Beta
395934

.Determinants of small and medium enterprises’ (SMEs) Access to debt finance: Case of Egypt

Article

Last updated: 25 Dec 2024

Subjects

-

Tags

مستخلصات رسائل

Abstract

This article examines the impact of firm size, asset collateral, liquidity, cash flow from operations (OCF), cash holdings, and fixed-asset turnover on Access to Debt Finance (ADF). The authors adopted a comparative approach for examining listed and un-listed SMEs by utilizing a sample size of 55 companies from 2015 to 2020. Several statistical models were employed to examine the data. A pilot study was undertaken to gain insight into the challenges SMEs encountered when accessing debt finance. The study revealed that SMEs struggle to obtain adequate debt financing to bridge their financing gap. The findings show an insignificant relationship between OCF and ADF. Moreover, the results demonstrate a significant influence of liquidity on ADF for both listed and un-listed SMEs. In the case of un-listed SMEs, factors such as size, and cash-holding play a crucial role in determining their ability to access debt finance. Conversely, listed SMEs indicate collateral of assets and the turnover of fixed assets are key determinants affecting their access to debt finance. SMEs must dedicate additional resources in managing their cash flow, as it is the core foundation for the sustained growth of any organization. After an in-depth analysis, the study recommends that financial institutions should adopt a consultative approach; providing SMEs with indispensable assistance to promote their growth.

DOI

10.21608/mosj.2024.275611.1213

Keywords

SMEs, challenges, Comparative analysis, Egypt

Authors

First Name

أميرة زكريا يحيي عفيفي محمد

Last Name

عفيفي

MiddleName

-

Affiliation

كلية تجارة جامعة القاهرة

Email

amirayahia994@gmail.com

City

القاهرة

Orcid

-

Volume

34

Article Issue

3

Related Issue

51949

Issue Date

2024-12-01

Receive Date

2024-03-09

Publish Date

2024-12-01

Page Start

184

Page End

226

Print ISSN

1687-3440

Online ISSN

2682-3349

Link

https://mosj.journals.ekb.eg/article_395934.html

Detail API

https://mosj.journals.ekb.eg/service?article_code=395934

Order

395,934

Type

المقالة الأصلية

Type Code

1,226

Publication Type

Journal

Publication Title

مجلة الدراسات المالية والتجارية

Publication Link

https://mosj.journals.ekb.eg/

MainTitle

.Determinants of small and medium enterprises’ (SMEs) Access to debt finance: Case of Egypt

Details

Type

Article

Created At

25 Dec 2024