4- Analysis of the problem of financing small businesses within the framework of the study:
This
part of the research deals with the study of the problems and difficulties
encountered by the owners of the small businesses, focusing on the problem of financing,
whether during the completion period or the operating period.
1-4 - At the Ansej branch, bank and other administrations:
Through
the analysis of the stages of realization of a small businesses within the
framework of the Ansej agency, it varies that there is a group of bodies which
interfere in the creation of these small businesses, directly or indirectly,
and all functional impairment in these organs can affect the ability to create
these small businesses to varying degrees. Therefore, the role of the agency,
banks and licensing agencies is essential in the creation of these small
businesses, as the bank represents the largest contributor to the funding of
these small businesses, and the agency (Ansej) as supporter and financial, and
licensing bodies, which grant the legal form and licenses which allow For these
small businesses to practice economic activity in the formal setting.
Consequently, the problems and difficulties that small businesses may encounter
at the level of these bodies have been addressed by emphasizing the dimensions
of the financing problem before and after.
the creation of the small businesses, as follows:
- Concerning the stage of obtaining the certificate of eligibility, which takes place at the level of the interests of the agency (Ansej), which is the certificate considered as accepting the financing of the creation of the small businesses,
-
Partly by the agency through an interest-free loan, many people indicated that
the members of the sample (72%) indicated that the period of this stage is less
than a month, and in less cases by ( 23%), this period is between 2-3 months.
-
Regarding the period of the stage of obtaining banking illegibility which takes
place at the level of the bank, it is considered as a prior approval by the
bank to finance the creation of the small businesses with a loan according to
the financial structure specified in the economic technical study of the
institution previously prepared by the agency,
In
a few cases, respondents replied that this substance was less than a month (2%)
and between 2-3 months (7%) and between 4-6 months (10%).
(44%)
of the sample believe that this period is between 7 and 12 months, and 26% of
them replied that it is between 13 and 18 months, and among them, those who
exceed this period have two years, which are long periods by all criteria.
Regarding
the stage of obtaining the loan without interest on the agency's interests, the
majority of the sample indicated that this period was less than one month (50%)
or between 2 and 3 months (47 %).
-
Regarding the step of obtaining the banking instrument for the possession of
equipment, this step takes place;
-
At the bank level after having completed all the procedures, in particular the
defense of personal defense, obtaining the seat of the agency, filling in the
bank loan, by which the owner of the institution receives a banking instrument
for the amount of equipment or equipment in general, and on behalf of the
equipment supplier, the response was more than half of the sample members (55%)
Whether this item varies between 2-3 months and a percentage of (26% of the
sample estimates that this period varies between (6 months) and this period has
reached two years in some cases).
As
for the stage of completion of the project, it is represented by the owner of
the institution handing over the instrument handed over by the bank to the
supplier of the equipment in exchange for handing over the equipment, and the
completion of the rest of the start-up procedures. the institution in activity,
and this in general, and the duration of this step was more than half of the
sample (59%) ranging from Between 2-3 months and this period was between 4-6
months for (23%) of the members of the sample, and the duration of this stage depends
on the seriousness and the activity of the owner of the small businesses on the
one hand and on the seriousness of the supplier and his capacity to provide the
material with specifications required and at the appropriate time from On the
other hand, it is in general.
These
results are considered proportionally that the duration of the stages of
setting up an institution within the framework of the National Agency for
Support to the Employment of Young People, which takes place at agency level does
not exceed in most of cases 3 months, and it has relatively proportions of the
duration of this period compared to the stages which are at the level of the
bank, as for the duration of the approval phase The banking period was between
7 and 18 months, in (70%) of the cases, the period of obtaining the banking
instrument was between 2 and 6 months, at the rate of (81%) of the respondents.
2-4 - At the level of businesses and their owners:
1-2-4- Source for obtaining the financial contribution (personal contribution) to the project:
Table
n ° (8) Source of obtaining the financial contribution to the project
Thanks
to the calendar, it is clear that the young people of the sample members
depended on providing the amount of the personal contribution in their
projects, of all the benefits of family or friends in the first place, then of
monitoring the personal savings. , then the loan comes from another person (the
informal financing market), with ratios of importance Convergence (75.31%),
(80.25%), (71%), respectively.
There
is a convergence in the rates of use of the funding sources mentioned, which
reflects the use of several sources to provide this personal contribution on
the one hand, and on the other hand the difficulty of providing a personal
contribution. By categorizing the open responses to the question on funding
sources, option 4, it became clear that - 43 out of 54 people gave an open
response, and their responses focused on the equipment supplier as the funding
source for obtain personal contribution, and this can have a negative impact on
the price, quality or quantity of equipment and supplies subsequently supplied
to the company, its bargaining power vis-à-vis the equipment supplier and
dependence with regard to the informal market can entail additional costs and
sometimes informal partners interested in sharing the income only without
worrying about the continuity and development of the company and the payment of
its obligations, which can increase the opportunities These institutions
flicker.
The
agency employees see through the interviews with them that the amount of the
personal contribution is appropriate, compared to the amount of the investment
and the ratios applied in other countries which have experiences similar to the
experience of the agency, in addition to taking this problem into account when
setting up the new apparatus for youth employment in January 2004, limiting the
contribution rate between (5% and 10%) after it was between (5% and 20%)
4-2 - 2 - The source of the difficulties at the banking level:
The
sample members experience these difficulties for several reasons:
-
In the first and second ranks, the duration of the waiting period to obtain the
approval of the bank to finance the project is (82.61%) and the duration
between the period between obtaining the decision of the agency and obtaining
the banking instrument for the acquisition of equipment (72.17%) ranks third
and fourth Poor reception (68.70%) and mediation (66.96%)
And
in fifth place came the reason related to inappropriate guarantees and
conditions imposed by the bank of relative importance (44.35%) and the rest of
the reasons came with a lesser relative importance limited between (28.70 -
16.52 %) among the reasons for the difficulties encountered by the owners of
the institutions which are the subject of the study sample Before the bank.
These
opinions reflect a slowness of the procedures, either with regard to the
initial approval of the financing that the bank gives to the contracting
authority after having studied it, or to complete the financing procedures at
the level of the bank as a last measure for complete the project.
It
also appears that the contracting authorities have difficulty in receiving them
through the interests of the bank with the aim of requesting financing at a
significant rate, which may lead some to resort to mediation or to abandon the
idea of creating their institutions. It is interesting to note that (77)
beneficiaries (66.96%) mentioned that there are cases of mediation to
facilitate financing procedures at the bank level, then the lack of equal
opportunities between beneficiaries. More interestingly, the open answers to
this question indicate the existence of cases of corruption which can complicate
matters. Plus, which indicates the need to deal with the cases of bias
mentioned and to control the cases by offering more accountability and
transparency.
-
One of the bank officials summed up that the reason for the lack of reception
at the local level is wrong and that the lack of reception is due to the lack
of control and the large number of requests for the study manager to be at best
only resist studying the files of the three agencies, the youth employment
assistance system, the National Unemployment Insurance Fund, And the
microcredit system, in addition to its daily work on the functioning normal
from the bank.
4-2-3 - The guarantees required by the bank:
Table
n ° (9) guarantees required by the bank
From
the results of the previous table, it is clear that the banks are asking to
participate in the agency's bank loan guarantee fund, as a guarantee for all
the small businesses.
It
is financed within the agency, then the mortgage of equipment and supplies and
their insurance against all risks comes in favor of the bank of relative
importance (82.10%) as additional guarantee for the bank, and this is followed
by Sponsorship request from another person as a bank guarantee of relative
importance (59.88%).
This
is what prevents many young people from completing the financing procedures
despite the absence of this type of guarantee in the agreement between the
banks, the agency and the guarantee fund.
Real
estate guarantees are of relative importance (15.43%), and the reason for the
request for real estate guarantees is that certain institutions were financed
during a previous period to create the bank loan guarantee fund of the agency ,
and some investment structures for some of the projects financed are mainly in
the form of buildings, so they are mortgaged in favor of The bank.
4-2-4 - The adequacy of the conditions for obtaining a bank loan under Ansej agency framework:
Table
(10): Adequacy of conditions for obtaining bank credit
It
is clear from the results presented in the previous table that the majority of
respondents (70.37%) do not see the conditions for granting loans adapted to
the potential of the beneficiaries, and by asking the respondents who see that
these conditions do not correspond to the capacities of the beneficiaries - 114
people in the sample on the most important conditions that they consider
inappropriate were the results Their responses are organized as follows:
A
high percentage (75.44%) of respondents indicated that the grace period granted
(after which loan payments begin to be paid) is considered to be short, which
can affect the ability of institutions to begin paying bank loan payments
because these institutions need a longer period for the grace period given to a
return that allows them to start repaying their loans.
-
He sees (72.81%) of people being investigated, including the high value of late
penalties when the loan is overdue, one of the most inappropriate conditions
associated with granting of the loan, even if the loans are at a subsidized
interest rate, and this is consistent with the results associated with the
short grace period, which contributes to additional costs due to late repayment
of the loan.
-
The large number of guarantees required as a condition for obtaining the bank
loan, which leads to the complexity of the procedures for obtaining the loan,
where (64.97%) of respondents believe that the guarantees required are not
suited to their needs. multiplicity and difficulty, in particular personal
guarantees, any sponsorship request where solvency is required, guaranteed in
the event that the owner of the businesses fulfills his obligations to the
bank, which makes it difficult to complete the procedures for obtaining 'a bank
loan.
-
Anyone who follows the short loan repayment period has a relative importance
(57.02%), which translates into an increase in the amount of relatively
important payments (55.26%), as conditions which are not suitable for obtaining
the loan in the eyes of the investigators, and this also corresponds to the
result of the question concerning the grace period.
To
a lesser extent, the high expenditure condition linked to the conditions for
granting loans increases the interest rate by 15.79% and 13.16% respectively,
which reflects the effectiveness of targeted support in this area.
5-2-4 - Obtaining the total amount required to complete an Ansej agency project:
Table
n ° (11) Obtaining the total amount required to complete a project.
It
is clear from the previous table that (41.98%) of the members of the sample did
not obtain the total amount required to complete their projects, and (4.41%)
think that this does not affect the activity of the institution, but the
majority of them (95.59%) 65 people out of 68 people.
-
You consider that the fact of not obtaining the required amount affects the
realization of investments whose specifications are less important than
necessary and of relative importance (61.76%);
-
Difficulty at checkout of the company of relative importance (57.35%);
-
Certain investments specified in the study with relative importance ((51.47%);
-The
inability to develop the establishment's activity with relative importance
(36.76%);
-
The possible cessation of the activity of the small businesses of relative
importance (33.82%);
As
a result, it is clear that failure to obtain the full amount required to
finance these small businesses not only leads to the inability of their owners
to function well for them, but can also lead to the suspension of these small
businesses from the activity or the sale of an asset in order to ensure the
continuity of the small businesses, which is contrary to the specifications
that accompany the agency, which we saw in the open responses to this question.
6-2-4 - Financial problems after the creation of a small businesses within the framework of Ansej:
Table
n ° (12) Financial problems after the creation of a small businesses.
It
is clear from the previous table that more than half of the sample encountered
financial problems, and those who encountered financial problems (98 people)
indicated that this problem was resolved with the help of family or friends.
friends of relative importance (80.61%), then with a loan from the supplier
(65.31%) And then, by borrowing from another person (62.24%), then the
rescheduling of the bank loan (59.18 %) followed, then in less significant
terms each the use of the introduction of new partners in the small businesses
(25.51%), and the use of personal savings (12.24%) and a New loan from the bank
(2.04%).
-
These results reflect the dependence of these small businesses in solving their
financial problems mainly vis-à-vis family, friends, suppliers and the informal
market, and it does not have the capacity to obtain funding from these sources,
which will cause funding difficulties and thus increase the failure rate of
these small businesses, and also reflects the weakness or lack of dependence on
these small businesses.
-
The bank to solve its financial problems, including obtaining a new loan;
7-2-4- The reason not to use the bank to solve the financial problems of small businesses:
Table
n ° (13) the reason not to use the bank to solve the financial problems of the small
businesses
Through
the results of Table 13, which expresses the solidarity of the opinions of
those interviewed who encountered financial problems and did not resort to
banks to solve them (62 people), i.e. the total of those who encountered
financial problems (98 people) removed from these the number of those who got a
new loan (2 people),
And
who rescheduled the bank loan (34 people). They believe that the reason for the
exhaustion of their recourse to the bank to solve their financial problems is
due to a set of reasons according to them, the order of calculation of the
degree of importance being as follows:
-
The bank refused to finance the top reasons for not using the bank to solve
financial problems of relative importance (40.32%);
-The
procedures for obtaining a loan are of relative importance (27.42%);
-
Refusal to receive by the bank to explain the need for the loan request, with
relative importance (17.47%), which is consistent with the previous results;
The
inadequacy of the funding available with the funding needs of the small
businesses (08.06% ) and the high cost of funding (3.23%)).
These
results indicate obvious difficulties which prevent these small businesses from
resorting to bank financing.
8-2-4 - Reason for the bank's refusal to request financing for small businesses in Ansej agency framework:
Table
n ° (14) of the reason for the bank's rejection of the financing request
-
The results in the previous table show us that the reasons for which the
financing request was rejected by 25 individuals by the bank are classified
according to their relative importance as follows:
-
- Inability to provide guarantees of relative importance (80%);
-
- Bad credit file with the bank of relative importance (68%);
-
- The activity to be financed has become outside the activities that the bank
finances with relative importance (16%);
-
- The loan request does not contain enough information of relative importance
(12%);
On
the one hand, these results reflect that the bank imposes additional guarantees
as regards the financing of these small businesses after their creation and
considers them as a regular customer, since these small businesses are not able
to provide them, which is in line with this which was discussed in the
theoretical part of the study, unlike the pre-construction stage where it
finances them, by accreditation Mainly on the cover granted by the Bank Loan
Guarantee Fund as guarantor of its financing ( here shows the importance of
this guarantee to facilitate the financing of these small businesses).
On
the other hand, the refusal to finance these small businesses because of their
history of bad credit with the bank (the non-payment of the maturities of the
bank loan) may be due to the inadequate conditions for granting of loan imposed
by the bank as this has previously discussed regarding the article in loan,
authorization period, etc. And, this reason may not allow these small
businesses to benefit from the financing of the expansion of their activities,
although they may benefit from the coverage granted by the guarantee fund in
this case.
9-2-4- The desired financing services:
Table
n ° (15) the desired financing services
The
following table shows the following:
The
desire to simplify the procedures for obtaining financing was added to the
financial services retained by the vocabulary of the sample, since it was
selected at a rate of (70.37%) by the owners of the small businesses , which
were included in the sample as the main proposal to address the funding
problem.
Occupied
the second and third positions with close proportions, both the desire to
provide Islamic finance with a relative importance of around 62.35%, and the
provision of loan guarantee services of a relative importance of (60 , 46%);
And
came in fourth place with a lower degree of importance to facilitate the loan
conditions of (38.89%). To counter the funding problem.
It
is clear from the analysis that the most important elements facing the owners
of the small businesses studied in the financing problem are the simplification
of the procedures for obtaining financing, and the second obstacle is their
sensitivity to deal with traditional banks. , since the funding formula they
provide does not match the values
Predominant
in society, and therefore in search of the Islamic financing formula.
It
is also clear how important the loan guarantee service is in financing this
type of small businesses, in addition to the lack of acceptance by the owners
of these businesses of the forms developed for financing, and this may be due
lack of knowledge and understanding of this type of method, which draws
attention to the importance of spreading awareness of funding and simplifying
new ideas. For owners of small businesses by any party can take over the
financing of these small businesses.
