The family business in Algeria: What financial policy?

Abstract

This paper proposes to carry out identification and a qualitative and quantitative evaluation of the levels of responsibility of the actors in the problem of financing family SMEs in Algeria. A study carried out on a sample of 120 SMEs from the wilaya of Tizi-Ouzou, allowed us to conclude that self-financing remains the essential (and preferred) source of financing for investments. We also note the predominance of entrepreneurs' recourse to the mode of financing family networks, particularly when starting their activities. The study also found that the more the company invests, the more it uses external cash flow after exhausting internal sources. Finally, we noted that there is a lack of awareness of specific programs for financing family SMEs on the part of owner-managers, thus limiting the choice of financing to conventional bank loans which are more expensive and less accessible.