Financing Small and Medium Enterprises in the Republic of South Africa
Numerous 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) foun...
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| Format: | Other Financial Sector Study |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/01/16465228/financing-small-medium-enterprises-republic-south-africa http://hdl.handle.net/10986/12687 |
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okr-10986-12687 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT MANAGEMENT ADVANCED ECONOMY APPLICATION PROCEDURES APPROVAL PROCESS ASSET CLASS ASSET CLASSES BALANCE SHEET BALANCE SHEETS BANK ACCOUNT BANK CREDIT BANK FINANCING BANK PROFITS BANK RATES BANK SERVICES BANKING INDUSTRY BANKING MARKET BANKING SECTOR BORROWER BORROWING BUSINESS ACTIVITY BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT SERVICES BUSINESS ENTERPRISES BUSINESS EXPERIENCE BUSINESS OWNERS BUSINESS PLANS BUSINESS TRAINING CAPITAL LOANS CASH FLOW CHECKING ACCOUNTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER LENDING CREDIT ACCESS CREDIT APPLICATION CREDIT APPLICATIONS CREDIT BUREAUS CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT FACILITIES CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT MANAGEMENT CREDIT PRODUCTS CREDIT QUALITY CREDIT RISK CREDIT SCHEME CREDIT SCORING DEBT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT CORPORATION DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS DIRECT CREDIT DIVERSIFICATION ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC EMPOWERMENT ECONOMIC GROWTH ECONOMIES OF SCALE EMPOWERMENT ENDOWMENTS ENTERPRISE CREDIT ENTERPRISE FINANCE ENTREPRENEURS EQUITY CAPITAL EQUITY INVESTMENTS EXTERNAL FINANCING FACTORING FINANCIAL ACCESS FINANCIAL CRISIS FINANCIAL EDUCATION FINANCIAL HISTORY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICE FINANCIAL SKILLS FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCING OF INVESTMENT FIRMS FIXED ASSETS FIXED COSTS FORM OF COLLATERAL FORMAL FINANCIAL SECTOR FUNDING SOURCE GENDER GOVERNMENT INVOLVEMENT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SPENDING GOVERNMENT SUPPORT GUARANTEE SCHEME GUARANTEE SCHEMES HIGH INTEREST RATES HOME LOANS HOUSEHOLDS INCOME STATEMENTS INCOME STREAM INFLATION INFORMAL ECONOMY INSTRUMENT INSURANCE INSURANCE PRODUCTS INTEREST INCOME INTEREST RATE INTEREST RATES INTERNAL FUNDS INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT PROJECTS JUDICIAL PROCESSES LABOR MARKET LACK OF ACCESS LEGAL FRAMEWORK LENDER LENDERS LINE OF CREDIT LIQUIDITY LOAN LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL RATES LOAN APPROVALS LOAN GUARANTEE LOAN MATURITY LOAN OFFICERS LOAN REPAYMENT LOAN SIZE LOAN VOLUMES LOW INTEREST RATES MACROECONOMIC CONDITIONS MACROECONOMIC INSTABILITY MACROECONOMIC RISK MACROECONOMIC RISKS MANDATES MARKET DATA MARKET PARTICIPANTS MARKET SHARE MARKET SIZE MEDIUM ENTERPRISES MICROENTERPRISES MORTGAGE MORTGAGE LENDING MORTGAGES NATIONAL CREDIT NATIONAL TREASURY NEW COMPANIES NONBANK FINANCIAL INSTITUTIONS NONPERFORMING LOANS NPL OUTREACH OUTSTANDING LOANS OVERDRAFTS PARTIAL CREDIT PERC PERSONAL BANKING POLITICAL ECONOMY PORTFOLIO PRIME RATE PRIVATE SECTOR COMMERCIAL BANKS PROFITABILITY PROFITABLE BUSINESS PROPRIETORSHIP PROPRIETORSHIPS PROVISION OF FINANCE PUBLIC POLICY REPAYMENT HISTORY RESERVE RESERVE BANK RETAIL BANKING RETURN RETURN ON ASSETS RETURNS RISK EVALUATION RISK MANAGEMENT RISK MANAGEMENT SYSTEMS SAVINGS SHARE OF INVESTMENT SHORT-TERM FINANCE SMALL BANKS SMALL BUSINESS SMALL BUSINESS BANKING SMALL BUSINESS OWNERS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SME SME FINANCE SME FINANCING START-UPS SUBSIDIARY SUPPLIERS SUPPLY CHAIN SUPPLY OF FINANCE TAX TRADE FINANCE TRANSACTION TURNOVER UNEMPLOYMENT UNINCORPORATED BUSINESS UNINCORPORATED BUSINESSES UNION UNIVERSAL BANK UNIVERSAL BANKS WORKING CAPITAL |
| spellingShingle |
ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT MANAGEMENT ADVANCED ECONOMY APPLICATION PROCEDURES APPROVAL PROCESS ASSET CLASS ASSET CLASSES BALANCE SHEET BALANCE SHEETS BANK ACCOUNT BANK CREDIT BANK FINANCING BANK PROFITS BANK RATES BANK SERVICES BANKING INDUSTRY BANKING MARKET BANKING SECTOR BORROWER BORROWING BUSINESS ACTIVITY BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT SERVICES BUSINESS ENTERPRISES BUSINESS EXPERIENCE BUSINESS OWNERS BUSINESS PLANS BUSINESS TRAINING CAPITAL LOANS CASH FLOW CHECKING ACCOUNTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER LENDING CREDIT ACCESS CREDIT APPLICATION CREDIT APPLICATIONS CREDIT BUREAUS CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT FACILITIES CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT MANAGEMENT CREDIT PRODUCTS CREDIT QUALITY CREDIT RISK CREDIT SCHEME CREDIT SCORING DEBT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT CORPORATION DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS DIRECT CREDIT DIVERSIFICATION ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC EMPOWERMENT ECONOMIC GROWTH ECONOMIES OF SCALE EMPOWERMENT ENDOWMENTS ENTERPRISE CREDIT ENTERPRISE FINANCE ENTREPRENEURS EQUITY CAPITAL EQUITY INVESTMENTS EXTERNAL FINANCING FACTORING FINANCIAL ACCESS FINANCIAL CRISIS FINANCIAL EDUCATION FINANCIAL HISTORY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICE FINANCIAL SKILLS FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCING OF INVESTMENT FIRMS FIXED ASSETS FIXED COSTS FORM OF COLLATERAL FORMAL FINANCIAL SECTOR FUNDING SOURCE GENDER GOVERNMENT INVOLVEMENT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SPENDING GOVERNMENT SUPPORT GUARANTEE SCHEME GUARANTEE SCHEMES HIGH INTEREST RATES HOME LOANS HOUSEHOLDS INCOME STATEMENTS INCOME STREAM INFLATION INFORMAL ECONOMY INSTRUMENT INSURANCE INSURANCE PRODUCTS INTEREST INCOME INTEREST RATE INTEREST RATES INTERNAL FUNDS INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT PROJECTS JUDICIAL PROCESSES LABOR MARKET LACK OF ACCESS LEGAL FRAMEWORK LENDER LENDERS LINE OF CREDIT LIQUIDITY LOAN LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL RATES LOAN APPROVALS LOAN GUARANTEE LOAN MATURITY LOAN OFFICERS LOAN REPAYMENT LOAN SIZE LOAN VOLUMES LOW INTEREST RATES MACROECONOMIC CONDITIONS MACROECONOMIC INSTABILITY MACROECONOMIC RISK MACROECONOMIC RISKS MANDATES MARKET DATA MARKET PARTICIPANTS MARKET SHARE MARKET SIZE MEDIUM ENTERPRISES MICROENTERPRISES MORTGAGE MORTGAGE LENDING MORTGAGES NATIONAL CREDIT NATIONAL TREASURY NEW COMPANIES NONBANK FINANCIAL INSTITUTIONS NONPERFORMING LOANS NPL OUTREACH OUTSTANDING LOANS OVERDRAFTS PARTIAL CREDIT PERC PERSONAL BANKING POLITICAL ECONOMY PORTFOLIO PRIME RATE PRIVATE SECTOR COMMERCIAL BANKS PROFITABILITY PROFITABLE BUSINESS PROPRIETORSHIP PROPRIETORSHIPS PROVISION OF FINANCE PUBLIC POLICY REPAYMENT HISTORY RESERVE RESERVE BANK RETAIL BANKING RETURN RETURN ON ASSETS RETURNS RISK EVALUATION RISK MANAGEMENT RISK MANAGEMENT SYSTEMS SAVINGS SHARE OF INVESTMENT SHORT-TERM FINANCE SMALL BANKS SMALL BUSINESS SMALL BUSINESS BANKING SMALL BUSINESS OWNERS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SME SME FINANCE SME FINANCING START-UPS SUBSIDIARY SUPPLIERS SUPPLY CHAIN SUPPLY OF FINANCE TAX TRADE FINANCE TRANSACTION TURNOVER UNEMPLOYMENT UNINCORPORATED BUSINESS UNINCORPORATED BUSINESSES UNION UNIVERSAL BANK UNIVERSAL BANKS WORKING CAPITAL Fuchs, Michael Iacovone, Leonardo Jaeggi, Thomas Napier, Mark Pearson, Roland Pellegrini, Giulia Villegas Sanchez, Carolina Financing Small and Medium Enterprises in the Republic of South Africa |
| geographic_facet |
Africa South Africa |
| description |
Numerous 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. |
| format |
Economic & Sector Work :: Other Financial Sector Study |
| author |
Fuchs, Michael Iacovone, Leonardo Jaeggi, Thomas Napier, Mark Pearson, Roland Pellegrini, Giulia Villegas Sanchez, Carolina |
| author_facet |
Fuchs, Michael Iacovone, Leonardo Jaeggi, Thomas Napier, Mark Pearson, Roland Pellegrini, Giulia Villegas Sanchez, Carolina |
| author_sort |
Fuchs, Michael |
| title |
Financing Small and Medium Enterprises in the Republic of South Africa |
| title_short |
Financing Small and Medium Enterprises in the Republic of South Africa |
| title_full |
Financing Small and Medium Enterprises in the Republic of South Africa |
| title_fullStr |
Financing Small and Medium Enterprises in the Republic of South Africa |
| title_full_unstemmed |
Financing Small and Medium Enterprises in the Republic of South Africa |
| title_sort |
financing small and medium enterprises in the republic of south africa |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2011/01/16465228/financing-small-medium-enterprises-republic-south-africa http://hdl.handle.net/10986/12687 |
| _version_ |
1764421751140253696 |
| spelling |
okr-10986-126872021-04-23T14:03:05Z Financing Small and Medium Enterprises in the Republic of South Africa Fuchs, Michael Iacovone, Leonardo Jaeggi, Thomas Napier, Mark Pearson, Roland Pellegrini, Giulia Villegas Sanchez, Carolina ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT MANAGEMENT ADVANCED ECONOMY APPLICATION PROCEDURES APPROVAL PROCESS ASSET CLASS ASSET CLASSES BALANCE SHEET BALANCE SHEETS BANK ACCOUNT BANK CREDIT BANK FINANCING BANK PROFITS BANK RATES BANK SERVICES BANKING INDUSTRY BANKING MARKET BANKING SECTOR BORROWER BORROWING BUSINESS ACTIVITY BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT SERVICES BUSINESS ENTERPRISES BUSINESS EXPERIENCE BUSINESS OWNERS BUSINESS PLANS BUSINESS TRAINING CAPITAL LOANS CASH FLOW CHECKING ACCOUNTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER LENDING CREDIT ACCESS CREDIT APPLICATION CREDIT APPLICATIONS CREDIT BUREAUS CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT FACILITIES CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT MANAGEMENT CREDIT PRODUCTS CREDIT QUALITY CREDIT RISK CREDIT SCHEME CREDIT SCORING DEBT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT CORPORATION DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS DIRECT CREDIT DIVERSIFICATION ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC EMPOWERMENT ECONOMIC GROWTH ECONOMIES OF SCALE EMPOWERMENT ENDOWMENTS ENTERPRISE CREDIT ENTERPRISE FINANCE ENTREPRENEURS EQUITY CAPITAL EQUITY INVESTMENTS EXTERNAL FINANCING FACTORING FINANCIAL ACCESS FINANCIAL CRISIS FINANCIAL EDUCATION FINANCIAL HISTORY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICE FINANCIAL SKILLS FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCING OF INVESTMENT FIRMS FIXED ASSETS FIXED COSTS FORM OF COLLATERAL FORMAL FINANCIAL SECTOR FUNDING SOURCE GENDER GOVERNMENT INVOLVEMENT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SPENDING GOVERNMENT SUPPORT GUARANTEE SCHEME GUARANTEE SCHEMES HIGH INTEREST RATES HOME LOANS HOUSEHOLDS INCOME STATEMENTS INCOME STREAM INFLATION INFORMAL ECONOMY INSTRUMENT INSURANCE INSURANCE PRODUCTS INTEREST INCOME INTEREST RATE INTEREST RATES INTERNAL FUNDS INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT PROJECTS JUDICIAL PROCESSES LABOR MARKET LACK OF ACCESS LEGAL FRAMEWORK LENDER LENDERS LINE OF CREDIT LIQUIDITY LOAN LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL RATES LOAN APPROVALS LOAN GUARANTEE LOAN MATURITY LOAN OFFICERS LOAN REPAYMENT LOAN SIZE LOAN VOLUMES LOW INTEREST RATES MACROECONOMIC CONDITIONS MACROECONOMIC INSTABILITY MACROECONOMIC RISK MACROECONOMIC RISKS MANDATES MARKET DATA MARKET PARTICIPANTS MARKET SHARE MARKET SIZE MEDIUM ENTERPRISES MICROENTERPRISES MORTGAGE MORTGAGE LENDING MORTGAGES NATIONAL CREDIT NATIONAL TREASURY NEW COMPANIES NONBANK FINANCIAL INSTITUTIONS NONPERFORMING LOANS NPL OUTREACH OUTSTANDING LOANS OVERDRAFTS PARTIAL CREDIT PERC PERSONAL BANKING POLITICAL ECONOMY PORTFOLIO PRIME RATE PRIVATE SECTOR COMMERCIAL BANKS PROFITABILITY PROFITABLE BUSINESS PROPRIETORSHIP PROPRIETORSHIPS PROVISION OF FINANCE PUBLIC POLICY REPAYMENT HISTORY RESERVE RESERVE BANK RETAIL BANKING RETURN RETURN ON ASSETS RETURNS RISK EVALUATION RISK MANAGEMENT RISK MANAGEMENT SYSTEMS SAVINGS SHARE OF INVESTMENT SHORT-TERM FINANCE SMALL BANKS SMALL BUSINESS SMALL BUSINESS BANKING SMALL BUSINESS OWNERS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SME SME FINANCE SME FINANCING START-UPS SUBSIDIARY SUPPLIERS SUPPLY CHAIN SUPPLY OF FINANCE TAX TRADE FINANCE TRANSACTION TURNOVER UNEMPLOYMENT UNINCORPORATED BUSINESS UNINCORPORATED BUSINESSES UNION UNIVERSAL BANK UNIVERSAL BANKS WORKING CAPITAL Numerous 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. 2013-03-12T22:09:28Z 2013-03-12T22:09:28Z 2011 http://documents.worldbank.org/curated/en/2011/01/16465228/financing-small-medium-enterprises-republic-south-africa http://hdl.handle.net/10986/12687 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Other Financial Sector Study Economic & Sector Work Africa South Africa |