Small and medium-sized enterprises (SMEs) rely on fast funding for survival and growth. A 2024 Report on Employer Firms in the U.S. found that businesses sought funding for three main reasons: operating expenses, expansion, and opportunity 2.
Yet in the Middle East and North Africa (MENA), they face staggering barriers to funding, receiving just 7% of total bank lending—the lowest in the world 3. Banks view SMEs as higher-risk and less profitable.
A study by the Shell Foundation and Citi Foundation revealed that over half of SMEs that apply for bank funding are denied, primarily due to short business histories (typically requiring 5-10 years), insufficient collateral (120%-150% of the finance value), and the absence of suitable guarantors 4.
Assessing and funding SME finance requires more time and resources, leading banks to prioritize corporates. For the few SMEs that secure finance, the interest rates range from 10%-14%, and the money often takes several months to arrive 4.
Delayed funding leaves SMEs vulnerable to a host of hidden costs, from lost opportunities to financial distress and, in Bkam’s case, total collapse.
