This study starts with a brief analysis of which firms are the main net job creators in Ethiopia and then focuses on the financing constraints of Ethiopian MSMEs as one of the key obstacles to job ...creation and growth. In doing so, the study uses two demand-side surveys (the Ethiopia Survey of Large and Medium Scale Manufacturing Industries LMMIS, an unbalanced panel composed of about 6,000 firms with at least 10 employees which allows for a study of firm dynamics from 2000 through 2011 and the World Bank s Enterprise Survey (ES) that was conducted between July 2011 and July 2012 and includes 794 firms which allows for the additional examination of the services sector, microenterprises, and a more detailed understanding of firm experiences with respect to access to finance) and an ad-hoc supply side survey administered to 16 financial institutions, including the major public and private sector commercial banks and microfinance institutions, covering over 90% of the total assets in the banking and microfinance sector. This survey allowed collecting data on the actual involvement of financial institutions with MSMEs, their perception of potential public policy approaches to enhance MSME access to finance and the adequateness of their current business models. The combination of both demand-side and supply-side analysis allows to gain a full picture of MSME finance practices in Ethiopia by connecting information on firm experiences with the reporting of financial institutions on their business practices. While there was already anecdotal evidence that small firms were lacking proper access to finance in Ethiopia, the value added of this study is to provide accurate empirical evidence of the existence of a missing middle phenomenon.
As in other Sub-Saharan African countries, small and medium-sized enterprises (SMEs) represent the vast majority of firms operating in the private sector in Burkina Faso. Private sector-led growth is ...a major element of Burkina Faso's poverty reduction strategy, la strategie de croissance accelere et le developpement durable. Unfortunately, many characteristics of Burkina Faso's business environment, and of businesses themselves, make private sector-led growth a challenge. This financial sector policy note focuses on the market for credit and closely related financial services, how private banks are providing these services to SMEs, and recommendations that address problems they are having. This requires understanding the behavior of banks with respect to SME lending, particularly investment lending and related financial products like leasing, guarantees, microcredit, and subsidized credit funds. This policy note consists of a study and survey of commercial banks and two non-bank financial institutions (NBFIs) (Burkina Bail and Societe Financiere de Garantie Interbancaire du Burkina (SOFIGIB) focusing on lending to SMEs. It focuses on the supply side of the market. The survey and accompanying interviews took place during the summer of 2013. Twelve private banks and five NBFIs were asked to participate in the study and survey. The study references two additional surveys focused on SMEs: (1) the 2009 World Bank enterprise survey, and (2) the 2012 survey of SMEs commissioned by the ministry of industry, trade, and artisans. The study consists of observations and analysis of survey data to provide input to policies for encouraging lending to SMEs and increasing the provision of other financial services. This report is structured as follows: executive summary; purpose and structure of policy note; macroeconomic context and the banking sector section provides a description of the situation in which Burkina Faso finds itself. Demand for SME finance section presents recent studies focused on the demand for credit by SMEs. Supply of SME finance section presents the results of the survey organized around the keys issues facing the provision of credit to SMEs. Enabling environment for financing SMEs section discusses salient characteristics of the business, legal, and regulatory environment that effect SME finance; recommendations; and conclusions.
The development of a far reaching correspondent banking network is one of the key factors behind Brazil's success story in financial inclusion. Between 2005 and 2011, the number of correspondents ...approximately doubled to more than 160,000. The Central Bank encouraged financial institutions to reach out to more distant consumers and to communities where they had not previously been active, including lower income areas, through partnerships with a variety of retail establishments including some with public ties such as the post office network and lottery agencies. Regulators have gradually reduced restrictions on correspondent banking, such as individual approval processes, in response to early successes with this program. The legal framework also facilitated healthy expansion by putting the onus on regulated institutions to train and monitor their correspondents. This Technical Note (TN) does not include an analysis of the causes underlying Brazil's continued high credit cost but many of the issues discussed here may be contributing factors. These include the lack of savings and related dependence on credit which may reduce price elasticity in credit markets; information asymmetries which add to the cost of credit evaluation and increase risk for lenders; and competition issues (as with mobile payments and the so-called no-surcharge-rule on payment methods). The Aide Memoire for the FSAP mission provides further discussion of these important issues.
Skrypt - State Higher Vocational School in Nysa No. 16
Tyt. Circle: Specifications of micro-enterprises on the Polish market
Skrypt - Państwowa Wyższa Szkoła Zawodowa w Nysie nr 16
Tyt. okł.: ...Uwarunkowania działalności mikroprzedsiębiorstw na rynku polskim
The objective of this paper is to shed light on current trends and policy challenges in the financing of small- and medium-sized enterprises (SMEs) by banks in Colombia. The paper is motivated by the ...well-documented financing gap for SMEs, whose causes are complex and multi-dimensional. Based on data collection and interviews with the authorities, a representative sample of banks, and other relevant entities, the authors analyze the evolution and characteristics of this market in recent years. Bank financing to SMEs is becoming a strategic segment for Colombian credit institutions. The current business and risk management models for SME lending are still relatively underdeveloped, but greater sophistication is expected as the market matures. Important institutional and policy constraints to SME lending remain, but are not yet binding. In order to address these constraints before they "begin to bite", the authors identify and describe a potential policy reform agenda.
Small-and Medium-Sized Enterprises (SMEs) represent an important part of the Colombian economy, although they are not well documented in official statistics. In particular, there does not exist ...sufficient periodic data as to their characteristics, evolution, or overall contribution to the economy - in most cases, SMEs tend to be bundled together with micro enterprises in official statistics. The true size of the market is understated due to informality. Lack of access to finance has been cited as an important problem in recent surveys. However, there are significant differences in perceptions as to the size and causes of the financing gap. While there is strong evidence to support its existence following the 1999 crisis, the significant growth of this market in recent years raises some questions as to whether such perceptions remain valid. One of the lessons of the last few years is that banks will expand SME lending on their own accord - in spite of the presence of important constraints - when they perceive the attractiveness of this market and have begun to saturate easier (in terms of business model) market segments such as corporate and consumer lending. However, in order to ensure the sustainable growth of this market, continued strong macroeconomic performance and a stable and consistent policy framework in the financial sector have been identified as important considerations.
The aim of the article is to analyze the influence of certain types of cash flows (from operating, investing, and financing activities) on the change in cash balances, i.e. total cash flows in ...economic entities. The article uses a deterministic cash flow model based on the formula of the cash flow statement according to which the total cash flow, i.e. net change in cash, is the sum of the operating cash flows, investment income minus investment expenditure, increased by financial income and reduced by financial expenditure. The results of the research indicate that Polish listed companies that are subject to the research are characterized by positive operating cash flow, low capital expenditures and low financial inflows in the years 2009-2019. A contribution to the theories and practice is the broadening of knowledge in finance theory on cash resources, which were confirmed by research and conclusions concerning the analysis of Polish joint-stock companies in the emerging market. The study indicates substantial cash accumulation, low use of external financing, i.e., high financial flexibility. The deterministic model of cash flows presented and used in the article is to support managerial decisions. The analyzed model may constitute the basis for building an IT system that could be used to manage the finances of enterprises. The system will use cash data, which is an important and better source of information than accrual data.
Over time, extreme risk events have been constant, but the frequency and severity of these events have continued to increase over time, and their consequences often trigger economic and public health ...crises. Extreme risk events can also cause significant budgetary pressures, with a short-term impact on the fiscal field and a long-term impact on development. In order to reduce the economic impact of extreme events and to cope with the costs of humanitarian aid, recovery support and economic construction following an extreme event, it is necessary for the authorities to develop various strategies in advance. The article aims to identify optimal post-event/ post-crisis financing solutions, in order to mitigate the economic impact of extreme risk events. In this article were used qualitative methods, such as data processing and analysis, comparative analysis, documentation of reports, analysis of reference articles and presentation of conclusions.
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