Small business activities are seen by most economists as the engine to restore confidence and create jobs in the short to medium term. Driven by Government policies through incentives, both public and private lenders are encouraged to make a larger portion of their loan portfolio available to small operators. But most small borrowers lack the necessary asset backing to make them commercially viable and even with Government guarantees in place, such loans historically fail to perform, costing the lender more in administration expenses than the interest collected. To address these issues, lenders are promoting business services to assist in planning and reporting activities, to more closely monitor and quickly take action at the first sign of problems.
