Download or read book Improving SME Access to Trade Credit and Financing in MENA written by Meriem Ait Ali Slimane and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Small and medium enterprises (SMEs) in Middle East and North Africa (MENA), especially female entrepreneurs, face steep challenges in accessing finance and credit. This situation is now even more dire with the Covid-19 crisis. SMEs finance their activities in three main ways: (i) shareholder funds from family, business partners, and investors (ii) payment facilities from suppliers and pre-payments from clients, known as inter-firm trade credit (in short “trade credit”), and (iii) credit facilities from banks and other financial institutions, of which a large chunk is for working capital. All these sources of funds are required for SMEs to conduct their activities in a financially sustainable manner. The focus of this quick note is on the latter aspects: SME access to inter-firm trade credit and bank facilities to finance trade. These have major implications for financial inclusion, private sector development, value chains, and ultimately, on employment and growth. IFC is already very active in this segment, notably in poorer and fragile countries with the support of the IDA Private Sector Window, but more can be done by the World Bank. The financing of trade and value chains also needs to be much better understood by policymakers in our MENA client countries.
Download or read book Unlocking Access to Finance for SMEs A Cross Country Analysis written by Mr.Armand Fouejieu and published by International Monetary Fund. This book was released on 2020-03-13 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Countries in the MENAP and CCA regions have the lowest levels of financial inclusion of small and medium enterprises (SMEs) in the world. The paper provides empirical evidence on the drivers of SME access to finance for a large sample of countries, and identifies key policy priorities for these two regions: economic and institutional stability, competition, public sector size and government effectiveness, credit information infrastructure (e.g., credit registries), the business environment (e.g., legal frameworks for contract enforcement), and financial supervisory and regulatory capacity. The analysis also shows that improving credit information, economic competition, the business environment along with economic development and better governance would help close the SME financial inclusion gap between MENAP and CCA regions and the best performers. The paper concludes on the need to adopt holistic policy strategies that take into account the full range of macro and institutional requirements and reforms, and prioritize these reforms in accordance with each country’s specific characteristics.
Download or read book SMEs for Job Creation in the Arab World written by Sahar Nasr and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Arab Spring in the Middle East and North Africa (MENA) region has brought to the forefront key challenges: the need to create job opportunities, equal access, a level playing field, transparency and accountability, and a fair and competitive environment. Crony capitalism, the privileged access of certain elites to favorable legal and regulatory treatment, access to markets, and the coincidence of political and economic power, was a major concern contributing to the uprising. Many saw privilege and corruption as the source of unemployment and inequality, effectively raising barriers to entry and growth for the majority of entrepreneurs. At the same time, practices such as connected lending and preferential land allocations, contributed to poor performance of key institutions, underpinning the market economy. It is critical for the MENA countries to achieve the aspirations of their people and attain sustainable and inclusive development by expanding private-led employment and creating entrepreneurship opportunities. This report assesses the supply and demand of financial services to small and medium enterprises (SMEs) in the MENA region, as well as the regulatory, institutional and policy environment that determines the cost, risk, and scale of SME finance. Emerging and promising SME finance models for banks, investors, government and regulators are outlined. These could significantly improve the outreach, viability, risk management, and development impacts of SME finance in the MENA region. SMEs need access to longer term credit products and equity, in addition to working capital loans and trade finance. They also need payment and card services, deposit facilities, liquidity management, risk management tools and insurance. The principal role of the state is as an enabler and regulator, providing the financial infrastructure, and legal and policy frameworks that financial institutions need to be able to meet the range of SME financial needs profitably. All this will contribute to attaining a more sustainable and inclusive system that can play a more important role in economic growth, and the regions prosperity.
Download or read book SME Policy Index The Mediterranean Middle East and North Africa 2018 Interim Assessment of Key SME Reforms written by OECD and published by OECD Publishing. This book was released on 2018-09-15 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: The report looks at key SME and entrepreneurship policy reforms over the past years since the publication of the SME Policy Index for the MENA region in 2014. It notes the continued efforts by MED economies to develop SMEs and start-ups as means to reduce unemployment, promote economic ...
Download or read book SME Financial Inclusion for Sustained Growth in the Middle East and Central Asia written by Mishel Ghassibe and published by International Monetary Fund. This book was released on 2019-09-27 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper offers empirical evidence that greater financial inclusion of small and medium enterprises (SMEs) can promote higher economic growth and employment, especially in the Middle East and Central Asia regions. First, we show that countries with higher SME financial inclusion exhibit more effective monetary policy transmission and tax collection. Second, we find substantial employment and labor productivity growth gains at the firm level from access to credit, gains that are higher for SMEs. We also obtain evidence of a substantial positive impact on SME employment and labor productivity growth from improved credit bureau coverage and insolvency regimes. Finally, cross-country aggregate evidence confirms the employment and growth gains from SME financial inclusion, which appear larger in the Middle East and Central Asia than in other regions.
Download or read book Financial Inclusion of Small and Medium Sized Enterprises in the Middle East and Central Asia written by Mr.Nicolas R Blancher and published by International Monetary Fund. This book was released on 2019-02-12 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of financial inclusion is increasingly recognized by policymakers around the world. Small and medium-sized enterprise (SME) financial inclusion, in particular, is at the core of the economic diversification and growth challenges many countries are facing. In the Middle East and Central Asia (MENAP and CCA) regions, SMEs represent an important share of firms, but the regions lag most others in terms of SME access to financing.
Download or read book Increasing Access to Credit Through Reforming Secured Transactions in the MENA Region written by Alejandro Alvarez de la Campa and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book UNCITRAL Model Law on Secured Transactions written by United Nations Commission on International Trade Law and published by . This book was released on 2016 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: The "Model Law" deals with security interests in all types of tangible and intangible movable property, such as goods, receivables, bank accounts, negotiable instruments, negotiable documents,
Download or read book The Mediterranean Middle East and North Africa 2018 written by Collectif and published by OECD. This book was released on 2018-09-15 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides an in-depth analysis of major reforms undertaken between 2014 and 2018 to promote micro, small and medium-sized enterprise development in Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority and Tunisia. The report focuses on five strategic areas for SME policy making: SME definitions, statistics and institutions; improving business environments for SMEs and entrepreneurs; fostering access to finance; nurturing start-ups and SME growth; and the development of entrepreneurial human capital. The report aims to showcase good practices and to point to areas where more efforts are needed. It provides valuable guidance for governments, private sector organisations, multilateral bodies and other stakeholders to intensify their efforts to support SMEs as essential vehicles for jobs and competitiveness. This is particularly relevant in a region striving to boost economic diversification, employment creation and the inclusion of youth and women in the economy. The report is the result of a process of close collaboration among governments, the OECD, the European Training Foundation and the European Commission.
Download or read book Access to finance for forest and farm producer organisations FFPOs written by Food and Agriculture Organization of the United Nations and published by Food & Agriculture Org.. This book was released on 2018-12-14 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: Forest landscapes are inhabited by approximately 1.5 billion people. The aggregate gross annual value of these smallholder producers approaches US$1.3 trillion. Adding value to that production, through financial investment, will be key to delivering the Sustainable Development Goals (SDGs). Therefore, access to finance is an important issue. The Forest and Farm Facility (FFF) commissioned this scoping paper to assess what might be done to improve access to finance. Organisation of forest and farm producers allows finance to be channelled toward valueadded investments. But the motivation to form forest and farm producer organisations (FFPOs) varies with context, from the desire to secure resource rights for Indigenous peoples in the forest core, to the desire to strengthen economic scale efficiencies in periurban forest product processing industries. The scale and type of finance needs vary and span enabling investments (grants or concessional loans)through to asset investments (market-rate capital that requires a return). Access to finance for FFPOs requires tailored approaches. For FFPOs, enabling investments in four key areas are needed to create the conditions and necessary track record to attract asset investment: (i) secure commercial rights; (ii) strong organisation for scale; (iii) appropriate technical extension; and (iv) fair market access and business incubation. Enabling investments of this sort make FFPO businesses bankable and affords them access to finance.
Download or read book Financing SMEs and Entrepreneurs 2020 An OECD Scoreboard written by OECD and published by OECD Publishing. This book was released on 2020-04-22 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 9th edition of the Scoreboard on Financing SMEs and Entrepreneurs report provides data from 48 countries around the world on SME lending, alternative finance instruments and financing conditions, as well as information on policy initiatives to improve SME access to finance.
Download or read book The Mediterranean Middle East and North Africa 2018 written by and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Review of Credit Guarantee Schemes in the Middle East and North Africa Region written by Youssef Saadani and published by . This book was released on 2017 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many countries in the MENA region have established partial credit guarantee schemes to facilitate SME access to finance. These schemes can play an important role, especially in a period where MENA governments are making efforts to improve the effectiveness of credit registries and bureaus and strengthen creditor rights. This paper reviews the design of partial credit guarantee schemes in MENA, and assesses their preliminary outcomes. The paper is based on a survey conducted in 10 MENA countries in early 2010. The authors find that the average size of guarantee schemes in MENA (measured by the total value of outstanding guarantees) is in line with the international average, although there are wide differences across countries, and some schemes seem too small to make any significant impact. Most importantly, the number of guarantees looks generally small while their average value looks large. This suggests that guarantee schemes are not yet reaching the smaller firms. Guarantee schemes in MENA look financially sound and most schemes have room to grow. However, this growth should be accompanied by an improvement of some key design and management features, as well as the introduction of systematic impact evaluation reviews.
Download or read book A Review of Credit Guarantee Schemes in the Middle East and North Africa Region written by Youssef Saadani and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Enhancing the Role of SMEs in the Arab World Some Key Considerations written by Vahram Stepanyan and published by International Monetary Fund. This book was released on 2019-12-13 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Small and medium-sized enterprises (SMEs) are a cornerstone of Arab economies, accounting for over 90 percent of all businesses and providing a major source of new job creation. Governments across the Arab World recognize the important role that SMEs can play in delivering higher and more inclusive growth. Many have rightly placed SME development at the center of growth and jobs strategies to meet the needs of young populations. Authorities have initiated policy interventions and schemes to support SME development. But progress so far has been patchy, and more comprehensive policy action is needed. Fostering vibrant and competitive SMEs that contribute to employment opportunities and high value-added output requires various stakeholders to deliver on a broad range of factors. Arab governments need a holistic policy approach that addresses the gaps in access to finance, creates an enabling business environment, and upgrades human capital and infrastructure. The approach should also promote an entrepreneurial mindset.
Download or read book The Big Business of Small Enterprises written by World Bank and published by World Bank Publications. This book was released on 2015-02-13 with total page 261 pages. Available in PDF, EPUB and Kindle. Book excerpt: The World Bank Group promotes small and medium enterprise (SME) growth through both systemic and targeted interventions. Targeting means focusing benefits on one size-class of firms to the exclusion of others. Targeted support for SMEs is a big business for the World Bank Group, averaging around $3 billion a year in commitments, expenditures, and gross exposure over the 2006-12 period. In the context of broader reforms, such targeted support can be a powerful tool. Targeting SMEs is not an end in itself, but a means to create economies that can employ more people and create more opportunity for citizens to achieve prosperity. A thriving and growing SME sector is associated with rapidly growing economies. A central challenge is to level the economic playing field by ensuring dynamic markets; strengthening market-support institutions; and removing constraints to participation. IEG found that financial sector development can have both a pro-growth and pro-poor impact by alleviating SMEs' financing constraints, enabling new entry of firms and entrepreneurs and better resource allocation. Layered on top of this are targeted forms of assistance; these interventions may build on a foundation of more systemic reforms, may come in tandem with them, or may in fact be a means to build systemic reforms from the bottom up. Any credible justification of targeted support to SMEs must be focused on establishing well-functioning markets and institutions, not simply providing a temporary supply of benefits to a small group of firms during a project's lifespan. Thus, targeted interventions need to leverage resources to produce broader benefits for institutions and markets. To make targeted support for SMEs more effective, the World Bank Group needs to do several things: Clarify its approach to targeted support to SMEs; Enhance the support's relevance and additionality; Institute a tailored research agenda; Strengthen guidance and quality control for such support; Reform MIGA s Small Investment Program.
Download or read book Trade Finance and SMEs written by and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
