How credit constrained are family-owned SMEs in Arab countries?

Grakolet Gourène, Zuzana Brixiová Schwidrowski, Jiří Balcar and Lenka Johnson Filipová

Emerging Markets Review, 2025, vol. 65, issue C

Abstract: Utilizing the World Bank Enterprise Surveys, this paper examines the links between family ownership and credit constraints of SMEs in Egypt, Jordan, Morocco, and Tunisia. We found that while family-owned firms have higher need for credit than nonfamily-owned firms, they are more likely to be discouraged from applying for it. Due to this self-selection out of credit markets, they end up more credit constrained even though their credit application rejection rates are below those of nonfamily firms. Stronger firm governance, formal business strategies and good managerial practices can ease access to credit for family-owned SMEs.

Keywords: Family-owned SMEs; Access to bank credit; Firm governance; Arab countries (search for similar items in EconPapers)
JEL-codes: D22 G21 G32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:65:y:2025:i:c:s1566014124001444

DOI: 10.1016/j.ememar.2024.101249

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