The role of financial technology (FinTech) in overcoming MSMEs’ financing gap in Algeria

Abstract

Access to finance is an important determinant for MSMEs survival and expansion. MSMEs face various financial constraints: some of them are related to these enterprises’ intrinsic profile, others are consequences of their environment. All these financial obstacles lead to the appearance of what is known as ‘financing or funding gap’. This study aims to analyze this gap in Algeria through a descriptive analysis of the current financial situation, with a special focus on financial difficulties faced by MSMEs mainly to obtain necessary funds. The study discusses as well Fintech innovations available in the Algerian ecosystem and their ability to provide more financing alternatives to MSMEs, to eventually decrease or close the gap.