dominance by 2032 

Based on region, North America held the highest market share in terms of revenue in 2023, accounting for almost two-fifths of the global small business loan market revenue, and is expected to rule the roost in terms of revenue throughout the forecast timeframe. The growth is primarily driven by the growing entrepreneurial culture and the rise of startup businesses in this region. Moreover, the rise of alternative lending institutions, including peer-to-peer lenders and online loan providers, has expanded the availability of credit to small businesses, which may fuel market development in this region. In addition, supportive government policies and economic expansion initiatives are anticipated to contribute to industry growth across North America. 

Players: - 

• American Express 

• Bank of America 

• Bluevine Inc. 

• Huntington Bank 

• JP Morgan Chase & Co 

• OnDeck 

• Rapid Finance 

• Sempli 

• TD Bank 

• U.S. Bank 

• Wells Fargo 

The report provides a detailed analysis of these key players in the global small business loan market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario. 

Key Benefits for Stakeholders 

• This report provides a quantitative analysis of the small business loans market forecast, segments, current trends, estimations, and dynamics of the small business loans market analysis from 2023 to 2032 to identify the prevailing small business loan market opportunities. 

• Market research is offered along with information related to key drivers, restraints, and opportunities. 

• Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network. 

• In-depth analysis of the small business loan market segmentation assists in determining the prevailing market opportunities. 

• Major countries in each region are mapped according to their revenue contribution to the global small business loans market opportunity. 

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. 

• The report includes an analysis of the regional as well as global small business loans market trends, key players, market segments, application areas, and market growth strategies. 

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Small Business Loans Market Report Highlights 

By Loan Type 

• Small Loan 

• Micro Loan 

By Tenure 

• Short-term Loan 

• Mid-Term Loan 

• Long-Term Loan 

By Application 

• Small Enterprises 

• Medium Enterprises 

• Large Enterprises 

By Region 

• North America (U.S., Canada) 

• Europe (UK, Germany, France, Italy, Spain, Rest of Europe) 

• Asia-Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific) 

• LAMEA (Latin America, Middle East, Africa) 

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