Credit Rationing in Small Scale Enterprises: Special Microenterprise Programs in Ecuador
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Date
1992-10
Journal Title
Journal ISSN
Volume Title
Publisher
Ohio State University. Department of Agricultural, Environmental, and Development Economics
Abstract
Small scale enterprises receive several forms of aid, but many are denied access to formal loans. A demand and supply model is estimated to analyze the factors lenders use to ration credit in special microenterprise programs. The results reveal that suppliers do not discriminate against less profitable enterprises and entrepreneurs who have not completed their high school education; however, these entrepreneurs have a smaller demand for external finance from the microenterprise programs than more profitable enterprises and entrepreneurs who have graduated from high school.