› › The Role Of Commercial Banks In Production Of Small And Medium Enterprises Smes In Pakistan

The Role of Commercial Banks in Production of Small and Medium Enterprises (SMEs) in Pakistan

Author : Sehrish Rasool

Publisher :

Page : 21 pages

File Size : 14,56 MB

Release : 2014

Category :

ISBN :

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Book Description

The research paper examines the participation of commercial banks financing fund to production level of SMEs in Pakistan. The scholar reviews related to this research work suggests that SMEs contribute more than half of the economic establishments in economies of the world; and so as SMEs in Pakistan add their massive amount of contribution in national economic growth and development. Being as an economic growth catalyst for economy of Pakistan, this sector is under negative macroeconomic conditions that result into negative economic growth since year 2009. Besides other macroeconomic variables, market fund deficiency has been resulting into lack of access to finance and hence hampers the SMEs production. Whereas, access to finance available to SMEs in-terms of working capital finance, trade finance and fixed investment, is limited only through commercial banks than other sectors of fund arrangement. With the major data sources from State Bank of Pakistan publications and Ministry of Finance of Pakistan, the analysis reveals negative growth in private sector financing to SMEs from all scheduled banks. So as, the negative marginal contribution of Private, Public, Islamic and specialized banks to SME financing exclusively relates with the declining SME national output. The research concludes that commercial banks are core source for SME borrowing and hence rationally affect the production of SMEs in terms of working capital requirement. A fiscal policy adjustment along with monetary and capital market innovations is highly desirable to avoid SME sector vulnerability in global and regional competitiveness.



Commercial banks in economic development of SMEs. An analysis of their contribution

Author : Hitiyise Samuel

Publisher : GRIN Verlag

Page : 58 pages

File Size : 17,83 MB

Release : 2021-08-04

Category : Business & Economics

ISBN : 3346459128

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Book Description

Bachelor Thesis from the year 2021 in the subject Business economics - Investment and Finance, grade: second class upper division, , course: Accounting, language: English, abstract: The study was guided by analyzing the contribution of commercial banks in economic development of SMEs The target population for the study consisted of registered SMEs in KCBR as their clients.A descriptive research design as well as an explanatory research design was used. The study used Bouchard formula to sample SMEs and then used random sampling to select the 105 SMEs. The respondents of the study were the owners and managers of the SMEs. The study used questionnaires to collect quantitative data using closed ended questions . Data analysis will be done using SPSS statistical software version 21. Descriptive statistics (Frequencies, Means and Standard deviation) and inferential statistics (Correlations and regression) were used in analysis. A multiple linear regression model was used for analysis and all tests were conducted at 5% level of significance. The study findings indicated that banking services are positively related with economic development of SMEs. The study concluded that commercial banks in Nyarugenge district are favorable. The study also concluded commercial bank services are effective and they economic development of SMEs significantly. SMEs in Rwanda suffer from weak financial performance and a high failure rate. Scholars argue that judging by the poor economic development of the informal sector, not much progress seems to have been achieved, despite government efforts to promote SME activity. Some of the key factors attributed to this poor performance is access to financial services. Therefore, the purpose of this study was to examine the contribution of commercial banks in economic development of SMEs Normally, SMES play vital and significant contributors to economic development through their critical role in providing job opportunities and reducing poverty levels, an estimated number of up to 40% of the start-ups SMEs fail by year 2 and at least 60% close their doors by year 4. This menace is attributed to poor financial management among small businesses. Accessing credit is a major constraint to the economic development and growth of SMEs and also to poor rural and urban households. This is mainly due to the behavior of lenders in terms of hedging against borrowers’ risks by demanding collateral, which they lack, and also information asymmetry.



Bringing Finance to Pakistan's Poor

Author : Tatiana Nenova

Publisher : World Bank Publications

Page : 262 pages

File Size : 11,31 MB

Release : 2009-11-13

Category : Business & Economics

ISBN : 082138032X

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Book Description

Although access to financing in Pakistan is expanding quickly, it is two to four times lower than regional benchmarks. Half of Pakistani adults, mostly women, do not engage with the financial system at all, and only 14 percent have access to formal services. Credit for small- and medium-size enterprises is rationed by the financial system. The formal microfinance sector reaches less than 2 percent of the poor, as opposed to more than 25 percent in neighboring countries. Yet it is the micro- and small businesses, along with remittances, that help families escape the poverty trap and participate in the economy. 'Bringing Finance to Pakistan s Poor' is based on a pioneering and comprehensive survey and dataset that measures the access to financial products by Pakistani households. The survey included 10,305 households in all areas of the country, excluding the tribal regions. The accompanying CD contains summary statistics. The authors develop a picture of access to and usage of financial services across the country and across different population groups, and they identify policy and regulatory priorities. Reform measures in Pakistan have been timely, but alone are not enough; financial institutions have lagged behind in adopting technology, segmenting customer bases, diversifying products, and simplifying processes and procedures. Gender bias and low levels of financial literacy remain barriers, as is geographical remoteness. However, the single strongest cause of low financial access is lack of income not location, education, or even gender. 'Bringing Finance to Pakistan s Poor' will be of great interest to readers working in the areas of business and finance, economic policy, gender and rural development, and microfinance.



Entrepreneurship Development

Author : H. S. Anitha

Publisher :

Page : 282 pages

File Size : 25,29 MB

Release : 2003

Category : Banks and banking

ISBN :

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Book Description

With reference to development of small businesses in the state of Karnataka, India.



Role of Commercial Banks in Improving Business Condition of Pakistan Through Loan Facility

Author : Saima Afsheen

Publisher :

Page : 5 pages

File Size : 31,29 MB

Release : 2016

Category :

ISBN :

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Book Description

Commercial banks of Pakistan play an important role leading towards the economic growth. It is analyzed that most of the well reputed Commercial banks performing functional operation activities in term of persons, institutions operating in the financial markets are linked under the laws, policy and procedure of communications networks that form an externally visible financial market structure. The main objective of the research is to examine and investigate the impact of the commercial banks in bringing improvement in the business conditions of Pakistan through loan facility. The research is quantitative in nature. The questionnaire is utilized to collect the data from the respondents. The data collected is deeply analyzed and various tests are applied to analyze effective results. The outcome has reflected that the commercial banks have the positive impact in bringing improvement in the business conditions of the Pakistan through the loan facility.





Small and Medium Enterprises in Malaysia

Author : Mosha Asri Abdullah

Publisher : Routledge

Page : 328 pages

File Size : 36,53 MB

Release : 2019-01-22

Category : Business & Economics

ISBN : 0429796609

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Book Description

First published in 1999, this volume focuses on the contributions of Small and Medium Enterprises (SMEs) to Malaysia and they can be best supported. Moha Asri Abdullah examines solutions in the form of policy supports in developing countries, financial and credit assistance, entrepreneurial development, business management training, human resources development, technical and vocational programmes, local and infrastructure facilities, fiscal policy and incentives for SMEs and the accessibility of SME support programmes. Abdullah ends with recommendations for the sector.



The Future of Microfinance

Author : Ira W. Lieberman

Publisher : Brookings Institution Press

Page : 493 pages

File Size : 35,33 MB

Release : 2020-06-30

Category : Business & Economics

ISBN : 0815737645

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Book Description

A major source of financing for the poor and no longer a niche industry Over the past four decades, microfinance—the provision of loans, savings, and insurance to small businesses and entrepreneurs shut out of traditional capital markets—has grown from a niche service in Bangladesh and a few other countries to a significant global source of financing. Some 200 million people globally now receive support from microfinance institutions, with most of the recipients in the developing world. In the beginning, much of the microfinance industry was managed by non-governmental organizations, but today the majority of these institutions are commercial and regulated by governments, and they provide safe places for the poor to save, as well as offering much-needed capital and other financial services. Now out of infancy, the microfinance industry faces major challenges, including its ability to deal with mobile banking and other technology and concerns that some markets are now over-saturated with microfinance. How the industry deals with these and other challenges will determine whether it will continue to grow or will be subsumed within the larger global financial sector. This book is based on the results of a workshop at Lehigh University among thirty-four leaders in the industry. The editors, working with contributions from more than a dozen leading authorities in the field, tell the important story of how microfinance developed, how it has met the needs of hundreds of millions of people, and they address key questions about how it can continue to meet those needs in the future.



Money and Banking in Pakistan

Author : Saeed Ahmed Meenai

Publisher : Oxford University Press, USA

Page : 328 pages

File Size : 50,32 MB

Release : 1984

Category : Business & Economics

ISBN :

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Book Description

The story of the remarkable growth of banking in Pakistan and its told experience in the field of monetary management is in this book. The scope is broad, but the treatment is to the point and concise.



Islamic Banking Opportunities Across Small and Medium Enterprises

Author : International Finance Corporation

Publisher :

Page : pages

File Size : 47,38 MB

Release : 2017

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ISBN :

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Book Description

In recent years, banks in Pakistan and the Middle East and North Africa (MENA) region have become increasingly interested in targeting the small and medium enterprise (SME) sector and have realized that many small businesses demand Shariah-compliant banking. To provide clarity on the subject, International Finance Corporation (IFC) commissioned a study to better understand the demand and supply for Islamic banking products (both asset and liability products as well as other banking services) in the SME sector in Pakistan. This report on Pakistan reveals a new to bank Islamic funding and depository opportunity, primarily due to un-served and underserved SMEs (approximately 20 percent to 25 percent), who do not borrow from conventional banks due to religious reasons. In order to reach out to SMEs demanding Islamic products, and as part of IFC's initiative to enhance its SME investment and advisory services offerings to Islamic financial institutions, one needed to better understand the market from both the demand and supply sides in order to identify any gaps or niches where IFC can assist and add value. IFC commissioned a study in nine countries of the MENA region, which includes Pakistan, to better understand the demand and supply for Islamic banking products (both asset and liability products and other banking services) in the SME sector. The countries chosen for this study are: (1) Iraq, (2) Pakistan, (3) Yemen, (4) Kingdom of Saudi Arabia, (5) Egypt, (6) Lebanon, (7) Morocco, (8) Tunisia, and (9) Jordan. This regional executive summary provides a comparative analysis of the SME potential across these countries and the opportunities available to Islamic institutions to tap this potential. The nine individual country reports provide a deeper insight into the SME landscape and potential opportunities for Islamic banks in each country. The reports also highlight the measures that banks may need to take to successfully target the Islamic banking potential of SMEs. For more publications on IFC Sustainability please visit www.ifc.org/sustainabilitypublications.