Oussouadi Kamal

This study uses a quantitative approach to examine the determinants of SME financing in Morocco. The sample consists of 500 Moroccan SMEs that have submitted applications for bank finance, with their applications being assessed for a possible government credit guarantee. The sample includes companies that obtained state-guaranteed bank financing, those whose applications were rejected but that obtained other financing, and those that did not obtain financing, all evaluated in the year following the application. The analysis is based on nominal logistic regression to examine the interactions between different variables, including the amount of credit requested, profitability, debt level, repayment capacity, size, managerial shareholding, decision-making maturity, and the presence of a government credit guarantee. Following careful collection and analysis of the data, a number of results were drawn. In particular, it emerged that high profitability, solid repayment capacity, a minimum size requirement, an appropriate level of debt, high decision-making maturity and the presence of a government credit guarantee are significant factors that increase the likelihood of obtaining financing. On the other hand, the amount of credit requested and the manager’s shareholding did not show any significant impact on the probability of obtaining financing.

This research seeks to identify the factors influencing the investment potential of SMEs following their receipt of government-guaranteed loans. To this end, an empirical methodology based on the statistical analysis of data collected from a representative sample of Moroccan companies was employed. This sample of 335 SMEs that had benefited from loans with government guarantees was selected at random to ensure its relevance to the population of SMEs in Morocco. The methodological approach is based on a regression analysis using the robust least squares (RLS) method. Firm profitability is positively related to higher investment, suggesting that government guarantees should encourage investment by profitable SMEs. Liquidity, repayment capacity and indebtedness at the time of applying for finance do not appear to influence investment. These elements can be improved after financing, which indicates that government guarantees should not penalize SMEs in difficulty. Decision-making maturity has a negative effect on investment, suggesting that young companies and entrepreneurs tend to invest more. A negative correlation is observed between company size and investment, which suggests that government guarantees should be geared towards small SMEs and young companies and entrepreneurs. Finally, managers with a large share of capital invest more, leading us to believe that government guarantees should favor this type of SME.

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.