Several empirical studies utilizing various frameworks have been conducted on various elements of capital structure, but researchers have yet to find the ideal capital structure. A variety of factors influence capital structure decisions, one of which is the firm’s size. The capital structure of SMEs in Somalia is yet to be investigated; for instance, there isn’t much research on the capital structure in Mogadishu; hence, this gap must be filled. In Mogadishu, the study looked at the connection between capital structure and SMEs’ growth. The study’s objectives included identifying the degree of growth experienced by SMEs in Somalia, as well as determining whether the two variables had a relevant relationship. Data was collected from the micro-financial institution staff in Mogadishu via a standardized questionnaire during July 2021, with a six-month time frame specified, utilizing a descriptive and correlation research approach.
The data were analyzed with SPSS and then displayed in tables. According to the study, the majority of Mogadishu’s financial institutions have capital structure and growth strategies in place. It also shows that capital structure and SMEs’ growth have a significant positive relationship. according to the study, Mogadishu’s financial institutions should focus more on the capital structure if they wish to expand. Get the complete PDF of the article here.