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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
All countries East Asia &
Pacific
Eastern High Income High income
Europe & nonOECD OECD
Central Asia
Latin
America &
Carribean
Middle East
& North
Africa
South Asia
Sub-Saharan
Africa
internal source banks supplier credits issue of equity or stock sales other financing sources
Chart 2. Sources of capital for enterprises in the manufacturing industry. Proportion of investment financed by
particular sources (%).
Source: Word Bank.
Chart 2 shows the sources of capital for enterprises in the manufacturing industry in different
regions of the world. The data confirm that more enterprises used their own money to run their
businesses. Considering the meaning of financial inclusion in enterprises with respect to
financing, the next significant sources of capital are bank credits as well as the issue of new
equity shares and bonds. It should be also mentioned the credit from suppliers, advances from
customers as and other financing sources including loans from non-bank financial institutions
(e.g. private lender), moneylenders, friends, relatives.
Although the bank credit is very popular source of funding investment in firms, it has many
limitations. These include insufficient creditworthiness and the lack of required collaterals.
These as well as the other factors influence the scale of the loan rejected and scale of financial
exclusion. The value of collateral needed for a loan or line of credit as a percentage of the loan
value or the value of the line of credit differs in different countries and regions. Different is also
a demand for credit.
Table 2. Borrowing money form the banks by enterprises as the area of financial inclusion.
Region/main aspect percent of firms proportion of
percent of percent of firms
of borrowing money with bank loans value of collateral firms not whose recent
from the bank loan/line of requiring needed for a loan (% needing a loan application
credit
collateral of the loan amount) loan was rejected
All countries 35,1% 78,9% 202,7% 46,1% 12,1%
East Asia & Pacific 30,0% 91,9% 221,4% 49,5% 7,8%
Eastern Europe &
Central Asia 36,5,% 82,7% 206,7% 51,1% 8,5%
High income OECD 50,7% 63,8% 148,2% 58,9% 5,6%
Latin America &
Carribean 45,2% 74,2% 208,8% 41,9% na
Middle East & North
Africa 25,6% 79,0% 202,6% 50,8% 13,7%
South Asia 27,0% 81,1% 236,0% 44,7% 14,4%
Sub-Saharan Africa 21,9% 83,5% 211,0% 36,9% 14,3%
Source: World Bank
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