CAIRO: Small- and medium-sized enterprises (SMEs) are a key contributor to GDP growth and job creation in Egypt. How to harness their potential was the main issue at stake in the workshop hosted by Crédit Agricole on Monday. Dora Fiani of Coface, a credit worthiness rating company, stressed the need to arrive at a shared definition of the SME. While she sees SME defined in terms of turnover rates, Michel Zanatti - retail and commercial banking head at Crédit Agricole - said we should look at "people behind the numbers. For him, entrepreneurial spirit matters first and foremost, not so much the size of a business. Rising entrepreneur Gamal Oun, founder of the packing company Gamma Pack, agrees. "We might be a small enterprise now, but we will become bigger. The strategies on how to bridge the gap between banks and small entrepreneurs also differed. Fiani underlined the importance of being able to assess the credit worthiness of an enterprise correctly. Otherwise, no lending is possible. She sees one of the problems with a lack of financial knowledge on the side of the SME, often unable to draft a business plan and adhere to accepted accounting standards. Gamal Oun agreed with her on the fact that many entrepreneurs lack the necessary financial education and are often hesitant to work through banks. For him, banks have to reach out to these potential clients and acquire an understanding of their needs. Crédit Agricole is hoping to accomplish that through a new online service to be launched in two months, enabling clients to find customers for web dealings online. With panelists differing on the definition of SMEs, opinion was also divided on their potential. Crédit Agricole sees important opportunities for banks in serving SMEs while Fiani believes that only a minority of SMEs currently have the financial know-how to recur to banks. The responsibility to bridge the gap lies on both sides, she conceded, warning aspiring entrepreneurs that eventually, "it's not advisable to do it on your own.
