Article: Evaluating public policy interventions in mitigating financial default risk among SMEs Journal: International Journal of Public Sector Performance Management (IJPSPM) 2025 Vol.15 No.5 pp.1 - 18 Abstract: This study explores the challenges and causes of financial default among SMEs in Kuwait, particularly in light of COVID-19's economic impacts. From interviews with 15 managers across service, industrial and commercial sectors, it identifies key themes such as COVID-related operational disruptions, shifts in customer behaviour, increased financial obligations, and potential funding sources like crowdfunding and angel investment. As the first research of its kind in Kuwait, it spotlights the reasons and potential solutions to SMEs' financial default. However, the limited sample size makes generalisation difficult. The practical implications suggest the need for enhanced financial management, effective supply chain strategies, and exploration of alternative funding sources. The study emphasises the importance of government support and regulatory simplification to ensure SMEs' financial stability and long-term growth. Inderscience Publishers - linking academia, business and industry through research

Title: Evaluating public policy interventions in mitigating financial default risk among SMEs

Authors: Rashed Alhaimer; Abdullah Alshami; Afnan Alkhaldi; Ahmad Alsadeeqi; Dalal Aloumi; Sawsan Malik

Addresses: Faculty of Business Studies, Arab Open University – Kuwait, Ardiya Industrial Area, Farwanya, Al-Safat 13033, P.O. Box 3322, Kuwait ' Arab Planning Institute, Al-Jahez Street, Shuwaikh Medical Area, Safat 13059, Kuwait ' Faculty of Business Studies, Arab Open University – Kuwait, Ardiya Industrial Area, Farwanya, Al-Safat 13033, P.O. Box 3322, Kuwait ' Arab Planning Institute, Al-Jahez Street, Shuwaikh Medical Area, Safat 13059, Kuwait ' Faculty of Business Studies, Arab Open University – Kuwait, Ardiya Industrial Area, Farwanya, Al-Safat 13033, P.O. Box 3322, Kuwait ' Faculty of Business Studies, Arab Open University – Kuwait, Ardiya Industrial Area, Farwanya, Al-Safat 13033, P.O. Box 3322, Kuwait

Abstract: This study explores the challenges and causes of financial default among SMEs in Kuwait, particularly in light of COVID-19's economic impacts. From interviews with 15 managers across service, industrial and commercial sectors, it identifies key themes such as COVID-related operational disruptions, shifts in customer behaviour, increased financial obligations, and potential funding sources like crowdfunding and angel investment. As the first research of its kind in Kuwait, it spotlights the reasons and potential solutions to SMEs' financial default. However, the limited sample size makes generalisation difficult. The practical implications suggest the need for enhanced financial management, effective supply chain strategies, and exploration of alternative funding sources. The study emphasises the importance of government support and regulatory simplification to ensure SMEs' financial stability and long-term growth.

Keywords: Kuwait; SMEs; service; industrial; commercial; finance; default; COVID-19; crisis; public authorities; national fund.

DOI: 10.1504/IJPSPM.2025.145590

International Journal of Public Sector Performance Management, 2025 Vol.15 No.5, pp.1 - 18

Received: 03 Dec 2024
Accepted: 07 Jan 2025
Published online: 08 Apr 2025 *

Title: Evaluating public policy interventions in mitigating financial default risk among SMEs

Keep up-to-date