The Influence of Owner and Company Characteristics on Startup Financing in the Algerian Tourism Sector: Evidence from a National Survey

Access to external financing is a critical and structural challenge for young enterprises in developing economies, notably within Algeria’s strategic tourism sector. Startups face barriers such as high risk and information asymmetries, often forcing reliance on internal capital. This exploratory research utilises data from a 2023 national survey of 43 Algerian tourism startups to map funding patterns. It investigates the influence of owner (sex, age, education) and company (region, certification, international scope) characteristics on mobilising traditional, alternative, and public financing sources. Descriptive statistics and cross-tabulation show an overwhelming dominance of traditional financing, with 88.4% of firms relying primarily on personal financial resources. Critically, no respondent reported using bank credit (0%), and alternative instruments such as venture capital or crowdfunding remain marginal. Public subsidies were accessed by only 9.3%. However, greater diversification is observed among men, the most educated, young owners, certified companies, and those with an international scope, particularly those located in the North-Central region (Algiers). The study confirms that funding success is determined by an interaction of individual and organisational characteristics, highlighting the urgent need for adapted support structures to enhance external financing for tourism startups.