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A Financial Crisis Is Looming for Smaller Suppliers

Their collapse could further destabilize the global supply chain.

By Federico Caniato, Antonella Moretto, and James B. Rice, Jr.

Government and large-company efforts to assist small and medium-size suppliers (SMEs) have not been enough to prevent their collapse, which could further compromise a global financial system already stressed by the pandemic. This article, which is based on research of the top 800 producing firms in the European Union and the United States over a 13-year period, offers financing approaches that could make a big difference in keeping SMEs afloat.

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