The reality of venture capital in Algeria and its role in financing SME investments

  • Habiba Meddas University Echahid Hamma Lakhdar El-Oued, (Algeria)
  • Moussa Rahmani University Mohamed Kheider Biskra (Algeria)
Keywords: Finance, Investments, SMEs, Venture Capital

Abstract

      This study aims to identify the reality of venture capital in Algeria and the role of its companies in financing small and medium enterprises' investments. Given the expected role of the latter in expanding the base of the national economy, and helping the campaign of new and innovative ideas to implement them on the ground in sustainable investment projects. In this regard - especially with the absence of a professional association for venture capital in Algeria - we have relied on conducting a survey at the level of companies practicing the profession, and collecting and analyzing the necessary information in order to extrapolate the specifics of this activity and reveal its economic impact. We came to the conclusion that the venture capital technology actively contributes to financing a very limited number of small and medium enterprises, as the latter prefers service projects with guaranteed profitability with the help of government support and escort structures.

Downloads

Download data is not yet available.

References

AFRICINVEST. (2019). THE FIRM. http://www.africinvest.com/the-firm/at-a-glance/

AOM INVEST Spa. (2018). Notice D'Information Admission Au Compartiment PME De La Bourse d'Alger. Algerie: COSOB. https://www.cosob.org/notices/

ASICOM. (2019). Creation. https://www.asicom.dz/index.php/fr/

COSOB. (2018). ANNUAL REPORT 2018. Algeria. https://www.cosob.org/wp-content/uploads/2020/12/Rapport-annuel-2018.pdf

Eldjazair-istithmar. (2019). Eldjazair-istithmar venture capital company. https://www.eldjazair-istithmar.dz

FNI. (2014). Annual Report 2014. Algeria. https://www.fni.dz/fni/sites/default/files/annee2014fr.pdf.

LACHMANN, J. (2012). Venture Capital And Private Equity. Paris: Economica Edition.

Ministry of Industry and Mines. (2018). SME Statistical Information Bulletin N33. Data for the 1st half of 2018. Algeria. www.mdipi.gov.dz/IMG/pdf/Bulletin_PME_N_33.pdf

Mohamed Al-Saeed Amara. (2019). Activity of investment funds managed by the Algerian Foreign Bank. (H Meddas, the hubs) Algiers: General Directorate of the Algerian Foreign Bank.

Mohamed Sebti. (2019). Criteria for selecting funded projects and following them up. (H Meddas, the hubs) Algiers: African Investment Company AFRICINVEST

Mohamed Sebti. (2009). The Effectiveness of Risk Capital in Financing Emerging Ventures A FINALEP Case Study (Master Thesis). Faculty of Economic Sciences, Business and Management Sciences, Constantine: University of Mentouri.

National Agency for Investment Development. (2019). Investment Funds Update 2017. www.andi.dz/index.php/en/fonds-d-investissement

Saad Muhammad Al-Nasser. (2012). Venture Capital: A promising model for financing entrepreneurial projects in the Kingdom of Saudi Arabia. SABIC Chair for the Study of Islamic Financial Markets

Samir Sahnoun. (2012). Opportunities for financing small and medium enterprises with venture capital, a case study of Algeria-Tunisia-Morocco. Faculty of Economic, Business and Management Sciences, Tlemcen: Abi Bakr Belkaid University.

SOFINANCE. (2019). SOFINANCE PRESENTATION. www.Sofinance.dz .

Y MAAMERI. (2018). Presentation of the company "El Djazair Istithmar": www.eldjazairestithmar.dz

Zuhair Uzira. (2019). Criteria for selecting funded projects and following them up. (H Meddas, the hubs) Algiers: The Algerian-Saudi Investment Company

Published
2021-06-06
How to Cite
Meddas , H., & Rahmani , M. (2021). The reality of venture capital in Algeria and its role in financing SME investments. Roa Iktissadia Review, 11(1), 243-260. Retrieved from https://roair.info/index.php/roair/article/view/237
Section
Articles