The Difficulties of Access to Bank Financing by SMEs: A Questionnaire Study

Yasmine Derradj () and Hanya Kherchi Medjden ()
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Yasmine Derradj: High School of Statistics and Applied Economics
Hanya Kherchi Medjden: High School of Statistics and Applied Economics

Chapter Chapter 25 in Advances in Empirical Economic Research, 2023, pp 405-415 from Springer

Abstract: Abstract The SME is one of the most often cited actors in the economic world by economic policymakers. All over the world, they are the true protagonists of economic development. They have specific virtues universally recognized about their weight, and despite the importance given by Algeria to this sector, it is still a fragile sector, facing many obstacles to all access to external funding, which made it unable to achieve its goals. The main goal of this chapter is to study the obstacles and difficulties that hinder their access to bank financing and that make Algerian SMEs in particular suffer. The applied research method is a statistical analysis of data obtained from a questionnaire distributed from a representative sample of 100 Algerian SMEs. The results obtained show that despite the various constraints hindering their development, the main weakness of SMEs remains the difficulty of accessing credit, and it is undeniable that the major constraint is no longer the absence of resources, but the weaknesses are much more than their cost, the guarantees requested, and the fairly marked lack of formalization in the sector and the lack of financial expertise of SMEs in the field of banking and accounting management.

Keywords: SMEs; Bank financing; Financing of SMEs; Financing constraints (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-22749-3_25

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DOI: 10.1007/978-3-031-22749-3_25

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