Article: Credit rationing in small-scale enterprises: special microenterprise programs in Ecuador.

I. INTRODUCTION

Small-scale rural and urban enterprises have been the concern of many policy-makers attempting to accelerate the development process in low income countries. These enterprises often receive several types of aid in the form of targeted credit programmes, training and technical assistance [Levitsky, 1989]. Many entrepreneurs continue to face difficulties, however, in expanding their operations because of a reported lack of funds [Meyer, 1989]. Many special microenterprise programmes have been created for those entrepreneurs who have difficulty in getting access to regular commercial loans. External finance is obtained by some entrepreneurs through these ...

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