nep-mfd New Economics Papers
on Microfinance
Issue of 2023‒11‒06
two papers chosen by
Aastha Pudasainee
  1. Analysis of the financing of Moroccan SMEs using the Moucharaka model: An optimised perspective on the divergence ratio. By Abid Mustapha; Douari Aziz
  2. Credit Supply Shocks and Firm Dynamics: Evidence from Brazil By Samuel Bazzi; Marc-Andreas Muendler; Raquel F. Oliveira; James Rauch; James E. Rauch
  1. By: Abid Mustapha (LAREGMA - Laboratoire de Recherche en Economie, Gestion Management des affaires - FEG SETTAT - Faculté d’Économie et de Gestion de Settat); Douari Aziz (LAREGMA - Laboratoire de Recherche en Economie, Gestion Management des affaires - FEG SETTAT - Faculté d’Économie et de Gestion de Settat)
    Abstract: Small and Medium-sized Enterprises (SMEs) are an engine of economic growth in both developed and developing countries, but they often face financing difficulties due to the reluctance of traditional banks to grant them loans. For this reason, it is important to explore other sources of funding, such as participatory financing. This study, based on the financial data of 25 Moroccan SMEs between 2018 and 2022, compared the profit rate obtained through participatory financing (Moucharaka) with that obtained through a bank loan. The results showed that Moucharaka is an effective solution for improving the economic performance of Moroccan SMEs.
    Abstract: Les PME sont un moteur de croissance économique dans les pays développés et en développement, mais elles rencontrent souvent des difficultés de financement en raison de la réticence des banques traditionnelles à leur accorder des prêts. Pour cette raison, il est important d'explorer d'autres sources de financement, telles que la finance participative. Cette étude, basée sur les données financières de 25 PME marocaines entre 2018 et 2022, a comparé le taux de profit obtenu grâce à la finance participative (Moucharaka) avec celui obtenu par un crédit bancaire. Les résultats ont démontré que la Moucharaka est une solution efficace pour améliorer la performance économique des PME marocaines.
    Keywords: Participatory Financing, Dispersion Ratio, Produits Moucharaka, Finance participative, Petite ou moyenne entreprise, Ratio de dispersion, African Scientific Journal, Ratio de dispersion Moucharaka Products, Small or Medium Enterprise, Produits Moucharaka Finance participative Petite ou moyenne entreprise Ratio de dispersion Moucharaka Products Participatory Financing Small or Medium Enterprise Dispersion Ratio
    Date: 2023–08–30
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04209305&r=mfd
  2. By: Samuel Bazzi; Marc-Andreas Muendler; Raquel F. Oliveira; James Rauch; James E. Rauch
    Abstract: We explore how financial constraints distort the entry decisions among otherwise productive entrepreneurs and limit growth of promising young firms. A model of liquidity-constrained entrepreneurs suggests that the easing of credit constraints can induce more entry of firms with greater long-run growth potential than the easing of conventional entry barriers would bring about. We explore this growth mechanism using a large-scale program to expand the supply of credit to small and medium enterprises in Brazil. Local credit supply shocks generate greater firm entry but also greater exit with no effect on short-run employment growth in the formal sector. However, credit expansions increase average capability among entering firms, which enter at larger size, survive longer, and grow faster. These firm dynamics are more pronounced in areas with weaker credit markets ex ante and consistent with local bank branches using cheap targeted credit lines to expand lending more broadly. Our findings provide new evidence on the general equilibrium effects of credit supply expansions.
    Keywords: credit constraints, entry barriers, growth barriers, startups
    JEL: D21 D22 D92 L25 L26 M13 O12
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10672&r=mfd
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