APEC PROJECT
Evaluation Report on SME 02-09T: Access to Credit Seminar
Project number:
Date received by Secretariat:
SME 02-2009T
Name of Committee/Working Group/Taskforce: SME Working Group
Title of Project: Capacity-Building Seminar on Ease of Doing Business: Access to Credit (Access to
Finance for SMEs)
Proposing APEC Economy: New Zealand, Singapore
Co-sponsoring APEC Economy(ies):, Canada, Peru, USA, Mexico, Australia
Project Overseer: Name, Title and Organization:
Dr Roger Wigglesworth,
Director, SMEs
Effective Markets Branch
New Zealand Ministry of Economic Development
Financial
Information
Total cost of proposal (US$):
US$ 149,000
Amount being sought from APEC Central
Fund (US$): US$ 74,500
Type of Project: seminar/symposium
Project start date: 4 October 2009
Project end date: 4 October 2009
Brief description of Project :
The Access to Credit seminar was held in Singapore on 4 October 2009 prior to the 29th meeting of
the APEC SME Working Group, to discuss improving access to finance for SMEs, particularly in
light of the current global economic crisis. The seminar was the sixth in the series of capacity
building seminars on the ease of doing business and part of APEC’s Private Sector Development
agenda.1
Improving access to finance for SMEs is an agreed priority for the SME Working Group’s Strategic
Plan 2009-2012. The seminar was designed therefore to facilitate a discussion on policies,
programmes, regulatory frameworks and regulations regarding access to finance in member
economies, assisting officials to identify and implement reforms which encourage more effective
access to finance by SMEs.
Presentations were made by representatives from a range of APEC economies:
 Ms Belinda Kwan from Hong Kong China’s Trade and Industry Department opened and
chaired the seminar. Ms Kwan gave an overview of the current credit situation facing
1
The APEC Private Sector Development Agenda and multi-year work plan was originally endorsed by Leaders
in 2006. The work plan consists of a series of capacity building seminars each based on one of the ten World
Bank Doing Business indicators. An accelerated work plan was endorsed by Ministers Responsible for Trade in
June 2008 which aims to complete all ten seminars by the end of 2011. Successfully completed workshops in
the series to date include the topics of starting a business, business licensing, paying taxes, trading across
borders and enforcing contracts.
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Page 1 of 23
SMEs and the measures that Hong Kong China has implemented to help SMEs weather
the global economic crisis.
 Ms Tea Trumbic from the World Bank’s Doing Business project, who leads the research
team for the indicator on Getting Credit, outlined how APEC member economies fare in the
World Bank’s annual Doing Business survey when it comes to ‘getting credit’ and the types
of reforms top reforming economies in this area are implementing.
 Mr Allan Riding from Ottawa University in Canada explained the results of the written
survey distributed to member economies prior to the seminar, which sought to gain a
deeper understanding of the current perspectives and practices regarding access to credit
by SMEs in APEC economies.
 Mr Manuel Pino from the Peruvian Ministry of Production gave a presentation from a
developing economy perspective, explaining the particular challenges and constraints
faced by Peruvian SMEs in obtaining finance, as well as steps that Peru is taking, working
with the World Bank, to address these.
 Mr Paul Bayly, from Cranleigh Merchant Bankers in New Zealand gave participants an
insight into the particular challenges faced by New Zealand SMEs.
 Ms Florence Tan from the Overseas Chinese Banking Corporation in Singapore looked at
the question of access to finance for SMEs from a bank’s perspective.
In addition, participants were given the opportunity during the closing panel discussion to ask
questions of the presenters and express views on the content of their presentations.
Satisfaction levels with the seminar were high, with remarks on the high level of engagement from
well-qualified speakers and participants.
The project was completed well within the budgeted sum, with only US$22,832 spent from the
APEC-funded budget of $74,500, most of which covered the travel costs of the speakers to attend
the seminar.
Signature of Project Overseer:
(Separate written confirmation acceptable for email submission)
Signature of Committee Chair/WG Lead Shepherd:
Progress Report and Evaluation Report)
(Separate written confirmation acceptable for email submission)
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Date: 10 March 2010
(Not applicable to
Date:
Evaluation of Outcomes. Framework (for all projects)
Project Overseer’s comment
The seminar was successfully held in the margins of the 29th SME Working Group Meeting. The organisation from the hosting economy
(Singapore) was very thorough and the cooperation between economies in developing the seminar was very good. The support received from
co-sponsoring economy Canada, which organised a survey to be conducted prior to the seminar to inform discussion, was particularly
appreciated (sample response attached).
In all, approximately 30 people participated in the ‘Access to Credit’ seminar from eleven different APEC member economies. In addition to
officials responsible for SME policy, the seminar was attended by representatives from the banking sector, the APEC Business Advisory Council,
and academia. A participants list is attached. The turnout for this seminar compared to other seminars in the Ease of Doing Business series was
slightly disappointing, but this was mostly due to the day (Sunday) which had been allocated to the seminar by the organisers of the SME
Working Group meeting. It would be advisable for future seminars in the Ease of Doing Business series to be scheduled on a day that would help
maximise attendance.
The project was completed well within budget. Canada self-funded the pre-seminar research, so the money set aside for this cost from the APEC
budget was not required. The total costs from the APEC-funded budget amounted to US$ 22,832, less than one-third of the original budget of
US$ 74,500.
As with the previous seminars the feedback from participants was positive. Sample survey responses from speakers and participants are
attached for reference. The speakers for this particular seminar were of particularly high calibre and their presentations elicited many questions
from the floor during the panel discussion. Many participants asked for copies of the presentations to be emailed to them after the seminar,
particularly the presentation by the World Bank and the one by the Canadian presenter who summarised the results of the survey of APEC
economies. The format of carrying out a survey beforehand to assess the particular challenges faced by individual APEC economies in each of
the Ease of Doing Business indicators under consideration, to help inform discussion at the seminar, is a good one and it is recommended that
this format be continued for remaining seminars in the Ease of Doing Business series.
The next step is to prepare a best practice guide based on the information provided at this and other seminars in the Ease of Doing Business
series, subject to final approval. The output from this series of seminars will also contribute directly to the new APEC Economic Committee
initiative of champion economies and the strong thrust to enhance the ease of doing business across APEC economies generally.
Signature:
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Name: Roger Wigglesworth
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List of participants at ‘Access to Credit’ seminar
Family Name
Given Name
Representation
Organisation
Designation
Chong
Teng
Tsuboyama
Maslina
Salleh
Pigeon
Riding
Chao
Hsu
Lee
Wu
Wu
Yang
Kwan
Hariadi
Kuspurwahati Sutanto
Resmi Sari
Miranda
Nakamura
Bayly
Wilton
Pino Patiño-patroni
Chan
Chan
Chung
Ho
Huang
Lai
Odunlami
Tan
Suntichanathiput
Mudd
Juliana
Theng Dar
Luis Galvan
Said
Effandi
Anne
Allan
Wen-heng
Hsiu-ling
Guann-jyh
Pei-chen
Ching-hsin
Chia-hsien
Belinda
Bambang
Habsari
Yunita
Silvia
Kazuto
Paul Daniel
Jennifer
Manuel
Lai Yong May
Mei Zhi
Lai Thoe
Chi Bao
Simin, Veron
Cheng Yi
Jean-philippe
Audrey
Attanisa
Michael
ABAC
ABAC
APEC Secretariat
Brunei Darussalam
Brunei Darussalam
Canada
Canada
Chinese Taipei
Chinese Taipei
Chinese Taipei
Chinese Taipei
Chinese Taipei
Chinese Taipei
Hong Kong, China
Indonesia
Indonesia
Indonesia
Invited Guest
Japan
New Zealand
New Zealand
Peru
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Thailand
United States
Singapore Business Federation
Singapore Business Federation
APEC Secretariat
Industry and Primary Resourcss
Industry and Primary Resourcss
Industry Canada
University of Ottawa
Taiwan Institute of Economic Research
Small and Medium Enterprise Adminisration
Small and Medium Enterprise Administration, MOEA
Taiwan Institute of Economic Research
Small and Medium Enterprise Administration
Small and Medium Enterprise Administration, MOEA
Government of the Hong Kong Special Administrative Region
The Agency For the Assessment and Application Technology
Ministery of Coop and SME
Directorate of Credit, Rural Bank Supervision and SME
Ministry of Foreign Trade
SME Agency, Ministry of Economy, Trade and Industry
Cranleigh Merchant Bankers
Ministry of Foreign Affairs and Trade
Ministry of Production
SPRING Singapore
IE Singapore
IE Singapore
SPRING Singapore
SPRING Singapore
SPRING Singapore
Focus Partners LLP
IE Singapore
Office of SMEs Promotion/Ministry of Industry
Computing Techology Industry Association
Project Executive
Chief Executive Officer
Director (Program)
Project Officer
Senior Duty Officer
Senior Policy Advisor
Professor
Associate Research Fellow
Section Chief
Director
Assistant Research Fellow
Specialist
Technical advisor
Assistant Director-General of Trade & Industry
Delegate
Delegate
SENIOR ANALYST
Advisor
Assistant Director
Director
Policy Officer
Delegate
Manager
Senior Officer
Deputy Director
Deputy Director
Manager
Senior Officer
Managing Partner
Division Head
Mangement Official
Director of Public Policy Asia Pacific
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Combined responses from speakers to post-seminar questionnaire for APEC Ease of
Doing Business Seminar: Access to Credit
Project Code: SME 02-09T
Project Title: Capacity-Building Seminar on Ease of Doing Business: Access to Credit
Your evaluation of the project will assist the assessment by the APEC fora. Your responses to the
following questions are appreciated.
Part A.
Summarize Project’s Purpose and Expected Results
Names:
Florence Tan and Paul Bayly
(a) What activities did you attend?
 Training
Conference
Duration:
1 Day
Project start date:
4 Oct 2009
X Seminar/Symposium
Project end Date:
 Other (pls. specify)
4 Oct 2009
(b) What were your roles before, during, and after the activity?
Florence Tan and Paul Bayly: Speakers for APEC Access to Credit Seminar held at Shangri-La
Hotel on 4 Oct 2009.
(c) Do you think the project achieved its objectives? What were the project’s results/achievements?
Florence Tan: The panel of 6 speakers shared their views on how the different government agencies
in their respective countries assisted SMEs in overcoming the financial crisis through
various risk sharing financing schemes.
It was a relatively good turnout at the
seminar considering it was held over the weekend.
Paul Bayly: The seminars were very informative and am sure set the base for comprehensive
discussions by the APEC working groups.
(d) Were the attendees the most appropriate target group?
Florence Tan: No information about the participants.
Paul Bayly: Yes, based on a limited understanding of participants. I met a wide variety of industry,
academic, and government officials and all prepared to find the seminars interesting
and useful.
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(e) What is your assessment of the overall effectiveness of the project?
Florence Tan: The government agencies participating in the seminar may be in a better position to
assess the assessment of the overall effectiveness of the project.
Paul Bayly: Very effective as evidenced by the turnout and high level of engagement.
(f) Was there any room for improving the project? If so, how?
Florence Tan: The participation rate might be better if there was more publicity on the event and if
the seminar was held on weekday instead of over the weekend.
Paul Bayly: I understand a longer day format has been used but felt the seminar could be longer.
(g) Any other suggestions:
Paul Bayly: More options to network such as dinners and optional tours as noticed many people
dispersed without an opportunity to meet up later except on a one-to-one basis.
Please hand the completed survey to one of the organisers on the day of the seminar or email your
response to nadine.brown@med.govt.nz
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Response from participant at APEC Ease of Doing Business Seminar: Access to
Credit
Project Code: SME 02-09T
Project Title: Capability-Building Seminar on the Ease of Doing Business: Access to Credit
Your evaluation of the project will assist the assessment by the APEC fora. Your responses to the
following questions are appreciated.
Names:
Yunita Resmi Sari (Bank Indonesia)
(a) How have you or your economy benefited from the project?



I have learned the measures taken by other economies in overcoming or lessening the impact of
the recent financial crisis to SMEs
The perspective of other party on our system will be beneficial for us to evaluate then improve the
system (the world bank survey)
How well our economy perform compared to others in the region
(b) What new skills, knowledge, or value have you gained?



Other economies policies and regulations on SMEs, as well as data and information and economic
indicator prior and after the crisis
The definition on SMEs in other economies
Impact of the crisis to SMEs and banking sector
(c) What, if any, changes do you plan to pursue in your home economy as a result of the project?


I will share and propose some relevant policies in my agency
I will share the result of the survey to related department in my agecy
(d) What needs to be done next? How should the project be built upon?


Sharing from other economies on their program to boost economy after the crisis
Sharing from the economies about the result of the project has been proposed to lessen the
impact of the crisis (for instance in Singapore and Hongkong, as they already presented their
policies, then it would be interesting to know further the result of their policies)
(e) Is there any plan to link the project’s outcomes to subsequent collective actions by fora or
individual actions by economies?
Yes, there is a plan to do so, but of course as long as it is in line to the national policy as a whole
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(f) Please use the same scale to rate the project on an overall basis.
[5]
[4]
(Good)
[3]
[2]
[1]
(Poor)
What is your assessment of the overall effectiveness of the project?
5
(g) Was the project content: (Check One)
X Just Right
Too Detailed
Not Detailed Enough
(h) Please provide any additional comments. How to improve the project, if any?
More variety on economies to share the experience, for example some developed economies and
some developing economies.
Please hand the completed survey to one of the organizers on the day of the seminar or email your
response to: nadine.brown@med.govt.nz
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10
ACCESS TO CREDIT FOR SMALL BUSINESSES
IN THE APEC REGION ( )
PRE SEMINAR SURVEY
The purpose of this questionnaire is to examine perceptions of access to finance for
small- and medium-sized firms (SMEs) for the economies in the APEC region. This
survey begins by reviewing the period that preceded the so-called global financial crisis
(GFC), then examines the perceived impact of the crisis on SME financing and
concludes by identifying ways in which governments have intervened (if any) during the
GFC.
Response from Philippine Department of Trade and Industry, Bureau of Micro, Small and
Medium Enterprises Development (BMSMED).
Section 1:
The Financial Markets for SMEs,
June 2005-June 2008
In answering the questions posed in this first section, please use the three-year period
ending in June 2008 as the reference period.
Overview of the Credit Market
1. What formal sources of credit-based financing are available to SMEs (however
your economy defines an SME) in your economy? CHECK ALL THAT APPLY
a. Term loans to the business from private sector commercial lenders
b. Lines of credit/operating loans
from private sector commercial lenders
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✓
✓
c. Commercial credit cards
✓
d. Leases from private sector financial institutions
✓
e. Direct loans from government
✓
f.
✓
Loans from government-owned financial institutions
g. Commercial credit cards
✓
h. Trade credit owing to suppliers
✓
i.
Factoring
✓
j.
Personal loans to the business owner(s) from lending institutions
✓
k. Personal credit cards
✓
l.
✓
Micro-credit
11
2. Is the amount of private sector credit in your economy measured?
a. No
b. Yes
If “Yes”, what is the average ratio of total private sector credit to GDP during the
2005/08 reference period?
____.038____per unit GDP (approx.)
3. If the amount of private sector credit available is measured in your economy,
what proportion of private sector credit available was accounted for by loans to
SMEs during the reference period?
a. Not measured
b. Proportion of private sector credit loaned to SMEs was ___8___ % (approx.)

✓

4. Is the amount of private sector venture capital under management in your
economy measured?
a. No
b. Yes
If “Yes”, what is the average ratio of total private sector venture capital under
management to GDP during the 2005/08 reference period?
____________per unit GDP
5. During the reference period, was credit to SMEs in your economy facilitated by
means of one or more government-funded loan guarantee or risk sharing
programs?
a. No
b. Yes
If “Yes”, please described the broad parameters of such programs per the headings in the
following table (if there are multiple programs, please complete one such table for each
program).
Name of program / URL
Credit Guarantee Program
Small Business Corporation (SBC)
www.sbgfc.org.ph
What is the primary goal of the
program?
To provide guarantee for SME loans and to encourage
financial institutions to lend to MSMEs though credit risk
sharing (credit supplementation). The SBC takes a bigger
risk for a guarantee fee. SBC envisions the Program to
be a means of enterprise graduation for nearbankable SMEs and for the pre-bankable to being
bankable.
Which segment(s) of the SME
population is targeted by the
program (size, sectors, etc.)?
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Business activities or enterprises engaged in industry,
agri-businesses or services, whether single proprietorship,
cooperative, partnership or corporation whose total assets
(inclusive of those arising from loans but exclusive of the
land on which the business is located) does not exceed
Php 100 million (approx. US$ 2 million)
✓


✓
12
How is the program delivered?
Through accredited financial institutions
What is the annual volume of
loans under the program?
Php200 million – Php300 million
What is the take-up rate of the
program (for what proportion of
total annual SME lending does
the program account)?
Has the incrementality
(additionality) of the program
been estimated? If so, with what
results?
Have the economic benefits
attributable to the program been
estimated? If so, with what
results
Very small
No
No
6. Has your government developed an official published public policy strategy or
framework on entrepreneurship / innovation?
a. No

b. Yes
If “Yes”, are issues related to access to financial capital included within it?
a. No
b. Yes
✓
7. During the reference period (June 2005 – June 2008) were government policies
or programs introduced or changed to facilitate access to credit for SMEs in
your economy?
a. No
b. Yes
If “Yes”, please describe the nature of each policy of program by including information
related to the headings in the table below. Please complete one copy of the table for each
reform.
Name of program / URL
What was the general nature of the
reform?
Interest rate subsidy?
Additional funding/support for an
existing program?
Is it a temporary or permanent initiative?
To whom is the program targeted?
SMEs? Lenders? Business associations?
Non-profit groups?
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
✓


13
What is the primary goal of the program?
Which segment(s) of the SME
population is targeted by the program
(size, sectors, etc.)?
How is the program delivered?
What is the annual rate of usage under
the program?
Has the program been evaluated? If so,
with what results
8. Again with reference to the 2005/08 reference period, did any level of
government in your economy provide loans directly to SMEs?
a. No
b. YES, through a government program
Please describe briefly all such program(s) or provide website reference(s)

✓
www.bsp.gov.ph
c. YES, through a government-owned financial institution
Please describe briefly all such program(s) or provide website reference(s)
www.bsp.gov.ph
www.sbgfc.org.ph
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
14
Perceptions of the Credit Market
AGREE/DISAGREE?? Again with reference to the 2005/08 reference period, to what
extent would you agree/disagree with the following statements? A “1” signifies that
your agree strongly with the statement; a “7” that you disagree strongly; and a 4 that
you neither agree nor disagree.
(Answers are in bold )
It was a widely-accepted view within my
economy that small businesses generally
face disproportionate difficulties with
respect to obtaining business loans.
Don’t
Know
It was a widely-accepted view within
economy that innovative small
businesses generally face
disproportionate difficulties with respect
to obtaining business loans.
Don’t
Know
It was a widely-accepted view within my
economy that the demand for credit
available to small firms exceeds the
supply of credit.
Don’t
Know
It was a widely-accepted view within my
economy that the demand for venture
capital to small firms exceeds the supply
of venture capital.
Don’t
Know
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
Private individuals (including friends and Don’t
family) are an important source of
Know
financing for small firms in my
economy.
STRONGLY
DISAGREE
The legal system in my economy is
Don’t
consistent with an efficient credit market. Know
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
Over the 2005 to 2008 period, the supply
of credit to SMEs in my economy
increased.
Don’t
Know
Over the 2005 to 2008 period, the legal
setting for the credit market in my
economy was strengthened.
Don’t
Know
It is a widely-accepted view within my
economy that small firms in certain
sectors (for example, knowledge-based
businesses, exporters, minority-owned,
etc.) face difficulty obtaining loans.
Don’t
Know
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STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
15
Section 2: The Financial Markets for SMEs, June 2008 to the
present
In answering the questions posed in this second section, please use the period from June
2008 to the present as the reference period.
Overview of Changes in the Credit Market
9. To what extent would you say that the supply of each of the following sources of
financing for SMEs has changed? (Refer to BSP)
Term loans to small
Don’t
Not
businesses from private sector know applicable
commercial lenders
in my
economy
Lines of credit/operating loans Don’t
Not
to small businesses from
know applicable
private sector lenders
in my
economy
Commercial credit cards
Don’t
Not
know applicable
in my
economy
Leases from private sector
Don’t
Not
financial institutions
know applicable
in my
economy
Direct loans from government Don’t
Not
know applicable
in my
economy
Loans from governmentDon’t
Not
owned financial institutions
know applicable
in my
economy
Commercial credit cards
Don’t
Not
know applicable
in my
economy
Trade credit owing to
Don’t
Not
suppliers
know applicable
in my
economy
Factoring
Don’t
Not
know applicable
in my
economy
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Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
No
Increased
Substantially
Change
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
No
Increased
Substantially
Change
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
No
Increased
Substantially
Change
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
16
Personal loans to the business
owner(s) from lending
institutions
Personal credit cards
Micro-credit
Don’t
Not
know applicable
in my
economy
Don’t
Not
know applicable
in my
economy
Don’t
Not
know applicable
in my
economy
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
Decreased
Substantially
No
Change
Increased
Substantially
1--------2--------3--------4--------5--------6--------7
10. If the amount of private sector credit available in your economy is measured,
what was the ratio of total private sector credit to GDP as of the end of the first
quarter of 2009? Data is as of 1st semester
a. Not measured
b. Ratio of private sector credit to GDP was
(computed at total direct compliance / GDP)
2009)

_____.10____per unit GDP
(approx. as of 1st sem.
11. If the amount of private sector credit available in your economy is measured,
what proportion of private sector credit available in your economy was
accounted for by loans to SMEs as of the end of the first quarter of 2009?
a. Not measured
b. Proportion of private sector credit loaned to SMEs was _____21_____%.
(approx. as of 1st sem.
2009)

12. If the amount of private sector venture capital invested in SMEs in your
economy is measured, what was the ratio of total private sector venture capital
under management to GDP as of the end of the first quarter of 2009?
a. Not measured
✓
b. Ratio of private sector venture capital under management to GDP was
____________per unit GDP
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13. During the global financial crisis reference period (June 2008 – present) were
any additions or changes made to the policies and programs in your economy
aimed at further facilitating access to credit for SMEs?
a. No
b. Yes
If “Yes”, please describe the nature of each such reform by including information related to
the headings in the table below. Please complete one copy of the table for each reform.
Name of program / URL
What was the general nature of
the reform?
Interest rate subsidy?
www.sbgfc.org.ph
Department of Trade and Industry-Small Business
Corporation Loan Program
Financial Assistance
Additional funding/support for
an existing program?
Is it a temporary or permanent Temporary
initiative?
To whom is the program Micro and displaced workers
targeted? SMEs? Lenders?
Business associations? Nonprofit groups?
What is the primary goal of the
program?
To mitigate the impact of the economic crisis. The loan
is expected to be invested in small businesses.
Which segment(s) of the SME
population is targeted by the
program (size, sectors, etc.)?
Microentrepreneurs and displaced workers
How is the program delivered?
Implementation is being done by the Small Business
Corporation
What is the annual rate of usage
under the program?
Has the program been
evaluated? If so, with what
results
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
✓
18
Section 3:
Sample Scenarios
In answering the questions posed in this section, please use the present as the reference
time period.
Scenario 1
The owner of a small printing business in your economy that employs six people is
seeking to expand by adding an additional printing press. The business has been in
operation for eighteen years and has operated profitably for the last five years. The
business has previously borrowed from a local commercial lending bank and has repaid
all prior borrowing on schedule. The owner is seeking a term loan from the same bank
to finance the entire cost of the new machinery with the machinery to be used as
collateral security for the loan.
Under this scenario, to what extent would you agree/disagree with each of the following
statements?
In my economy, the lending bank would be able
to access credit histories on the firm as well as on
the owner to help with the lending decision.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, there is a very strong likelihood
that the owner’s loan application would be
approved.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, the owner’s loan application
would only be approved under the terms of a
loan guarantee or risk sharing program.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, if the loan application was
approved, the interest rate and fees associated
with the loan would be relatively low.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, if business conditions
deteriorated such that the business missed three
successive monthly payments, the lender would
seek to foreclose on the collateral.
STRONGLY
DISAGREE
In my economy, if business conditions
deteriorated such that the business missed three
successive monthly payments, the lender would
seek to foreclose on the collateral (i.e. the lender
forces the sale of the assets given as collateral)
In my economy, if the lender foreclosed on the
collateral due to non-payment of the debt, the
legal system would enforce the lender’s position
in a timely manner.
STRONGLY
DISAGREE
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STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------5--------3--------4--------5--------6--------7
19
Scenario 2
The owner of a small printing business in your economy that employs six people is
seeking to address business losses and the ensuing cash flow difficulties arising from the
poor economy of the last year or so. The business has been in operation for eighteen
years and has operated profitably for the five years preceding the most current year.
The business has previously borrowed from a local commercial lending bank and has
repaid all prior borrowing on schedule. The owner is seeking an operating loan from
that bank to finance the business’ cash flow needs with the firm’s inventories and
accounts receivable to be used as collateral security (assets given as collateral) for the
loan.
Under this scenario, to what extent would you agree/disagree with each of the following
statements?
In my economy, the lending bank would be able
to access credit histories on the firm as well as on
the owner to help with the lending decision.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, there is a very strong likelihood
that the owner’s loan application would be
approved.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, the owner’s loan application
would only be approved under the terms of a
loan guarantee or risk sharing program.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, if the loan application was
approved, the interest rate and fees associated
with the loan would be relatively low.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, if business conditions further
deteriorated such that the business missed three
successive monthly payments, the lender would
seek to foreclose on the collateral (i.e. the lender
forces the sale of the assets given as collateral to
cover the outstanding debt).
In my economy, if the lender foreclosed on the
collateral due to non-payment of the debt, the
legal system would enforce the lender’s position
in a timely manner.
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STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
20
Scenario 3
The owner of a new printing business in your economy is seeking to finance the start-up
of the enterprise. The owner has presented a business plan that shows that the firm will
not become profitable for at least 12 months but projects a substantial and growing
profit for several years thereafter. The owner of the firm is new to the community and
has no personal of professional history with the local lending bank. The owner is
seeking an operating loan from that bank to finance the business’ cash flow needs
during the start-up period.
Under this scenario, to what extent would you agree/disagree with each of the following
statements?
In my economy, the lending bank would be able
to access credit histories on the firm as well as on
the owner to help with the lending decision.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, there is a very strong likelihood
that the owner’s loan application would be
approved.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, the owner’s loan application
STRONGLY
STRONGLY
would only be approved under the terms of a loan
DISAGREE
AGREE
guarantee or risk sharing program.
1--------2--------3--------4--------5--------6--------7
In my economy, if the loan application was
approved, the interest rate and fees associated
with the loan would be relatively low.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, the business owner may be able
to finance the business start-up by accessing
venture capital.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
In my economy, if business conditions further
deteriorated such that the business missed three
successive monthly payments, the lender would
seek to foreclose on the collateral(i.e. the lender
forces the sale of the assets given as collateral to
cover the outstanding debt).
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STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
21
Scenario 4
The owner of a small pharmaceutical firm with six employees is seeking financing for
human trials of a patented new drug that has shown great effectiveness in laboratory
and animal trials for the treatment of Type II diabetes. If successful, it is expected that
the firm’s sales and profits will at least double each year for the next 10 years until the
patent expires. The business has been in operation for eighteen years and has operated
profitably for the last five years. The business has previously borrowed from a local
commercial lending bank and has repaid all prior borrowing on schedule. The owner is
seeking an operating loan from the same bank to finance the (significant) entire cost of
the human trials. The firm’s plant and equipment will be used as collateral security for
the loan but the amount of borrowing is expected to exceed the value of the collateral.
Under this scenario, to what extent would you agree/disagree with each of the following
statements?
In my economy, there is a very strong likelihood
that the owner’s loan application would be
approved.
In my economy, the owner’s loan application
would only be approved under the terms of a
loan guarantee or risk sharing program.
In my economy, if the loan application was
approved, the interest rate and fees associated
with the loan would be relatively low.
In my economy, the business owner may be able
to finance the trials by accessing venture capital.
In my economy, having patent protection would
be a significant factor in the firm’s ability to
access financing.
STRONGLY
DISAGREE
STRONGLY
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
STRONGLY
DISAGREE
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
STRONGLY
DISAGREE
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
STRONGLY
DISAGREE
AGREE
1--------2--------3--------4--------5--------6--------7
STRONGLY
STRONGLY
DISAGREE
AGREE
1--------2--------3--------4--------5--------6--------7
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Evaluation Group Assessment
#
1
Criteria
Were all the objectives fully
achieved?
2
Were all the outputs fully
achieved?
For ECOTECH and other
projects, has the completed
project contributed to a priority
APEC theme?
3
For TILF projects, has the
completed project specifically
contributed to trade and
Investment liberalization and
facilitation to achieve Bogor
Goals?
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Explanations (what to look for)
What exactly were they? (What skills were
improved – from what level to what level;
was capacity built and institutions
strengthened – by how much? Was
economic efficiency and performance
increased – how was it measured?)
Were they also of a satisfactory quality?
Has it contributed to one of the priority
themes in the 1996 Manila Declaration, or
has it been directly relevant to one specific
priority set by APEC Ministers and Leaders,
or a vision statement from a working group.
Has it contributed to one of the Actions in
Specific Areas in Section 3 of Osaka Action
Agenda in 1995, or has it addressed issues
directly contributing trade and investment
liberalization and facilitation?
Comments (if any)
Assessment
23
4
Is there an opportunity for any
follow-up projects?
Are there any additional actions needed?
Are there any ideas or pending issues that
can be followed up?
5
Any other relevant points?
6
In your judgment has the
project been successful?
For example, list the lessons learned; are
they useful and have they been
communicated to other interested parties?
To what extent were the objectives achieved
and how relevant were they? What useful
lessons have been leaned for future
projects? Based on current information,
could this project be earmarked for an
impact evaluation in the future?
Comments by Lead Shepherd/ Chair:
Lead Shepherd/ Chair’s Signature:
Comments by Secretariat:
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