Micro, small, and medium-sized enterprises (MSMEs) in South Asia need more growth capital to boost the subregion’s resilience to shocks in the wake of the coronavirus disease (COVID-19) pandemic, according to a report released on Wednesday. Economies in South Asia can strengthen their recovery and increase their resilience by channelling growth capital to innovative startups and entrepreneurs, according to the first volume of the Asia Small and Medium-Sized Enterprise Monitor 2021, released by the Asian Development Bank (ADB). Much of the support so far provided to MSMEs in the region has focused on ensuring access to working capital for businesses amid the pandemic, but more balanced support is needed both for firms hit badly by the pandemic and for those with high growth potential. “Governments in South Asia have contributed to the survival of MSMEs during the pandemic through large stimulus packages, offering interest rate subsidies, refinancing, credit guarantees, and mandatory lending quotas,” said ADB Acting Chief Economist Joseph Zveglich, Jr. “In the longer term, more attention should be paid to market-based financing via capital markets and digital platforms.”