Barriers to the Growth of SMEs: Empirical Evidence from Algeria

Hichem Sofiane Salaouatchi, Olivier Colot, Youcef Boudella, Mohamed Abdelkarim Chekirine, Adja Hamida, Mohamed Habaina and Salima Khamadj

International Journal of Economics & Business Administration (IJEBA), 2021, vol. IX, issue 2, 260-276

Abstract: Purpose: This paper aims to study the barriers to SMEs’ growth by the typology of entrepreneurs in the Algerian context. Design/Methodology/Approach: We used the Ahmad and Hoffman model (2007) to determine the different blocking factors. The breakdown of these different barriers is divided into four types, internal barriers, micro external barriers, macro external barriers, and infrastructure barriers in a sample of 57 SMEs located in the Wilaya of Algiers. Findings: The results show that the leaders of Algerian SMEs are mainly of the leadership type favoring independence indefinitely, which constitutes a barrier to growth. There is also a significant link between growth and reinvested earnings, and SME managers reinvest little of this. In addition, SME managers perceive that external barriers influence the growth of their enterprises than internal barriers. Practical Implications: This study contributes to understanding barriers to SME growth by the typology of entrepreneurs in a particular context, which is Algeria. In practical terms, these results determine the barriers or constraints to the growth of our sample's industrial SMEs to allow an objective diagnosis for the main aspects. Originality/value: This article innovates a new research context and adds to the existing literature by presenting new evidence about the obstacles to the growth of SMEs.

Keywords: SMEs; typology; growth; barriers to growth; entrepreneurs; Algeria. (search for similar items in EconPapers)
JEL-codes: D92 G32 M12 M13 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:ix:y:2021:i:2:p:260-276

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