| By: |
Rola Nabil El Kabbani (Faculty of Management Technology, The German University in Cairo);
Christian Kalhoefer (Faculty of Management Technology, The German University in Cairo) |
| Abstract: |
Even though small and medium enterprises (SMEs) represent the majority of the
Egyptian firms, their value added is relatively low. According to previous
research, SMEs face a financing gap that causes undercapitalization and
represents an obstacle that hinders SMEs from growth. This paper analyzes the
current situation of SMEs in Egypt and addresses the question whether the
financing problem still exists. In addition, we discuss the role of venture
capital as a possible source of financing. Based on data which has been
gathered using questionnaires, it is investigated whether Egyptian SMEs do
know and would accept venture capital financing for their businesses. Our
results show that access to finance is still a significant bottleneck for
Egyptian SMEs. Venture capital financing could help to close this financing
gap. |
| Keywords: |
SME, Financing Gap, Venture Capital |
| JEL: |
G24 |
| Date: |
2011–04 |
| URL: |
http://d.repec.org/n?u=RePEc:guc:wpaper:28&r=cfn |