What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?

Using a unique firm level data set -- the Enterprise Surveys -- this paper develops a new measure of credit-constrained status for firms using hard data instead of perceptions data. The paper classifies firms into four ordinal categories: Not Credi...

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Main Authors:	Kuntchev, Veselin, Ramalho, Rita, Rodriguez-Meza, Jorge, Yang, Judy S.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCOUNTING AFFILIATED ORGANIZATIONS ANNUAL SALES BANK FINANCING BANK LOAN BANK LOANS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPACITY UTILIZATION CAPITAL FINANCE COLLATERAL COMPETITORS CORPORATE FINANCE CORRUPTION CREDIT CONSTRAINED FIRMS CREDIT CONSTRAINT CREDIT MARKET DEBT DEBT FINANCE DEPENDENT DEPOSIT DEPOSIT ACCOUNTS ECONOMIC ACTIVITY EDUCATION LEVEL EMPLOYERS EMPLOYMENT EQUITY FINANCE EUROPEAN CENTRAL BANK EXTERNAL CREDIT EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL FINANCING FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEEPENING FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL SERVICES FINANCING CONSTRAINTS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED ASSETS FOREIGN OWNERSHIP FORMAL DEBT FINANCE FORMAL WORKFORCE GENDER INFORMAL CREDIT INFORMAL FINANCING INTERNATIONAL BANK JOB CREATION LARGE FIRMS LEVEL OF CREDIT LEVELS OF CREDIT LINE OF CREDIT LIQUID ASSETS LOAN APPLICATION LOAN APPLICATIONS MANDATE MEDIUM ENTERPRISES MEDIUM SIZE ENTERPRISES MONEYLENDERS MULTINATIONAL NEW CREDIT OUTSTANDING LOAN PRIVATE CREDIT PRODUCTIVITY SAVINGS SAVINGS ACCOUNT SHAREHOLDING SMALL BUSINESS SMALL FIRM SMALL FIRMS SME SOURCES OF CREDIT SOURCES OF FINANCE SUPPLIERS TRADE CREDIT TRANSPORT WORKING CAPITAL Microdata Set
Online Access:	http://documents.worldbank.org/curated/en/2013/10/18425135/learned-enterprise-surveys-regarding-access-credit-smes http://hdl.handle.net/10986/16885

id	okr-10986-16885
recordtype	oai_dc
spelling	okr-10986-168852021-04-23T14:03:32Z What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs? Kuntchev, Veselin Ramalho, Rita Rodriguez-Meza, Jorge Yang, Judy S. ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCOUNTING AFFILIATED ORGANIZATIONS ANNUAL SALES BANK FINANCING BANK LOAN BANK LOANS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPACITY UTILIZATION CAPITAL FINANCE COLLATERAL COMPETITORS CORPORATE FINANCE CORRUPTION CREDIT CONSTRAINED FIRMS CREDIT CONSTRAINT CREDIT MARKET DEBT DEBT FINANCE DEPENDENT DEPOSIT DEPOSIT ACCOUNTS ECONOMIC ACTIVITY EDUCATION LEVEL EMPLOYERS EMPLOYMENT EQUITY FINANCE EUROPEAN CENTRAL BANK EXTERNAL CREDIT EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL FINANCING FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEEPENING FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL SERVICES FINANCING CONSTRAINTS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED ASSETS FOREIGN OWNERSHIP FORMAL DEBT FINANCE FORMAL WORKFORCE GENDER INFORMAL CREDIT INFORMAL FINANCING INTERNATIONAL BANK JOB CREATION LARGE FIRMS LEVEL OF CREDIT LEVELS OF CREDIT LINE OF CREDIT LIQUID ASSETS LOAN APPLICATION LOAN APPLICATIONS MANDATE MEDIUM ENTERPRISES MEDIUM SIZE ENTERPRISES MONEYLENDERS MULTINATIONAL NEW CREDIT OUTSTANDING LOAN PRIVATE CREDIT PRODUCTIVITY SAVINGS SAVINGS ACCOUNT SHAREHOLDING SMALL BUSINESS SMALL FIRM SMALL FIRMS SME SOURCES OF CREDIT SOURCES OF FINANCE SUPPLIERS TRADE CREDIT TRANSPORT WORKING CAPITAL Microdata Set Microdata Set Using a unique firm level data set -- the Enterprise Surveys -- this paper develops a new measure of credit-constrained status for firms using hard data instead of perceptions data. The paper classifies firms into four ordinal categories: Not Credit Constrained, Maybe Credit Constrained, Partially Credit Constrained, and Fully Credit Constrained to understand the characteristics of the firms that fall into each group. Comparable data from the Enterprise Surveys for 116 countries are used to look at the relationship between firm size and credit-constrained status. First, the analysis finds that small and medium enterprises are more likely to be credit constrained (either partially or fully) than large firms. Furthermore, small and medium enterprises finance their working capital and investments mainly through trade credit and informal sources of finance. These two results hold to a large extent in all the regions of the developing world. Second, although size is a significant predictor of the probability of being credit constrained, firm age is not. Third, high-performing firms, as measured by labor productivity, are less likely to be credit constrained. This result applies to all firms but is not as strong for small firms as it is for large and medium firms. Finally, in countries with high private credit-to-gross domestic product ratios, firms are less likely to be credit constrained. Given the importance of access to credit for firm growth and efficiency, this paper confirms that throughout the developing world access to credit is inversely related to firm size but positively related to productivity and financial deepening in the country. 2014-02-04T20:01:32Z 2014-02-04T20:01:32Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18425135/learned-enterprise-surveys-regarding-access-credit-smes http://hdl.handle.net/10986/16885 English en_US Policy Research Working Paper;No. 6670 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	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 CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCOUNTING AFFILIATED ORGANIZATIONS ANNUAL SALES BANK FINANCING BANK LOAN BANK LOANS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPACITY UTILIZATION CAPITAL FINANCE COLLATERAL COMPETITORS CORPORATE FINANCE CORRUPTION CREDIT CONSTRAINED FIRMS CREDIT CONSTRAINT CREDIT MARKET DEBT DEBT FINANCE DEPENDENT DEPOSIT DEPOSIT ACCOUNTS ECONOMIC ACTIVITY EDUCATION LEVEL EMPLOYERS EMPLOYMENT EQUITY FINANCE EUROPEAN CENTRAL BANK EXTERNAL CREDIT EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL FINANCING FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEEPENING FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL SERVICES FINANCING CONSTRAINTS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED ASSETS FOREIGN OWNERSHIP FORMAL DEBT FINANCE FORMAL WORKFORCE GENDER INFORMAL CREDIT INFORMAL FINANCING INTERNATIONAL BANK JOB CREATION LARGE FIRMS LEVEL OF CREDIT LEVELS OF CREDIT LINE OF CREDIT LIQUID ASSETS LOAN APPLICATION LOAN APPLICATIONS MANDATE MEDIUM ENTERPRISES MEDIUM SIZE ENTERPRISES MONEYLENDERS MULTINATIONAL NEW CREDIT OUTSTANDING LOAN PRIVATE CREDIT PRODUCTIVITY SAVINGS SAVINGS ACCOUNT SHAREHOLDING SMALL BUSINESS SMALL FIRM SMALL FIRMS SME SOURCES OF CREDIT SOURCES OF FINANCE SUPPLIERS TRADE CREDIT TRANSPORT WORKING CAPITAL Microdata Set Microdata Set
spellingShingle	ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCOUNTING AFFILIATED ORGANIZATIONS ANNUAL SALES BANK FINANCING BANK LOAN BANK LOANS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPACITY UTILIZATION CAPITAL FINANCE COLLATERAL COMPETITORS CORPORATE FINANCE CORRUPTION CREDIT CONSTRAINED FIRMS CREDIT CONSTRAINT CREDIT MARKET DEBT DEBT FINANCE DEPENDENT DEPOSIT DEPOSIT ACCOUNTS ECONOMIC ACTIVITY EDUCATION LEVEL EMPLOYERS EMPLOYMENT EQUITY FINANCE EUROPEAN CENTRAL BANK EXTERNAL CREDIT EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL FINANCING FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEEPENING FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL SERVICES FINANCING CONSTRAINTS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED ASSETS FOREIGN OWNERSHIP FORMAL DEBT FINANCE FORMAL WORKFORCE GENDER INFORMAL CREDIT INFORMAL FINANCING INTERNATIONAL BANK JOB CREATION LARGE FIRMS LEVEL OF CREDIT LEVELS OF CREDIT LINE OF CREDIT LIQUID ASSETS LOAN APPLICATION LOAN APPLICATIONS MANDATE MEDIUM ENTERPRISES MEDIUM SIZE ENTERPRISES MONEYLENDERS MULTINATIONAL NEW CREDIT OUTSTANDING LOAN PRIVATE CREDIT PRODUCTIVITY SAVINGS SAVINGS ACCOUNT SHAREHOLDING SMALL BUSINESS SMALL FIRM SMALL FIRMS SME SOURCES OF CREDIT SOURCES OF FINANCE SUPPLIERS TRADE CREDIT TRANSPORT WORKING CAPITAL Microdata Set Microdata Set Kuntchev, Veselin Ramalho, Rita Rodriguez-Meza, Jorge Yang, Judy S. What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
relation	Policy Research Working Paper;No. 6670
description	Using a unique firm level data set -- the Enterprise Surveys -- this paper develops a new measure of credit-constrained status for firms using hard data instead of perceptions data. The paper classifies firms into four ordinal categories: Not Credit Constrained, Maybe Credit Constrained, Partially Credit Constrained, and Fully Credit Constrained to understand the characteristics of the firms that fall into each group. Comparable data from the Enterprise Surveys for 116 countries are used to look at the relationship between firm size and credit-constrained status. First, the analysis finds that small and medium enterprises are more likely to be credit constrained (either partially or fully) than large firms. Furthermore, small and medium enterprises finance their working capital and investments mainly through trade credit and informal sources of finance. These two results hold to a large extent in all the regions of the developing world. Second, although size is a significant predictor of the probability of being credit constrained, firm age is not. Third, high-performing firms, as measured by labor productivity, are less likely to be credit constrained. This result applies to all firms but is not as strong for small firms as it is for large and medium firms. Finally, in countries with high private credit-to-gross domestic product ratios, firms are less likely to be credit constrained. Given the importance of access to credit for firm growth and efficiency, this paper confirms that throughout the developing world access to credit is inversely related to firm size but positively related to productivity and financial deepening in the country.
format	Publications & Research :: Policy Research Working Paper
author	Kuntchev, Veselin Ramalho, Rita Rodriguez-Meza, Jorge Yang, Judy S.
author_facet	Kuntchev, Veselin Ramalho, Rita Rodriguez-Meza, Jorge Yang, Judy S.
author_sort	Kuntchev, Veselin
title	What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
title_short	What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
title_full	What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
title_fullStr	What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
title_full_unstemmed	What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
title_sort	what have we learned from the enterprise surveys regarding access to credit by smes?
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/10/18425135/learned-enterprise-surveys-regarding-access-credit-smes http://hdl.handle.net/10986/16885
_version_	1764434807377362944

What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?

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