SMEs and Start-ups in Algeria: Determinants of Performance, Support Policies, and Future Perspectives

Abstract

In Algeria, "startups" are modern companies focused on innovation, often in the technology sector. They are characterized as small-scale projects starting at an early stage with no guarantee of success, meaning entrepreneurs bear the risks of both profit and loss. The Algerian government has established a ministry dedicated to supporting startups, as well as a funding fund aimed at facilitating access to loans and training. However, startups face numerous challenges, including a lack of funding, weak infrastructure, and outdated laws ill-suited to the nature of these new businesses. Therefore, there is a pressing need to develop an integrated ecosystem that supports startups at all stages of their life cycle. This includes providing funding, enhancing coordination between universities and research institutions, and facilitating access to information necessary for conducting effective feasibility studies, thereby contributing to Algeria's economic growth.