Evaluating public policy interventions in mitigating financial default risk among SMEs

This study explores the challenges and causes of financial default among SMEs in Kuwait, particularly in light of COVID-19's economic impacts. From interviews with 15 managers across service, industrial and commercial sectors, it identifies key themes such as COVID-related operational disruptions, shifts in customer behaviour, increased financial obligations, and potential funding sources like crowdfunding and angel investment. As the first research of its kind in Kuwait, it spotlights the reasons and potential solutions to SMEs' financial default. However, the limited sample size makes generalisation difficult. The practical implications suggest the need for enhanced financial management, effective supply chain strategies, and exploration of alternative funding sources. The study emphasises the importance of government support and regulatory simplification to ensure SMEs' financial stability and long-term growth.