The role of financial institutions in financing small businesses

Abstract

The study is mainly aimed to find out the role played by financial institutions in the financing of small enterprises based in Southern Region, and the reality of this funding, and to identify the obstacles to microfinance, The study population in the financial institutions operating in the region (commercial and specialized banks) and through the use of the report of the Agricultural Bank and Development main to get to know the reality of financing granted, as well as the distribution of a questionnaire on working commercial banks and specialized handicaps with respect to microfinance.   And The results were that the majority of the working projects a small Southern Region and ultrafine were self-financed, and institutions that have been financed by the banks did not achieve economic and social development of the southern region's goals, and because of lack of follow-up financing granted consequent faltering borrowers for payment, and there are many obstacles in relation to financing small projects currently, the operating banks to disclose the data and information on financing granted to small businesses size, and the establishment of the state through financial bodies constructing entity responsible for providing guarantees for small-business owners and the follow-up financing granted, and the need to organize the financing granted by banks to the owners of small businesses through the bank studied the draft submitted by the borrower, and the existence of a supportive hand to the owners of small businesses to provide advice and counsel.