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Default Risk Assessment of Tunisian SMEs: Multiple Criteria Decision Making Approaches

Author

Listed:
  • Salah Ben Hamad

    (Université de Sfax, Faculté des Sciences Économiques et de Gestion de Sfax, Tunisie.)

  • Nesrine Turki

    (Université de Monastir, Faculté des Sciences Économiques et de Gestion de Mahdia, Tunisie.)

Abstract

The default risk is a reality as well for the companies as for the economy of a country. This paper has highlighted the fact that in spite of the many incentives to promote Tunisian SMEs, creation of these companies remains below expectations. Thus, a study assessing the risk of failure is imperative. A multicriteria methodology of decision-making in a sample of 41 small and medium-sized enterprises used financing by the Tunisian Solidarity Bank (BTS) as one of the financial support structures relative to investment credits. The results showed that the application of a policy of caution (pessimistic procedure) in the granting of loans by the BTS is the main obstacle to the creation, development and sustainability of the Tunisian SMEs.

Suggested Citation

  • Salah Ben Hamad & Nesrine Turki, 2016. "Default Risk Assessment of Tunisian SMEs: Multiple Criteria Decision Making Approaches," Journal of Business, LAR Center Press, vol. 1(1), pages 29-40, March.
    • Handle: RePEc:lrc:larjob:v:1:y:2016:i:1:p:29-40
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    References listed on IDEAS

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