SMES’ ACCESS TO FINANCE IN SOUTH AFRICA

1 SMES ACCESS TO FINANCE INSOUTH AFRICA A SUPPLY-SIDE REGULATORY REVIEW byThe Task Group of the Policy Board for Financial Services andRegulationHans Falkena (Chairman)Iraj AbedianMagali von BlottnitzCas CoovadiaGabriel DavelJoe MadungandabaElias MasilelaStuart ReesInternal report: not for publicationiiTABLE OF CONTENTSEXECUTIVE SUMMARY

2 11 Analyses and findings 12 Recommendations

3 43 Conclusion

4 11 FOREWORD

5 13 LIST OF ACRONYMS AND ABBREVIATIONS 20 CHAPTER 1: THE RELATIVE IMPORTANCE OF SMES IN THE 22 SOUTH AFRICAN ECONOMY.

6 AN ANALYSIS OF ISSUES ANDQUANTIFICATION OF MAGNITUDES1 Introduction 222 Definitions and scope of analysis

7 243 Promoting SMES: macro and micro -institutional issues 274 SMES economic significance in SOUTH AFRICA .

8 37a quantitative approximation5 Financing needs of and financing options for SMES 466 Concluding remarks and policy implications

9 53 CHAPTER 2: SMES ACCESS TO EQUITY-BASED FINANCE