During the economic downturn arising from the COVID -19 pandemic in South Africa the government created the Covid-19 Loan Guarantee Scheme which provided loans, substantially guaranteed by government, to eligible businesses to assist them Funds borrowed from this scheme, through the banking industry, can be used for operational expenses, such as salaries, rent and lease agreements and contracts with suppliers. The scheme however has not been as great a success as had been envisaged. a) Describe how the scheme works; b) Analyse the reasons why the uptake has been so poor; c) Identify the losses which are being guaranteed by government; and d) Propose changes which could be introduced to improve the scheme.
During the economic downturn arising from the COVID -19 pandemic in South Africa the government created the Covid-19 Loan Guarantee Scheme which provided loans, substantially guaranteed by government, to eligible businesses to assist them Funds borrowed from this scheme, through the banking industry, can be used for operational expenses, such as salaries, rent and lease agreements and contracts with suppliers. The scheme however has not been as great a success as had been envisaged. a) Describe how the scheme works; b) Analyse the reasons why the uptake has been so poor; c) Identify the losses which are being guaranteed by government; and d) Propose changes which could be introduced to improve the scheme.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Transcribed Image Text:During the economic downturn arising from the COVID
-19 pandemic in South Africa the government created
the Covid-19 Loan Guarantee Scheme which provided
loans, substantially guaranteed by government, to
eligible businesses to assist them Funds borrowed from
this scheme, through the banking industry, can be used
for operational expenses, such as salaries, rent and
lease agreements and contracts with suppliers. The
scheme however has not been as great a success as
had been envisaged. a) Describe how the scheme
works; b) Analyse the reasons why the uptake has been
so poor; c) Identify the losses which are being
guaranteed by government; and d) Propose changes
which could be introduced to improve the scheme.
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