Egypt, China sign deal to build level-3 biosafety lab    Foreign, housing ministers discuss Egypt's role in African development push    Egypt backs Palestinian unity, calls for ceasefire, aid access    EGX ends week in green on July 10    Egyptian pound strengthens against US dollar on July 10    Egypt, China central banks sign pacts to boost yuan use, payment systems    Egypt's EDA, Haleon discuss local market support    Environment ministry signs agreement to strengthen marine protection, promote ecotourism    Egypt, WHO discuss expanding health cooperation, development initiatives    Service restoration underway after Cairo telecom fire, minister tells PM    Chinese Premier Li Qiang arrives in Egypt for high-level talks    Gaza under siege, fire: Resistance intensifies amid deepening humanitarian collapse    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Pakistan boost healthcare ties – Cabinet    UK, Egypt strengthen cooperation on green transition, eco-tourism, and environmental investments    Escalation in Gaza as ceasefire talks remain fragile amid mounting humanitarian crisis    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt's PM, Uruguay's president discuss Gaza, trade at BRICS summit    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger        Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



SMEs' big push
Published in Al-Ahram Weekly on 03 - 03 - 2005

It takes more than matchmaking to develop the SME sector in Egypt, Sherine Nasr reports
Small and Medium-sized Enterprises (SMEs) are now widely touted as the force that can propel the global economy. A number of countries that have adopted this philosophy have managed, through long- term planning and the implementation of SME-friendly policies, to upgrade this vital sector.
"China and India, for example, are two countries which, according to the World Bank's estimate, will be leading the world's economy for the next 30 years. Both have a very strong SME sector which has enormously contributed to the growth of their economies," said Jan Sturrason, a Swedish expert at Price-Waterhouse Cooper.
Though it is far from realising its potential, the contribution of SMEs to the Egyptian economy can hardly be ignored.
Studies made by experts in the field show that SMEs in Egypt account for almost 98 per cent of the country's total economic activity. SMEs also provide about 80 per cent of total value added to the Egyptian economy.
"There are at least 1.6 million officially recorded private sector enterprises, apart from the agricultural sector. Jobs created by SMEs make up to two-thirds of Egypt's entire workforce," commented Ahmed El- Baradaai, chairman of Banque du Caire (BDC), one of the first financial institutions to provide small loans to SMEs in Egypt.
Last week, a gathering of 40 prominent SMEs representing at least 14 countries met their Egyptian counterparts in an attempt to open new export horizons for Egyptian enterprises. The gathering displayed a wide range of activities ranging from textiles, mining, medical equipment, energy, tourism, foodstuffs and IT. Organised by the Egyptian Businessmen's Association in collaboration with the International Christian Chamber of Commerce, headquartered in Belgium, the four-day conference, entitled "Commerce... Egypt's Highway" was accompanied with an exhibition displaying different products by the participating Egyptian enterprises.
"So far, we depend entirely on private relations to market our products abroad. Attending external fairs and exhibitions also helps substantially," said Hamdi Yassin, marketing manager of Stars of Export- Egypt, an agriculture produce company which mainly exports its organic products to the EU. Yassin underlined that the ultimate goal for participating in the event is to try to get acquainted with more partners from the EU. "We met a number of potential partners and exchanged information and contacts. However, the concrete result of these meetings can only be attained later," he said.
The lack of an umbrella under which the SME sector in Egypt can operate is but one of the many impediments facing this vital sector. Lack of long-term funding, marketing, the issue of competitiveness and pricing in the global market and the absence of a unified policy constitute major challenges to the sector's development.
In terms of policies, international experience in this field indicates that SME development policies must be consistent with the state's general economic policy framework. "Otherwise, this sector tends to drag the economy down or proves unresponsive to measures aimed at improving it," said Mohamed Abdel-Aziz, an SME development specialist.
One step taken in the right direction was the issuing of a Draft National Policy for Small and Medium Enterprise Development in June 1998.
The document was probably the first attempt at proposing such a national policy framework in response to a situation wherein, according to 1997 data, the country had more than 40 different SME projects sponsored by government agencies and organisation and donor agencies.
"Back then, the government found that $560 million was being invested in developing the sector in the absence of such a framework," said Abdel-Aziz who added that the policy was mainly focussed on increasing the competitiveness of SMEs so as to play a leading role in reforming the trade balance through exporting to international markets.
"Experience has proved that the sector is lacking in several competition requirements such as efficient management, skilled labour, advanced machinery, marketing systems in addition to the availability of suitable entries in reasonable prices," he said.
While far from being complete, it is believed that the Draft National Policy can constitute a good start for an efficient process of consultation, refinement and updating of a final document to be adopted by all parties.


Clic here to read the story from its source.