Sustainable job creation in post-conflict environments often involves financing private-sector development. However, a poor business climate and the erosion of capacity in the domestic private sector reduce the effectiveness of traditional financing strategies in post-conflict environments. Using the experience of post-war Liberia, this article discusses strategies for improving small and medium enterprise (SME) development projects in post-conflict environments through innovative financing which takes into account the effects of conflict on managerial and entrepreneurial capacity and the business climate. Implementation strategies that support conflict-sensitive post-conflict development are also discussed.
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