Jamaica SME Finance : Technical Note
Almost all formal small and medium enterprises (SMEs) in Jamaica have access to checking or saving accounts, but the financial sector is scarcely used to finance their investments. The lack of funding for the SME sector, or its high cost, has a neg...
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| Format: | Report |
| Language: | English en_US |
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2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/05/24459218/jamaica-sme-finance-technical-note http://hdl.handle.net/10986/21909 |
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okr-10986-219092021-04-23T14:04:05Z Jamaica SME Finance : Technical Note World Bank International Monetary Fund EMPLOYMENT ENTREPRENEURSHIP FINANCE SECTOR FINANCIAL STABILITY LENDER INCENTIVES MICROFINANCE SECTOR PROFITABILITY SMALL AND MEDIUM-SIZE ENTERPRISES SME Almost all formal small and medium enterprises (SMEs) in Jamaica have access to checking or saving accounts, but the financial sector is scarcely used to finance their investments. The lack of funding for the SME sector, or its high cost, has a negative impact on entrepreneurship and business profitability and stability through the business life-cycle, having a particularly negative effect on employment. In addition, the supply of formal nonbank sources of finance is limited, especially for micro-entrepreneurs, with credit unions providing mostly consumer finance and an underdeveloped microfinance sector. The authorities aim to develop a micro-credit act to make it mandatory for multilateral investment funds (MIFs) to register, and to create a regulatory authority to oversee microfinance institution (MFIs). The authorities have taken significant initiatives to enhance the legal and regulatory environment and financial infrastructure, but further efforts are needed. The authorities have also put in place public programs for micro, small, and medium sized enterprise (MSME) finance, however they lack sufficient coordination, and the partial credit guarantee scheme needs to be revamped. It also operates a partial credit guarantee scheme, which is not being utilized by lenders. Thus, its design should be reviewed and revamped to ensure adequate incentives for lenders to use it and its sustainability. 2015-05-19T19:22:48Z 2015-05-19T19:22:48Z 2015-04 Report http://documents.worldbank.org/curated/en/2015/05/24459218/jamaica-sme-finance-technical-note http://hdl.handle.net/10986/21909 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Jamaica |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
EMPLOYMENT ENTREPRENEURSHIP FINANCE SECTOR FINANCIAL STABILITY LENDER INCENTIVES MICROFINANCE SECTOR PROFITABILITY SMALL AND MEDIUM-SIZE ENTERPRISES SME |
| spellingShingle |
EMPLOYMENT ENTREPRENEURSHIP FINANCE SECTOR FINANCIAL STABILITY LENDER INCENTIVES MICROFINANCE SECTOR PROFITABILITY SMALL AND MEDIUM-SIZE ENTERPRISES SME World Bank International Monetary Fund Jamaica SME Finance : Technical Note |
| geographic_facet |
Jamaica |
| description |
Almost all formal small and medium
enterprises (SMEs) in Jamaica have access to checking or
saving accounts, but the financial sector is scarcely used
to finance their investments. The lack of funding for the
SME sector, or its high cost, has a negative impact on
entrepreneurship and business profitability and stability
through the business life-cycle, having a particularly
negative effect on employment. In addition, the supply of
formal nonbank sources of finance is limited, especially for
micro-entrepreneurs, with credit unions providing mostly
consumer finance and an underdeveloped microfinance sector.
The authorities aim to develop a micro-credit act to make it
mandatory for multilateral investment funds (MIFs) to
register, and to create a regulatory authority to oversee
microfinance institution (MFIs). The authorities have taken
significant initiatives to enhance the legal and regulatory
environment and financial infrastructure, but further
efforts are needed. The authorities have also put in place
public programs for micro, small, and medium sized
enterprise (MSME) finance, however they lack sufficient
coordination, and the partial credit guarantee scheme needs
to be revamped. It also operates a partial credit guarantee
scheme, which is not being utilized by lenders. Thus, its
design should be reviewed and revamped to ensure adequate
incentives for lenders to use it and its sustainability. |
| format |
Report |
| author |
World Bank International Monetary Fund |
| author_facet |
World Bank International Monetary Fund |
| author_sort |
World Bank |
| title |
Jamaica SME Finance : Technical Note |
| title_short |
Jamaica SME Finance : Technical Note |
| title_full |
Jamaica SME Finance : Technical Note |
| title_fullStr |
Jamaica SME Finance : Technical Note |
| title_full_unstemmed |
Jamaica SME Finance : Technical Note |
| title_sort |
jamaica sme finance : technical note |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/05/24459218/jamaica-sme-finance-technical-note http://hdl.handle.net/10986/21909 |
| _version_ |
1764449711432925184 |