Credit rationing in small‐scale enterprises: Special microenterprise programmes in ecuador

Resumen

Small‐scale enterprises receive several forms of aid, but many are denied access to formal loans. A demand and supply model is estimated to analyse the factors lenders use to ration credit in special microenterprise programmes. The results reveal that suppliers do not discriminate against less profitable enterprises and entrepreneurs who have not completed their high school education; however, these entrepreneurs have a smaller demand for external finance from the microenterprise programmes than more profitable enterprises and entrepreneurs who have graduated from high school.