State support for small and medium-sized enterprises in the Moscow region under current conditions

The article considers the сhallenges for small and medium-sized businesses in obtaining government support during the pandemic and post-pandemic period. The reasons preventing people from obtaining support measures, as well as tangible and non-tangible state support measures for businesses in the Moscow region and the support measures provided by banks and lending institutions have been reviewed. Data from reputable source studies on identifying the difficulties caused by state and non-state support measures, in particular the problem of banks refusing to allow small and medium-sized businesses to defer accrued interest at a concessionary rate have been presented. The problem has been the distribution of support to small and medium-sized enterprises according to the type of economic activity, as not all enterprises fit the required activities. Examples have been given of sectors that have restructured their business in the new environment. A list of support measures for small and medium-sized enterprises has been proposed.

Analysis of the dynamics of IPO transactions in the banking sector

IPO (initial public offering) is a widespread financing instrument in the world, however, the scientific community pays little attention to the dynamics of IPOs in the banking sector. The aim of the study is to critically analyze the dynamics of IPO transactions of credit institutions on the horizon from January 1, 2000, to December 31, 2020. The research methodology includes analytical methods for collecting and processing information, comparative and graphical analysis of the database collected by the author and consisting of 305 IPOs of banks from 2000 to 2020. The study compares the dynamics of IPO transactions of credit institutions from developed and developing countries, identifies characteristics inherent in each market, and explains the differences in market dynamics. The study reveals clustering in the IPO market of credit institutions and compares clustering with the general market of initial public offerings. It is shown that lending institutions around the world have actively attracted funds through IPO, having placed their shares for a total of $ 218 billion. The bulk of the funds were attracted by banks from emerging markets, primarily from China. During this period, there were 3 IPO waves on the banking IPO market, characterized by a significant increase in placement volumes and profitability on the first day of trading. This clustering in the IPO market of credit institutions was not typical only for the banking sector but coincided with the global growth in the number of transactions and IPO yields. The author concludes that the placement of shares of credit institutions during the hot market period is the most promising in terms of the volume and dynamics of raising funds; the IPO market of credit institutions retains high growth potential, primarily in Asia and the CIS.

Informal Lending Practices and Profitability of Rice Retailers in Borongan City

This correlational study explored the relationship between informal lender’s practices and profitability of fifty-three (53) rice retailers in city of Borongan using a researcher-made-three part questionnaire on the business profile, level of practices among informal lenders and weekly income of the respondents. Data were sourced out from rice retailers who lent sum of money from “5-6” informal lenders, and were utilized using descriptive and inferential analysis test at .05 level of significance. Findings revealed that Majority of the respondents had been in the middle years of retailing business, used an average initial capital sourced out from their personal savings and are earning an average weekly income. The respondents’ perceived that informal lenders assess clients’ financial needs and willingness to pay without requiring collateral from them and that rice-retailers reloan due to fast processing of funds and the great customer service. Using regression analysis, year in business was found to be a significant predictor of increase in the profitability of rice retailing services. While, no significant relationship was seen between the rice retailers’ weekly net income and the level of practice among informal lenders. The researcher recommends that government and non-government agencies to provide intervention that will improve the microbusiness enterprise in the market using the help of informal and formal lending institutions and that wider scope of the study should be made to include other small business sectors that are affected by informal lenders.

Relationship lending and access to financial services by SMEs in Kenya

Policymakers and scholars acknowledge the significance of small and medium enterprises in stirring the economic growth and development in developing and developed economies. In spite of the generally fast pace by which access to financial services for small and medium enterprises is being established, significant segments of the small and medium enterprises sector do not yet benefit from the expansion. This study, therefore, investigated the effect of relationship lending on access to financial services by small and medium enterprises in Kenya. The study was based on credit rationing theory and information asymmetry theory. The target population comprised 4,253 small and medium enterprises in Kenya. A sample size of 366 SMEs was used by the study. The study adopted a multistage sampling technique to obtain the SME respondents. Primary data was utilized and was acquired through semi-structured questionnaires. Data were analyzed using descriptive and inferential statistics utilizing Heckman two-stage regression model. The study findings showed that relationship lending had a positive and significant effect on access to financial services among SMEs in Kenya. The study concluded that relationship lending plays a critical role in access to financial services by SMEs in Kenya. The study recommends that SMEs owners should strive to meet the terms and conditions provided by lending institutions in their various financing practices while management of the lending institutions should adopt financing practices favorable to SMEs to increase their access to financial services.

Financing Agribusiness: Potential Determinants of Financial Inclusion for Smallholder Rural Farming Communities in Kenya

The purpose of this article is to empirically examine and compare the factors or determinants of financial inclusion in commercial banking institutions, microfinance banks, mobile banking platforms and table banking groups (informal banking groups) in Kenya. The data used in the study were obtained from 631 small and micro-sized (SMS) farming enterprises in Kenya. We use probit model to empirically establish the factors that determine the probability of small and micro-sized farming enterprises in accessing agricultural credit from the four major lending institutions. Also, we apply Heckman selection model to establish the determinants of agricultural credit rationing. OLS model is used to investigate the determinants of agricultural credit delinquency rates in the lending institutions. The results show that female-owned SMS farming enterprises are likely to access less agricultural credit amount from table banking groups, own small farms with no title deed and own less valued assets compared to male-owned SMS farming enterprises which access agricultural credit from commercial banks and microfinance banks. Further results revealed that household dependency ratio was a significant determinant factor in agricultural credit access from mobile banks, commercial banks and table banking groups. Additionally, agricultural credit delinquency in mobile banking is significantly reduced by distance to the banking agent. The availability of mobile banking agencies within village centres would considerably enable agri-entrepreneurs to make credit repayment within the required period.

Examining the financial relationships between producers and commission agents in the greenhouse vegetable farming industry in Turkey

PurposeThis paper is intended to investigate the economic, organizational and social factors affecting the receipt of advance payment by greenhouse vegetable producers from commission agents operating in the wholesale market.Design/methodology/approachThe data were gathered through questionnaire forms developed for this specific purpose through face-to-face interviews with 180 producers growing greenhouse vegetables in the central district and Serik, Antalya in the Western Mediterranean Region of Turkey. A logistic regression model was employed to analyse the factors affecting the likelihood of greenhouse vegetable growers getting advance from commission agents.FindingsA good financial status of enterprises producing greenhouse vegetables and the fact that their production input needs are met by cooperatives reduce their dependence on commission agents, thereby increasing their bargaining power when selling their products. Since producers can readily meet their need for the capital required for the vegetable production process from commission agents, they do not prefer to borrow from lending institutions making agricultural loans with requirements such as collateral. The fact that greenhouse vegetable farmers receive technical and market information and advice from commission agents strengthens their relationship with them.Originality/valueIt is the first study that evaluates in detail the financial aspect of the relationships between producers and commission agents in the greenhouse vegetables wholesale market. It contributes significantly to agricultural policymakers regarding the functioning of the greenhouse vegetable market, and in particular, the regulations on agricultural loans for production processes.

A model for work packages optimization in results-based-finance projects

PurposeIn many developing countries, the sanitation sector constitutes a major part of their strategic plans of reform. Yet with the very limited budget of the public treasury, countries opt to major lending institutions for funds. “Results-Based-Finance” is a new funding mechanism that has proven its efficiency in achieving the necessary reform in sanitation sectors. Due to the complexity of the funding tool, it is crucial to be able to decompose the project into smaller packages to be able to effectively control the project. The objective of this paper is to reach an optimum packaging scheme that enables the project to be successfully managed through better planning and cost control practices.Design/methodology/approachWith the aid of Unified Modelling Language (UML), an algorithm is developed to map the logic behind the model suggested with detailed illustrations of its different modules. Object-oriented processes and operations are modeled using different diagrams of the language, which automatically generate the optimum packaging combination. The packaging model is then implemented via a number of computer-aided programs. The Microsoft Excel 2019 is used for calculation purposes. Visual Basic for Applications (VBA) programming language is used to make the model user-friendly for non-engineering stakeholders. The Palisade's Decision Tools Suite is used for the optimization processFindingsThe model is validated through a case study of a mega sanitation project located in Egypt. The model output is not only the content of the packages but also a complete managing plan which demonstrates many useful information to the decision-makers and government officials.Originality/valueThe research aim is to provide the construction industry with a tool that makes the packaging process of mega projects funded through the “Results-Based-Finance” mechanism, done in an automated manner. Moreover, the packages are selected in a way to optimize the project cashflow. Having the optimum package size shall ensure better planning and a more accurate cost control. Yet it is a challenging task; especially, when the project cash flow is very sensitive and intolerant to delays like in the “Results-Based-Finance” mechanism.

All for one? The Paycheck Protection Program distribution disparity

PurposeGiven the previous research on the disparities of lending rates and their relationship with lending institutions for women-owned and minority-owned businesses, the study poses the research question: How much Paycheck Protection Program (PPP) funding was distributed to women-owned and minority-owned businesses in comparison to other firms? Additionally, as the purpose of the PPP funding was to assist small businesses in retaining their workforce, the authors pose a second research question: Of those who received PPP funding, how many jobs on average were retained? And importantly related to our first research question, are there differences across gender and race in the average number of jobs retained?Design/methodology/approachThis is one of the first empirical studies with an initial sample size of 661,218 loans from July 2020 that examines whether the United States PPP had the intended impact to save jobs in small businesses and to examine any reported differences across gender and race in loans issued and jobs saved.FindingsThe authors find that significant differences exist between women- and men-owned businesses across all five loan categories, with male-owned firms receiving over 80% of PPP loans. However, women-owned firms saved more jobs on average across all but the largest loan category. Significant differences were also found between minority- and White-owned businesses with minority-owned businesses generally saving more jobs on average across most loan categories.Research limitations/implicationsA limitation of this study pertains to certain missing data that were not reported by participants. While a participant may have included their gender, they may not have included their race. Therefore, the varying sets of data may not be a reflection of the same individuals. Additionally, the industries were not included in this analysis, which may shed light on the job creation differences across gender and race.Practical implicationsMany of the industries that have been significantly impacted have been the tourism, restaurant and hospitality sectors, and knowing “where the money was allocated” can assist policymakers in allocating additional funds to those businesses, especially those who did not receive funding in the initial first waves of PPP.Originality/valueThis is one of the first empirical studies that examine over 600,000 loans and found that women-owned firms saved more jobs across all loan categories except the largest loans. Significant differences were also found between minority- and White-owned businesses with minority-owned businesses generally saving more jobs on average across most loan categories.

The role of the Palestine monetary authority in combating money laundering

Purpose This paper aims to highlight the role of the Palestine Monetary Authority (PMA) in combating money laundering. The discussion will focus on the sectors under the PAM authority by examining the issued instructions. Design/methodology/approach The current study is a pure legal study. The methodology used in this paper is the qualitative approach by focussing on the doctrinal mechanism. Thus, it focussed on procedures, processes, laws, and regulations. Findings This paper found serious organisational inefficiencies within the governance framework of anti-money laundering (AML) for both the currency exchange and specialised lending institutions sectors. Moreover, the PMA’s role in combating money laundering is insufficient where its efforts are limited by random inspection visits and the installation of surveillance cameras in the money changers shops. Practical implications The findings may influence both the currency exchange and specialized lending institutions sectors to adopt a more vigilant approach to prevent the occurrence of money laundering in Palestine and to undertake more responsibility in ensuring compliance with the current AML legal framework. The study also highlighted that their current practice might place them in danger of non-compliance. Originality/value The paper demonstrated in, an exceptional way, the role of the PMA in combating money laundering by focussing on both legal and regulatory requirements for the three sectors under the PMA supervision authority. This paper made a valuable contribution to the study of combating money laundering in Palestine, where it is one of the first studies dealing with this issue involving this country.