Search Results

You are looking at 1 - 10 of 34 items for :

  • "SME activity" x
Clear All
Vahram Stepanyan, Gohar Abajyan, Anta Ndoye, and Ms. Marwa Alnasaa
Small and medium-sized enterprises (SMEs) are a cornerstone of Arab economies, accounting for over 90 percent of all businesses and providing a major source of new job creation. Governments across the Arab World recognize the important role that SMEs can play in delivering higher and more inclusive growth. Many have rightly placed SME development at the center of growth and jobs strategies to meet the needs of young populations. Authorities have initiated policy interventions and schemes to support SME development. But progress so far has been patchy, and more comprehensive policy action is needed. Fostering vibrant and competitive SMEs that contribute to employment opportunities and high value-added output requires various stakeholders to deliver on a broad range of factors. Arab governments need a holistic policy approach that addresses the gaps in access to finance, creates an enabling business environment, and upgrades human capital and infrastructure. The approach should also promote an entrepreneurial mindset.
Mr. Nicolas R Blancher, Maximiliano Appendino, Aidyn Bibolov, Mr. Armand Fouejieu, Mr. Jiawei Li, Anta Ndoye, Alexandra Panagiotakopoulou, Wei Shi, and Tetyana Sydorenko

important determinant of SMEs’ limited access to formal financing in the two sub-regions. Credit information availability (coverage of credit registries), which also plays a key role. Economic competition (proxied by the share of small firms in the private sector), which suggests that market distortions hamper SME growth, demand for credit, and access to financing. Business environment, including legal and institutional frameworks that facilitate enforcement of property rights and contracts, as, which reduces SME activity and access to financing because of the

International Monetary Fund

regards access to credit, encouraging progress has been made in improving the regulatory framework. Not only a central credit registry has been established and is operational but also a law on leasing was enacted in December 2010 to help the SMEs have access to credit. The authorities intend also to establish specialized financial institutions to finance agricultural and SME activities. The development of these activities will help reduce youth unemployment. The management of such specialized financial institutions will be based on market rules with appropriate

Vahram Stepanyan, Gohar Abajyan, Anta Ndoye, and Ms. Marwa Alnasaa

support SME development. These reforms are at varying stages of advancement, with some countries adopting dedicated SME strategies (including Bahrain, Egypt, Lebanon and Morocco) and laws (UAE), and others incorporating SMEs into broader strategies (e.g. financial inclusion) or national development plans (including Algeria, Djibouti, Jordan, Qatar, Saudi Arabia, Sudan and Tunisia) ( Figure 3 ). Countries also recognize the need for adequate coverage of SME activities (many SMEs operate in the informal sector) and are making efforts to reduce informality in their

Mishel Ghassibe, Maximiliano Appendino, and Samir Elsadek Mahmoudi

financial stability. For example, one mechanism that could lead to this is that as more firms get access to formal loans, banks’ credit portfolios become more diversified. B. SME Financial Inclusion and Tax Collection Greater SME financial inclusion may boost the formalization of SME activities and thus have a positive impact on the efficiency of tax collection. We test this hypothesis empirically by augmenting our dataset from the previous subsection with annual time series of tax revenue as a share of GDP. Further, we estimate a similar panel VAR

International Monetary Fund. European Dept.

countries. The government has provided various forms of guarantees, export credit insurance, venture capital funding, and tax credits to support SMEs. Yet, SMEsactivity remains constrained while participation in public procurement continues to decline. Interest Rates of Loans to Corporation, New Business (Percent annualized) Sources: ECB. 27. Policies to support SMEs should focus on expanding direct support to R&D, investing in digitalization and lifelong learning, and establishing a business credit bureau . Total public spending on R&D in percent of GDP

International Monetary Fund

proposal also entails a new initiative for private-sector development in Africa: The proposal entails financing mechanisms that would strengthen the ability of MDBs, especially the African Development Bank Group to promote private sector development, improve the investment climate, and foster a credit culture . In particular, the proposal envisages various initiatives to improve infrastructure, foster SME activities, and strengthen financial institutions. Table 1. Multilateral Debt Relief and Future Financing—A Summary of Recent Proposal

Mr. Garbis Iradian
This study examines the growth determinants and the economic policy challenges that Armenia faces to sustain the rapid growth of the past two years. The paper also seeks to answer the following two questions: Why has Armenia performed relatively better than other transition economies? What are the roles of macroeconomic policies and the level of financial intermediation in explaining growth differences? The paper also draws upon past cross-country experiences by estimating panel regressions on the determinants of growth to make predictions for the Armenian economy.
Mr. Garbis Iradian

undisputed monopoly power. A number of sectors are of particular interest for the to development of SMEs. Agriculture is the largest employer in the country, and accounts for about one-fourth of GDP. The country produces a wide variety of high quality fruits and vegetables. Moreover, many of the more promising industrial activities, such as wine and brandy, beer, and mineral water, are in food processing. A second promising sector for SME activity is information technology (IT), which seems well placed to take advantage of the country’s specialization in electronics