PwC MSME Survey 2020
If you applied and tried to negotiate for a bank loan over the last 12 months, what was the outcome?
29% of businesses see the high interest rates on loan as
the most important limiting factor to getting funding for
working capital and expansionary activities. 25 percent
cite insufficient collateral or guarantees for funding, while
22% point to the current economic conditions as the most
important limiting factor.
Providing credit guarantees to SMEs will help mitigate
credit risk and serve as a means to encourage MSMEs to
grow. With reduced financing risks, MSMEs will be better
positioned to access more loans to expand their concerns,
thus stimulating business growth of small businesses,
which currently consist of about 0.2% of the MSME sector.
SME Loan Guarantee Schemes (SGS) provide loan
guarantee to small and medium enterprises (SMEs) to
help them secure loans for working capital needs of
general business uses.
The credit guarantee scheme industry is still at its nascent
stage in Nigeria. The volume of guarantees and the size
of the industry's contributions to the SME remain low
compared to peers in other economies. Yet, the quantum
of SME financing needs across the country remain high.
According to the NBS, less than 5% of SMEs have been
able to access adequate finance for working capital and
for funding business growth/expansion.
There are no obstacles
1%
Others
2%
Reduced control over the firm
10%
Financing not available at all
11%
The current economic conditions
Insufficient collateral or guarantee
Interest rates or price too high
PwC MSME Survey 2020
PwC
Source: PwC analysis
22%
25%
29%
June 2020
36View entire presentation