What are the Challenges that SMEs have Faced During the Financial Crisis in Lebanon?

Abstract

Small and Medium Size Enterprises have a crucial part in every economy. They account for the majority of businesses worldwide. They provide the main source of employment and are major contributors to value creation across all sectors. Studies have been made to measure the impact of problems that SMEs' performances suffer from. This study is conducted to show the effect of the challenges SMEs face in Lebanon, focusing mainly on their performance. The methodology of this paper includes several previous studies and a survey questionnaire in order to study how Lebanese SMEs' owners perceive the different challenges that they face and their impact on their business. The findings showed that most SMEs lack financial resources due to their inaccessibility to financial capital especially during the last three years. We concluded that employees' salaries have an effect on performance while entrepreneurial skills and business obstacles do not affect profitability.