Glossary of economic terminology

Economic terms you should know:

l Asset finance refers to a secured business loan in which the borrower pledges collateral for any assets used in the day-to-day running of a business. It's also known as commercial finance or asset-based lending. Lending is done against inventories as opposed to cash flow.

l Niche market is a small but potentially profitable market segment where custom-made products are designed for different businesses. Niche marketers usually rely on customer loyalty to maintain a profitable volume of sales.

l Market share refers to the volume of sales achieved by one company in a geographic area as a percentage of all sales of similar products by similar companies in the area.

l A commercial loan is one granted to a company to meet its business operating expenses or to finance the purchase of inventory.

l Bridging finance is meant to provide financial assistance to small and medium entrepreneurs who have secured fixed contracts, such as a contract for construction work.

l Black economic empowerment (BEE) is a socioeconomic process that contributes to the economic transformation of South Africa. It seeks to bring about a significant increase in the number of black people who manage, own and control the country's economy and also to play a role in reducing unemployment and income inequalities.

l An emerging enterprise is an enterprise that is owned, managed and controlled by previously disadvantaged individuals and which is overcoming apartheid business impediments.