Business in Development Session: Open Session A,

Although not well known in poorer countries, evidence from Network Leasing Corporation in Pakistan and from elsewhere suggests that leasing may well have a significant part to play in enabling micro and small enterprises (MSEs) to buy equipment which would otherwise be unavailable to them. Experience so far suggests that leasing is particularly useful for small and higher end micro enterprises, but the potential for reaching subsistence enterprises is still to be explored and remains untested. This article seeks to answer four questions: I. What is MSE leasing? II. Why is MSE leasing of particular interest? III.What is the experience of Network Leasing Corporation? IV.What is the potential for MSE leasing? I. What is Leasing? Leasing is a contractual arrangement between two parties, by which you (the lessee) have the use of an asset (normally a piece of equipment) belonging to me (the lessor) in exchange for regular payments by you to me for a fixed period of time. It is this separation of ownership (by me) and use (by you) which is at the centre of leasing