CONSTRAINTS OF SMES IN WEST AFRICA: THE CASE OF COTE DIVOIRE AFTER THE CRISIS

Small and Medium Enterprises are the key factors of the economic development in developing countries. It is therefore paramount to identify the major constraints they are confronted with. This paper highlights the constraints experienced by small and medium enterprises in Cote dIvoire from a collection of original data. An ordered probit analysis coupled with a Directed Acyclic Graph (DAG) show that the constraints on sales growth, as perceived by managers, differ according to the characteristics of the company. Also, the improved water supply and a straightforward building permit policy would allow companies to increase their profitability. Furthermore, a deterioration of access to funding has also lead to a massive decline in business sales. Our analysis confirmed the interrelationship between various constraints. Thus, a business climate marked by political instability and insecurity inevitably affects corruption. Then, political stability, reform in tax policy and a corruption-free environment are likely to improve the financial conditions of companies and promote the growth of business sales. Thus, all the reforms undertaken by the government of Cote dIvoire to improve the business climate must take into consideration the characteristics of companies as well as the interrelationship between the various obstacles they encounter.