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Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan
Thesis (PhD)--University of Pretoria, 2016.
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University of Pretoria
2016
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| access_status_str | Open Access |
| author2 | Hassan, Rashid M. |
| author_browse | Hassan, Rashid M. |
| author_facet | Hassan, Rashid M. |
| collection | Thesis |
| dc_rights_str_mv | © 2016, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Thesis (PhD)--University of Pretoria, 2016. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/53511 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:48.825Z |
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| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/53511 Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan Hassan, Rashid M. abastalodi@hotmail.com Magboul, Abbas UCTD Formal microcredit markets Small-scale enterprises (MSEs) Participation determinants Credit approval factors Microcredit gap Islamic Contract Descriptive statistics Demand-side analysis Supply-side analysis Business skills Collateral requirements Microcredit awareness Islamic finance Economic inequality Financial inclusion Access to credit Natural and agricultural sciences theses SDG-01 SDG-01: No poverty Natural and agricultural sciences theses SDG-05 SDG-05: Gender equality Natural and agricultural sciences theses SDG-08 SDG-08: Decent work and economic growth Natural and agricultural sciences theses SDG-09 SDG-09: Industry, innovation and infrastructure Natural and agricultural sciences theses SDG-10 SDG-10: Reduced inequalities Thesis (PhD)--University of Pretoria, 2016. This study focused on three central themes of formal microcredit markets performance in Sudan. The first theme analysed determinants of participation and level of participation of small-scale enterprises owners in formal microcredit. The second theme analysed factors that determine institutional decision of approval and level of approval of formal microcredit to small-scale enterprises. The third theme addressed the perceived gap between supply and demand of formal microcredit to small-scale enterprises and the size of that gap. Analyses of factors determining demand for and supply of microcredit help identify and examine the perceived microcredit gap in Sudan. Thus, a data set including household, business and lender-related factors which was collected from 690 Micro and Small Enterprises (MSEs) in Khartoum State in Sudan, was used. This study focussed on the Murabaha Islamic Contract of credit, which is the most commonly used mode of finance by all commercial banks in Sudan and constitutes 97% of banks total lending size. This contract is kind of a sale in which the seller tells the buyer about the cost of a commodity and the profit he will get on the sale of that commodity before the transaction takes place. Repayment may be in lump sum, in installments or a combination of both. The study employed descriptive statistics as well as Heckman s two-step selection model. Two approaches were employed to address the above themes. First, Heckman s sample selection model was employed to analyse participation and intensity of participation of MSEs in formal microcredit markets. The same model was employed to analyse approval and level of approval of formal microcredit to MSEs in the state. Second, simple descriptive statistics were used to analyse the perceived gap between supply of and demand for formal microcredit to MSEs in the state. Results of the participation (demand side) analyses suggest the need for policy measures and strategies to strengthen business skills of MSEs managed by women, lower income owners, and relatively disadvantaged migrants, through increased awareness of the existence of formal microcredit services, training on business and other complementary mechanisms to increase their participation and demand for microcredit. Innovative measures to ease constraining lender-related factors such as collateral requirements and loan processing time need to consider lending to beneficiary groups (e.g. cooperatives) to reduce risks of repayment defaults. The study recommended reform of the Murabaha mode of finance and provision of alternative lower risk options as well as balancing the current unequal distribution of bank branches to improve access and reduce costs to potential clients in currently lacking areas. Results of the approval of microcredit loans (supply-side) indicate certain biases of the current microcredit supply system towards larger size, more skilled, higher asset endowed and higher income status MSEs which seem to strongly correlate with and reflect better collateral and repayment abilities. Appropriate innovative institutional and policy measures are recommended to balance such biases and improve access to and provision of microcredit to relatively smaller, less asset, income and skill endowed MSE operators and those migrating from relatively remote geographic regions with lower social networks and connections in Khartoum state. Results of the perceived gap between demand for and supply of microcredit indicate that the problem is a low participation problem rather than a gap in the supply of microcredit. This problem is caused by key factors such as those revealed by findings of the participation analyses. These results seem to point to the fact that the main issue with outreach of microcredit in Sudan is to focus on critically examining and understanding factors behind such low participation rates (demand constraints). Availability of information and awareness about microcredit and providers efforts to reach out could be key elements, among other factors, to be considered by policy makers. Policy makers are recommended to increase awareness of microcredit services as well as the Islamic modes of finance, particularly the Murabaha mode, among potential users of microcredit. es2025 Agricultural Economics, Extension and Rural Development PhD Unrestricted SDG-01: No poverty SDG-05: Gender equality SDG-08: Decent work and economic growth SDG-09: Industry, innovation and infrastructure SDG-10: Reduced inequalities 2016-07-01T10:33:12Z 2016-07-01T10:33:12Z 2016-04-15 2016 Thesis Magboul, A 2016, Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan, PhD Thesis, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/53511> A2016 http://hdl.handle.net/2263/53511 en © 2016, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Formal microcredit markets Small-scale enterprises (MSEs) Participation determinants Credit approval factors Microcredit gap Islamic Contract Descriptive statistics Demand-side analysis Supply-side analysis Business skills Collateral requirements Microcredit awareness Islamic finance Economic inequality Financial inclusion Access to credit Natural and agricultural sciences theses SDG-01 SDG-01: No poverty Natural and agricultural sciences theses SDG-05 SDG-05: Gender equality Natural and agricultural sciences theses SDG-08 SDG-08: Decent work and economic growth Natural and agricultural sciences theses SDG-09 SDG-09: Industry, innovation and infrastructure Natural and agricultural sciences theses SDG-10 SDG-10: Reduced inequalities Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan |
| title | Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan |
| title_full | Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan |
| title_fullStr | Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan |
| title_full_unstemmed | Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan |
| title_short | Determinants of demand for and supply of credit to small-scale enterprises and performance of micro-credit markets in Sudan |
| title_sort | determinants of demand for and supply of credit to small scale enterprises and performance of micro credit markets in sudan |
| topic | UCTD Formal microcredit markets Small-scale enterprises (MSEs) Participation determinants Credit approval factors Microcredit gap Islamic Contract Descriptive statistics Demand-side analysis Supply-side analysis Business skills Collateral requirements Microcredit awareness Islamic finance Economic inequality Financial inclusion Access to credit Natural and agricultural sciences theses SDG-01 SDG-01: No poverty Natural and agricultural sciences theses SDG-05 SDG-05: Gender equality Natural and agricultural sciences theses SDG-08 SDG-08: Decent work and economic growth Natural and agricultural sciences theses SDG-09 SDG-09: Industry, innovation and infrastructure Natural and agricultural sciences theses SDG-10 SDG-10: Reduced inequalities |
| url | http://hdl.handle.net/2263/53511 |