Capital Structure and Financing of SMEs: The Tunisian Case

  •  Wafa Ayed    
  •  Sonia Zouari    


This article contributes to analyze the determinants of the capital structure of 611 tunisian small and medium-sized enterprises (SME’s), observed on a duration of six years. We will wonder about the impact of the financial specificities of the SME on their financial structures. For that purpose, we will confront hypotheses of the financial theory with the reality of the SME’s. The estimations conducted, via the within model, show that the financial structure is not neutral and that the cost of financing, the profitability and the commercial debt are the main determinants on the banking debts. The estimations also reveal a hierarchy followed by SME’s, in their financial choice, favoring the financing by internal funds and by commercial debts. A business sector analysis shows greater financing difficulties for the SME’s providing services compared to the industrial SME’s.

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