ABSTRACT
Achieving high economic growth in Egypt requires the engagement of all business enterprises, large and small. However, small and medium size enterprises (SMSEs) largely operate outside the formal economy. As a result, they are not registered with the government agencies and they do not pay taxes or follow safety and hygiene requirements. Their capital structure mostly is self-financing consisting of equity with limited or now loans. This limits their growth opportunities. A recent government initiative has provided these firms with low -interest loans which need to be managed by banks. This paper explores this initiative by examining the credit assessment process of two contrasting case studies on a scale ranging from rationality to intuition
Keywords
Behavioral Biases, Credit Assessment, Development, Egypt, Rationality, SMSEs.