Basic financial products crucial for creation of new firms: Study – The Peninsula

Basic financial products crucial for creation of new firms: Study – The Peninsula

Doha: Basic financial products such as having an account, saving accounts, access to credit are important to stimulate the creation of new firms and keeping the existing firms viable, according to findings of research conducted by Dr Sana Zaouali, researcher at Qatar University. The findings of the research also revealed that a better access to digital products such as Fintech, mobile money, e-payment, would increase as well the formation of new businesses.

She conducted the research with her colleague Dr Lanouar Charfeddine on how to promote entrepreneurship in emerging countries and particularly Qatar.

This study has shown the role of Financial inclusion and business environment in promoting entrepreneurship.

The findings also found that a conducive business environment such as lower business regulations, bureaucracy burdens, better access to professional services and governmental programs are essential to promote entrepreneurship.

Sharing the policy recommendations, she said that tt is important to alleviate the constraints on access to financial services to nascent, new or established firms. For instance, governments should implement reforms to remove financial barriers such as access to credit by reducing or removing client documentation requirements, collateral registries. In addition, facilitating opening savings accounts could provide huge opportunities to potential entrepreneurs to help them set up