Abstract

The current study aimed to shed light on the reality of the growth of SMEs in the West Bank. The research study focused on the obstacles and determinants of SMEs' growth and the relationship between the financial, administrative, and organizational, legal, and marketing barriers and the SMEs' growth. The study adopted the descriptive and analytical approach, and the study population consisted of SMEs in the suburbs of Jerusalem and Bethlehem governorate. A simple random sample of (328) SMEs were selected, and (322) questionnaires were retrieved for analysis and study, with a retrieval rate of (98.1%). The study results showed a statistically significant relationship between obstacles and the growth of small and medium enterprises in the West Bank. The results also showed that the decrease in the level of financing obstacles by one point affects the growth of SMEs by (17.7%) and that administrative and organizational obstacles do not individually affect the growth of these enterprises. The results also showed a positive relationship between the determinants of growth (individual, internal, and external) and the growth of SMEs and that the individual determinants do not individually affect this relationship. Finally, the relationship between the determinants and growth was more significant than the relationship between obstacles and growth of SMEs. The study presented several recommendations, the most important of which at the governmental level is to re-examine the costs of transactions, fees, and government procedures for SMEs and grant exemptions and tax facilities to these enterprises to encourage them to continue to grow and expand. The study also recommended at the level of small and medium enterprises that owners and managers of SMEs should pay attention to strategic planning and adopt it at work. In addition to paying more attention to the use of modern technology in production and work and the use of specialized agencies in promotion and modern electronic marketing to market their products and services.