scholarly journals Public Credit Guarantee Schemes in Supporting SMEs: An Evaluation of Effectiveness and Impacts

2019 ◽  
Vol 15 (1) ◽  
pp. 174
Author(s):  
Maria Cristina Arcuri ◽  
Lorenzo Gai ◽  
Federica Ielasi
Keyword(s):  
Small Enterprises ◽  
Probability Of Default ◽  
Manufacturing Companies ◽  
Credit Guarantee ◽  
Access To Credit ◽  
Distress Prediction ◽  
Public Credit ◽  
Micro And Small Enterprises ◽  
Set Up ◽  
Reform Model

Public credit guarantee schemes are set up with the purpose of facilitating access to credit by Small and Medium-sized Enterprises (SMEs). The aim of the paper is to study the effectiveness and impacts of the Italian Central Guarantee Fund (CGF)’s activity, one of the main public guarantee schemes in Europe. This is even more important in the light of the 2018 CGF reform. Analyzing a sample which includes all the guarantees issued by the CGF from 2012 to 2018 on loans made to manufacturing companies, we find that the CGF methodology is partially able to capture the variables affecting the probability of default of SMEs. The CGF scores before the reform show poor capability to forecast risk in the medium term, above all for micro and small enterprises. The post-reform model shows better forecasting ability and a greater consistency with the Z’’-score, one of the most recognized model in the distress prediction literature. The new CGF model may indirectly control the behaviour of lenders and first-level guarantors. In particular, our findings show that the probability of default on exposures covered by a mutual guarantee institution and counter-guaranteed by the CGF is lower than the probability of default of loans granted by a bank and directly guaranteed by the CGF. As a consequence, the direct guarantees need to be more monitored by the CGF and potential effects on the bank behaviour may derive, strengthening ECB’s supervision activities.

A Systemic Perspective for Supporting Production and Innovation in Brazilian Micro and Small Enterprises

2014 ◽  
pp. 273-297
Author(s):  
Marcelo Pessoa de Matos ◽  
Ana Arroio ◽  
Elaine Borin
Keyword(s):  
Production Systems ◽  
Positive Impact ◽  
Innovation Policy ◽  
The Other ◽  
Systemic Approach ◽  
Small Enterprises ◽  
Access To Credit ◽  
Micro And Small Enterprises ◽  
Set Up ◽  
Science Technology And Innovation

The objective of this study is to provide an overview and to discuss the recent Brazilian experience in formulating and implementing policies for promoting Micro and Small Enterprises (MSEs), especially considering the initiatives that depart from a systemic approach to promote production and innovation. The chapter emphasizes some crucial issues in the discussion of industrial and innovation policy, such as the adequacy of the instruments, the institutional set-up and the effective and potential convergence of different types of policies to support MSEs under the header of Local Innovation and Production Systems (LIPS). Data on the performance of MSEs in general and those inserted in LIPSs in the recent period suggest that the diversified set of initiatives had a considerably positive impact, especially in relation to formalization, access to credit, and incremental improvements and innovations. On the other side, the articulation of actors for enhancing interactive learning processes and technical training deserve more attention. Positive prospects for the promotion of MSEs, based on a systemic approach, are related to LIPS policies that articulate main policy vectors: science, technology and innovation, industry, and regional and social development.

scholarly journals Changes in Production Efficiency During the COVID-19 Pandemic

2021 ◽  
Vol 4 (1) ◽  
pp. 255-265
Author(s):  
Dorota Klimecka-Tatar ◽  
Robert Ulewicz
Keyword(s):  
Supply Chain ◽  
Production Efficiency ◽  
Small Enterprises ◽  
Strong Impact ◽  
Manufacturing Companies ◽  
Narrow Scope ◽  
Preliminary Comparison ◽  
Large Production ◽  
Micro And Small Enterprises ◽  
Large Enterprises

Abstract The limitations and new safety restrictions related to the COVID-19 pandemic caused by SARS-CoV-2 had a strong impact on the functioning of numerous manufacturing companies. This paper presents the results of a survey conducted among employees of manufacturing companies. A preliminary comparison of the production efficiency (and volume) in terms of the size of enterprises was made – results obtained for micro, small and medium entrprise, as well as for large production enterprise. On the basis of the presented results, it was unequivocally stated that it was much easier for micro and small enterprises to adapt to the introduced changes. They easily expanded the range of products and thus recorded a slight increase in production. Large enterprises, due to the narrow scope of their operations, unfortunately recorded a significant decrease in production – which may also be caused by the discontinuity of the supply chain.

scholarly journals The Influence of Access to Credit on Growth of Women- Owned Micro and Small Enterprises in Kitui County, Kenya

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Florence M. Mbiti ◽  
Professor Elegwa Mukulu ◽  
Dr. Joseph Mung’atu ◽  
Dr. Dorothy Kyalo
Keyword(s):  
Small Enterprises ◽  
Access To Credit ◽  
Micro And Small Enterprises

EFFECT OF CREDIT AND EDUCATION ON PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN KENYA

2018 ◽  
Vol 3 (1) ◽  
pp. 19-35
Author(s):  
Valentine Lynda Musavi ◽  
Dr. James Maingi
Keyword(s):  
Large Population ◽  
Joint Effect ◽  
Small Enterprises ◽  
Cross Sectional ◽  
Access To Credit ◽  
Educational Qualification ◽  
Unmet Demand ◽  
Micro And Small Enterprises ◽  
Lending Institutions ◽  
The Relationship

Purpose: The purpose of this study was to establish the effect of credit and owner/manager educational qualification on performance of micro and small enterprises in Kenya and their joint effect using the 2016 MSMEs survey data.Methodology: This is cross-sectional data collected from a population of 50,043 enterprises. A sample of 384 enterprises was used in the analysis as obtained using Fisher’s (2003) formula for computing sample size from a large population. Inferential statistics was used to interrogate the relationship between the variables.Results: Regression results indicated that both access to credit services and educational qualification had a positive and significant effect on performance of the sampled enterprises. Further analysis indicated that the joint effect of the two variables was greater than their individual effect.Unique contribution to theory, practice and policy: Recommendations of this study are that the central Bank of Kenya should focus more on lending and credit facilitation programs in order to encourage greater bank-led financing to the sector to help bridge the unmet demand for credit and that micro and small enterprises should be encouraged to establish good credit history with various lending institutions to enable them access credit facilities from financial institutions. In addition, owners/managers of the enterprises should be provided with training on managerial and technical skills to complement their educational qualifications in running the enterprises.

scholarly journals Determinants of Micro and Small Enterprises Transformation in to Medium Level Industry in Addis Ababa, Ethiopia

2019 ◽  
pp. 1-22
Author(s):  
Abe Yadergal ◽  
Atinkut Lingerew ◽  
Ambaw Getenet
Keyword(s):  
Market Access ◽  
Addis Ababa ◽  
Strong Association ◽  
Small Enterprises ◽  
Manufacturing Companies ◽  
Record Keeping ◽  
Know How ◽  
Capital Growth ◽  
Medium Level ◽  
Micro And Small Enterprises

Micro and small enterprises are means for most countries economy by creating employment opportunity and supporting large manufacturing companies in the economy. The results of most research studies revealed that most micro and small enterprises in developing countries especially in Ethiopia have several problems for transformation and growth due to diverse factors. Thus, this research assesses determinants of micro and small enterprises transformation in to medium level industry in Addis Ababa. 74 transformed micro and small enterprises in 10 sub cities were taken as sample size. The objective of this study was to identify causes of micro and small enterprises transformation in to medium level industry in Addis Ababa, Ethiopia. The study employed explanatory research design more of quantitative in nature and Data were collected pre designed person assisted questionnaire. The study was used micro and small enterprises transformation measured by the enterprises employment growth and capital growth as dependent variables. Independent variables are Finance access, Management know-how, Market access for their product, Poor infrastructure, Technology, Support micro and small enterprises get, Adequate accounting and record keeping and government rules and regulations. The results provided evidence with correlation coefficients of finance (37.7%), management know-how (27.6%), market access (32.9%), infrastructure (15.2%), technology (40.3%) and accounting and recordkeeping (28.1%) in respect to average capital growth. This indicated that relatively there were strong association of finance access, market access and technology with average capital growth in contrast with management know-how, infrastructure, and accounting and record keeping.

MSMEs and Access to Financing in a Developing Economy

2017 ◽  
pp. 148-172 ◽  
Author(s):  
Tulus T. H. Tambunan
Keyword(s):  
Economic Development ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Developing Economy ◽  
Microfinance Institutions ◽  
Access To Finance ◽  
Total Employment ◽  
Credit Guarantee ◽  
Micro And Small Enterprises ◽  
Medium Enterprises

Historically, micro, small, and medium enterprises (MSMEs) have played an important role in economic development in Indonesia. MSMEs are very numerous, amounting to, on average, almost 99% of total enterprises and also more than 90% of total employment across sectors in the country. Although the lack of finance is not the only problem facing many MSMEs, this chapter discusses the Indonesian experience with MSME financing with the focus on a government-initiated credit guarantee scheme, namely KUR (people business credit), aiming to give the enterprises more access to finance and the development of microfinance institutions. It also provides a brief description of MSMEs' development, their main constraints, and their main finance sources. The chapter shows that, in spite of government efforts, the majority of MSMEs, especially micro and small enterprises (MSEs), still depend on informal sources for their capital.

Pengembangan Kemitraan Koperasi, Usaha Mikro Dan Kecil (KUMK) Dengan Usaha Menengah/Besar Untuk Komoditi Unggulan Lokal

2019 ◽  
Vol 9 (1) ◽  
pp. 53-66 ◽  
Author(s):  
Dandan Irawan
Keyword(s):  
Business Performance ◽  
The Other ◽  
Economic Conditions ◽  
Small Enterprises ◽  
Business Partnerships ◽  
Short Term ◽  
Business Partnership ◽  
Structure Factors ◽  
Micro And Small Enterprises ◽  
Business Entities

Basically a natural partnership will achieve its goal if mutual requirements, mutual reinforcement, and mutual benefit can be maintained and made a strong fundamental commitment among partners. Nevertheless the development seems very slow. The cause is the presence of specific and different conditions and structure factors compared to other countries. Along with that, we still encounter various forms of gaps, such as inequality among regions, among income groups, between sectors, among economic actors, and so forth. The next problem is that in business entities including cooperatives and micro and small enterprises in running their business activities requires business partnerships with medium and large enterprises in order to improve business performance and business scale. While on the other hand our economic conditions and structures are not yet fully conducive to fostering partnerships based on purely business considerations or competitive market motivations but the business partnership of the foundation is strong enough in our country's constitution. Partnerships will work if partners are equally benefiting. Our concept of partnership is like that, although in the short term, there is a party or a party benefiting more from the other side.

FATORES QUE PREJUDICAM A GESTÃO DE CAPITAL DE GIRO DE MPE INDUSTRIAIS

2017 ◽  
Vol 3 (1) ◽  
pp. 43
Author(s):  
André Luiz Franco ◽  
Vera Mariza Henriques de Miranda Costa ◽  
Fábio Ferraz Junior ◽  
Tabajara Pimenta Junior
Keyword(s):  
Business Community ◽  
Small Enterprises ◽  
Stock Management ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Management Indicators ◽  
Micro And Small Enterprises ◽  
Major Factors ◽  
Managerial Activity

ResumoA importância das micro e pequenas empresas (MPE) pode ser notada pela relevante geração de riquezas e de empregos no Brasil. Contudo, os índices de insucesso e mortalidade para esse gênero de empresas são muito elevados e têm como um dos principais causadores a dificuldade no gerenciamento do capital de giro. A realização deste estudo teve como objetivo identificar e discutir os principais fatores, no âmbito da gestão de capital de giro, que prejudicam a continuidade das atividades das MPE industriais. A pesquisa envolveu uma coleta de dados com gestores de 55 MPE industriais.  Os resultados da pesquisa apontaram sete fatores mais importantes que interferem negativamente na gestão de capital de giro: formação inadequada dos gestores, acúmulo de atividade dos gestores, falta de planejamento financeiro, ausência de acompanhamento de indicadores de gestão, deficiência na gestão de estoque e produção, falta de condições de negociação com os fornecedores e restrições financeiras. Os resultados alcançados podem contribuir com a comunidade acadêmica e empresarial para ampliar a compreensão do que prejudica e dificulta a gestão de MPE, especialmente as que possuem atividade fabril. Palavras-chave: Capital de Giro; Micro e Pequenas Empresas; Mortalidade Empresarial.  AbstractThe importance of micro and small enterprises (SME) can be noticed by the relevant generation of wealth and jobs in Brazil. However, the rates of failure and mortality for this type of company are very high and have as one of the main causes the difficulty in the management of working capital. The objective of this study was to identify and discuss the main factors in the scope of working capital management, which hinder the continuity of the activities of industrial SME. The research involved a data collection with 55 industrial MPE managers. The research results pointed to seven major factors that negatively affect working capital management: inadequate training of managers, accumulation of managerial activity, lack of financial planning, lack of monitoring of management indicators, deficiencies in stock management and production, lack of negotiation conditions with suppliers and financial restrictions. The results achieved can contribute to the academic and business community to broaden the understanding of what harms and hinders the management of MSE, especially those that have factory activity. Keywords: Working Capital; Micro and Small Enterprises; Corporate Mortality.

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