Analyzing the dependence of Algerian SMEs on internal financing and its consequences : case study of the industrial sector

الملخص EN

This paper is an attempt to investigate the cash flow dependence of the Algerian small and medium enterprises (SME) from the industrial sector.

The financing behavior of the Algerian SME became of great concern in the past years, it became urgent to set the frame of the financial interaction between the intrinsic characteristics of this type of companies and the financial system.

The results confirm the fact the Algerian SMEs are indeed relying on their cash flow for their sustainability and growth while evolving in an unfavorable business environment, but still rely on external financing.

The consequences of such dependence are higher assumed risks and lower investment opportunities which lead eventually to lower economical growth.