Abstract

This paper aims at investigating the magnitude of the financing barrier faced by small Egyptian construction firms (SCFs). A survey questionnaire was compiled and sent to Egyptian contractors. For a further investigation of the SCF financing issue, the financial data for a typical small construction firm was examined.Findings revealed that the lack of access to suitable sources of finance was indeed a barrier to growth for SCFs.Approximately 70% of SCFs stated that they could not access formal sources of finance, and 85% confirmed that the lack of suitable financial resources hindered their ability to compete for larger projects. Finally, the paper highlights the prospective benefits that could be achieved if finance were made available to SCFs, for the firms and the economy as well.

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