CREDIT RATIONING IN SMALL-SCALE ENTERPRISES - SPECIAL MICROENTERPRISEPROGRAMS IN ECUADOR

Small-scale enterprises receive several forms of aid, but many are den ied access to formal loans. A demand and supply model is estimated to analyse the factors lenders use to ration credit in special microenter prise programmes. The results reveal that suppliers do not discriminat e against less profitable enterprises and entrepreneurs who have not c ompleted their high school education; however, these entrepreneurs hav e a smaller demand for external finance from the microenterprise progr ammes than more profitable enterprises and entrepreneurs who have grad uated from high school.