Analyzing the Economic and Administrative Difficulties of Small and Medium Enterprises in Algeria (original) (raw)

Small and Medium Enterprises as a Strategic Choice for Development Case Study of Algeria

International Journal of Academic Research in Business and Social Sciences

This study aims to diagnose the reality of small and medium enterprises in Algeria and her contribution in development. And to achieve the purpose of study, we analyzed the statistics that it extracted by the annual reports issued by Information Bulletin SMEs Statistics. Also it examines by the National Agency of Employment Support between 1997and 2017. The study revealed that SMEs is one of the modern mechanisms for financing development in Algeria and alternative financing for development, where it has contributed effectively to the absorption of labor, especially at the macro level, where we find that industrial and service enterprises played an important role in net income gross. However, we find that other enterprises don't contribute to the development process, because it has a serious management problem, mainly; the problem of difficulties of economic feasibility.

SMALL AND MEDIUM ENTERPRISES AS AN EFFECTIVE SECTOR FOR ECONOMIC DEVELOPMENT AND EMPLOYMENT CREATION IN ALGERIA

This paper examines the current developments of small and medium-size enterprises (SMEs) in Algeria and investigates the contribution of those enterprises to economic development and employment creation. To this end the study uses the available data from the Algerian National Office of Statistics (ONS) and the Algerian Ministry of Industry, Small and Medium Enterprise and Investment Promotion; to analyze the effectiveness of those enterprises in terms of employment and wealth creation. The results of our research reveal that SMEs in Algeria are too fragile and do not contribute effectively to creating employment opportunities in which unemployment remains high, particularly among youth. Although Algeria has managed to diversify its economy, this diversification is still weak and the productive fabric remains largely concentrated in the hydrocarbon sector. In addition labor-intensive SME sector remains underdeveloped.

Small and medium enterprises and economic growth in Algeria through investment and innovation

Financial Markets, Institutions and Risks

Small and medium enterprises play a vital role in ensuring the continuity and sustainability of economic development as they constitute an important starting point for economic growth, through their ability to provide job opportunities and their role in diversifying the industrial structure and assisting the main structures in production. These institutions operate at the national level and push them towards facilitating and continuity of their work, which made them of great importance in achieving development and embodiment at the national level. This study aims to highlight the role of small and medium enterprises in pushing the economies of countries towards development, through their contribution in various areas of development, as these institutions have become a strategic option and the most practical alternative to achieve balanced growth, and this can only be achieved with real support for these institutions. Small, and medium enterprises are an important element in economic...

The Impact of Organizational Characteristics in Effectiveness (Algerian’s Empirical Study of Small and Medium Enterprises)

Mediterranean Journal of Social Sciences, 2015

Algeria has witnessed many problems through the economic trends in the oriented economy, especially the investment. This led the responsibles for the economic affairs in the country to think about other ways and policies to push the economic development. Among those ways we account the small and medium enterprises which are considered as important economic pillars. The aim of this paper is to define the organizational characteristics of Algerian SME and measure the relation between these characteristics and organizational effectiveness through a survey presented to 41 Algerian SMEs. At the end we have found that the Algerian SME are features by several character such as high centralisation degree of organisation structure, Entrepreneurial type decision, Authoritarian leadership style and finally the Algerian entrepreneur is the person who prefer Continuity, independence, growth .Also we found that there is a big significant relation between Algerian SMEs characteristics and effectiveness as all p-value calculated was less than 5% but this relation differ from variable to another.

Factors Influencing the Financial Situation and Management of Small and Medium Enterprises

Journal of Risk and Financial Management

The ambition of this study was to identify the factors that influence the financial situations of small and medium enterprises (SMEs) in Somalia. The research objectives of this study were to determine how capital building affected the financial situations of SMEs in Somalia, how human resource capacity affected the financial situations of SMEs, and what the impact of access to financing was according to the business conditions of SMEs. This study uses both descriptive and quantitative research approaches. The study’s main demographics consisted of 90 SMEs in Somalia; the shortage of female personnel may also be a disadvantage, considering that most paying customers were female. The study’s first research question was to investigate whether the use of committees improves the quality and efficiency of the board’s tasks and mandates. The study’s second research question was to determine the impact of human resources. The study’s findings about market adoption of technological trends a...

The Role of Small and Medium Enterprises in Economic Development, Case of Egypt

Small and medium Enterprises (SMEs) play an important role in the modern economy; the research aims to identify the role of small and medium enterprises in the economic development in the Arab Republic of Egypt and identify the most important problems and obstacles facing these projects , The results show that, Egypt has 2.5 million small, medium and micro enterprises, representing 99% of the total non-agricultural projects, about 78% of these projects did not receive any banking facilities, The performance SMEs is very weak in terms of export to foreign markets. SMEs can contribute in the process of accelerating development because it does not require huge investments at the same time, and is able to increase employment and mobilize small individual savings, as well as help in the preparation of technical cadres. It also enables the development of exports, including the acquisition of foreign currency and thus improving the balance of payments of developing countries, in addition to their contribution to the formation of a balanced industrial sector that serves the national economy, However Small and medium enterprises in Egypt face many problems that limit the ability to develop them. This sector is still suffering from basic obstacles such as difficulty obtaining finance and guarantees, and many other difficulties related to the inappropriate business environment, laws and regulations, poor infrastructure and banking so that Egyptian government must put a clear approach and specific objectives for the development of these projects.

Small and medium Enterprises in Morocco: Definition's Issues and Challenges

as a heterogeneous group of businesses, Small and Medium Enterprise (SME) has been the most essential component for developing and developed economies. Even their important contribution, SMEs still do not have a unanimous definition either in the national level or in the international one. Therefore, it is important to always search in the current literature for the updates about the definition of the SMEs. Small firms are independent firms, which employ less than a given number of employees and have a specific turnover or a balance sheet. Hence, most of variables defining SMEs varies across countries and are not official. In the following work, we are going to highlight the SME definition's issues in most countries, and especially in Morocco. Then, we will propose some new perspectives to define small businesses and make the existence of this sector more specific and clear basing on literature review and statistics.

Impact of Small and Medium Enterprises on Economic

This paper seeks to investigate Small and Medium Enterprises as a veritable tool in Economic Growth and Development. A survey method was used to gather data from 200 SME/Entrepreneurial officers and Managers from five selected local government in Nigeria namely; Ijebu North, Yewa South, Sagamu, Odeda and Ogun Waterside Local government. Data was collected with a structured questionnaire and analyzed with several descriptive statistics to identify the perception of the roles of SMEs in Nigeria. The results of the study therefore reveals that the most common constraints hindering small and medium scale business growth in Nigeria are lack of financial support, poor management, corruption, lack of training and experience, poor infrastructure, insufficient profits, and low demand for product and services. Hence, it therefore recommends that Government should as matter of urgency assist prospective entrepreneurs to have access to finance and necessary information relating to business opportunities, modern technology, raw materials, market, plant and machinery which would enable them to reduce their operating cost and be more efficient to meet the market competitions.

Small and Medium Enterprises in the Middle East and North Africa Region

International Journal of Business and Management, 2021

In the Middle East and North Africa (MENA) region, Small and Medium Enterprises (SMEs) are now widely recognized as engines of economic development. This paper discusses the importance of SMEs in the MENA economic area and identifies the challenges and barriers facing SMEs in MENA countries. In addition, this study analyses the effects of two 'black swan' Coronavirus disease (COVID-19) phenomena and a decline in oil prices on the economy of MENA in 2020. The current study found that the most significant challenges were identified as lack of access to finance, lack of managerial expertise, inefficiencies of government, lack of a well-trained workforce, inadequate infrastructure, corruption and bureaucratic obstacles. Among these challenges, the lack of access to finance appears to be the major challenge and suggests that future research is required to identify the role of Islamic finance models in the financing of SMEs in MENA countries. This research provides all stakeholder...

Small and medium size enterprise: Access the financial and non-financial factors

Management Science Letters , 2019

The aim of this study is to investigate the factors influencing the performance of the industrial small and medium enterprises (SMEs) in Jordan. The factors include financial, management, marketing, technological and government policy and regulations. A qualitative method is employed by adopting a descriptive questionnaire research design. The data of the study are gathered from the employees who work at the industrial SMEs in Jordan. The results show that there were positive and significant relationships between all mentioned factors and the performance of SMEs, which indicate that when these factors are improved, the performance will also be improved. However, the economic factors have negative effects on the performance of SMEs.