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

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

Authors

  • Mounir SI MOHAND University of Algiers 3, Algeria
  • Toufik REFFAA University of Algiers 3, Algeria
  • Mustapha BENAI University of Algiers 3, Algeria

DOI:

https://doi.org/10.47173/2134-004-001-019

Keywords:

SME, financing, investment, growth, constraints

Abstract

This paper is an attempt to investigate the cash flow dependence of the Algerian small and medium enterprises (SME) from the industrial sector using a literature review and a multiple Linear Regression model with cross sectional data. 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 in some cases. The consequences of such dependence are higher assumed risks and lower investment opportunities, which lead eventually to lower economical growth.

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Published

2021-12-31

How to Cite

SI MOHAND, M. ., REFFAA, T. ., & BENAI, M. . (2021). Analyzing the dependence of Algerian SMEs on internal financing and its consequences: case study of the industrial sector: Analyzing the dependence of Algerian SMEs on internal financing and its consequences: case study of the industrial sector. JOURNAL OF AL MAYADINE AL IKTISSADIA , 4(1), 339-356. https://doi.org/10.47173/2134-004-001-019