Publication:
Do Formal Loans Boost SME Performance?: Key Takeaways from a Meta-Analysis

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dc.contributor.authorBruhn, Miriam
dc.contributor.authorOrtega Hernandez, Johan Andrey
dc.contributor.authorOrtega, Claudia Ruiz
dc.date.accessioned2025-06-06T21:32:32Z
dc.date.available2025-06-06T21:32:32Z
dc.date.issued2025-06-06
dc.description.abstractThis paper conducts a meta-analysis of 24 studies evaluating the impact of formal loans on small and medium-sized enterprise performance. Using a Bayesian hierarchical model, the paper estimates that formal loans increase small and medium-sized enterprise employment by 12 percent, sales by 18.3 percent, and profits by 17.6 percent. Subgroup analyses show that the effects of credit on employment are larger when loans are issued by public rather than private banks, and the effects are broadly similar across firm size, country income levels, and guarantee structures. The larger impact of public bank loans suggests that private lenders’ profit-maximizing incentives may not always align with providing funds to the most credit-constrained firms that have the highest returns to capital.en
dc.identifierhttp://documents.worldbank.org/curated/en/099953106052513830
dc.identifier.doihttps://doi.org/10.1596/1813-9450-11140
dc.identifier.urihttps://hdl.handle.net/10986/43306
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11140
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBANK LOANS
dc.subjectSMES
dc.subjectJOB CREATION
dc.titleDo Formal Loans Boost SME Performance?en
dc.title.subtitleKey Takeaways from a Meta-Analysis
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-06-06
okr.date.doiregistration2025-06-11T02:12:58.557855Z
okr.date.lastmodified2025-06-06T19:06:39Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099953106052513830
okr.guid099953106052513830
okr.identifier.docmidIDU-f6584885-bb86-4330-86de-18685ef73780
okr.identifier.doi10.1596/1813-9450-11140
okr.identifier.externaldocumentum40019893
okr.identifier.internaldocumentum40019893
okr.identifier.reportWPS11140
okr.import.id7606
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099953106052513830/pdf/IDU-f6584885-bb86-4330-86de-18685ef73780.pdfen
okr.region.geographicalWorld
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Economic Development
okr.topicFinance and Financial Sector Development::International Financial Markets
okr.unitDECRG: Finance & Priv Sec Devt (DECFP)
relation.isAuthorOfPublication471c8982-45ac-42cd-87d0-3e505bd1a972
relation.isAuthorOfPublication.latestForDiscovery471c8982-45ac-42cd-87d0-3e505bd1a972
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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