The financial performance of small firms in Lebanon (1975-1986)

Abstract

The purpose of this thesis is to contribute to a better understanding of the financial performance of small businesses. This work represents a contribution to the literature on the subject. The methodology adopted may perhaps be also applied to small business in many developing countries. The approach takes the form of a multi-stage model assessing the firm's financial performance. This is applied to small firms in Lebanon during the war period between 1975 and 1985.A review of the literature on financial performance is presented identifying the key issues of concern and debate where research was needed with special concentration on small firms. Furthermore, an extensive and original historical review of the literature which chronologically describes the Lebanese socioeconomic system is presented. Severed hypotheses were formed and tested practically through cut original survey undertaken in Lebanon which included 75 small manufacturing firms. The financial performance of these firms was tested extensively in terms of their manpower, financial management, structure, finance, profit and growth and the environment. The results enabled the major hypotheses to be proven. It has been demonstrated that changes in the economic and financial resources of the country as a result of the wcw have lead to a radical change in the structure of small firm. Much criticism has been made of government policy because of the limited contribution the government has made to the financing of small manufacturing firms. The major conclusions are discussed and a series of recommendations for policy makers were indicated together with suggestions for further research topics.