Challenges of Financing Small and Medium Enterprises in Algeria: An Analytical Study of the Available Financing Mechanisms

This analytical study aimed to shed light on the reality of the financing mechanisms available for small and medium enterprises (SMEs), discuss the obstacles preventing these enterprises from obtaining sufficient liquidity, and evaluate the effectiveness of the available financing mechanisms in overcoming the constraints and barriers that hinder the growth, continuity, and development of SMEs in Algeria. The study concluded that government support agencies have largely succeeded in financing thousands of projects, particularly innovative ones in the fields of the green and digital economy, through the provision of tax exemptions and customs facilities to support start-up project holders. In addition, various support institutions assist projects during the stages of establishment and expansion, while business incubators contribute to improving competitiveness. Nevertheless, despite the significant incentives granted by the government, some enterprises still face challenges related to lengthy banking procedures for obtaining loans and competition from the informal sector.