International Journal of Accounting and Management Sciences (IJAMS)
IJAMS Vol.3 No.4 October 2024
DOI https://www.doi.org/10.56830/IJAMS10202406
Authors
Ahmed Emam
Farid Moharam Algarhy
Abstract
This research aims to examine the relation between the access to finance by Micro/Small businesses in term of volume and number on creating new employment opportunities and hence positively impacting the country financial performance.Based on empirical literature, the model expressed the relationship of Micro and SME Financing on Financial Performance, is obviously discussed and delicately examined. Consequently, the conceptual, linkage, and research assumed four hypotheses tested the relationship between the Financed amount to micro and small enterprises and the reduction in unemployment; the financed amount to micro and small enterprises and the different economic sectors; the number of financed micro and small enterprises and the reduction in unemployment and finally the number of financed micro and small enterprises and the different economic sectors. The study gathers secondary data by obtaining all pertinent and necessary data from Egypt’s “Accountability state authority” Micro Small and Medium Enterprises Development Agency. The dataset contains several significant variables, such as the number of projects, the amount of finance disbursed in the correspondent year, the number of the firm (Micro and Small), the sector classifications (animal production, industrial, commercial, liberal profession, and service), the year of observation (2008–2023), and employment statistics. This study provides empirical evidence for the positive impact of Micro / Medium financing on employment in SMEs, albeit with varying effects across different enterprise types and sectors. The findings suggest that both the amount of financing and the number of projects funded play roles in job creation, though the magnitude of these effects appears to be small. This underscores the need for targeted and efficient micro / medium financing strategies that consider the specific characteristics of different business types and industries.
Keywords: MSME, Financial Performance, Finance, Economic Growth, Economic Development, Egypt, Developing Countries
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