The Impact of Financing Small Projects on the Growth of the Libyan Economy

Abstract

Small businesses play a fundamental role in economic and social development and are a focus of attention for governments and international organizations. Their importance is increasing in developing countries because they represent the only realistic prospects for economic development and an effective means of addressing the problems of unemployment and poverty. The research aims to analyze the role of micro-enterprises in supporting economic growth in Libya, by reviewing the reality of these projects, identifying their most important economic contributions, the sources of funding for these projects, and their impact on the growth of the Libyan economy, The research included several concepts for small and medium enterprises, and addressed many of the obstacles facing small and medium enterprises, including problems and difficulties in financing. It relied on the descriptive analytical approach based on official data and previous studies, with the aim of clarifying the nature of the relationship between micro enterprises and economic growth rates, In addition to analyzing previous literature and studies that addressed the role of micro-enterprises in economic growth, the results concluded that small enterprises have a real ability to promote Libyan economic growth, especially if appropriate financing is provided and the regulatory and administrative environment supporting them is improved, Small businesses also face numerous obstacles, including a lack of skills and experience, insufficient incentives, and inadequate bank loans to cover their needs. The study recommends adopting more effective policies to empower this vital sector and remove the challenges that hinder its development.