Firms using banks to finance working capital (% of firms) - Country Ranking

Definition: Firms using banks to finance working capital are the percentage of firms using bank loans to finance working capital.

Source: World Bank, Enterprise Surveys (http://www.enterprisesurveys.org/).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 Dominican Republic 72.40 2010
2 Thailand 71.90 2006
3 Samoa 68.70 2009
4 Trinidad and Tobago 63.80 2010
5 Guyana 59.30 2010
6 Burundi 57.90 2014
7 Suriname 57.60 2010
8 Belize 57.00 2010
9 Chile 55.10 2010
10 Jamaica 53.10 2010
11 St. Vincent and the Grenadines 52.70 2010
12 Brazil 52.30 2009
13 St. Kitts and Nevis 52.00 2010
14 Fiji 50.70 2009
15 Grenada 50.30 2010
16 Peru 49.90 2010
17 Cabo Verde 49.80 2009
18 Malaysia 49.30 2007
18 Morocco 49.30 2013
20 St. Lucia 49.20 2010
20 Colombia 49.20 2010
22 Paraguay 48.00 2010
23 Vietnam 47.00 2009
24 Bosnia and Herzegovina 46.70 2013
25 Antigua and Barbuda 46.30 2010
26 Ireland 46.10 2005
27 Czech Republic 45.50 2013
28 Tunisia 44.70 2013
29 El Salvador 44.50 2010
30 Mongolia 44.40 2013
31 Rwanda 43.90 2011
31 Montenegro 43.90 2013
33 Turkey 42.40 2013
34 Bulgaria 42.30 2013
34 Ecuador 42.30 2010
36 Germany 42.20 2005
37 Bhutan 42.00 2015
38 Cameroon 41.60 2009
39 Romania 41.30 2013
40 Korea 41.20 2005
41 Kenya 41.10 2013
42 Sri Lanka 40.60 2011
43 Bolivia 40.50 2010
44 Lebanon 40.20 2013
44 Slovak Republic 40.20 2013
46 Mauritius 39.50 2009
47 Benin 39.40 2009
48 Armenia 39.20 2013
49 Barbados 38.70 2010
50 Macedonia 38.40 2013
50 Serbia 38.40 2013
52 Croatia 38.30 2013
53 Dominica 37.90 2010
54 India 36.40 2014
55 Slovenia 36.20 2013
56 Spain 35.80 2005
57 Israel 34.30 2013
58 Niger 33.40 2009
59 Argentina 33.30 2010
60 Vanuatu 33.20 2009
61 Burkina Faso 33.10 2009
62 Poland 32.70 2013
63 Botswana 32.10 2010
64 Belarus 31.90 2013
64 Lesotho 31.90 2009
66 Costa Rica 30.10 2010
67 Bangladesh 29.90 2013
68 Mauritania 29.40 2014
69 Malawi 29.20 2014
70 Lao PDR 28.70 2012
71 Algeria 28.60 2007
72 The Bahamas 28.50 2010
73 Georgia 27.60 2013
74 Venezuela 27.10 2010
75 Mexico 26.90 2010
76 Sweden 26.60 2014
76 Moldova 26.60 2013
78 Uruguay 26.40 2010
79 Greece 26.20 2005
79 Guatemala 26.20 2010
81 Jordan 26.10 2013
82 Honduras 25.60 2010
83 Lithuania 25.50 2013
84 Ghana 25.30 2013
84 Central African Republic 25.30 2011
84 Hungary 25.30 2013
87 Djibouti 25.20 2013
88 Sierra Leone 24.70 2009
89 Estonia 23.60 2013
90 Kyrgyz Republic 23.30 2013
91 Albania 23.10 2013
92 China 22.10 2012
93 Uganda 21.40 2013
93 Mali 21.40 2010
95 Russia 21.30 2012
96 South Africa 21.10 2007
97 Portugal 20.30 2005
98 Senegal 19.60 2014
99 Tajikistan 19.20 2013
100 Philippines 19.10 2009
100 Madagascar 19.10 2013
102 Nicaragua 18.40 2010
103 Azerbaijan 17.60 2013
104 Nigeria 16.90 2014
104 Togo 16.90 2009
106 Ethiopia 16.40 2015
107 Chad 16.10 2009
108 Syrian Arab Republic 16.00 2009
108 Swaziland 16.00 2006
110 Ukraine 14.80 2013
111 Tanzania 14.70 2013
112 The Gambia 14.30 2006
113 Indonesia 13.80 2009
114 Nepal 13.70 2013
115 Angola 13.40 2010
116 Uzbekistan 13.10 2013
117 Kazakhstan 13.00 2013
118 Zimbabwe 12.80 2011
118 Liberia 12.80 2009
120 Namibia 11.80 2014
121 Latvia 11.10 2013
122 Zambia 9.90 2013
123 Congo 9.70 2009
124 Panama 9.00 2010
125 Dem. Rep. Congo 8.70 2013
126 Pakistan 8.60 2013
127 Gabon 8.50 2009
127 Mozambique 8.50 2007
129 Côte d'Ivoire 8.30 2009
130 Egypt 6.30 2013
131 Eritrea 5.70 2009
132 Myanmar 4.70 2014
133 Yemen 4.60 2013
133 Iraq 4.60 2011
135 Afghanistan 3.90 2014
136 Cambodia 3.60 2013
137 Tonga 3.00 2009
138 Sudan 2.60 2014
138 Guinea 2.60 2006
138 Timor-Leste 2.60 2009
141 Guinea-Bissau 1.10 2006

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Development Relevance: Firms evaluating investment options, governments interested in improving business conditions, and economists seeking to explain economic performance have all grappled with defining and measuring the business environment. The firm-level data from Enterprise Surveys provide a useful tool for benchmarking economies across a large number of indicators measured at the firm level. Corruption by public officials may present a major administrative and financial burden on firms. Corruption creates an unfavorable business environment by undermining the operational efficiency of firms and raising the costs and risks associated with doing business. In some countries doing business requires informal payments to "get things done" in customs, taxes, licenses, regulations, services, and the like. Such corruption can harm the business environment by distorting policymaking, undermining government credibility, and diverting public resources.

Limitations and Exceptions: The sampling weights take care of the varying probabilities of selection across different strata. Under certain conditions, estimates' precision under stratified random sampling will be higher than under simple random sampling (lower standard errors may result from the estimation procedure). The strata for Enterprise Surveys are firm size, business sector, and geographic location within a country. Firm size levels are 5-19 (small), 20-99 (medium), and 100+ employees (large-sized firms). Since in most economies, the majority of firms are small and medium-sized, Enterprise Surveys oversample large firms since larger firms tend to be engines of job creation. Sector breakdown is usually manufacturing, retail, and other services. For larger economies, specific manufacturing sub-sectors are selected as additional strata on the basis of employment, value-added, and total number of establishments figures. Geographic locations within a country are selected based on which cities/regions collectively contain the majority of economic activity. Ideally the survey sample frame is derived from the universe of eligible firms obtained from the country's statistical office. Sometimes the master list of firms is obtained from other government agencies such as tax or business licensing authorities. In some cases, the list of firms is obtained from business associations or marketing databases. In a few cases, the sample frame is created via block enumeration, where the World Bank "manually" constructs a list of eligible firms after 1) partitioning a country's cities of major economic activity into clusters and blocks, 2) randomly selecting a subset of blocks which will then be enumerated. In surveys conducted since 2005-06, survey documentation which explains the source of the sample frame and any special circumstances encountered during survey fieldwork are included with the collected datasets.

Original Source Notes: All surveys were administered using the Enterprise Surveys methodology as outlined in the Methodology page which can be found from www.enterprisesurveys.org.

Statistical Concept and Methodology: The World Bank Enterprise Surveys gather firm-level data on the business environment of individual economies across the world and assess how business environment constraints affect productivity and job creation. The World Bank has collected this data from face-to-face interviews with business owners and top managers in over 110,000 firms in 128 economies. Of this total fully comparable data is available for 122 countries (close to 80,000 interviews) which are the source for the indicators of this section. The surveys cover a broad range of business environment topics including access to finance, corruption, infrastructure, informality, regulations and taxes, crime, competition, trade, and performance measures. A standardized survey, including country-specific questions, is typically conducted in an emerging economy every 3-4 years. For several countries, firm-level panel data are also available, allowing policymakers to track changes in the business environment over time. Confidentiality of the survey respondents and the sensitive information they provide is necessary to ensure the greatest degree of survey participation, integrity and confidence in the quality of the data. Surveys are usually carried out in cooperation with business organizations and government agencies promoting job creation and economic growth, but confidentiality is never compromised. Typically 1200-1800 interviews are conducted in larger economies, 360 interviews are conducted in medium-sized economies, and for smaller economies, 150 interviews take place. The manufacturing and services sectors are the primary business sectors of interest. This corresponds to firms classified with ISIC codes 15-37, 45, 50-52, 55, 60-64, and 72 (ISIC Rev.3.1). Formal (registered) companies with 5 or more employees are targeted for interview. Services firms include construction, retail, wholesale, hotels, restaurants, transport, storage, communications, and IT. Firms with 100% government/state ownership are not eligible to participate in an Enterprise Survey. In each country, businesses in the cities/regions of major economic activity are interviewed. The sampling methodology for Enterprise Surveys is stratified random sampling with replacement. Stratification variables include sector, firm size and geographic area.. In a stratified random sample, all population units are grouped within homogeneous groups and simple random samples are selected within each group. This method allows computing estimates for each of the strata with a specified level of precision while population estimates can also be estimated by properly weighting individual observations.

Periodicity: Annual