An Empirical Investigation of Ivorian SMEs Access to Bank Finance: Constraining Factors at Demand-Level

Abstract

This paper investigates the issue of inadequate funding among SMEs operating in Cote D'Ivoire. Data was collected from SMEs operators in both urban and rural areas. The research applies probability sampling, cross-tabulation and correspondence analysis techniques. The paper finds information asymmetry and inadequate collateral as two major constraints that limit the flow of credit from banks to SMEs. The findings reveal that this phenomenon is more recurrent in the micro-enterprises compared to small or medium enterprises.