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 Samoa 68.70 2009
2 Trinidad and Tobago 63.80 2010
3 Guyana 59.30 2010
4 Burundi 57.90 2014
5 Suriname 57.60 2010
6 Belize 57.00 2010
7 Chile 55.10 2010
8 Jamaica 53.10 2010
9 St. Vincent and the Grenadines 52.70 2010
10 Brazil 52.30 2009
11 St. Kitts and Nevis 52.00 2010
12 Mali 51.70 2016
13 Fiji 50.70 2009
14 Grenada 50.30 2010
15 Peru 49.90 2010
16 Cabo Verde 49.80 2009
17 Morocco 49.30 2013
18 St. Lucia 49.20 2010
18 Colombia 49.20 2010
20 Bosnia and Herzegovina 46.70 2013
21 Antigua and Barbuda 46.30 2010
22 Ireland 46.10 2005
23 Dominican Republic 45.80 2016
24 Czech Republic 45.50 2013
25 Tunisia 44.70 2013
26 Mongolia 44.40 2013
27 Montenegro 43.90 2013
27 Rwanda 43.90 2011
29 Malaysia 42.60 2015
30 Turkey 42.40 2013
31 Bulgaria 42.30 2013
32 Germany 42.20 2005
33 Bhutan 42.00 2015
34 Paraguay 41.90 2017
35 Romania 41.30 2013
36 Korea 41.20 2005
37 Kenya 41.10 2013
38 Sri Lanka 40.60 2011
39 Togo 40.30 2016
40 Slovak Republic 40.20 2013
40 Lebanon 40.20 2013
40 Ecuador 40.20 2017
43 Mauritius 39.50 2009
44 Armenia 39.20 2013
45 Barbados 38.70 2010
46 Serbia 38.40 2013
46 Macedonia 38.40 2013
48 Croatia 38.30 2013
49 Honduras 38.10 2016
50 Bolivia 38.00 2017
51 Dominica 37.90 2010
52 India 36.40 2014
53 Slovenia 36.20 2013
54 Spain 35.80 2005
55 Solomon Islands 35.50 2015
56 El Salvador 35.20 2016
57 Lesotho 34.90 2016
58 Israel 34.30 2013
59 Argentina 33.30 2010
60 Vanuatu 33.20 2009
61 Burkina Faso 33.10 2009
62 Poland 32.70 2013
63 Vietnam 32.30 2015
64 Botswana 32.10 2010
65 Indonesia 32.00 2015
65 Swaziland 32.00 2016
67 Belarus 31.90 2013
68 Nicaragua 30.40 2016
69 Costa Rica 30.10 2010
70 Bangladesh 29.90 2013
71 Mauritania 29.40 2014
72 Malawi 29.20 2014
73 Niger 28.90 2017
73 Thailand 28.90 2016
75 Algeria 28.60 2007
76 The Bahamas 28.50 2010
77 Georgia 27.60 2013
78 Venezuela 27.10 2010
79 Mexico 26.90 2010
80 Moldova 26.60 2013
80 Sweden 26.60 2014
82 Uruguay 26.40 2010
83 Greece 26.20 2005
83 Guatemala 26.20 2010
85 Jordan 26.10 2013
86 Benin 26.00 2016
87 Lithuania 25.50 2013
88 Ghana 25.30 2013
88 Central African Republic 25.30 2011
88 Hungary 25.30 2013
91 Djibouti 25.20 2013
92 Estonia 23.60 2013
93 Kyrgyz Republic 23.30 2013
94 Albania 23.10 2013
95 Papua New Guinea 22.90 2015
96 China 22.10 2012
97 Uganda 21.40 2013
98 Russia 21.30 2012
99 South Africa 21.10 2007
100 Portugal 20.30 2005
101 Cameroon 20.20 2016
102 Liberia 20.10 2017
103 Senegal 19.60 2014
104 Tajikistan 19.20 2013
105 Timor-Leste 19.10 2015
105 Madagascar 19.10 2013
107 Cambodia 18.20 2016
108 Azerbaijan 17.60 2013
109 Nigeria 16.90 2014
110 Ethiopia 16.40 2015
111 Chad 16.10 2009
112 Syrian Arab Republic 16.00 2009
113 Côte d'Ivoire 15.30 2016
114 Ukraine 14.80 2013
115 Tanzania 14.70 2013
116 The Gambia 14.30 2006
117 Nepal 13.70 2013
118 Angola 13.40 2010
119 Uzbekistan 13.10 2013
120 Kazakhstan 13.00 2013
121 Philippines 12.40 2015
122 Zimbabwe 12.00 2016
123 Namibia 11.80 2014
124 Guinea 11.40 2016
125 Myanmar 11.20 2016
126 Latvia 11.10 2013
127 Zambia 9.90 2013
128 Congo 9.70 2009
129 Panama 9.00 2010
130 Dem. Rep. Congo 8.70 2013
131 Pakistan 8.60 2013
131 Sierra Leone 8.60 2017
133 Mozambique 8.50 2007
133 Gabon 8.50 2009
135 Lao PDR 8.30 2016
136 Eritrea 5.70 2009
137 Iraq 4.60 2011
137 Yemen 4.60 2013
139 Afghanistan 3.90 2014
140 Tonga 3.00 2009
141 Sudan 2.60 2014
142 Egypt 2.40 2016
143 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 methodology for Enterprise Surveys is stratified random sampling. In a simple random sample, all members of the population have the same probability of being selected and no weighting of the observations is necessary. 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. 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 region 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 regions 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. Obtaining panel data, i.e. interviews with the same firms across multiple years, is a priority in current Enterprise Surveys. When conducting a new Enterprise Survey in a country where data was previously collected, maximal effort is expended to re-interview as many firms (from the prior survey) as possible. For these panel firms, sampling weights can be adjusted to take into account the resulting altered probabilities of inclusion in the sample frame.

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: Firm-level surveys have been conducted since the 1990's by different units within the World Bank. Since 2005-06, most data collection efforts have been centralized within the Enterprise Analysis Unit. Surveys implemented by the Enterprise Analysis Unit follow the Global Methodology. Private contractors conduct the Enterprise Surveys on behalf of the World Bank. Due to sensitive survey questions addressing business-government relations and bribery-related topics, private contractors, rather than any government agency or an organization/institution associated with government, are hired by the World Bank to collect the data. 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. The Enterprise Survey is answered by business owners and top managers. Sometimes the survey respondent calls company accountants and human resource managers into the interview to answer questions in the sales and labor sections of the survey. 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. Occasionally, for a few surveyed countries, other sectors are included in the companies surveyed such as education or health-related businesses. In each country, businesses in the cities/regions of major economic activity are interviewed. In some countries, other surveys, which depart from the usual Enterprise Survey methodology, are conducted. Examples include 1) Informal Surveys- surveys of informal (unregistered) enterprises, 2) Micro Surveys- surveys fielded to registered firms with less than five employees, and 3) Financial Crisis Assessment Surveys- short surveys administered by telephone to assess the effects of the global financial crisis of 2008-09. The Enterprise Surveys Unit uses two instruments: the Manufacturing Questionnaire and the Services Questionnaire. Although many questions overlap, some are only applicable to one type of business. For example, retail firms are not asked about production and nonproduction workers. The standard Enterprise Survey topics include firm characteristics, gender participation, access to finance, annual sales, costs of inputs/labor, workforce composition, bribery, licensing, infrastructure, trade, crime, competition, capacity utilization, land and permits, taxation, informality, business-government relations, innovation and technology, and performance measures. Over 90% of the questions objectively ascertain characteristics of a country’s business environment. The remaining questions assess the survey respondents’ opinions on what are the obstacles to firm growth and performance. The mode of data collection is face-to-face interviews.

Aggregation method: Unweighted average

Periodicity: Annual