Publication:
Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso

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dc.contributor.authorSoubeiga, Sidiki
dc.contributor.authorStrauss, Jeremy
dc.date.accessioned2014-06-17T22:48:28Z
dc.date.available2014-06-17T22:48:28Z
dc.date.issued2013-11
dc.description.abstractAs 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/11/19456110/financial-sector-policy-note-financing-small-medium-sized-businesses-burkina-faso
dc.identifier.doi10.1596/18696
dc.identifier.urihttps://hdl.handle.net/10986/18696
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNT MANAGEMENT
dc.subjectACCOUNTING
dc.subjectAGRICULTURAL SECTORS
dc.subjectALTERNATIVE SOURCES OF FINANCING
dc.subjectANTI-MONEY LAUNDERING
dc.subjectAPPROVAL PROCESSES
dc.subjectBAD CREDIT
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK BRANCHES
dc.subjectBANK GUARANTEES
dc.subjectBANK LENDING
dc.subjectBANK LOANS
dc.subjectBANKING INDUSTRY
dc.subjectBANKING RELATIONSHIP
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBANKRUPTCY
dc.subjectBANKRUPTCY LAWS
dc.subjectBANKS
dc.subjectBANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUEST
dc.subjectBANQUE DE FRANCE
dc.subjectBOARDS OF DIRECTORS
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectBUSINESS CREDIT
dc.subjectBUSINESS OWNER
dc.subjectBUSINESS OWNERS
dc.subjectBUSINESS PLAN
dc.subjectBUSINESS PLANNING
dc.subjectBUSINESS PLANS
dc.subjectBUSINESS SUPPORT
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL LOANS
dc.subjectCAPITAL REQUIREMENT
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCASH MANAGEMENT
dc.subjectCHECKING ACCOUNTS
dc.subjectCOLLATERAL
dc.subjectCOLLATERAL REQUIREMENTS
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSOLIDATION
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCONTRACTUAL SAVINGS
dc.subjectCONTRACTUAL SAVINGS INSTITUTIONS
dc.subjectCOST OF CREDIT
dc.subjectCREDIT APPLICATION
dc.subjectCREDIT APPLICATIONS
dc.subjectCREDIT BUREAUS
dc.subjectCREDIT CARDS
dc.subjectCREDIT COOPERATIVES
dc.subjectCREDIT DECISIONS
dc.subjectCREDIT GUARANTEES
dc.subjectCREDIT HISTORY
dc.subjectCREDIT INFORMATION
dc.subjectCREDIT INFORMATION SYSTEMS
dc.subjectCREDIT LINE
dc.subjectCREDIT LINES
dc.subjectCREDIT MECHANISMS
dc.subjectCREDIT PORTFOLIOS
dc.subjectCREDIT PRODUCTS
dc.subjectCREDIT PROGRAMS
dc.subjectCREDIT RATING
dc.subjectCREDIT RATIONING
dc.subjectCREDIT REGISTRIES
dc.subjectCREDIT REGISTRY
dc.subjectCREDIT RISK
dc.subjectCREDIT RISK MANAGEMENT
dc.subjectCREDIT RISKS
dc.subjectCREDITORS
dc.subjectCREDITS
dc.subjectCURRENCY EXCHANGE
dc.subjectCURRENT ACCOUNT
dc.subjectDEBT
dc.subjectDEMAND FOR CREDIT
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDEVELOPMENT BANK
dc.subjectDIRECTED CREDIT
dc.subjectDIVERSIFICATION
dc.subjectDOCUMENTATION REQUIREMENTS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC REFORM
dc.subjectELECTRONIC BANKING
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectENTERPRISE DEVELOPMENT
dc.subjectENTREPRENEURIAL CAPACITIES
dc.subjectEQUIPMENT PURCHASES
dc.subjectEQUITY CAPITAL
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURES
dc.subjectEXPORT EARNINGS
dc.subjectEXTERNALITIES
dc.subjectFACTORING
dc.subjectFINANCES
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CAPACITY
dc.subjectFINANCIAL INFRASTRUCTURE
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL PLANNING
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL SECTOR DEVELOPMENT
dc.subjectFINANCIAL SECTOR POLICY
dc.subjectFINANCIAL SERVICE
dc.subjectFINANCIAL SERVICE PROVIDERS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SERVICES PROVIDERS
dc.subjectFINANCING NEEDS
dc.subjectFIXED COSTS
dc.subjectFOREIGN EXCHANGE
dc.subjectFORMAL FINANCIAL INSTITUTION
dc.subjectGOVERNMENT SECURITIES
dc.subjectGUARANTEE REQUIREMENTS
dc.subjectHIGH INTEREST RATE
dc.subjectHIGH INTEREST RATES
dc.subjectHUMAN RESOURCE MANAGEMENT
dc.subjectINCOME TAX
dc.subjectINFLATION
dc.subjectINFORMATION TECHNOLOGY
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTEREST SUBSIDIES
dc.subjectINTERNATIONAL FINANCE
dc.subjectINVESTMENT PLANS
dc.subjectJOB CREATION
dc.subjectLACK OF COLLATERALS
dc.subjectLACK OF INFORMATION
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLENDING DECISION
dc.subjectLENDING DECISIONS
dc.subjectLENDING INSTITUTIONS
dc.subjectLENDING PORTFOLIOS
dc.subjectLIQUID ASSETS
dc.subjectLOAN
dc.subjectLOAN AMOUNT
dc.subjectLOAN AMOUNTS
dc.subjectLOAN APPLICATIONS
dc.subjectLOAN APPROVALS
dc.subjectLOAN CLASSIFICATION
dc.subjectLOAN DECISION
dc.subjectLOAN MATURITY
dc.subjectLOAN OFFICERS
dc.subjectLOAN PORTFOLIO
dc.subjectLOAN PORTFOLIOS
dc.subjectLOAN PRODUCTS
dc.subjectLOAN RECOVERY
dc.subjectLOAN SIZE
dc.subjectLOANS TO BUSINESSES
dc.subjectLOCAL LAWS
dc.subjectMANDATES
dc.subjectMARKET ENTRY
dc.subjectMARKETING STRATEGY
dc.subjectMFI
dc.subjectMFIS
dc.subjectMICRO FINANCE
dc.subjectMICRO FINANCE INSTITUTIONS
dc.subjectMICROCREDIT
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMORAL HAZARDS
dc.subjectMORTGAGES
dc.subjectMOVABLE COLLATERAL
dc.subjectNET WORTH
dc.subjectNONPERFORMING LOANS
dc.subjectOPERATING RATIO
dc.subjectOUTSTANDING LOAN
dc.subjectOVERDRAFTS
dc.subjectPARTIAL CREDIT
dc.subjectPAYBACK PERIOD
dc.subjectPAYMENT SERVICES
dc.subjectPAYMENTS SERVICES
dc.subjectPENSION FUNDS
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE CREDIT
dc.subjectPRODUCTIVITY
dc.subjectPROFITABILITY
dc.subjectPROVIDERS OF CREDIT
dc.subjectPROVISION OF CREDIT
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPUBLIC AGENCIES
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC INVESTMENT
dc.subjectREAL ESTATE
dc.subjectREAL ESTATE AS COLLATERAL
dc.subjectREGULATORY FRAMEWORK
dc.subjectREORGANIZATION
dc.subjectRETAIL BANKING
dc.subjectRETURN ON EQUITY
dc.subjectRISK OF DEFAULT
dc.subjectRISK TAKING
dc.subjectSAVINGS ACCOUNTS
dc.subjectSMALL BANKS
dc.subjectSMALL BUSINESSES
dc.subjectSMALL ENTERPRISES
dc.subjectSOCIAL SECURITY
dc.subjectSPECIALIZED BANKS
dc.subjectSUPPLY CHAIN
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTERM CREDIT
dc.subjectTIME DEPOSITS
dc.subjectTRADE FINANCING
dc.subjectTRANSPORT
dc.subjectUNFAIR COMPETITION
dc.subjectURBAN AREAS
dc.subjectWAREHOUSE
dc.subjectWAREHOUSE RECEIPTS
dc.subjectWAREHOUSES
dc.subjectWORKING CAPITAL
dc.titleFinancial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Fasoen
dspace.entity.typePublication
okr.date.disclosure2014-05-01
okr.date.doiregistration2025-05-07T09:09:09.006076Z
okr.doctypeEconomic & Sector Work::Policy Note
okr.docurlhttp://documents.worldbank.org/curated/en/2013/11/19456110/financial-sector-policy-note-financing-small-medium-sized-businesses-burkina-faso
okr.globalpracticeFinance and Markets
okr.guid314871468228925919
okr.identifier.externaldocumentum000442464_20140501121527
okr.identifier.internaldocumentum19456110
okr.identifier.report87804
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/05/01/000442464_20140501121527/Rendered/PDF/878040WP0P1233060Box385200B00PUBLIC00ACS.pdfen
okr.region.administrativeAfrica
okr.region.countryBurkina Faso
okr.sectorSME Finance
okr.sectorFinance
okr.themeOther Financial Sector Development
okr.themeFinancial and private sector development
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Financial Literacy
okr.unitAFT: Fin&PrivSecDev West&Central (AFTFW)
okr.volume1 of 1
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