Which of the following is necessary for the survival of small firms in West Africa?

Small firms in West Africa face numerous challenges including limited access to finance, inadequate infrastructure, and competition from larger enterprises. For their survival and growth, government assistance in the form of loans and tax holidays is a critical necessity.

Government support helps small firms overcome barriers they cannot address on their own:

• Loans at concessional interest rates provide the capital small firms need for equipment, raw materials, and expansion, since many lack the collateral required by commercial banks.
• Tax holidays (temporary exemption from certain taxes) reduce operating costs during the vulnerable early years of a business, allowing profits to be reinvested in growth.

The other options describe problems rather than solutions:

• High transportation costs increase operating expenses and reduce competitiveness - this is a challenge, not a factor that aids survival.
• Inadequate collateral for bank loans is a major obstacle that prevents small firms from accessing credit - it is a problem, not a helpful factor.
• Access to land for development, while useful, is not as directly impactful as financial support through loans and tax relief for the survival of small firms.