São Tomé and Príncipe MSMEs face significant credit access barriers

MSMEs access to credit financial literacy São Tomé and Príncipe micro enterprises

A research study conducted by the University of Évora examines the obstacles preventing Micro, Small, and Medium Enterprises (MSMEs) in São Tomé and Príncipe from accessing financing.

The investigation, which utilized both qualitative interviews and quantitative analysis of 103 companies, found that only 21.4% of these businesses successfully obtained formal credit. The study identifies financial literacy and training among managers as the most significant determinants for credit access.

Additionally, the research highlights institutional barriers, including the requirement for physical collateral and a lack of risk-sharing mechanisms, which further restrict funding opportunities for local enterprises.

Entities

University of Évora

Sources

Repositório Digital de Publicações Científicas: Fatores que dificultam o acesso ao financiamento pelas MPMEs em São Tomé e Príncipe [hdl.handle.net]

5 days ago

Repositório Digital de Publicações Científicas: Clínica e cirurgia de animais de companhia [hdl.handle.net]

6 days ago