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
Behavioral Biases, Credit Assessment, Development, Egypt, Rationality, SMSEs.