Abstract
This work aims to analyze the factors that explain the bank credit rationing to small and medium sized enterprises in Congo. Based on the survey made by the BEA (2015) involving 289 small and medium sized enterprises (SMSE) related to the access to credit very small and medium sized enterprises (SMSE) in Congo, we achieve this objective by using the logistic regression. As results of estimations, baking credit rationing in Congo is influenced by six variables such as: submission of all information required by the banker to the client, the capacity to present mortgage guarantee, choice of credit line, formal accounting management, to be registered near the chamber of commerce, and have invested early 12 months.
Highlights
Most studies show that small and medium-sized enterprises (SMEs) influence economic activities in both developed and developing countries (Rapport, 2015)
Based on the survey made by the BEA (2015) involving 289 small and medium sized enterprises (SMSE) related to the access to credit very small and medium sized enterprises (SMSE) in Congo, we achieve this objective by using the logistic regression
As results of estimations, baking credit rationing in Congo is influenced by six variables such as: submission of all information required by the banker to the client, the capacity to present mortgage guarantee, choice of credit line, formal accounting management, to be registered near the chamber of commerce, and have invested early 12 months
Summary
Most studies show that small and medium-sized enterprises (SMEs) influence economic activities in both developed and developing countries (Rapport, 2015). They account for more than 95% of all enterprises and 60% - 70% of employment. These are considered the locomotive of development and growth of any economy, and are an indispensable source of dynamism and flexibility (Tari & Attari, 2018). Access to bank financing is an indispensable condition for the development of this sector. Despite their importance in economies, SMEs face many obstacles, the most
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