Unfulfilled loan demand among Agro SMEs in Namibia

Amadhila, Elina; Ikhide, Sylvanus

doi:10.17159/2222-3436/2016/v19n2a8

Cited by 4 publications

(2 citation statements)

References 24 publications

(16 reference statements)

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“…In this case, both the adverse selection problem of credit origination, and the moral hazard problem after the credit has been granted are addressed. On the other hand, audited financial statements and annual business turnover are used to analyse the SMEs' present and future performances and ability to service credits (Amadhila & Ikhide 2016).…”

Section: Discussionmentioning

confidence: 99%

Guidelines and criteria used by formal financial institutions to assess credit applications from small and medium enterprises in South Africa

Asah

Louw

2021

The Southern African Journal of Entrepreneurship and Small Busi

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This study analysed the guidelines and criteria used by FFIs to assess credit applications from SMEs.Setting: This study investigated the guidelines and criteria instituted by the head office of FFIs when assessing and evaluating credit applications from SMEs in Johannesburg, South Africa.Methods: This study used an interpretivistic research paradigm to achieve the research objectives. Semi-structured in-depth interviews were used to collect data from participants and analysed using the Terre Blanche, Durrheim and Kelly five-step process of content analysis. Results:The findings revealed that assessing the amount of risk, scrutinising financial records, performing thorough background checks and requesting all relevant documentation constitute ways used by FFIs to measure the amount of risk associated with a particular credit application. Additionally, collateral, audited financial statements, annual business turnover, relationship with the bank and credit profile of the owners and/or business are the most important criteria used by FFIs when assessing credit applications. Conclusion:This study provides insights into the guidelines used by FFIs in assessing credit applications and the criteria used by FFIs when assessing and granting credit. This study revealed that some FFIs do not finance foreign-owned businesses as part of their institutional policy.

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Section: Discussionmentioning

confidence: 99%

Guidelines and criteria used by formal financial institutions to assess credit applications from small and medium enterprises in South Africa

Asah

Louw

2021

The Southern African Journal of Entrepreneurship and Small Busi

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“…Taxes and fees are a greater burden for small and medium-sized enterprises than for large companies (considering the share of these charges in relation to revenues generated). What is more, SMEs carry out simplified accounting, which means that some financial institutions automatically attach a higher credit risk to such entities (Amadhila & Ikhide, 2016).…”

Section: Funding/equity Gapmentioning

confidence: 99%

The role of loan and guarantee funds in filling the funding gap for Small and Medium-sized Enterprises

Waniak-Michalak

2017

E-Finanse

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Research background. The analysis of the funding gap for SMEs and loan and guarantee funds' capability to fill this gap has been undertaken to assess the instruments used in Poland which are focused on the development of entrepreneurship. Methodology/methods. The funding gap for small and medium-sized enterprises is measured with the method of unfulfilled demand for funding and unawarded funding. The size of the gap is compared to the potential amount of the guarantees and loans granted by non-bank organisations in Poland dependent on the amount of capital held. Purpose of the article. The purpose of the article is to answer the research question of whether guarantee and loan funds in Poland play a significant role in filling the funding gap for small and medium-sized enterprises Findings & Value added Guarantee and loan funds are not able to fill the equity gap of SMEs in Poland due to low capital resources compared with needs, and an insufficient number of institutions offering non-bank funding. Also, the high risk attributed to loans granted to small and medium--sized entrepreneurs influences the low degree of utilisation of the capital already held, both by loan and guarantee funds. The unutilised capital is deposited in bank accounts and does not lead to the increase of the multiplier effect. The analysis concerns the specificity of the support system for SMEs in Poland and cannot be generalised to systems in other countries. However, the conclusions from the conducted analysis and the methodology of calculation of the equity gap may serve other researchers as a basis for creating their own theses and research hypotheses. JEL classification: M15, M21Chart 2: The number of companies maintaining simplified bookkeeping (flat rate and tax card) in the period

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Bank loans to agricultural SMEs and the performance of the agriculture sector in Sri Lanka

Anojan,

Thanuja

2024

ИЭУ

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The objective of this study is to examine the impact of bank loans for agricultural SMEs on agriculture sector performance, specifically assessing how this financial support influences the overall performance of the agricultural sector in Sri Lanka. Data for both dependent and independent variables were meticulously sourced from the annual reports of the Ministry of Finance, covering the study period from 2012 to 2021. The study evaluates the performance of 16 distinct agricultural economic activities, each contributing uniquely to Sri Lanka's economy. The descriptive statistics, particularly the mean values, highlight intriguing aspects of Sri Lanka's agricultural sector. Notably, there is a considerable disparity in the average gross domestic production, with marine fishing and marine aquaculture emerging as highly productive. At the same time, the growing of other beverage crops demonstrates a significantly lower contribution. Crucially, the regression analysis affirms a positive and statistically significant impact of bank loans to agricultural SMEs on the performance of the overall agricultural sector in Sri Lanka. This substantiates the fundamental need for adequate bank loans for agricultural SMEs to empower and enhance the performance of the entire agriculture sector. As this study sheds light on the positive correlation between bank loans for agricultural SMEs and agricultural sector performance, it underscores the importance of tailored public policies concerning loan proportions and amounts for distinct economic activities within the agriculture sector.

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Unfulfilled loan demand among Agro SMEs in Namibia

Cited by 4 publications

References 24 publications

Guidelines and criteria used by formal financial institutions to assess credit applications from small and medium enterprises in South Africa

Guidelines and criteria used by formal financial institutions to assess credit applications from small and medium enterprises in South Africa

The role of loan and guarantee funds in filling the funding gap for Small and Medium-sized Enterprises

Bank loans to agricultural SMEs and the performance of the agriculture sector in Sri Lanka

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