World Bank and IMF officials argue that business dynamism—the reallocation of resources from low-productivity to high-growth firms—is critical for productivity. Barriers include limited financing access for innovative startups lacking tangible collateral, poorly designed bankruptcy laws, and overly restrictive regulations. Solutions include fintech-enabled credit history, venture/equity financing, and streamlined market-entry rules. The World Bank is shifting from collateral-based lending to capability-enhancing credit guarantees via MIGA.