-
-
Credit guarantee funds and mutual guarantee systems
01.06.1993
The reluctance of banks to take on the high risks and administrative costs of lending to small businesses has been the reason for the establishment of credit guarantee funds and mutual guarantee systems. Credit guarantee funds are established usually with government financial support, to provide lending institutions with money to compensate for the losses sustained when borrowers default on loans. Mutual guarantee systems are more decentralized: they involve a group of people coming together to undertake a common guarantee for a loan application for one of their members.This article describes the range of guarantee schemes which have been in operation in France, Italy, elsewhere in Europe and Japan, and draws together some points fundamental to the success of such schemes. It then describes how similar schemes have been attempted in Kenya, the Philippines and elsewhere in the developing world. -
Taking Stock
01.03.1998
-
Credit guarantee schemes for SMEs – an international review
01.06.1997
In view of the growing interest in microfinance, small enterprises with growth potential, as opposed to microenterprises, may be missing out on donor credit programmes.Credit guarantee schemes can be seen as filling this gap, since they are aimed at the SME sector, and are intended to help banks learn about lending to SMEs, while being cushioned from the risks involved. This article describes how credit guarantee schemes are being implemented all over the world, and points to some of the problems faced, as well as the advantages of such schemes. -
From the Editors
01.12.1996
-
From the Editors
01.09.1996
-
Venture capital for small enterprises – a review
01.12.1994
In the US venture capital has for a number of years been an important source of funds for large and to some extent small businesses, with successes such as Apple computers and Federal Express couriers to its account. This article describes the concept of providing equity finance, and how suitable investments are identified. It provides a survey of experience in the US, UK and Europe, before describing attempts in the developing world to provide equity funding to small businesses, often mixed with loans and small business advice. -
Business associations in countries in transition to market economies
01.09.1994
The establishment of strong, representative private sector organizations is important for protecting the interests of the small business sector in any economy seeking to develop along market lines. With this in mind, the Organization for Economic Co-operation and Development (OECD) commissioned reports from Poland, Hungary, the Czech Republic, Slovakia and the Russian Federations to review the state of business associations in these countries. This article, based on these OECD reports (produced in 1993), evaluates the development of such organizations, examining issues of advocacy and political influence, voluntary or compulsory membership, the provision of services and financial independence. Comparisons are also made with the experience of business associations in other free market economies. -
From the Editors
01.09.1994
-
Private sector membership associations and support for SMEs
01.03.1992
Governments in developing countries have in the past directed their support for small and medium enterprises (SMEs) through centralized public institutions providing advice and training. These have often had limited impact on the small business community who perceive them as distant and removed from their situation.Private sector membership associations are seen to be closer to the ethos of SMEs, and this article examines the contribution they could make to SME promotion. Drawing on the experience of developed countries where private sector membership associations play an important role, the article suggests how such organizations in developing countries might strengthen their position and increase their support for SMEs.