scholarly journals Segmentation, Access to Finance Constraints and the Credit Monopolistic Power of Financial Institutions in Nicaragua

2014 ◽  
Vol 2 (4) ◽  
Author(s):  
Carlos Herrera U ◽  
Ruerd Ruben ◽  
Geske Dijkstra
Keyword(s):  
Financial Institutions ◽  
Access To Finance ◽  
Finance Constraints

scholarly journals Transition Finance and Markets

2020 ◽  
Vol 9 (1) ◽  
pp. 137-147
Author(s):  
Deborah Cotton
Keyword(s):  
Sustainable Development ◽  
Financial Institutions ◽  
Development Assistance ◽  
Development Assistance Committee ◽  
Access To Finance ◽  
Financial Products ◽  
New Research

The increased focus and agreement on the requirement for the planet to be more sustainable has led to an array of new research and financial products. The new buzz phrase is transition financing which is being seen as the path to achieving a sustainable world. The Development Assistance Committee (DAC) in the Organisation for Economic Co-operation and Development (OECD, 2019) has the main objective of transition finance is to optimise access to finance for sustainable development to avoid financing gaps or socio-economic setbacks. This chapter examines some of the products and markets in current use by financial institutions and investors. It describes their use and recent research in this area as well as some gaps in this research.

scholarly journals Lending Conditions and Marketing Strategies Of Financial Institutions in Kosovo to Support Access to Finance for Women Entrepreneurs

2020 ◽  
Vol 3 (02) ◽  
pp. 111-120
Author(s):  
Ajtene Avdullahi ◽  
Vjosa Fejza Ademi
Keyword(s):  
Financial Institutions ◽  
Women Entrepreneurs ◽  
Comparative Method ◽  
Secondary Data ◽  
Marketing Strategies ◽  
Research Papers ◽  
Access To Finance ◽  
Female Entrepreneurship ◽  
Female Entrepreneurs ◽  
Promotional Strategies

Purpose: The main purpose of this paper is to investigate the effort of financial institutions that support female entrepreneurship in a developing economy as well as the marketing strategies that those financial institutions utilize to increase the awareness of the female entrepreneurs concerning their preferential lending conditions and terms. Design/methodology/approach: For our research purpose the secondary data are used such as research papers, books and reports. The comparative method is used to compare the financial institutions lending conditions as well as the marketing and promotional strategies of those institutions. Findings: Access to finance presents one of the main barriers for female entrepreneurs in developing countries. Our results indicate that not so many financial institutions are constantly offering preferential lending conditions and terms for female-owned enterprises. Practical implications: We propose that financial institutions need to increase the number of loans and credit packages that support women's entrepreneurship and to create and promote much more marketing plans and strategies for women financial support packages from banks, to raise awareness of women entrepreneurs regarding the preferential lending conditions and special offers. Paper type: Research paper

scholarly journals Financing MSMEs (Micro Small and Medium Enterprises) in Nigeria: Implications of Transaction Costs

2018 ◽  
Author(s):  
Oluseye Ajuwon ◽  
Sylvanus Ikhide ◽  
Joseph Akotey
Keyword(s):  
Financial Institutions ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Survey Method ◽  
Access To Finance ◽  
Access To Credit ◽  
Transactions Cost ◽  
Medium Enterprises ◽  
The Impact ◽  
Depth Interviews

This study investigated the roles of transactions cost in MSMEs access to finance. This was done by investigating the impact of transactions cost on access to credit from both MSMEs and financial institutions (commercial banks and microfinance banks). From the MSMEs’ side, borrowing experience, decision lag, firm size and borrowers’ distance to the loan office were investigated. On the financial institution’s side, the costs of information gathering, loan administration, monitoring and loan enforcement were investigated. We used the questionnaire survey method, in-depth interviews and case studies, as well as the annual financial statements of the banks. We identified interest rate and collateral value as constraints to access to finance for MSMEs. We also found financial institutions’ attitude to MSMEs access to credit was not friendly. Financial institutions need to do more to bring down transaction cost of lending. This hopefully can be achieved by investing more in agent banking which would lower operating costs, as well as spreading risk, and ultimately increase credit intermediation to small businesses.

scholarly journals Knight, financial institutions, and entrepreneurship in developing economies

2021 ◽  
pp. 1-15
Author(s):  
Joyce K. Nabisaalu ◽  
Per L. Bylund
Keyword(s):  
Economic Development ◽  
Developing Country ◽  
Financial Institutions ◽  
Developing Economies ◽  
Informal Institutions ◽  
Eastern Africa ◽  
Limited Extent ◽  
Access To Finance ◽  
Formal And Informal Institutions ◽  
Institutional Model

Abstract Financial institutions in developing economies fail to provide entrepreneurs with access to finance to grow their businesses. This severely hampers economic development in these countries. We seek to explain why and develop an argument and model based on Knight's theory, which we augment in two ways. First, by describing problems embedded in financial institutions of developing economies, for which we use the Schumpeterian view that creative destruction requires new credit to fund entrepreneurial disruption and de Soto's finding that undocumented assets possessed by entrepreneurs in developing economies cannot be leveraged as collateral to access finance. Second, we use Williamson's hierarchical institutional model to distinguish vertical interactions. The model is illustrated using the case of Uganda, a developing country in Eastern Africa. Our analysis finds that Uganda suffers from intertwined and misaligned formal and informal institutions, limited extent of codified property, and sparse access to finance. The findings prompt policymakers in developing economies to consider problems with and within financial institutions.

To Analyze The Impact Of Political, Social, Economic And Technological Factors Characteristics In Access To Finance For SME In Chennai

2019 ◽  
Vol 118 (9) ◽  
pp. 487-494
Author(s):  
Uma Mageswari T ◽  
Bhuvaneswari. G
Keyword(s):  
Financial Institutions ◽  
Social Economic ◽  
Economic Factors ◽  
Access To Finance ◽  
Technological Factors ◽  
Smooth Flow ◽  
Medium Enterprises ◽  
Small Industries ◽  
The Impact ◽  
Socio Economic Factors

SME,acronym forSmall and Medium Enterprises has since been modified into MSME after introduction of MSMED Act 2006.  According to this Act, MSME stands for Micro, Small, Medium Enterprises.Development Corporation Limited are non-financial institutions to support small industries in addition to ensuring financial support through various financial institutions.  Government of India is ensuring adequate credit flow support to small industries.  However, there are some limitations, restrictions in getting adequate finance to the small industries.  Various socio economic factors play a major role in smooth flow of credit to the small industries. This article analyses the socio economic factors in credit out flow to small industries in Chennai.

scholarly journals Optimization of Crude Palm Oil Fund to Support Smallholder Oil Palm Replanting in Reducing Deforestation in Indonesia

2019 ◽  
Vol 11 (18) ◽  
pp. 4914 ◽  
Author(s):  
Fitri Nurfatriani ◽  
Ramawati ◽  
Galih Kartika Sari ◽  
Heru Komarudin
Keyword(s):  
Financial Institutions ◽  
Significant Role ◽  
Palm Oil ◽  
Land Tenure ◽  
Government Policy ◽  
Oil Industry ◽  
Crude Palm Oil ◽  
Access To Finance ◽  
Fiscal Incentives ◽  
Derivative Products

Smallholders play a significant role in the Indonesian palm oil industry. They cultivate more than 40% of the total plantation area, and their production contributes to the national revenue. However, despite their significant role, smallholders continue to face crop management, financial and environmental challenges. The fact that some smallholder plantations are illegally located in state forestland poses challenges for smallholders as regards getting access to finance, improving yields, and obtaining sustainable certification. Government policy on the collection of levies from exported crude palm oil (CPO fund) and its derivative products provides smallholders the opportunity to replant and support their sustainable practices, thereby reducing deforestation. This paper discusses how fiscal incentives of the CPO fund may have been optimized to prioritize these outcomes. We should prioritize the use of the fund not only to support smallholder replanting, but also to clarify their land tenure rights, so that they could get access to sustainable certification and financial institutions. It is also recommended that funds be allocated to subsidize loan interest to the bank and build productive capital during the grace period. These efforts have to be accompanied by building and improving smallholder databases and strengthening local government.

scholarly journals Assessing the Access to Finance by Small and Medium-Sized Enterprises from Financial Institutions in Blantyre City-Malawi

2019 ◽  
Vol 14 (5) ◽  
pp. 84
Author(s):  
Nelson Nanteleza Ndala
Keyword(s):  
Interest Rates ◽  
Financial Institutions ◽  
Quantitative Research ◽  
Risk Attitude ◽  
Cash Flows ◽  
The Other ◽  
Research Approach ◽  
Access To Finance ◽  
The Government ◽  
The City

SMEs are an integral part of the economy in Malawi. The paper assesses the access to finance by SMEs from financial institutions in Malawi by highlighting the obstacles that SMEs face in their effort to raise finance. The quantitative research approach was adopted in conducting the study. Questionnaires were circulated to 100 SMEs in the City of Blantyre-Ginnery Corner and the SMEs were selected using the random sampling techniques. The following major findings were revealed.  There are financial institutions that are willing to provide funds to SMEs for growth and expansion but most Malawian SMEs fail to meet the lending requirements demanded by these institutions. Chief amongst these is the inability by most SMEs to provide collateral or security and audited financial statements for their businesses. On the other hand, for the small number that is able to access finance, they are faced with high interest rates which make it very difficult for them to grow. The other constraints include lack of finance, stiff competition in the sector, high taxes and corruption and bribes to access contracts. Another interesting revelation is that SMEs relationship with their bankers is not healthy. Most SMEs consider their relationship to be average despite recent focus by the banks on SMEs businesses. The study recommends the enforcement of the Credit Reference Bureau Act 2010 to help financial institutions identify and lend to creditworthy SMEs; banks should soften their adverse risk attitude of over reliance on collateral rather than on business cash flows. The government should also consider provision of tax incentives to banks’ lending to SMEs; stabilisation of the economy to achieve lower inflation and interest rates and formulation of government policy on SMEs that would compel Ministries, Departments and Agencies to allocate a proportion of contracts to SMEs in any tender. Lastly, financial institutions should revisit their approach to SME banking.

Problem of Financing Women Entrepreneurs

2019 ◽  
pp. 278-304
Author(s):  
Zorica Golic
Keyword(s):  
Interest Rates ◽  
Financial Institutions ◽  
Women Entrepreneurs ◽  
Access To Finance ◽  
Face To Face ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Financial Exclusion ◽  
Depth Interviews

The purpose of this chapter is to explore the problem of financing women entrepreneurs from the perspective of BiH women entrepreneurs. Using an interpretive research methodology and based on face-to-face semi-structured in-depth interviews with 12 women entrepreneurs, the authors examined their perceptions and identified the key barriers to accessing financial means as they were experienced and faced by women entrepreneurs from Bosnia and Herzegovina (BiH). The results presented in this chapter indicate that in BiH there is a problem of social inadmissibility of women entrepreneurs, as well as open discrimination by banking officers. If these are accompanied by high interest rates on loans, extensive and costly documentation necessary for applying for a loan, and the inability to provide collateral, it leads to financial exclusion and limited access to finance. Making progress on alleviating or tackling the problem of financing women entrepreneurs is a long-term commitment from governments, non-governmental organizations, financial institutions, and investors.

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