Assignment
« Choose any sector: how important is access to finance »

Introduction:
In some surveys asking entrepreneurs to classify their different problems in order of importance, they ranked “problems around access to finance” in the top place because they think bankers show only a weak interest in helping them because they are so often turn down their applications. However, the importance of the finance need depends on the enterprise’s size.
Financing is an interne or external investment in a project, without spend immediately money which allow a risk to increase the future income.
In order to reach an economic development, we have to see what’s happen on the different sectors of activity (growth, expansion or stagnation). That’s why we will focus on the Trade sector in South Africa and around the world. We will divide our study in three different parts:
1. Which are the issues concerning the access to finance for businesses?

a) Self-financing
The self-financing is the financing of the investments by many internal means. But in the case where entrepreneurs do not have these money savings, they have to borrow some money by an external mean. However the access to a loan is not easy for entrepreneur because they have no way to act as their own guarantor.
Furthermore, many entrepreneurs do not have fund to start their business that’s why some people prefer to begin with a more approachable activity, which don’t need real investment. In order to create a benefit and invest further in the real activity they want to create.

b) Banking investment
There are two different kinds of bankers:
The first are the national and international bankers who based their loan on financial and statistical analysis without taking into account the importance of sectors in specific areas. They have a standardised system of banking operations based on uniform indicators which do not let a place to the balancing of the real strengths and weaknesses of the business