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Title: The applicability of microcredit to Maltese small and medium enterprises
Authors: Farrugia, Nadine
Keywords: Small business -- Finance -- Malta
Economic assistance
Issue Date: 2011
Abstract: Purpose: The purpose of the study is to analyse the applicability of microcredit to Maltese SMEs. The financing for SMEs and start-up companies in Malta will be identified. The nature of microcredit facilities will be ascertained together with the need and potential of microcredit in Malta. The existing institutional and regulatory framework in relation to microcredit, EU financial support and the possible financial implications on SMEs and start-ups will also be assessed. Design The objectives of this study were achieved through 7 semistructured interviews with bank representatives and other institutions within the finance industry, together with an electronic survey which yielded responses from 46 SME owners, supplemented by journals, articles and websites. Findings This study shows that SMEs and start-ups face difficulties in attaining external financing, mostly due to their lack of collateral and track record among other factors. This study reveals that microcredit is needed in Malta to enhance the expansion of SMEs, especially microenterprises, but differences were noted in bank representative‚Äôs attitudes regarding the provision of microcredit facilities by Maltese commercial banks. Conclusions The main conclusions which emerged from the study include that even though, microcredit is often perceived as risky and costly business by traditional banks, it may play an imperative role in increasing access to financial services to SMEs, in particular microenterprises. Besides, microcredit may potentially increase employment and income in the socio-economically poor areas. Value It is anticipated that this study will encourage further awareness and development on the importance of microcredit and its applicability, with respect to Maltese SMEs, in particular start-ups.
Description: B.ACCTY.(HONS)
Appears in Collections:Dissertations - FacEma - 2011
Dissertations - FacEMAAcc - 2011

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