Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco
The aim of this study is to assess the viability of SMEs that had benefited from bank loans backed by credit guarantee schemes. A quantitative approach has been adopted by the study. The sample comprised 398 Moroccan SMEs that had benefited from this type of financing, and the primary objective was...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2024-02-01
|
| Series: | Banks and Bank Systems |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19655/BBS_2024_01_Oussouadi.pdf |
| _version_ | 1797302112637419520 |
|---|---|
| author | Oussouadi Kamal Cherkaoui Kenza |
| author_facet | Oussouadi Kamal Cherkaoui Kenza |
| author_sort | Oussouadi Kamal |
| collection | DOAJ |
| description | The aim of this study is to assess the viability of SMEs that had benefited from bank loans backed by credit guarantee schemes. A quantitative approach has been adopted by the study. The sample comprised 398 Moroccan SMEs that had benefited from this type of financing, and the primary objective was to examine their survival over the ten years following the obtaining of these guarantees. Logistic regression was used to reflect several results. The results of the study highlight several factors influencing the probability of survival of these SMEs. Larger amounts of credit promote financial resilience and growth, thereby increasing the likelihood of business survival. Business profitability is a key factor in the likelihood of survival. Profitable businesses attract more investors and lenders, improving access to credit and increasing survival prospects. Contrary to some studies, high levels of debt do not appear to reduce the probability of survival. Similarly, repayment capacity showed no significant link with survival, suggesting the importance of other non-financial factors. Mature and well-considered management decision making is associated with a higher probability of survival. Well-thought-out decisions promote the long-term viability of businesses. Small SMEs also have a good chance of survival because of their rapid adaptability. A manager’s active participation in a company’s capital is linked to a higher probability of survival. This underlines the importance of the personal involvement of the manager and of solid governance. |
| first_indexed | 2024-03-07T23:32:11Z |
| format | Article |
| id | doaj.art-0b9733083b514ec0bdad03481a3ca8d6 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-03-07T23:32:11Z |
| publishDate | 2024-02-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-0b9733083b514ec0bdad03481a3ca8d62024-02-20T11:50:20ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742024-02-01191869810.21511/bbs.19(1).2024.0819655Survival dynamics of SMES supported by credit guarantee schemes: Insights from MoroccoOussouadi Kamal0https://orcid.org/0000-0002-1069-6852Cherkaoui Kenza1Ph.D. Student, Management Department, Mohammed V University of Rabat, MoroccoPh.D., Professor, Management Department, Mohammed V University of Rabat, MoroccoThe aim of this study is to assess the viability of SMEs that had benefited from bank loans backed by credit guarantee schemes. A quantitative approach has been adopted by the study. The sample comprised 398 Moroccan SMEs that had benefited from this type of financing, and the primary objective was to examine their survival over the ten years following the obtaining of these guarantees. Logistic regression was used to reflect several results. The results of the study highlight several factors influencing the probability of survival of these SMEs. Larger amounts of credit promote financial resilience and growth, thereby increasing the likelihood of business survival. Business profitability is a key factor in the likelihood of survival. Profitable businesses attract more investors and lenders, improving access to credit and increasing survival prospects. Contrary to some studies, high levels of debt do not appear to reduce the probability of survival. Similarly, repayment capacity showed no significant link with survival, suggesting the importance of other non-financial factors. Mature and well-considered management decision making is associated with a higher probability of survival. Well-thought-out decisions promote the long-term viability of businesses. Small SMEs also have a good chance of survival because of their rapid adaptability. A manager’s active participation in a company’s capital is linked to a higher probability of survival. This underlines the importance of the personal involvement of the manager and of solid governance.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19655/BBS_2024_01_Oussouadi.pdfcredit guarantee schemesgovernment credit guaranteesMoroccoSME survival |
| spellingShingle | Oussouadi Kamal Cherkaoui Kenza Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco Banks and Bank Systems credit guarantee schemes government credit guarantees Morocco SME survival |
| title | Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco |
| title_full | Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco |
| title_fullStr | Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco |
| title_full_unstemmed | Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco |
| title_short | Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco |
| title_sort | survival dynamics of smes supported by credit guarantee schemes insights from morocco |
| topic | credit guarantee schemes government credit guarantees Morocco SME survival |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19655/BBS_2024_01_Oussouadi.pdf |
| work_keys_str_mv | AT oussouadikamal survivaldynamicsofsmessupportedbycreditguaranteeschemesinsightsfrommorocco AT cherkaouikenza survivaldynamicsofsmessupportedbycreditguaranteeschemesinsightsfrommorocco |