1. KIEDF Survey
of Small & Micro Loans
July, 2008

2. KIEDF Survey of Small Business & Microfinance Programs
Survey Objectives:
To obtain information independently about loan recipients:
Do the businesses continue to operate ?
Did the financial situation of the business improve after receiving the loan?
Did the loan help improve the operations of the business?
To assess the quality of KIEDF service during the loan process:
Time required, problems encountered, communications with the loan
recipients and related.
2008 Survey conducted by Tmurot in January - July
Project Manager: Ronit Kurz

3. Small Business Loans Business Characteristics

4. Survey of Small Business Loans
Respondents included 207 business owners who received loans in 2004 and 2005.
Main type of business was Commerce - 64%
Location - 26% in local shopping center, 25% in industrial area, 23% at home and 12% in the neighborhood
Monthly sales (NIS) – 51% over 100,000, 22% 10-50,000, 19% ,000, 8% up to 10,000
Over 92% of the businesses surveyed were still active - (3 years after taking the loan)
The level of satisfaction from the effectiveness of the loan is relatively high.
Loan recipients will most likely recommend others to take a KIEDF loan.
In general, the satisfaction from the process of receiving the loan is above average.
Higher satisfaction was reported from “understanding the needs” and “relations with the advisors”.
A lower satisfaction was reported from “the help of the business plan”.
The comments dealt mostly with:
Shortening the process of receiving the loan, simplify and have less bureaucracy.
Loan characteristics : sum of loan, interest rate, lowering costs, payment plan.
The business plan is not considered relevant and effective, - considered expensive and redundant.

5. Microfinance Loans Business Characteristics

6. Survey of Microfinance Loans
Respondents included 147 women, who received a micro-loan (up to $5500) in
Main types of businesses – 28% body care & therapy, 21% trade , 10% arts, 8% professional
Location - 49% at home, 24% in a local shopping center, 14% in the neighborhood
Over 80% of the businesses surveyed were still active (2-3 years after taking the loan)
Most businesses reported an increase of about 50% in income and in number of customers.
In general, the satisfaction level from the loan effectiveness was average.
- Arab women reported lower satisfaction than Jewish women.
- Businesses in the center of Israel reported less satisfaction.
The satisfaction level from the loan process was average and above.
- Higher satisfaction from “easy process”, “length of time” and “advisors relationship”.
- Lower satisfaction was reported from “size of loan” and “contact with the bank”.
- Higher satisfaction on most parameters among new businesses.