Obstacles to SMEs growth in Lebanon still daunting

Data and Investment Consult Lebanon organized yesterday a conference entitled ‘financing small and medium enterprises’. The conference highlighted the following areas: 1) mechanisms that facilitate the access of small and medium enterprises (SMEs) to proper financing through the development of state policies to this end; 2) simplify the guarantees of the financing process, and 3) strengthen the role of financial institutions active in this area to be able to accommodate the growing demand on their financial resources. In a related context, As Safir newspaper reported today that the challenges SMEs have been facing for years remained unresolved, despite the attractive promotions and slogans advertised by financiers. The main obstacle facing the progress of SMEs, the newspaper wrote, is their lack of a legal service ID which makes their evaluative criteria inadequate. SMEs, As Safir went on to say, also face difficulties in finding markets to their products, competing with copycat businesses that share the same line of production and services, insubstantial studies on feasibility of projects and the needs of the market, and the lack of coordination between universities and labor market requirements. The newspaper also pointed out that SMEs have problems in borrowing because of the demanding guarantees set by the lending banks. As Safir concluded by a call for support to these enterprises which constitute the pillar of national economy as they account for more than 90% of the businesses in Lebanon. )As Safir, November 17, 2016(