IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vixy2021i2p260-276.html
   My bibliography  Save this article

Barriers to the Growth of SMEs: Empirical Evidence from Algeria

Author

Listed:
  • Hichem Sofiane Salaouatchi
  • Olivier Colot
  • Youcef Boudella
  • Mohamed Abdelkarim Chekirine
  • Adja Hamida
  • Mohamed Habaina
  • Salima Khamadj

Abstract

Purpose: This paper aims to study the barriers to SMEs’ growth by the typology of entrepreneurs in the Algerian context. Design/Methodology/Approach: We used the Ahmad and Hoffman model (2007) to determine the different blocking factors. The breakdown of these different barriers is divided into four types, internal barriers, micro external barriers, macro external barriers, and infrastructure barriers in a sample of 57 SMEs located in the Wilaya of Algiers. Findings: The results show that the leaders of Algerian SMEs are mainly of the leadership type favoring independence indefinitely, which constitutes a barrier to growth. There is also a significant link between growth and reinvested earnings, and SME managers reinvest little of this. In addition, SME managers perceive that external barriers influence the growth of their enterprises than internal barriers. Practical Implications: This study contributes to understanding barriers to SME growth by the typology of entrepreneurs in a particular context, which is Algeria. In practical terms, these results determine the barriers or constraints to the growth of our sample's industrial SMEs to allow an objective diagnosis for the main aspects. Originality/value: This article innovates a new research context and adds to the existing literature by presenting new evidence about the obstacles to the growth of SMEs.

Suggested Citation

  • Hichem Sofiane Salaouatchi & Olivier Colot & Youcef Boudella & Mohamed Abdelkarim Chekirine & Adja Hamida & Mohamed Habaina & Salima Khamadj, 2021. "Barriers to the Growth of SMEs: Empirical Evidence from Algeria," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 260-276.
    • Handle: RePEc:ers:ijebaa:v:ix:y:2021:i:2:p:260-276
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/702/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), 2007. "Handbook of Research on Entrepreneurship Policy," Books, Edward Elgar Publishing, number 3856.
    2. Frank Lasch & Saïd Yami, 2008. "The Nature and Focus of Entrepreneurship Research in France over the Last Decade: A French Touch?," Entrepreneurship Theory and Practice, , vol. 32(2), pages 339-360, March.
    3. Guido Buenstorf, 2007. "Creation and Pursuit of Entrepreneurial Opportunities: An Evolutionary Economics Perspective," Small Business Economics, Springer, vol. 28(4), pages 323-337, April.
    4. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    5. Martin Carree & A. R. Thurik (ed.), 2006. "Entrepreneurship and Economic Growth," Books, Edward Elgar Publishing, number 3673.
    6. Rafik Abdesselam & Jean Bonnet & Nicolas Le Pape, 2004. "An explanation of the life span of new firms : an empirical analysis from French data," Post-Print halshs-00069109, HAL.
    7. Maria Minniti, 2008. "The Role of Government Policy on Entrepreneurial Activity: Productive, Unproductive, or Destructive?," Entrepreneurship Theory and Practice, , vol. 32(5), pages 779-790, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    2. Kolympiris, Christos & Kalaitzandonakes, Nicholas & Miller, Douglas, 2015. "Location choice of academic entrepreneurs: Evidence from the US biotechnology industry," Journal of Business Venturing, Elsevier, vol. 30(2), pages 227-254.
    3. Bo Carlsson & Pontus Braunerhjelm & Maureen McKelvey & Christer Olofsson & Lars Persson & Håkan Ylinenpää, 2013. "The evolving domain of entrepreneurship research," Small Business Economics, Springer, vol. 41(4), pages 913-930, December.
    4. Alberto Arenal & Claudio Feijoo & Ana Moreno & Sergio Ramos & Cristina Armuña, 2021. "Entrepreneurship Policy Agenda in the European Union: A Text Mining Perspective," Review of Policy Research, Policy Studies Organization, vol. 38(2), pages 243-271, March.
    5. Harris, Jared D. & Sapienza, Harry J. & Bowie, Norman E., 2009. "Ethics and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 407-418, September.
    6. Thurik, A.R., 2008. "Entrepreneurship, Economic Growth and Policy in Emerging Economies," ERIM Report Series Research in Management ERS-2008-060-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Alessandra Colombelli & Francesco Quatraro, 2013. "New Firm Formation and the properties of local knowledge bases: Evidence from Italian NUTS 3 regions," Working Papers hal-00858989, HAL.
    8. Naudé, Wim, 2011. "Entrepreneurship is Not a Binding Constraint on Growth and Development in the Poorest Countries," World Development, Elsevier, vol. 39(1), pages 33-44, January.
    9. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth - past experience, current knowledge and policy implications," Working Paper Series in Economics and Institutions of Innovation 224, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    10. Diana M. Hechavarría & Amy E. Ingram, 2019. "Entrepreneurial ecosystem conditions and gendered national-level entrepreneurial activity: a 14-year panel study of GEM," Small Business Economics, Springer, vol. 53(2), pages 431-458, August.
    11. Martin Henning & Maureen McKelvey, 2020. "Knowledge, entrepreneurship and regional transformation: contributing to the Schumpeterian and evolutionary perspective on the relationships between them," Small Business Economics, Springer, vol. 54(2), pages 495-501, February.
    12. Maximilian Goethner & Michael Wyrwich, 2020. "Cross-faculty proximity and academic entrepreneurship: the role of business schools," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1016-1062, August.
    13. Joao Leitao & Frank Lasch & Roy Thurik, 2011. "Globalisation, entrepreneurship and regional environment," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 12(2), pages 129-138.
    14. Catherine Laffineur & Saulo Dubard Barbosa & Alain Fayolle & Emeran Nziali, 2017. "Active labor market programs’ effects on entrepreneurship and unemployment," Small Business Economics, Springer, vol. 49(4), pages 889-918, December.
    15. Colombelli, Alessandra & Quatraro, Francesco, 2016. "Green startups and local knowledge bases: Newborn suppliers of energy-related technologies in Italian Provinces," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201604, University of Turin.
    16. Afi, Hatem & Boubaker, Sabri & Omri, Anis, 2022. "Do foreign investment and economic freedom matter for behavioral entrepreneurship? Comparing opportunity versus necessity entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    17. Jonathan Levie & Erkko Autio, 2008. "A theoretical grounding and test of the GEM model," Small Business Economics, Springer, vol. 31(3), pages 235-263, October.
    18. Franco Malerba & Maureen McKelvey, 2020. "Knowledge-intensive innovative entrepreneurship integrating Schumpeter, evolutionary economics, and innovation systems," Small Business Economics, Springer, vol. 54(2), pages 503-522, February.
    19. Alberto Arenal & Claudio Feijoo & Ana Moreno & Cristina Armuña & Sergio Ramos, 2019. "An academic perspective on the entrepreneurship policy agenda: themes, geographies and evolution," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(1), pages 65-93, December.
    20. Sá, Elisabete S. & Pinho, José Carlos M.R. de, 2019. "Effect of entrepreneurial framework conditions on R&D transfer to new and growing firms: The case of European Union innovation-driven countries," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 47-58.

    More about this item

    Keywords

    SMEs; typology; growth; barriers to growth; entrepreneurs; Algeria.;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:ix:y:2021:i:2:p:260-276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.