These include increased education that enhances people's business-related skills , a supportive attitude of government officials toward informal activities and deregulation. Better household savings instruments can raise the ability of people to go into business for themselves. Financial development strategy should promote informal savings collectors, savings and credit associations, credit unions, cooperatives, and informal financial institutions that can meet microentrepreneurs' demand for financial services on a sustainable basis. Measures to improve the accounting practices of firms and their ability to provide audited statements can improve creditworthiness by reducing the cost to banks of obtaining reliable information. Banks' concern with risk can be addressed through better legal systems to document and collect property offered as collateral.
Competitive banking is essential to give banks incentives to seek new, smaller clients.
Non-financial constraints vary widely by country and size category. Hence, technical assistance should emphasize adaptability to local conditions and demand-driven approaches. Program design should include periodic assessment of impact and demand in order to evaluate and improve practices. Ronald L.Parker, Randall Riopelle and William F. Steel. 1995. Small Enterprises Adjusting to Liberalization in Five African Countries .