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Background and motivation
Demand for small-scale financial services among the economically active poor in developing countries is strong, but lack of collateral and credit history seriously constrain their access. Formal financial institutions such as commercial banks refrain from providing services to low-income clients due to high transaction costs, uncertainty and information asymmetry (World Bank, 2008). This created a financing gap problem that induced researchers and governments in developing countries to explore ways and means of narrowing this gap. In Africa governments attempted to deal with the problem by introducing microfinance in bank and non-bank institutions. These institutions have always been requiring banking formalities that small businesses deem repulsive (Areetey, 2008). Microfinance is defined as the provision of financial services like credit, savings, insurance, funds transfer and payment services to low income households and small enterprises in both rural and urban areas, including employees in the public and private sectors and the self-employed (Robinson, 2001).
Like many other developing countries, micro and small enterprises (MSEs) in Sudan represent the economically active poor who need loans to finance their business activities. Their access to formal banking is constrained by the same factors mentioned above. As a result, they either resort to informal sources which are costly and risky or rely on their own meager capital.
An MSE is defined as small-scale economic activity owned and managed by a sole-proprietor who employs a relatively small number of workers and the growth of the business depends on a self-generated income. They are traders, street vendors and service providers (Farah, 2005). In this study, a small enterprise is defined as one with operating capital of between SD 10,000 and SDG 500,000 while a micro enterprise is defined as one with operating capital of SD 10,000 or less [At the time of the survey (2013) one US$ was equivalent to SDG 6 exchange rate].
CHAPTER 1: INTRODUCTION
1.1. Background and motivation
1.2. Problem statement
1.3. Research questions to be pursued
1.5. Hypotheses of the study
1.6. Approach and methods of the study
1.7. Organization of the thesis
CHAPTER 2: REVIEW OF RELEVANT LITERATURE
2.1. Introduction
2.2. Studies on determinants of demand for microcredit (participation)
2.3. Studies on determinants of access to microcredit
2.4. Mixed studies addressing both demand for and supply of microcredit
2.5. The literature on microcredit in Sudan
2.6. Summary
CHAPTER 3: THE CURRENT STATE OF MICROFINANCE AND THE ISLAMIC BANKING AND RULES TO MSES FINANCE
3.1. Introduction
3.2. The current policy environment and status of microfinance in Sudan .
3.2.1. Providers of microcredit in Sudan .
3.3. Islamic banking and rules to MSEs finance .
3.4. Summary
CHAPTER 4: APPROACH AND METHODS OF THE STUDY AND DATA COLLECTION
4.1. Introduction
4.2. Conceptual framework of formal microcredit to MSEs in Sudan
4.3. Modelling determinants of demand for and supply of microcredit
4.4. Sources and methods of data collection
4.4.1. Primary data sources and survey methods
4.5. Survey instruments and data collected on variables of the analyses
4.6. Summary
CHAPTER 5: DETERMINANTS OF SMALL-SCALE BUSINESS OWNERS’ PARTICIPATION IN FORMAL MICROCREDIT MARKETS IN SUDAN
5.1. Introduction
5.2. Specification of the empirical model and variables used in the demand analyses
5.3. Results and discussion of the empirical estimation
5.3.1. Determinants of MSEs owners’ decision to apply for microcredit
5.3.2. Factors affecting the level of participation in formal microcredit
5.4. Conclusions and policy implications
5.5. Summary
CHAPTER 6: DETERMINANTS OF FORMAL MICROCREDIT SUPPLY TO SMALL-SCALE ENTERPRISES AND FINANCING GAP IN SUDAN
CHAPTER 7: SUMMARY, CONCLUSIONS, IMPLICATIONS AND LIMITATIONS OF THE STUDY
List of References
Appendices
