Access to finance for smes : an analysis in Algeria

Abstract EN

The aim of this study is to demonstrate the difficulties faced by SMEs in Algeria in accessing bank finance compared to those in developing countries.

To illustrate the role of bank loans in financing Algerian SMEs a descriptive analysis method was used to describe the data declared by National Statistics Office; this data are obtained by distributing questionnaires; the survey shows that out of a total of 934, 250 economic entities, nearly 660, 000 completed the questions were in the questionnaire.

Access to financing sources is an important factor in making investment decisions for the SMEs private sector in Algeria, this importance is negatively correlated to the size of the enterprise.

We conclude that SMEs in Algeria have difficulties getting financing, this is due to the fact that SMEs' owners give considerable importance to the accessibility of financial resources when making investment decisions.

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