Abstract
Building the capacity of small and medium-sized enterprises is at the heart of the concerns of modern economies. These types of enterprises are the engine of growth through the creation rate, explained by the low level of investment they require, the level of job creation and the low level of technology that gives them adaptability to Changes. In most developing countries, the problem of funding is common for SMEs. The funding challenge is the main barrier to the growth of SMEs, either due to lack of internal or external funds or due to the difficulty of the processes to be followed for loans’ approval. What is most worrying in Lebanon is that SMEs are fundamentally opportunities to get out of underdevelopment. Today, banks are finding it extremely difficult to finance SMEs in terms of the problems of informalities, weak guarantees and low capitalization. SMEs represent a significant share of banks' customers; that is why banks need to give more attention to the SME sector, seeking to meet at its best their needs and expectations. A survey was carried out on a sample of 110 Lebanese SMEs working in different regions in Lebanon and in various sectors. In addition to the questionnaire, we met qualified bankers from the five top leading banks in Lebanon to highlight lending requirements and procedures, risk assessment and management, approval and rejection decisions related to loans. As a result, limitation of access to funds were mentioned with different ways of solutions, requesting a real support and cooperation between actors: public authorities, central bank, financial institutions and SMEs.
Highlights
As the global economy may be beginning to recover from the worst financial and economic crisis in decades, governments, businesses and consumers continue to face significant challenges on the road to prosperity [1].Small and medium-sized enterprises (SMEs) and entrepreneurs must maintain their central place in national strategies for growth, job creation and social cohesion [2]
This category of companies is not very capitalist, but its contribution to employment is interesting, especially in a country like Lebanon where the problem of unemployment increases every year, it allows the decentralization of investments, mobilization private savings, promote localization and streamline production by reducing costs, allowing better competition from the economy in foreign markets
We met qualified bankers from the five top leading banks in Lebanon to highlight lending requirements and procedures, risk assessment and management, approval and rejection decisions related to loans
Summary
Small and medium-sized enterprises (SMEs) and entrepreneurs must maintain their central place in national strategies for growth, job creation and social cohesion [2] Because of their role in the development and dissemination of innovations, SMEs and entrepreneurs are crucial to charting new paths to more sustainable and inclusive growth [3]. It is necessary to develop SMEs that are capable of strengthening the national economy and giving new impetus This category of companies is not very capitalist, but its contribution to employment is interesting, especially in a country like Lebanon where the problem of unemployment increases every year, it allows the decentralization of investments, mobilization private savings, promote localization and streamline production by reducing costs, allowing better competition from the economy in foreign markets
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Business and Economics Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
