2017年-世界发展银行全球_SME_Finance_61页_972kb

Summary of SME Finance Research

Core Content

This paper examines the empirical evidence on the financing challenges faced by small and medium enterprises (SMEs), especially in developing countries. It highlights the importance of SMEs in economic growth, employment generation, and recovery from recessions, while also acknowledging the mixed evidence on their contribution to growth and poverty alleviation. The paper emphasizes the role of financial and legal institutions in shaping SME access to credit and explores the effectiveness of various policy reforms in improving this access.

Main Points

1. SMEs and Economic Growth

• SMEs are a significant part of the private sector and play a key role in employment generation.
• However, the relationship between SMEs and economic growth is not robust across countries.
• In developed countries, SME entrepreneurship is positively associated with growth, while in developing countries, it is negatively associated.
• Large firms tend to have higher productivity and better job quality, which may explain the mixed evidence on SME growth.

2. Financing Constraints

• Access to finance is identified as the most significant obstacle for SMEs in developing countries.
• Data from the World Bank's Enterprise Surveys (135 countries, 2006–2014) show that small firms are more likely to report financing as a severe obstacle than large firms.
• A large percentage of SMEs do not apply for loans due to high interest rates, complex procedures, and collateral requirements.
• In high-income countries, SMEs are more likely to have access to bank accounts and credit lines than in low-income countries.

3. Institutional Constraints

• Transaction Costs and Interest Rates: High transaction costs and interest rates are major barriers for SMEs. These costs are largely fixed and independent of loan size, making credit more expensive.
• Adverse Selection and Moral Hazard: SMEs face greater information asymmetry, leading to issues like adverse selection and moral hazard. Credit registries and bureaus can mitigate these problems by improving information sharing.
• Collateral Laws: Collateral is a key requirement for loans, but SMEs often lack suitable collateral. Legal reforms that allow movable assets as collateral can significantly improve access to finance.
• Creditor Rights Reforms: Reforms in creditor rights and collateral laws have shown positive effects on SME lending, especially for smaller and younger firms. However, some studies suggest these reforms may have adverse effects on demand for credit.

4. Banking Deregulation

• Increased bank competition leads to better credit access and lower interest rates for SMEs.
• Studies on U.S. branch banking deregulation show that it increased startup activity and allowed firms to enter at a larger size.
• These findings suggest that deregulation can improve the allocation of capital to new projects.

5. Role of Large and Foreign Banks

• Large banks are often better at using soft information to assess credit risk and may provide more support to SMEs.
• However, in concentrated markets, large banks may exploit their market power, leading to higher interest rates and less favorable lending practices.
• Foreign banks have become increasingly important in domestic financial intermediation, particularly in improving access to credit and reducing information asymmetries.

Key Information

• Data Sources: The paper uses data from firm-level surveys and banker surveys, including the World Bank's Enterprise Surveys.
• Credit Access: SMEs are more constrained in accessing credit than large firms, and this is more pronounced in developing countries.
• Policy Implications: The paper suggests that improving credit information systems, legal frameworks, and collateral laws can significantly enhance SME access to finance.
• Research Gaps: There is a need for more research on the design of public credit registries and the long-term effects of legal and financial reforms on SME growth and productivity.

Conclusion

The paper concludes that while SMEs are crucial for economic development, their access to finance is often limited due to institutional constraints. It calls for further research and policy actions to improve financial systems and legal frameworks to better support SME growth. The findings support the idea that reforms in credit information, collateral laws, and banking regulations can lead to more efficient credit allocation and greater economic performance for SMEs.