The Importance of SMEs in the National Economy
The significant role that Small and Medium-sized Enterprises (SMEs) play in the national economy, whether in terms of employment, innovation, or wealth creation, necessitates paying particular attention to the conditions under which their financing and development operate.
The Press — Financing Difficulties of SMEs
The financing difficulties of SMEs are a major concern and take on a very important dimension, as they constitute obstacles to their development or survival. The specificity of these enterprises limits their access to various sources of financing and makes them more dependent on a single mode of financing, which could be insufficient to cover their needs.
SMEs in Tunisia: The Engine of the Economy
SMEs in Tunisia represent the engine of the economy, generating employment, innovation, and integration into global value chains in strategic sectors. However, limited access to financing and rigid banking conditions hinder their development and internationalization.
Access to Financing: A Major Obstacle
Access to financing remains a major obstacle, revealing a disturbing paradox for a dynamic entrepreneurial fabric. A survey conducted by the European Investment Bank (EIB) as part of the "Trade and Competitiveness Programme" (TCP), co-financed by the European Union, highlights the structural constraints hindering the development of SMEs and their growth.
Banking Financing: A Sought-After Solution
Today, SMEs continue to take up more space in the country's economic activity, and their role is increasingly palpable with innovations. However, their implantation in the economy remains to be encouraged, through various aid and support mechanisms, offering diverse products and services, including banking financing, specifically credit facilities.
The Importance of Banking Financing
Banking financing has become increasingly sought after, particularly by these enterprises seeking remedies for self-financing. The bank and the SME are two important actors in the economy, intimately linked. The place of the SME cannot be overlooked, nor can that of the bank.
The Limitations of Banking Financing
However, banking financing, although it is the only available source of financing for SMEs, remains limited due to the significant risk of default associated with these enterprises and the lack of negotiable assets that can serve as guarantees to obtain financing. Although they remain an important financial lever, loans are often too few to meet the needs of these entrepreneurs in the early stages of developing their businesses.
The Survey's Findings
The survey, which solicited 150 SME leaders operating in key sectors such as the automotive industry, agro-industry, and textiles, indicates that "not all SMEs have the same opportunities to access credit: 44% of leaders have obtained a loan from a financial institution, 15% have been refused, and 38% resort to informal sources, such as close friends, family, or personal networks." It emerges that only 3% of SME managers have never sought financing, which testifies to the urgent need for external financial support to ensure their growth.
The Need for Guarantees
The study indicates that SMEs and Very Small Enterprises (VSEs), which represent 95% of the Tunisian entrepreneurial fabric, face discouraging loan conditions, including unadvantageous interest rates (82%), excessive guarantees (52%), and complex administrative procedures (53%). This means that access to banking financing for SMEs remains dependent on the real guarantees they can present, and since the national economy relies on the dynamism of SMEs, state intervention to address financing problems is essential, through the establishment of a guarantee system and mechanisms.
Overcoming the Challenges
Tunisian SMEs face numerous challenges, but with the right strategies and tools, it is possible to overcome them, prosper, improve profitability, and position these enterprises for sustainable growth in Tunisia's competitive market.
