FUNDING MSMES IN NORTH AFRICA AND MICROFINANCE: THE ISSUE OF DEMAND AND SUPPLY MISMATCH

Imène Berguiga () and Philippe Adair
Additional contact information
Imène Berguiga: ERUDITE research team, IHEC, University of Sousse, Tunisia

No 1350, Working Papers from Economic Research Forum

Abstract: A pooled sample of 3,075 Micro, Small, and Medium-sized Enterprises (MSMEs) is designed as for Egypt, Morocco and Tunisia from the World Bank Enterprises Survey (WBES) as of 2013. The adjusted sample complies with international standards, although it does not remove all the biases encapsulated within the WBES. A subsample of 709 MSMEs applied for a loan on the demand side, including those that were granted a loan on the supply side and those that were rejected by financial institutions. The absence of Financial inclusion and lack of Collateral are the main reasons for this imbalance. A binary logit model including interaction variables addresses both the demand and the supply side. Salient findings on the demand side are that the characteristics of MSMEs -Size, Age, Registration and Financial inclusion influence loan demand, whereas the characteristics of managers and the Interest rate have no impact. Conversely, the characteristics of MSMEs play no role upon loan supply, whereas Financial inclusion and Collateral exert a major impact on the supply side. There is a mismatch as for loan supply from microfinance according to the microfinance industry vs. the WBES data source.

Pages: 22
Date: 2019-09-20, Revised 2019-09-20
New Economics Papers: this item is included in nep-ara, nep-ban, nep-fdg, nep-fle and nep-mfd
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/publications/funding-msmes-in-no ... and-supply-mismatch/ (application/pdf)
https://bit.ly/2MZjunO (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1350

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().