Fuchs, MichaelIacovone, LeonardoJaeggi, ThomasNapier, MarkPearson, RolandPellegrini, GiuliaVillegas Sanchez, Carolina2013-03-122013-03-122011https://hdl.handle.net/10986/12687Numerous studies worldwide have highlighted the important contribution made by small and medium-sized enterprises (SMEs) to employment, income and economic growth. In a study of 76 developed and developing economies, Ayyagari and others (2007) found that SMEs account for more than 60 percent of total manufacturing employment and that SMEs contributed significant proportions of Gross Domestic Product (GDP). SME growth requires external financing, but constraints to accessing credit, consistently rated as some of the greatest barriers to the operation and growth of firms, affect SMEs more severely than large firms (Beck and Demirguc-Kunt 2006; Beck and others 2006). The purposes of this report are to: a) analyze the availability of bank finance to SMEs in South Africa and how availability might be enhanced in the context of the economic downturn; and b) offer concrete policy recommendations on how to lessen obstacles to bank SME financing and reduce the negative effects of the economic downturn (or of a similar downturn in future) on access to finance. The report is structured in 5 sections: section two provides a short overview of existing studies and data on SME finance in South Africa. Section three presents the main results of the surveys. Section four provides policy considerations. Section five concludes.en-USCC BY 3.0 IGOACCESS TO BANKACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCOUNT MANAGEMENTADVANCED ECONOMYAPPLICATION PROCEDURESAPPROVAL PROCESSASSET CLASSASSET CLASSESBALANCE SHEETBALANCE SHEETSBANK ACCOUNTBANK CREDITBANK FINANCINGBANK PROFITSBANK RATESBANK SERVICESBANKING INDUSTRYBANKING MARKETBANKING SECTORBORROWERBORROWINGBUSINESS ACTIVITYBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT SERVICESBUSINESS ENTERPRISESBUSINESS EXPERIENCEBUSINESS OWNERSBUSINESS PLANSBUSINESS TRAININGCAPITAL LOANSCASH FLOWCHECKING ACCOUNTSCOLLATERALCOLLATERAL REQUIREMENTSCOMMERCIAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCONSUMER LENDINGCREDIT ACCESSCREDIT APPLICATIONCREDIT APPLICATIONSCREDIT BUREAUSCREDIT CONSTRAINTSCREDIT DECISIONSCREDIT FACILITIESCREDIT GUARANTEECREDIT GUARANTEESCREDIT INFORMATIONCREDIT MANAGEMENTCREDIT PRODUCTSCREDIT QUALITYCREDIT RISKCREDIT SCHEMECREDIT SCORINGDEBTDEPOSITDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT CORPORATIONDEVELOPMENT FINANCEDEVELOPMENT FINANCE INSTITUTIONSDIRECT CREDITDIVERSIFICATIONECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC EMPOWERMENTECONOMIC GROWTHECONOMIES OF SCALEEMPOWERMENTENDOWMENTSENTERPRISE CREDITENTERPRISE FINANCEENTREPRENEURSEQUITY CAPITALEQUITY INVESTMENTSEXTERNAL FINANCINGFACTORINGFINANCIAL ACCESSFINANCIAL CRISISFINANCIAL EDUCATIONFINANCIAL HISTORYFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL LITERACYFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL SERVICEFINANCIAL SKILLSFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCING OF INVESTMENTFIRMSFIXED ASSETSFIXED COSTSFORM OF COLLATERALFORMAL FINANCIAL SECTORFUNDING SOURCEGENDERGOVERNMENT INVOLVEMENTGOVERNMENT POLICIESGOVERNMENT POLICYGOVERNMENT SPENDINGGOVERNMENT SUPPORTGUARANTEE SCHEMEGUARANTEE SCHEMESHIGH INTEREST RATESHOME LOANSHOUSEHOLDSINCOME STATEMENTSINCOME STREAMINFLATIONINFORMAL ECONOMYINSTRUMENTINSURANCEINSURANCE PRODUCTSINTEREST INCOMEINTEREST RATEINTEREST RATESINTERNAL FUNDSINTERNATIONAL BANKINTERNATIONAL FINANCEINVESTMENT CLIMATEINVESTMENT PROJECTSJUDICIAL PROCESSESLABOR MARKETLACK OF ACCESSLEGAL FRAMEWORKLENDERLENDERSLINE OF CREDITLIQUIDITYLOANLOAN APPLICATIONLOAN APPLICATION PROCEDURESLOAN APPLICATIONSLOAN APPROVALLOAN APPROVAL RATESLOAN APPROVALSLOAN GUARANTEELOAN MATURITYLOAN OFFICERSLOAN REPAYMENTLOAN SIZELOAN VOLUMESLOW INTEREST RATESMACROECONOMIC CONDITIONSMACROECONOMIC INSTABILITYMACROECONOMIC RISKMACROECONOMIC RISKSMANDATESMARKET DATAMARKET PARTICIPANTSMARKET SHAREMARKET SIZEMEDIUM ENTERPRISESMICROENTERPRISESMORTGAGEMORTGAGE LENDINGMORTGAGESNATIONAL CREDITNATIONAL TREASURYNEW COMPANIESNONBANK FINANCIAL INSTITUTIONSNONPERFORMING LOANSNPLOUTREACHOUTSTANDING LOANSOVERDRAFTSPARTIAL CREDITPERCPERSONAL BANKINGPOLITICAL ECONOMYPORTFOLIOPRIME RATEPRIVATE SECTOR COMMERCIAL BANKSPROFITABILITYPROFITABLE BUSINESSPROPRIETORSHIPPROPRIETORSHIPSPROVISION OF FINANCEPUBLIC POLICYREPAYMENT HISTORYRESERVERESERVE BANKRETAIL BANKINGRETURNRETURN ON ASSETSRETURNSRISK EVALUATIONRISK MANAGEMENTRISK MANAGEMENT SYSTEMSSAVINGSSHARE OF INVESTMENTSHORT-TERM FINANCESMALL BANKSSMALL BUSINESSSMALL BUSINESS BANKINGSMALL BUSINESS OWNERSSMALL BUSINESSESSMALL ENTERPRISESMALL ENTERPRISESSMESME FINANCESME FINANCINGSTART-UPSSUBSIDIARYSUPPLIERSSUPPLY CHAINSUPPLY OF FINANCETAXTRADE FINANCETRANSACTIONTURNOVERUNEMPLOYMENTUNINCORPORATED BUSINESSUNINCORPORATED BUSINESSESUNIONUNIVERSAL BANKUNIVERSAL BANKSWORKING CAPITALWorld Bank10.1596/12687