Importance Small business plays a significant role in the economic development of the country. Small entities are main actors in commercializing innovation and creating work places. Notwithstanding reduction in macroeconomic indicators and general uncertainty, dropping Ruble gives the Russian companies a pricing advantage in comparison with foreign competitors in the country and foreign markets. To enjoy these advantages fully, small businesses often need additional finance, which is mainly sourced from banking loans. Therefore, small entities are interested in making the lending process more effective. Objectives The objective of the research is to systematize sectoral factors, which should be considered for adequate assessment of small entities' creditworthiness. To achieve the objective, I analyze the structure of expenses incurred by entities operating in various sectors, consider the main issues typical of business areas, and identify the principal difficulties for banking employees in analyzing creditworthiness. Methods Using statistical methods, I evaluate the significance of various sectors for the bank's loan portfolio. Furthermore, the research employs the comparative analysis methods to find sectoral factors influencing the efficiency of small business creditworthiness assessment. Results The research systematizes the principle items of expenses, issues of and difficulties in analyzing the creditworthiness of small business operating in various sectors. Conclusions and Relevance I conclude that in most sectors, small entities distort official financial statements so to optimize their taxes, with the distortion methods being very specific of each sector.
Keywords: creditworthiness, small business, sectoral specifics, banking lending
References:
Maksimchuk E.V., Suvorova A.A. Problemy kreditovaniya malogo i srednego biznesa v usloviyakh nizkikh tempov rosta ekonomiki [Issues of lending to small and medium-sized businesses during economic slowdown]. Sotsial'no-gumanitarnye znaniya = Socio-Humanitarian Knowledge, 2014, no. 8, pp. 288–296.
Soshina V. Otsenka riskov – mezhdu tsenoi i kachestvom [Risk assessment is between price and quality]. Bankovskoe obozrenie = Banking Review, 2008, no. 8, pp. 30–34.
Gul'ko A.A., Karaichentseva N.I. K voprosu ob upravlenii riskami bankovskogo kreditovaniya otechestvennogo malogo biznesa v sovremennykh usloviyakh [On the issue of managing risks of bank lending to domestic small business in modern conditions]. Problemy analiza riska = Issues of Risk Analysis, 2011, vol. 8, no. 2, pp. 80–86.
Lukashevich N.S. Razrabotka ekspertnoi sistemy otsenki kreditnogo riska i uslovii kreditovaniya dlya sub"ektov malogo predprinimatel'stva na osnove nechetko-mnozhestvennogo podkhoda [Developing an expert system for assessing the credit risk and terms of lending for small entities on the basis of the fuzzy set approach]. Aktual'nye voprosy sovremennoi nauki = Actual Problems of Modern Science, 2014, no. 38, pp. 226–235.
Amirzyanova L.K. Problemy kreditovaniya predpriyatii srednego i malogo biznesa i puti ikh resheniya [Issues of lending to medium-sized and small entities and ways to solve them]. Audit i finansovyi analiz = Audit and Financial Analysis, 2007, no. 5, pp. 472–474.
Shvets S.K. Sistema integrirovannogo upravleniya riskami v kompanii [The system of integrated risk management in the company]. St. Petersburg, Saint-Petersburg State Polytechnic University Publ., 2009, 165 p.
Zagorskii S.A. Uchet otraslevoi spetsifiki pri analize kreditosposobnosti predpriyatiya roznichnoi torgovli [Considering industry specifics in analyzing the creditworthiness of retailing business]. Mir ekonomiki i prava = World of Economy and Law, 2011, no. 10, pp. 55–62.
Lysakovskaya E.V. Metodiki otsenki riskov pri kreditovanii malogo predprinimatel'stva [Methods of risk assessment when lending to small business]. Ekonomika obrazovaniya = Economics of Education, 2013, no. 3, pp. 102–110.
Sokolinskaya N. Analiticheskoe obespechenie kompleksnoi otsenki riskov kreditovaniya predpriyatii malogo biznesa [Analytical framework for comprehensive assessment of credit risks related to small businesses]. RISK: Resursy, informatsiya, snabzhenie, konkurentsiya = RISC: Resources, Information, Supply, Competition, 2013, no. 2, pp. 191–192.
Vdovenko L.A., Vdovenko O.S. Bankovskoe kreditovanie sub"ektov agrarnoi sfery: problemy i puti resheniya [Bank lending to the agricultural sector: problems and solutions]. Rossiiskii akademicheskii zhurnal = Russian Academic Journal, 2014, no. 1, pp. 30–32.
Asadullin M.R. Osobennosti analiza kreditnykh riskov predpriyatii optovoi torgovli pishchevymi produktami v usloviyakh ekonomicheskogo krizisa [Specifics of analyzing the credit risk of wholesale entities trading with food during the economic crisis]. Upravlenie finansovymi riskami = Financial Risk Management, 2009, no. 2, pp. 144–152.
Ternovskii D.N. Kreditnyi risk v kreditovanii malogo i srednego biznesa [Credit risk in lending to small and medium-sized businesses]. Vestnik Volzhskogo universiteta im. V.N. Tatishcheva = Bulletin of Volzhsky University named after V.N. Tatischev, 2010, no. 20, pp. 148–151.
Reutova I.V., Vasil'ev V.L. Analiz riska kreditovaniya proizvodstva [Analyzing the credit risk associated with production]. Finansovyi biznes = Financial Business, 2010, no. 5, pp. 39–43.
Ryabtsev S.V., Milen'kii V.I. Sovershenstvovanie kreditnoi politiki transportno-logisticheskikh predpriyatii v usloviyakh osoboi ekonomicheskoi zony Kaliningradskoi oblasti [Improving the credit policy of transportation and logistics entities in the Special Economic Zone of the Kaliningrad oblast]. Baltiiskii ekonomicheskii zhurnal = Baltic Economic Journal, 2013, no. 1, pp. 115–123.
Demina E. Napravleniya formirovaniya kompleksnoi otsenki kreditosposobnosti malogo biznesa v sfere uslug [Directions of formation of an integrated assessment of the creditworthiness of small businesses in the service sector]. RISK: Resursy, informatsiya, snabzhenie, konkurentsiya = RISC: Resources, Information, Supply, Competition, 2011, no. 2, pp. 254–257.
