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Small and medium enterprises in access to Bank credit in Mozambique

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  • ALFAZEMA, ANTONIO

Abstract

SMEs have a very important role towards society, being responsible for the production of a large part of the total goods and services, but also for stimulating competition, introducing innovative methods and for their importance in employability. In Mozambique, the credit capacity of SMEs is quite weak as the results point to the lack of organized accounting, insufficient collateral, reduced bargaining power, weak business management skills, and weaknesses in structuring business plans are challenges for SMEs to access bank financing. The main difficulty in applying for credit by companies is the existence of unattractive and uncompetitive rates and fees. The biggest problem related to accessing bank credit is the prohibitive collateral requirements and the problem of structural deficiencies, which cripple the economy.

Suggested Citation

  • Alfazema, Antonio, 2021. "Small and medium enterprises in access to Bank credit in Mozambique," MPRA Paper 107516, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107516
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    File URL: https://mpra.ub.uni-muenchen.de/107516/1/MPRA_paper_107516.pdf
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    References listed on IDEAS

    as
    1. Diana Bonfim & Qinglei Dai, 2017. "Bank Size and Lending Specialisation," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(2), pages 329-380, July.
    2. Thorsten Beck & Samuel Munzele Maimbo & Issa Faye & Thouraya Triki, 2011. "Financing Africa : Through the Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 2355.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Small and medium enterprises; Lending; Credit; Bank.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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