IDEAS home Printed from
   My bibliography  Save this article

Tunisia's Lending Program to SMEs: Anatomy of an Institutional Failure?


  • Bechri, Mohamed
  • Najah, Tijani
  • Nugent, Jeffrey B


This paper studies a case of what in many respects is an institutional failure. It is the popular lending program in Tunisia known as FOPRODI, created in 1974 for the promotion of small and medium manufacturing enterprises (SMEs) and for the decentralization of industry. FOPRODI's announced aim was to help new entrepreneurs with insufficient capital to start their businesses and thereby to create new jobs. Because of an extremely low repayment rate, the program has failed in the sense that it became unsustainable and indeed finally collapsed in 1997. While there are some bases for believing that FOPRODI may have been more successful than it might seem in social terms, at this point it seems to have been a failure. The sources of its institutional failure are traced to inappropriate incentives attributable both to the institutional structure surrounding FOPRODI and its own rules. The findings are then used to generate policy recommendations on ways in which similar programs could be better designed, transaction costs reduced and the outcomes obtained more satisfactory. Copyright 2001 by Kluwer Academic Publishers

Suggested Citation

  • Bechri, Mohamed & Najah, Tijani & Nugent, Jeffrey B, 2001. "Tunisia's Lending Program to SMEs: Anatomy of an Institutional Failure?," Small Business Economics, Springer, vol. 17(4), pages 293-308, December.
  • Handle: RePEc:kap:sbusec:v:17:y:2001:i:4:p:293-308

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Durmus Cagr? Yildirim & Ozlem Tosuner Unal & Ayfer Gedikli, 2015. "Financial Problems of Small and Medium-Sized Enterprises in Turkey," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(1), pages 27-37, January.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:17:y:2001:i:4:p:293-308. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.