Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso
As in other Sub-Saharan African countries, small and medium-sized enterprises (SMEs) represent the vast majority of firms operating in the private sector in Burkina Faso. Private sector-led growth is a major element of Burkina Faso's poverty r...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/11/19456110/financial-sector-policy-note-financing-small-medium-sized-businesses-burkina-faso http://hdl.handle.net/10986/18696 |
| id |
okr-10986-18696 |
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| recordtype |
oai_dc |
| 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 FINANCE ACCOUNT MANAGEMENT ACCOUNTING AGRICULTURAL SECTORS ALTERNATIVE SOURCES OF FINANCING ANTI-MONEY LAUNDERING APPROVAL PROCESSES BAD CREDIT BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK GUARANTEES BANK LENDING BANK LOANS BANKING INDUSTRY BANKING RELATIONSHIP BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BANKS BANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUEST BANQUE DE FRANCE BOARDS OF DIRECTORS BORROWER BORROWING BUSINESS CREDIT BUSINESS OWNER BUSINESS OWNERS BUSINESS PLAN BUSINESS PLANNING BUSINESS PLANS BUSINESS SUPPORT CAPITAL ADEQUACY CAPITAL LOANS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH MANAGEMENT CHECKING ACCOUNTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANKS CONSOLIDATION CONTRACT ENFORCEMENT CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS COST OF CREDIT CREDIT APPLICATION CREDIT APPLICATIONS CREDIT BUREAUS CREDIT CARDS CREDIT COOPERATIVES CREDIT DECISIONS CREDIT GUARANTEES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT LINE CREDIT LINES CREDIT MECHANISMS CREDIT PORTFOLIOS CREDIT PRODUCTS CREDIT PROGRAMS CREDIT RATING CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT RISK CREDIT RISK MANAGEMENT CREDIT RISKS CREDITORS CREDITS CURRENCY EXCHANGE CURRENT ACCOUNT DEBT DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ELECTRONIC BANKING EMPLOYEE EMPLOYMENT ENTERPRISE DEVELOPMENT ENTREPRENEURIAL CAPACITIES EQUIPMENT PURCHASES EQUITY CAPITAL EXCHANGE RATE EXPENDITURES EXPORT EARNINGS EXTERNALITIES FACTORING FINANCES FINANCIAL ASSETS FINANCIAL CAPACITY FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL LITERACY FINANCIAL PLANNING FINANCIAL PRODUCTS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICY FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES PROVIDERS FINANCING NEEDS FIXED COSTS FOREIGN EXCHANGE FORMAL FINANCIAL INSTITUTION GOVERNMENT SECURITIES GUARANTEE REQUIREMENTS HIGH INTEREST RATE HIGH INTEREST RATES HUMAN RESOURCE MANAGEMENT INCOME TAX INFLATION INFORMATION TECHNOLOGY INSURANCE INTEREST RATE INTEREST RATES INTEREST SUBSIDIES INTERNATIONAL FINANCE INVESTMENT PLANS JOB CREATION LACK OF COLLATERALS LACK OF INFORMATION LENDER LENDERS LENDING DECISION LENDING DECISIONS LENDING INSTITUTIONS LENDING PORTFOLIOS LIQUID ASSETS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICATIONS LOAN APPROVALS LOAN CLASSIFICATION LOAN DECISION LOAN MATURITY LOAN OFFICERS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCTS LOAN RECOVERY LOAN SIZE LOANS TO BUSINESSES LOCAL LAWS MANDATES MARKET ENTRY MARKETING STRATEGY MFI MFIS MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MORAL HAZARDS MORTGAGES MOVABLE COLLATERAL NET WORTH NONPERFORMING LOANS OPERATING RATIO OUTSTANDING LOAN OVERDRAFTS PARTIAL CREDIT PAYBACK PERIOD PAYMENT SERVICES PAYMENTS SERVICES PENSION FUNDS PRIVATE BANKS PRIVATE CREDIT PRODUCTIVITY PROFITABILITY PROVIDERS OF CREDIT PROVISION OF CREDIT PRUDENTIAL REGULATIONS PUBLIC AGENCIES PUBLIC FUNDS PUBLIC INVESTMENT REAL ESTATE REAL ESTATE AS COLLATERAL REGULATORY FRAMEWORK REORGANIZATION RETAIL BANKING RETURN ON EQUITY RISK OF DEFAULT RISK TAKING SAVINGS ACCOUNTS SMALL BANKS SMALL BUSINESSES SMALL ENTERPRISES SOCIAL SECURITY SPECIALIZED BANKS SUPPLY CHAIN TECHNICAL ASSISTANCE TERM CREDIT TIME DEPOSITS TRADE FINANCING TRANSPORT UNFAIR COMPETITION URBAN AREAS WAREHOUSE WAREHOUSE RECEIPTS WAREHOUSES WORKING CAPITAL |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCOUNT MANAGEMENT ACCOUNTING AGRICULTURAL SECTORS ALTERNATIVE SOURCES OF FINANCING ANTI-MONEY LAUNDERING APPROVAL PROCESSES BAD CREDIT BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK GUARANTEES BANK LENDING BANK LOANS BANKING INDUSTRY BANKING RELATIONSHIP BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BANKS BANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUEST BANQUE DE FRANCE BOARDS OF DIRECTORS BORROWER BORROWING BUSINESS CREDIT BUSINESS OWNER BUSINESS OWNERS BUSINESS PLAN BUSINESS PLANNING BUSINESS PLANS BUSINESS SUPPORT CAPITAL ADEQUACY CAPITAL LOANS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH MANAGEMENT CHECKING ACCOUNTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANKS CONSOLIDATION CONTRACT ENFORCEMENT CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS COST OF CREDIT CREDIT APPLICATION CREDIT APPLICATIONS CREDIT BUREAUS CREDIT CARDS CREDIT COOPERATIVES CREDIT DECISIONS CREDIT GUARANTEES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT LINE CREDIT LINES CREDIT MECHANISMS CREDIT PORTFOLIOS CREDIT PRODUCTS CREDIT PROGRAMS CREDIT RATING CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT RISK CREDIT RISK MANAGEMENT CREDIT RISKS CREDITORS CREDITS CURRENCY EXCHANGE CURRENT ACCOUNT DEBT DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ELECTRONIC BANKING EMPLOYEE EMPLOYMENT ENTERPRISE DEVELOPMENT ENTREPRENEURIAL CAPACITIES EQUIPMENT PURCHASES EQUITY CAPITAL EXCHANGE RATE EXPENDITURES EXPORT EARNINGS EXTERNALITIES FACTORING FINANCES FINANCIAL ASSETS FINANCIAL CAPACITY FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL LITERACY FINANCIAL PLANNING FINANCIAL PRODUCTS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICY FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES PROVIDERS FINANCING NEEDS FIXED COSTS FOREIGN EXCHANGE FORMAL FINANCIAL INSTITUTION GOVERNMENT SECURITIES GUARANTEE REQUIREMENTS HIGH INTEREST RATE HIGH INTEREST RATES HUMAN RESOURCE MANAGEMENT INCOME TAX INFLATION INFORMATION TECHNOLOGY INSURANCE INTEREST RATE INTEREST RATES INTEREST SUBSIDIES INTERNATIONAL FINANCE INVESTMENT PLANS JOB CREATION LACK OF COLLATERALS LACK OF INFORMATION LENDER LENDERS LENDING DECISION LENDING DECISIONS LENDING INSTITUTIONS LENDING PORTFOLIOS LIQUID ASSETS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICATIONS LOAN APPROVALS LOAN CLASSIFICATION LOAN DECISION LOAN MATURITY LOAN OFFICERS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCTS LOAN RECOVERY LOAN SIZE LOANS TO BUSINESSES LOCAL LAWS MANDATES MARKET ENTRY MARKETING STRATEGY MFI MFIS MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MORAL HAZARDS MORTGAGES MOVABLE COLLATERAL NET WORTH NONPERFORMING LOANS OPERATING RATIO OUTSTANDING LOAN OVERDRAFTS PARTIAL CREDIT PAYBACK PERIOD PAYMENT SERVICES PAYMENTS SERVICES PENSION FUNDS PRIVATE BANKS PRIVATE CREDIT PRODUCTIVITY PROFITABILITY PROVIDERS OF CREDIT PROVISION OF CREDIT PRUDENTIAL REGULATIONS PUBLIC AGENCIES PUBLIC FUNDS PUBLIC INVESTMENT REAL ESTATE REAL ESTATE AS COLLATERAL REGULATORY FRAMEWORK REORGANIZATION RETAIL BANKING RETURN ON EQUITY RISK OF DEFAULT RISK TAKING SAVINGS ACCOUNTS SMALL BANKS SMALL BUSINESSES SMALL ENTERPRISES SOCIAL SECURITY SPECIALIZED BANKS SUPPLY CHAIN TECHNICAL ASSISTANCE TERM CREDIT TIME DEPOSITS TRADE FINANCING TRANSPORT UNFAIR COMPETITION URBAN AREAS WAREHOUSE WAREHOUSE RECEIPTS WAREHOUSES WORKING CAPITAL Soubeiga, Sidiki Strauss, Jeremy Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso |
| geographic_facet |
Africa Burkina Faso |
| description |
As in other Sub-Saharan African
countries, small and medium-sized enterprises (SMEs)
represent the vast majority of firms operating in the
private sector in Burkina Faso. Private sector-led growth is
a major element of Burkina Faso's poverty reduction
strategy, la strategie de croissance accelere et le
developpement durable. Unfortunately, many characteristics
of Burkina Faso's business environment, and of
businesses themselves, make private sector-led growth a
challenge. This financial sector policy note focuses on the
market for credit and closely related financial services,
how private banks are providing these services to SMEs, and
recommendations that address problems they are having. This
requires understanding the behavior of banks with respect to
SME lending, particularly investment lending and related
financial products like leasing, guarantees, microcredit,
and subsidized credit funds. This policy note consists of a
study and survey of commercial banks and two non-bank
financial institutions (NBFIs) (Burkina Bail and Societe
Financiere de Garantie Interbancaire du Burkina (SOFIGIB)
focusing on lending to SMEs. It focuses on the supply side
of the market. The survey and accompanying interviews took
place during the summer of 2013. Twelve private banks and
five NBFIs were asked to participate in the study and
survey. The study references two additional surveys focused
on SMEs: (1) the 2009 World Bank enterprise survey, and (2)
the 2012 survey of SMEs commissioned by the ministry of
industry, trade, and artisans. The study consists of
observations and analysis of survey data to provide input to
policies for encouraging lending to SMEs and increasing the
provision of other financial services. This report is
structured as follows: executive summary; purpose and
structure of policy note; macroeconomic context and the
banking sector section provides a description of the
situation in which Burkina Faso finds itself. Demand for SME
finance section presents recent studies focused on the
demand for credit by SMEs. Supply of SME finance section
presents the results of the survey organized around the keys
issues facing the provision of credit to SMEs. Enabling
environment for financing SMEs section discusses salient
characteristics of the business, legal, and regulatory
environment that effect SME finance; recommendations; and conclusions. |
| format |
Economic & Sector Work :: Policy Note |
| author |
Soubeiga, Sidiki Strauss, Jeremy |
| author_facet |
Soubeiga, Sidiki Strauss, Jeremy |
| author_sort |
Soubeiga, Sidiki |
| title |
Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso |
| title_short |
Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso |
| title_full |
Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso |
| title_fullStr |
Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso |
| title_full_unstemmed |
Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso |
| title_sort |
financial sector policy note : financing small and medium-sized businesses in burkina faso |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/11/19456110/financial-sector-policy-note-financing-small-medium-sized-businesses-burkina-faso http://hdl.handle.net/10986/18696 |
| _version_ |
1764442073157599232 |
| spelling |
okr-10986-186962021-04-23T14:03:47Z Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso Soubeiga, Sidiki Strauss, Jeremy ACCESS TO CREDIT ACCESS TO FINANCE ACCOUNT MANAGEMENT ACCOUNTING AGRICULTURAL SECTORS ALTERNATIVE SOURCES OF FINANCING ANTI-MONEY LAUNDERING APPROVAL PROCESSES BAD CREDIT BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK GUARANTEES BANK LENDING BANK LOANS BANKING INDUSTRY BANKING RELATIONSHIP BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BANKS BANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUEST BANQUE DE FRANCE BOARDS OF DIRECTORS BORROWER BORROWING BUSINESS CREDIT BUSINESS OWNER BUSINESS OWNERS BUSINESS PLAN BUSINESS PLANNING BUSINESS PLANS BUSINESS SUPPORT CAPITAL ADEQUACY CAPITAL LOANS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH MANAGEMENT CHECKING ACCOUNTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANKS CONSOLIDATION CONTRACT ENFORCEMENT CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS COST OF CREDIT CREDIT APPLICATION CREDIT APPLICATIONS CREDIT BUREAUS CREDIT CARDS CREDIT COOPERATIVES CREDIT DECISIONS CREDIT GUARANTEES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT LINE CREDIT LINES CREDIT MECHANISMS CREDIT PORTFOLIOS CREDIT PRODUCTS CREDIT PROGRAMS CREDIT RATING CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT RISK CREDIT RISK MANAGEMENT CREDIT RISKS CREDITORS CREDITS CURRENCY EXCHANGE CURRENT ACCOUNT DEBT DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVELOPMENT BANK DIRECTED CREDIT DIVERSIFICATION DOCUMENTATION REQUIREMENTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ELECTRONIC BANKING EMPLOYEE EMPLOYMENT ENTERPRISE DEVELOPMENT ENTREPRENEURIAL CAPACITIES EQUIPMENT PURCHASES EQUITY CAPITAL EXCHANGE RATE EXPENDITURES EXPORT EARNINGS EXTERNALITIES FACTORING FINANCES FINANCIAL ASSETS FINANCIAL CAPACITY FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL LITERACY FINANCIAL PLANNING FINANCIAL PRODUCTS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICY FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES PROVIDERS FINANCING NEEDS FIXED COSTS FOREIGN EXCHANGE FORMAL FINANCIAL INSTITUTION GOVERNMENT SECURITIES GUARANTEE REQUIREMENTS HIGH INTEREST RATE HIGH INTEREST RATES HUMAN RESOURCE MANAGEMENT INCOME TAX INFLATION INFORMATION TECHNOLOGY INSURANCE INTEREST RATE INTEREST RATES INTEREST SUBSIDIES INTERNATIONAL FINANCE INVESTMENT PLANS JOB CREATION LACK OF COLLATERALS LACK OF INFORMATION LENDER LENDERS LENDING DECISION LENDING DECISIONS LENDING INSTITUTIONS LENDING PORTFOLIOS LIQUID ASSETS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICATIONS LOAN APPROVALS LOAN CLASSIFICATION LOAN DECISION LOAN MATURITY LOAN OFFICERS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCTS LOAN RECOVERY LOAN SIZE LOANS TO BUSINESSES LOCAL LAWS MANDATES MARKET ENTRY MARKETING STRATEGY MFI MFIS MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MORAL HAZARDS MORTGAGES MOVABLE COLLATERAL NET WORTH NONPERFORMING LOANS OPERATING RATIO OUTSTANDING LOAN OVERDRAFTS PARTIAL CREDIT PAYBACK PERIOD PAYMENT SERVICES PAYMENTS SERVICES PENSION FUNDS PRIVATE BANKS PRIVATE CREDIT PRODUCTIVITY PROFITABILITY PROVIDERS OF CREDIT PROVISION OF CREDIT PRUDENTIAL REGULATIONS PUBLIC AGENCIES PUBLIC FUNDS PUBLIC INVESTMENT REAL ESTATE REAL ESTATE AS COLLATERAL REGULATORY FRAMEWORK REORGANIZATION RETAIL BANKING RETURN ON EQUITY RISK OF DEFAULT RISK TAKING SAVINGS ACCOUNTS SMALL BANKS SMALL BUSINESSES SMALL ENTERPRISES SOCIAL SECURITY SPECIALIZED BANKS SUPPLY CHAIN TECHNICAL ASSISTANCE TERM CREDIT TIME DEPOSITS TRADE FINANCING TRANSPORT UNFAIR COMPETITION URBAN AREAS WAREHOUSE WAREHOUSE RECEIPTS WAREHOUSES WORKING CAPITAL As in other Sub-Saharan African countries, small and medium-sized enterprises (SMEs) represent the vast majority of firms operating in the private sector in Burkina Faso. Private sector-led growth is a major element of Burkina Faso's poverty reduction strategy, la strategie de croissance accelere et le developpement durable. Unfortunately, many characteristics of Burkina Faso's business environment, and of businesses themselves, make private sector-led growth a challenge. This financial sector policy note focuses on the market for credit and closely related financial services, how private banks are providing these services to SMEs, and recommendations that address problems they are having. This requires understanding the behavior of banks with respect to SME lending, particularly investment lending and related financial products like leasing, guarantees, microcredit, and subsidized credit funds. This policy note consists of a study and survey of commercial banks and two non-bank financial institutions (NBFIs) (Burkina Bail and Societe Financiere de Garantie Interbancaire du Burkina (SOFIGIB) focusing on lending to SMEs. It focuses on the supply side of the market. The survey and accompanying interviews took place during the summer of 2013. Twelve private banks and five NBFIs were asked to participate in the study and survey. The study references two additional surveys focused on SMEs: (1) the 2009 World Bank enterprise survey, and (2) the 2012 survey of SMEs commissioned by the ministry of industry, trade, and artisans. The study consists of observations and analysis of survey data to provide input to policies for encouraging lending to SMEs and increasing the provision of other financial services. This report is structured as follows: executive summary; purpose and structure of policy note; macroeconomic context and the banking sector section provides a description of the situation in which Burkina Faso finds itself. Demand for SME finance section presents recent studies focused on the demand for credit by SMEs. Supply of SME finance section presents the results of the survey organized around the keys issues facing the provision of credit to SMEs. Enabling environment for financing SMEs section discusses salient characteristics of the business, legal, and regulatory environment that effect SME finance; recommendations; and conclusions. 2014-06-17T22:48:28Z 2014-06-17T22:48:28Z 2013-11 http://documents.worldbank.org/curated/en/2013/11/19456110/financial-sector-policy-note-financing-small-medium-sized-businesses-burkina-faso http://hdl.handle.net/10986/18696 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Policy Note Africa Burkina Faso |