ABSTRACTThis study investigates the impact of financial services on SME performance in Libya, examining training skills as a mediating mechanism. Using aquantitative research design, data were collected via a structured questionnaire distributed to 530 SMEs, with 392 valid responses obtained, representinga 74% response rate. The study employs PLS-SEM to assess direct and indirect relationships among constructs. The results indicate that financial servicespositively and significantly influence both SME performance and training skills. Training skills, in turn, positively affect SME performance and mediatethe relationship between financial services and performance. These findings underscore that access to financial resources alone is insufÏcient; SMEsmust possess internal capabilities, particularly through training, to effectively utilize financial services for enhanced outcomes. The study contributes tohuman capital and capability-based perspectives in fragile economies and provides practical insights for policymakers, financial institutions, and SMEmanagers, emphasizing the importance of integrating financial support with targeted skill development initiatives to achieve sustainable SME growth

The current study aims to examine the effect of individuals characteristics and non-financial services on the performance of medium-sized and small enterprises (SMEs) in Libya. In addition, this study investigates the mediating role of government regulations that impact the relationship between individuals' characteristics and non-financial services. A total 392 enterprises participated in this study. Structural equation modelling (SEM) was used in order to examine the causal relationship among the latent variables. The results of the study shows a positive relationship between non-financial services, individuals characteristics, government regulations and SMEs performance. Furthermore, government regulastions had a significant and positive impact on SMEs performance in Libya. On the other hand, the results indecated a insignificant relationship between non-financial services and individuals characteristics influencing SMEs performance. Moreover, the results of the study indicates that government regulations play a mediating role between non-financial services, individuals characterises, and SMEs performance among the employees of SMEs in Libya.

AbstractBusiness performance is a common phenomenon for every business organization. Historicallyspeaking, small firms have failed since they are have limited access to resources if compared tolarger firms.Therefore, the purpose of the study is to examine and investigate the main factorsthat impact performance of small and medium-sized enterprises (SMEs) in Libya. In addition,this study identifies the role of government regulations as a mediating variable influential infinancial services and SMEs performance. The sample of the present study consists of a total 356SMEs analysed using the structural equation modelling (SEM) in order to examine causalrelationships among the study latent variables. The results of study show that two directhypotheses are significant. They include positive relationships between financial services andgovernment regulations as well as government regulations and SMEs performance. On the otherhand, one direct hypothesis is insignificant to financial services with SMEs performance.Moreover, the results of the study indicate that government regulation is full meditaition betweengovernment regulation and SMEs performance.