Strategic Planning as a Mechanism to Facilitate SMEs Access to Finance during Economic Adversities: Covid-19 Pandemic رسالة ماجستير

Abstract

This executive summary captures the key findings and implications of the master's thesis, "Strategic Planning as a Mechanism to Facilitate SMEs Access to Finance during Economic Adversities: Covid-19 Pandemic." The research delves into the obstacles faced by Small and Medium Enterprises (SMEs), particularly in Palestine, with a focus on the implication of strategic planning in overcoming these challenges. SMEs confront a multitude of obstacles, including high production costs, regulatory constraints, limited market access, and, most critically, constrained financial resources. Their pivotal role in driving economic development and generating employment emphasizes the importance of finding effective mechanisms to support their sustainability. The study reveals that internal factors, particularly work-related elements, significantly influence SME sustainability. Additionally, external factors, including marketing, finance, and political-legal aspects, apply a substantial impact on SMEs' potentials. Remarkably, addressing financial and employment-related issues emerges as a pivotal requirement for ensuring SME survival. Earlier research on microfinance in Palestine highlights the challenges hindering SMEs' access to financing, such as collateral requirements, information gaps, and high-interest rates. Bridging these gaps is essential for enhancing financial inclusion and support for SMEs. VIII Despite the establishment of bank branches and microfinance organizations, the issue of financial exclusion persists in Middle Eastern countries, necessitating proactive measures to overcome barriers. Moreover, challenges unique to Palestinian SMEs, including limited funding opportunities, weak legal systems, marketing constraints, and family business conflicts, require targeted interventions to reinforce competitiveness. Managerial skills and strategic planning are identified as critical components of SME stability and growth. Government support is recognized as pivotal for the growth of entrepreneurship, encompassing infrastructure development, financial accessibility, and a conducive regulatory environment. Direct initiatives and programs that aid entrepreneurs play a significant role in fostering entrepreneurship growth. This research emphasizes the challenges and opportunities facing SMEs during economic adversities, especially in Palestine. Strategic planning, performance management, and government support emerge as essential mechanisms for facilitating SME access to finance and ensuring their resilience and contribution to economic development.