Financing SMEs in Vlora City, Albania: between Game Theory and Lack of Information

AbstractThe SMEs (small and medium-sized enterprises) play a crucial economical role, especially in transition economies. However, the financing problem affects the SMEs’ development. Information asymmetry between banks and enterprises is the main reason for the SMEs’ gaining funds so hard; the banks do not know the operating conditions and credit situation of SMEs. The study focuses on the analyses of the game of (in) complete information and financing growth strategies of SMEs in the city of Vlora to face with challenges of a sustainable development and a competitive market

Research on the Innovative Development of Financing Model of Pledge of Title to Goods under Commercial Banks’ Supply Chain Finance

As an important part of China’s commercial Banks’ supply chain finance, pledge of goods and rights financing is an important channel for financing small and medium-sized enterprises after years of development and improvement, providing an important force for the stable and sustainable development of the national economy. Due to macroeconomic factors and the independence of each participant, the business reflects certain risks in the practice process. Starting from the analysis of business content, this paper conducts in-depth research on the problems exposed by different subjects and puts forward Suggestions for future development

Strategies for sustainable socio-economic development and mechanisms their implementation in the global dimension

The authors of the book have come to the conclusion that it is necessary to effectively use modern approaches to developing and implementation strategies of sustainable socio-economic development in order to increase efficiency and competitiveness of economic entities. Basic research focuses on economic diagnostics of socio-economic potential and financial results of economic entities, transition period in the economy of individual countries and ensuring their competitiveness, assessment of educational processes and knowledge management. The research results have been implemented in the different models and strategies of supply and logistics management, development of non-profit organizations, competitiveness of tourism and transport, financing strategies for small and medium-sized enterprises, cross-border cooperation. The results of the study can be used in decision-making at the level the economic entities in different areas of activity and organizational-legal forms of ownership, ministries and departments that promote of development the economic entities on the basis of models and strategies for sustainable socio-economic development. The results can also be used by students and young scientists in modern concepts and mechanisms for management of sustainable socio-economic development of economic entities in the condition of global economic transformations and challenges

Financing innovative small and medium-sized enterprises in times of crisis

Small and Medium-sized Enterprises (SME) in general and particularly innovative ones are becoming an increasingly important factor on the road to achieving smart, sustainable and comprehensive development. Because of their propensity to innovative undertaking and risk, SMEs contribute significantly to economic growth but are generally less productive and pay the cost of high rates of death and lower rates of profitability. Financing SMEs is risky and uncertain and for innovative SMEs it is even more difficult to access financing. When financing innovative activities, investors perceive high risks and it is even more emphasized in times of crisis when there is an increase in the cost of capital. Institutional support and governmental programmes have an important role in closing financial gap that innovative SMEs are faced with. Because the survival and development of SMEs is to a great extant determined by their ability to access favorable financing, the main objective of this paper is to provide policy recommendations for promoting availability of financing to innovative SMEs in order to foster economic recovery and more dynamic development of Serbia. The recommendations are to emerge from analyzes and evaluation of currently available sources of finance for innovative SMEs

Leveraging Climate Finance for Agribusiness SMEs to Scale Up Climate Resilient Agriculture in East Africa: Recommendations for Policy and Practice

Small and medium-sized enterprises (SMEs) play an important role in supporting sustainable development and increasingly towards building adaptation and resilience in Africa's food and agriculture sectors. However, most agribusiness SMEs operating in small-scale agriculture are in dire need of business finance to help them flourish and climate-proof their value chains as variable weather increasingly threatens their supply sources of raw materials, disrupts their operations, and increases costs of maintenance and materials. Climate-related risk hazards not only increase the risk and unpredictability of SMEs' revenue streams but also reduce private sector investments into the sector even further. Financial institutions such as banks may avoid the risk by not financing agribusiness SMEs or increasing the cost of financing, such as enforcing more stringent collateral requirements or higher interest rates (Csaky et al., 2017)

ADB–OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises

During the era of global financial uncertainty, stable access to appropriate funding sources has been much harder for small and medium-sized enterprises (SMEs). The global financial crisis impacted SMEs and entrepreneurs disproportionately, exacerbating their traditional financing constraints. The financial conditions of many SMEs were weakened by the drop in demand for goods and services and the credit tightening. The sovereign debt crisis that hit several European countries contributed to further deterioration in bank lending activities, which negatively affected private sector development. The global regulatory response to financial crises, such as the Basel Capital Accord, while designed to reduce systemic risks may also constrain bank lending to SMEs. In particular, Basel III requires banks to have tighter risk management as well as greater capital and liquidity. Resulting asset preference and deleveraging of banks, particularly European banks with significant presence in Asia, could limit the availability of funding for SMEs in Asia and the Pacific. Lessons from the recent financial crises have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their national financial system. Improving SME access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies. The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have recognized that it is crucial to develop a comprehensive range of policy options on SME finance, including innovative financing models. With this in mind, sharing Asian and OECD experiences on SME financing would result in insightful discussions on improving SME access to finance at a time of global financial uncertainty. Based on intensive discussions in two workshops organized by ADB in Manila on 6–7 March 2013 and by OECD in Paris on 21 October 2013, the two organizations together compiled this study report on enhancing financial accessibility for SMEs, especially focusing on lessons from the past and recent crises in Asia and OECD countries. The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development

Financing Small and Medium-Sized Enterprises in Thailand: The Importance of Bank Loans and Financing Diversification

Bank loans are the main sources of financing the Small and Medium-Sized Enterprises (SME) sector of the Thai economy. This sector contributes to about 37% GDP and employs about 80% of the labor force. Recent data indicate a decline in bank lending; this necessitates the efficient use of available funds and strategies to diversify SME financing. Using data from 2007 – 2014, we analyze the performance of this sector by applying several measures of productivity. We find average productivity to be greater than one for: (a) SME output per unit of SME and (b) SME output per Baht loan. This satisfactory performance is the result of government stabilization policies to ensure adequate loan support to this sector together with effective risk management strategies. The decline in the ratio of SME nonperforming loans to total SME loans attests to prudent policies to maintain high asset quality during a period of economic fluctuation. Policies to supplement bank financing and to diversify the sources of funding include the widening and deepening of the capital market. Sustainable growth policies should emphasize human capital development to stem declining labor productivity and also increasing expenditures on R&D to promote innovation-led growth.

Small and Medium Enterprises in the Agriculture Value Chain: Opportunities and Recommendations

Authored in collaboration with Oxfam, this report analyzes the effectiveness of development programs in addressing the effectiveness of SME agricultural value chains, and dissect whether these interventions would be Social Enterprises (SEs) in agriculture in Asia. The paper makes recommendations for donors and development agencies that seek to support SEs in agriculture

INCREASING THE MANAGEMENT AND PRODUCTIVE CAPACITY OF ROMANIAN SMES AND LARGE ENTERPRISES BY ACCESION OF STRUCTURAL FUNDS a€“ SOP IEC

The European Integration came with new challenges for the Romanian enterprises especially for the SMEs, the opportunities arising from operating on the European Single Market and the possibility for accession of European Regional Development Funds. The maEuropean financing, large enterprises, small and medium enterprises, POS CCE, SOP IEC, structural funds

Financial preferences of listed SMEs in India: An empirical study

Small and Medium-sized Enterprises (SMEs) play a very significant role in boosting sustainable economic growth and development of any country. The present study examines various firm-specific determinants that have an impact on the financing choice of the listed Indian SMEs. It also studied the financing practices of the listed SMEs in India and tried to find out if their financing pattern follows the established theories of Corporate Finance. The study selected 113 SMEs listed on the NSE Emerge Exchange for the period between 2014 and 2018. To examine the problem, empirical analysis is done with the help of panel data regression. The study finds that for meeting financial requirements of listed SMEs, they prefer current liabilities first, then total reserves, thereafter short-term borrowings and lastly the long-term borrowings. Among the independent variables chosen based on an extensive literature survey, most of them are statistically significant but are depicting lower explanatory power. Hence, it leads to the possibility of some other firm-specific factors or macroeconomic factors being more relevant in deciding the listed firm’s financing choices. The study concludes that no single theory like Pecking Order Theory (POT) or Trade-Off Theory (TOT) can explain the financing behaviour of listed SMEs completely. It contributes to the extant literature on listed SMEs by attempting to examine the impact of listing on the financing patterns of the SMEs