TODAY, June 27, is the International Day of Micro, Small and Medium-sized Enterprises (MSMEs) – an occasion to acknowledge and reflect on the contribution of such businesses and activities to the enhancement of socio-economic development at both national and global levels. As they exist and operate now, MSMEs account for 90 per cent of businesses, 60 to 70 per cent of employment and 50 per cent of global GDP, according to UN data. As such, they are no longer a subsidiary part of economic activity worldwide as they had used to be, say, a decade ago. Also as such, these economic entities, however tiny in size as they may look, already act as socio-economic growth machines, at obviously affordable costs; hence the paramount interest countries the world over are now reflecting in supporting these entities and empowering them to deliver the tasks of increasing job opportunities, enabling people, particularly youth and women, to win decent revenues and expanding the base of production. In recognition of these vital socio-economic dimensions, countries of the world approved during the United Nations 71st General Assembly session on April 6, 2017, a resolution designating June 27 every year as the International Day of MSMEs and urged global observance of the day to raise awareness of the tremendous contribution of MSMEs to the achievement of sustainable development goals, including in particular the promotion of innovation, creativity and decent work for all.
Marking the fifth anniversary of the adoption of the UN resolution is an opportunity to highlight Egypt’s experience in supporting the growth of MSMEs. In the foremost of the state’s drive to encourage the spread of such enterprises over the past years, the MSMEs Development Authority was launched in the year 2017 as a specialised agency in charge of turning government policies into programmes of action. On the ground, the agency reportedly managed to pump as much as LE32.3 billion in the form of loans and credit facilities to MSMEs during the period July 2014 to May last year. In 2020, the state took a step further, issuing a law providing for the initiation of a package of incentives and facilities to the MSMEs sector, including the arrangement of such extra-financial services as training, marketing and consultancy. Together with the financing activities, these services help ensure the sustainability and success of MSMEs and encourage youth engagement and entrepreneurship. Through this combination of measures and services, MSMEs can upgrade their products and market competitiveness.
Impressive stories are abundant online of young people benefiting from the authority’s support in boosting the productivity of their enterprises and even branding their products. Browsing the authority’s website showcases success stories in setting up and upgrading MSMEs in such areas as high-quality paper items, stationary, cosmetics, woodworks, multi-surface varnishes and food stuffs, to mention just a few. In many of these success stories, the authority’s support and consultancy backing have been instrumental in enabling MSMEs’ businesses to thrive especially through renewing their machines, modernising techniques, improving project management and strengthening market access, which ultimately translates into garnering greater citizen revenues, elevating the quality of domestic production, reducing imports and in some cases boosting exports – quite worthy and commendable outcomes of the drive to spread and promote MSMEs.
