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Thriving SME Businesses can lead to a successful economy. However, this business type find it difficult to access finance. Please explain why?

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Question added by Abdulrasheed olabode , Senior Internal Auditor , IHS TOWERS LIMITED
Date Posted: 2017/03/04
Omar Saad Ibrahem Alhamadani
by Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks

I think financiers prefer to to keep their money inside big investment, based on reputation and rapid movement of capital .

Regards  

Nadeem Bakht
by Nadeem Bakht , International Consultant, Banking Specialist , International Finance Corporation

While there are multiple reasons, the key is Financial Institutions not fully developing and deploying resources (policies, products, processes, staff & skills) that address challenges inherent in the sector (documentaion, skills, thin profit margins, etc.) and properly meet the nature of financing that SMEs need at each stage of their life cysle.

Obaid ur Rehman
by Obaid ur Rehman , HR Executive , Al Bahr Al Arabi Marine Engineering Services

Thank you for invitation, I am sorry i am not an expert in it. Got knowledge from you all. Thanks

 

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

Of Course, thriving SMEs can be a part of the country's economic development and growth but in addition to a lot of other factors like, increasing of saving and investments rates, decreasing unemployment and inflation rates,.....etc.

The main reasons for the SMEs financing difficulties are usually related to insufficient guarantees presented from their sides to the financing insinuations whom they can granted finance to them, in additional to the lake of their owners' experience. 

 

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