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 13 LIST OF ACRONYMS AND ABBREVIATIONS

5 20 CHAPTER 1: THE RELATIVE IMPORTANCE OF SMES IN THE 22 SOUTH african ECONOMY: AN ANALYSIS OF ISSUES ANDQUANTIFICATION OF MAGNITUDES1 Introduction

6 222 Definitions and scope of analysis 243 Promoting SMES.

7 Macro and micro-institutional issues 274 SMES economic significance in SOUTH AFRICA : 37a quantitative approximation5 Financing needs of and financing options for SMES

8 466 Concluding remarks and policy implications 53 CHAPTER 2.

9 SMES ACCESS TO EQUITY-BASED FINANCE 541 Introduction 542 Princ