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1. Financing SMEs In Botswana: Factors Influencing Access to Credit

Author:
Goitseone Khanie
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines factors influencing access to credit by SMEs in Botswana. Using the 2010 World Bank Enterprise Survey, and employing logit model for analysis, we find that access to credit is influenced by gender, citizenship and experience of the entrepreneur; as well as firm-size, sector of business,sales and land ownership. Therefore, public policy must pay attention to the diversities of SMEs’ socio-economic characteristics as well as the business environment in which they operate when implementing finance assistance progammes. Measures to develop SMEs must be carefully focused, aiming at providing incentives for financial institutions to play an active role in SME financing. Government must formulate policies that will make finance institutions relax their requirements and lending procedures which tend to discourage borrowing. Similarly, public policy must be focused on strengthening the business acumen of SMEs through trainings and workshops, such that they are perceived attractive to financiers.
Topic:
Finance, Entrepreneurship, Business, Public Policy, and Credit
Political Geography:
Africa and Botswana

2. Determinants of Self-Employment in Botswana

Author:
Tshepiso Gaetsewe
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The global market is rapidly recognizing the importance of entrepreneurship and selfemployment, especially in growing the economy, creating jobs and reducing poverty. This paper employs the logit regression model to investigate the determinants of selfemployment in Botswana, using the 2009/2010 Botswana Core Welfare Indicator Survey (BCWIS) data. The results reveal that individuals who are male, citizens, educated and living in cities are less likely to be self-employed than their counterparts. On the other hand, the age of the entrepreneur positively influences the likelihood of self-employment, as well as being a widow. Public policy needs to empower females and rural dwellers in terms of skills and entrepreneurship training in order to enhance their success in their self-employment activities. In addition, government should continue with its efforts of providing assistance to the youth for entrepreneurial development in order to reduce unemployment.
Topic:
Entrepreneurship, Public Policy, Economic Development, and Self-Employment
Political Geography:
Africa and Botswana