Microfinance Market Survey in the West Bank and the Gaza Strip

Do Palestinian microentrepreneurs express a need for microfinance?
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This PlaNet Finance survey focuses on the financial needs of Palestinian microentrepreneurs under the ongoing financial and economic crisis. The survey provides information on:

  • Palestinian microentrepreneurs and their activities;
  • The demand for microfinance lending and non-lending services.

The survey of 1202 microentrepreneurs finds that:

  • Palestinian microentrepreneurs lack access to financial services in the West Bank and Gaza strip (WBGS);
  • The majority of businesses are in trade activities;
  • About half of the microentrepreneurs operate in the informal sector;
  • Decrease in profits and difficulties in collecting debts are their main problems;
  • Most entrepreneurs respond to the crisis by reducing credit sales or delaying the payments of debts to suppliers.

The survey also finds that:

  • The number of potential clients for lending services is 190,000, and the potential market size for microlending services is US $280 million in the WBGS;
  • There is a mixed response for the need for credit, with 57% saying they need credit and 27% saying they do not;
  • Microentrepreneurs need credit mainly for expanding their businesses, financing assets, working capital requirement and starting up new businesses;
  • One-third of the interviewees state a demand for savings products, while insurance products interest one in two microentrepreneurs;
  • The potential demand for Islamic loans is high in the WBGS.

The survey concludes with recommendations for microfinance providers, MFIs, donors and regulatory authorities.

About this Publication

By PlaNet Finance