The Role of Financing in the Development of Small Enterprises in the Republic of Yemen

Abstract

This study investigates the role of financing in the development of small enterprises in the Republic of Yemen and identifies the key challenges and constraints that hinder their growth and sustainability. A descriptive-analytical research design was employed, complemented by quantitative analysis. Data were collected using a structured questionnaire administered to a random sample of small enterprise owners across several governorates in Yemen.

The findings indicate that financing plays a pivotal role in fostering the development of small enterprises by enhancing their capacity for growth and long-term sustainability. The results further reveal that weaknesses in the financing environment constitute the principal barrier to the expansion and continuity of these enterprises. In addition, the study found a strong positive and statistically significant relationship between financing and the development of small enterprises. These findings underscore the importance of strengthening financing policies and mechanisms to improve access to finance and enhance the contribution of small enterprises to Yemen's economic development.