Financing of small and medium enterprises (SMES): facilitation through rotating credit and savings associations (ROSCAs) in Lahore

SMEs are the backbone of Pakistan’s economy but they have limited access to the formal sources of finance. According to the SME Development Authority (SMEDA) of Pakistan, 90% of start-ups exit within four years. The current research was carried out to discover the extent of the contribution of Rotating Credit and Savings Associations (ROSCAs) to the SME, explore their weaknesses and to develop measures to transform them into a significant source of SME finance. The study was conducted in the city of Lahore. Purposive sampling technique was adopted to collect the data from 433 entrepreneurs and eight informants. Nearly 90% of the respondents resort to ROSCAs-financing. The ROSCAs system finance the 386 sampled SMEs to the tune of Rs468 million every cycle. The average contribution per SME is Rs1.08 million per cycle. Only 9.8% of the sampled population had obtained formal loans during the last five years. The current study does not support the findings of SMEDA which reported that 80 to 90% of the start-up's exit within the first four years. The majority of respondents expressed fear of failure of ROSCAs is due to fraud or mismanagement and felt that management of ROSCAs by banks can assist in preventing mismanagement or fraud. Laws and procedures for managing cases of dishonoured checks are very weak. Since ROSCAs are extra-legal and un-registered, ROSCAs-related disputes have to be settled out of courts. Furthermore, the concept of Shirkah al-Wujuh was found to be widely practised in the form of ROSCAs for the interest-free (Islamic) financing of SMEs. The recommendations of the current study can be helpful in fortifying the existing ROSCAs system as well as promoting easy and secure access to finance. Moreover, banks can use these findings to position themselves as guarantor and play effective role in the entrepreneur- driven SME finance market

The Imperatives of Innovative Sources of Development Finance: Evidence from Nigeria

Innovative source of development finance (ISDF) connote a net additional resources to the total resources involving the application of nontraditional mechanisms for sourcing funds  capable of catalyzing and supporting fund raising through new sources. The objectives of ISDF is to complement the dwindling financial resources for the millennium development goals (MDGs) which was conceived as a complementary financing efforts to drastically reduce poverty level; with its attendant consequences of socio ills like hunger, illiteracy, shelter, HIV/aids, social strife among others by the year 2015. This work is design to shore up support for the good intention of the programme. In the case of Nigeria of which despite the enormous resources endowments, above average of her population are still wallowing in poverty with the visible consequences of these set of the population being subjugated to subhuman live. Wanton corruption had being the bane of meaningful development in the country. Looting of public treasury and misappropriation of funds are widely acknowledging worldwide. Essentially, if the suggested changes in modalities as appertaining to Nigeria are embraced, the programme will go a long way in improving the wellbeing of the average Nigerian populace as envisaged in MDGs. Keywords - Millennium Development Goals MDG), Innovative sources of development finance, Public bad, carbon tax, Special drawing rights (SDR

Are small and medium enterprises (SMES) in Lahore failing at the rate suggested in prior studies? An analysis of the degree of financial stress on small and medium enterprises and its impact on their life expectancy

Globally, Small and Medium Enterprises (SMEs) are considered to be financially stressed.According to SME Development Authority (SMEDA) financial stress causes 80-90% of Pakistani startups to fail within 4 years. This study examines the under-investigated area of SMEs’ failure rate triggered by financial stress. It is based on primary data obtained from responses of 433 SMEs randomly selected from market committees’ lists.The study found that ninety per cent of the surveyed entrepreneurs obtain finances from up to four Rotating Savings and Credit Associations (ROSCAs) each. Respondents consider issues like defaulted customers, competition and electricity to be more impacting than lack of access to finance. High failure rate is not detectable in any age group. Islamic and commercial banks can consider these findings and develop innovative instruments that emulate ROSCA financing. This will help increase their share in this market

What size of opportunity will open to banks that penetrate the small and medium enterprise (SME) finance market at Lahore? The next great challenge for enterprising banks

SMEs’ share in Pakistan’s formal loan portfolio is 6.5%.They obtain bulk of their finances from informal sources.This study is intended to determine the size of SME finance market, the principal informal sources and the volume of finances they provide.Primary data obtained from responses of 433 SMEs to a questionnaire has been used.The SMEs were randomly selected from market committees’ lists.The study found that entrepreneurs form Rotating Savings and Credit Associations (ROSCAs) for obtaining interest and Collateral-free financing.About 90% of the surveyed entrepreneurs retain membership in up to four ROSCAs each. ROSCAs distribute Rs. 468 million per month among the members. This amounts to an impressive Rs. 1.2 million to each SME. Pakistani banking system does not finance SMEs at such a rate.As a source of SME finance, banks’ role is only marginal. The figures represent a significant market awaiting penetration by entrepreneur banks. Banks can use these findings to help position themselves for a more affective role in the SME finance market

The impact of entrepreneurs’ levels of education, age and years in business on their decision to obtain finance for small and medium enterprises (SMES) from Rotating Savings and Credit Associations (ROSCAS) in Lahore

SMEs share only 6.5% of Pakistan’s formal loan portfolio.A greater part of their finances are obtained from ROSCAs.This study, was intended to determine the impact of entrepreneurs’ education, age and years in business on their decision to use ROSCAs.Primary data obtained from responses of 433 SMEs to a questionnaire is used.The SMEs were randomly selected from market committees’ lists. The study found that entrepreneurs’ level of education had a positive correlation with the volume of investment in ROSCAs.It was also found that their ages did not have an impact. Entrepreneurs of all ages participated in ROSCAs equally.The study also established that entrepreneurs’ years in business had a positive correlation with ROSCAs. Entrepreneurs accumulate larger retained earnings and confidence in ROSCAs over time

Percutaneous Coronary Intervention in Patients With Cardiac Allograft Vasculopathy: a Nationwide Inpatient Sample (NIS) Database Analysis

Cardiac allograft vasculopathy (CAV) is a major cause of heart transplant failure and mortality. The role of percutaneous coronary intervention (PCI) in these patients remains unknown. Methods: The National Inpatient Sample (NIS) (2015-2017) was queried to identify all cases of CAV. The merits of PCI were determined using a propensity-matched multivariate logistic regression model. Adjusted odds ratios (aOR) for in-hospital complications were calculated. Results: A total of 2,380 patients (PCI 185, no-PCI 21,95) with CAV were included in the analysis. There was no significant difference in the odds of major bleeding (OR 1.87, 95% CI 0.94-3.7, P = 0.11), post-procedure bleeding (P = 0.37), cardiogenic shock (OR 0.87, 95% CI 0.45-1.69, P = 0.80), acute kidney injury (uOR 0.92, 95% CI 0.68-1.24, P = 0.64), cardiopulmonary arrest (OR 0.84, 95% CI 0.34-2.11, P = 0.88), and in-hospital mortality (OR 1.59, 95% CI 0.91-2.79, P = 0.14) between patients undergoing PCI compared to those treated conservatively. A propensity-matched analysis closely followed the results of unadjusted crude analysis. Conclusion: PCI in CAV may be associated with increased in-hospital complications and higher resource utilization

Outcomes of intravascular imaging in Orbital Atherectomy; Insight from the National Readmissions Database

The impact of intravascular imaging guidance [intravascular ultrasound (IVUS)/optical coherence tomography (OCT)] on clinical outcomes in patients undergoing orbital atherectomy (OA) and percutaneous intervention (PCI) are not well characterized. The Nationwide Readmissions Database (NRD) from 2015 to 2019 was used to select all cases of OA. The adjusted odds ratios (aOR) of in-hospital, 30-day, and 180-day hospitalization outcomes between patients who underwent PCI with OA vs without intravascular imaging were calculated using a propensity-matched analysis. A total of 15,681 patients undergoing PCI after OA (12,649 with no-imaging, 3032 with imaging) were identified. Due to a significant difference in the baseline characteristics, a matched sample of 3008 in the no-imaging group and 3032 in the imaging group was selected. On adjusted analysis, the odds of all-cause in-hospital mortality (aOR 0.68, 95% CI 0.54-0.86) were significantly lower in patients undergoing IVUS/OCT guided OA and PCI compared with those having PCI without imaging. There was no difference in the rate of in-hospital stroke (aOR 0.86, 95% CI 0.51-1.45) and major bleeding (aOR 0.87, 95% CI 0.65-1.16) between the two groups. There was no significant difference in the 30- and 180-day odds of readmission, major bleeding, coronary dissection, pericardial effusion, and AKI between the two groups. IVUS and OCT use during PCI with OA for patients with calcified coronary artery disease appear to be associated with reduced in-hospital mortality at index admission. Prospective trials are necessary to determine the long-term benefits of imaging with PCI

Comparative analysis of revascularization with percutaneous coronary intervention versus coronary artery bypass surgery for patients with end-stage renal disease: A nationwide inpatient sample database

Background: The role of percutaneous coronary intervention (PCI) vs coronary artery bypass grafting (CABG) in patients with coronary artery disease (CAD) and concomitant end-stage renal disease (ESRD) remains unknown.Research design & methods: The National Inpatient Sample (NIS) (2002-2017) was queried to identify all cases of CAD and ESRD. The relative merits of PCI vs CABG were determined using a propensity-matched multivariate logistic regression model. Adjusted odds ratios (aOR) for mortality and other in-hospital complications were calculated.Results: A total of 350,623 [CABG = 112,099 (32%) and PCI = 238,524 (68%)] hospitalizations were included in the analysis. The overall adjusted odds for major bleeding (aOR 1.28, 95% CI 1.25-1.31, P \u3c 0.0001), post-procedure bleeding (aOR 5.19, 95% CI 4.93-5.47, P \u3c 0.0001), sepsis (aOR 1.29, 95% CI 1.26-1.33, P \u3c 0.0001), cardiogenic shock (aOR 1.23, 95% CI 1.20-1.26, P \u3c 0.0001), and in-hospital mortality (aOR 1.65, 95% CI 1.61-1.69, P \u3c 0.0001) were significantly higher for patients undergoing CABG compared with PCI. The need for intra-aortic balloon pump (IABP) placement (aOR 2.52, 95% CI 2.45-2.59, P \u3c 0.001) was higher in the CABG group, while the adjusted odds of vascular complications were similar between the two groups (aOR 0.99, 95% CI 0.94-1.06, P = 0.82). As expected, patients undergoing CABG had a higher mean length of stay and mean cost of hospitalization.Conclusion: CABG in ESRD may be associated with higher in-hospital complications, increased length of stay, and higher resource utilization