This indicator reflects the proportion of
businesses that faced rejection on their latest loan applications from formal financial institutions, highlighting challenges within the financing landscape. A higher percentage may indicate
obstacles such as strict lending criteria, reduced creditworthiness, or insufficient collateral among firms. This metric serves as a crucial barometer for assessing overall economic health, as it can reveal
trends in business confidence and financial accessibility. Monitoring this figure can also signal shifts in the lending environment, prompting policymakers to address potential barriers and enhance support for entrepreneurs. Understanding this metric helps stakeholders identify sectors or regions experiencing financing difficulties, ultimately guiding targeted interventions to foster a more inclusive financial ecosystem.
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