Year: 2024
Type: article
Abstract: The success of SMEs depends mainly on facilitating financing, which can support them in facing economic challenges. SMEs in Egypt face fundamental problems in providing financing, which hinders their ability to grow. Research indicates that SMEs that receive adequate financing are better able to achieve sustainable growth and create new job opportunities. Research indicates that SMEs that receive adequate financing are better able to achieve sustainable growth and create new job opportunities. This research aims to evaluate the impact of SMEs financing on economic growth by using quantitative analysis, as well as a descriptive analysis of variables and presentation of results to provide a comprehensive understanding. To achieve the research's aim, the study uses annual time series data during the period from 1992 to 2022 and employs an autoregressive distribution lag (ARDL) model, a Bounds Test, and an Error Correction Model (ECM). The results indicate that there is a positive and significant relationship between financing small and medium enterprises and economic growth in Egypt. It recommends adopting integrated strategies to improve access to financing for small and medium enterprises and stresses the importance of the role that the government can play in facilitating access to financing by providing loan guarantees and tax incentives for investors in small and medium enterprises.
Authors: Mohamed Abdelgany, Duaa Ahmed, Ahmed Nabi
Institution: Beni-Suef University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4406084529