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DATA IDENTIFICATION
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Name
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Percentage of small-scale industries with a loan or line of credit.
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Indicator purpose
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Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
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Abstract
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This indicator shows the number of “small-scale industries” with an active line of credit or a loan from a financial institution in the reference year in percentage to the total number of such enterprises. Industrial enterprises are classified to small compared to large or medium for their distinct nature of economic organization, production capability, scale of investment and other economic characteristics. “Small-scale industries” can be run with a small amount of capital, relatively unskilled labour and using local materials. Despite their small contribution to total industrial output, their role in job creation, especially in developing countries is recognized to be significant where the scope of absorbing surplus labour force from traditional sectors such as agriculture or fishery is very high. “Small-scale industries” are capable of meeting domestic demand of basic consumer goods such as food, clothes, furniture, etc.
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Data source
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World Bank Enterprise Surveys.
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DATA CHARACTERISTICS
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Contact organization person
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United Nations Industrial Development Organization (UNIDO)
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Date last updated
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29-OCT-2019
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Periodicity
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Annually
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Unit of measure
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Percentage (%)
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Other characteristics
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An establishment is defined as an enterprise or part of an enterprise that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added. An establishment can be defined ideally as an economic unit that engages, under single ownership or control, that is, under a single legal entity, in one, or predominantly one, kind of economic activity at a single physical location. Mines, factories and workshops are examples. This ideal concept of an establishment is applicable to many of the situations encountered in industrial inquiries, particularly in manufacturing. Although the definition of an establishment allows for the possibility that there may be one or more secondary activities carried out in it, their magnitude should be small compared with that of the principal activity. If a secondary activity within an establishment is as important, or nearly as important, as the principal activity, then the unit is more like a local unit. It should be subdivided so that the secondary activity is treated as taking place within an establishment separate from the establishment in which the principal activity takes place.
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DATA CONCEPTS and CLASSIFICATIONS
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Classification used
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Increase the access of small-scale industrial and other enterprises, in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.
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Disaggregation
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No disaggregation available.
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Key statistical concepts
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The proportion of “small-scale industries” with a loan or line of credit is calculated as the number of “small-scale industries” with an active line of credit or a loan from a financial institution in the reference year in percentage to the total number of such enterprises:
(Nπ’ππππ ππ "π ππππ − π ππππ ππππ’π π‘ππππ " π€ππ‘β ππππ ππ ππππ ππ ππππππ‘) / (πππ‘ππ ππ’ππππ ππ "π ππππ − π ππππ ππππ’π π‘ππππ ") ∗ 100
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Formula
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OTHER ASPECTS
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Recommended uses
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This indicator shows the number of “small-scale industries” with an active line of credit or a loan from a financial institution in the reference year in percentage to the total number of such enterprises.
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Limitations
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The main limitation of existing national data is varying size classes by country indicating that data are obtained from different target populations. Data of one country are not comparable to another.
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Other comments
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The definition of size class in many countries is tied up with the legal and policy framework of the country. It has implications on registration procedure, taxation and different waivers aimed to promote “small-scale industries”. Therefore, countries may agree on a common size class for compilation purposes. In this context, UNIDO proposes that all countries compile the data by a size class of “small-scale industries” as with less than 20 persons employed. From such data, an internationally comparable data on the share of “small-scale industries” in total could be derived.
All the metadata shown in this document was gathered from United Nation Statistics Division. The metadata was extracted from https://unstats.un.org/sdgs/metadata/.