Small, Medium and Micro Enterprises are considered principal drivers of the economy, as well as one of the fastest growing areas that promote economic growth and innovation, as these projects play a significant role in creating job opportunities in the Egyptian market, and they are among the most important factors that the government of Egypt focuses on to help boost economic development and achieve Sustainable Development Goals.

Despite the principal significance of these projects, they still face many challenges such as entering the market, continuity and growth, poor access to financial resources and lack of competence in dealing with business management issues, in addition to the difficulty in obtaining licenses and the complex bureaucratic environment.

As a result, there is an urgent and permanent need to improve the various elements that lead to enhance entrepreneurial climate, encourage entrepreneurs to join the labor market through these projects, spread the culture of entrepreneurship, research, creativity and innovation in the Egyptian society, as well as coordinating the efforts of all entities related to this field in order to enrich the role of these projects in supporting the national economy.

In this context, Canada Egypt Business Council and the Egyptian Business Council for International Cooperation  held a forum entitled “The Role of Medium Small and Micro Enterprises (MSME)s in boosting Economic Development, Job Creation and Sustainability”

In her opening remarks, Ms. Amira El Sahly; Executive Director of CEBC and ECIC explained that Small, Medium and Micro Enterprises are considered the development locomotive of any economy. She added that recent results revealed that, Egypt has 2.5 million small, medium and micro enterprises, representing 99% of the total non-agricultural projects, about 78% of these projects did not receive any banking facilities. She went on to explain that SMEs can contribute in the process of accelerating development because it does not require huge investments at the same time, and is able to increase employment and mobilize small individual savings, as well as help in the preparation of technical cadres. “It also enables the development of exports, including the acquisition of foreign currency and thus improving the balance of payments of developing countries, in addition to their contribution to the formation of a balanced industrial sector that serves the national economy, Ms. El Sahly added”.

Ms. El Sahly ended her speech by emphasizing that the real impact of Small, Medium and Micro Enterprises remains in their role in combating poverty and transforming the developing economy into an advanced industrial economy due to their ability to create jobs and provide opportunities for entrepreneurs to turn their ideas into projects that contribute to economic development. This is in addition to the significant role that Small, Medium and Micro Enterprises play in scaling the economic development of the countryside and villages.

Then the floor was given to Ms. Hanaa El Hilaly; Managing Director “Al Kheir Microfinance” Chair – CEBC SMEs & International Cooperation Committee who explained that Small, Medium and Micro Enterprises play a pivotal role in economic, social and sustainable development, in shaping countries’ economies and are considered an area of strategic interest due to their socially and economically beneficial effects whether on job creation or poverty alleviation, as main pillars of sustainable development, as well as an important vehicle for imports substitution and enhancing exports competitiveness.

Ms. El Helaly added that SMEs face challenges in terms of non-financial services reflected in licensing, capacity building, lack of knowledge and marketing-coupled with access to finance to disburse required loans to jump start projects. She further explained that important tools and products boosting SMEs are needed by Venture Capital, leasing and Angel Investors providing for equity. “In terms of non-financial services supporting SMEs growth, are reflected in business incubators, accelerators, capacity building in financial services, feasibility studies, legal and human resources, besides marketing which is considered of utmost importance in promoting SMEs products whether through exhibitions or online marketing. These derivers will in turn boost development of SMEs and reflect on countries economic growth and GDP, she added”.

From his side, Dr. Raafat Abbas; Head of Non-Financial Services Central Sector Medium, Small and Micro Enterprises Development Agency (MSMEDA) mentioned that SMEs play an important role in strengthening the economy and providing goods in the current global economic crises side by side with large enterprises.

He added that SMEs don’t represent production of small scale products only, but they can be seen as a supplier of major inputs for large enterprises, as they balance the structure of production in the national economy. He concluded by emphasizing the role of SMEs in economic development, which relies on three elements: job opportunities, goods, services and housing, and this proves that the role of SMEs is an important component of national economic development.

On the same context, Chairman & Founder of Investia Group and Chairman of Egyptian Angel Investors Association Treasurer & Board Member – Canada Egypt Business Council Eng. Samir Yahia El-Alaily started his speech by explaining the difference between startups and SMEs. He went to describe that a startup is a young company established by one or more entrepreneurs to create unique and irreplaceable products or services. It aims at bringing innovation and building ideas quickly. He further emphasized the role of Angel Investment and its impact on the business ecosystem. “Startup ecosystem has grown, despite the challenges they face, so has the responsibility of angel investors and other early stage stakeholders to properly assist founders and startups in preparing for their next stages of growth and funding, he added”. Eng. El-Alialy concluded his remarks by signifying the role of Angel Investors in supporting startups in the sales and marketing processes, connecting them with partners, and support them in a crisis.

For his side, Eng. Tarek El Kady; Founder Alexandria Business Angels Network and Founder of Techne Summit also added some points to the differences between Medium Small and Micro enterprises and startup companies, as he mentioned that startups impact multiple sectors and stakeholders showcasing different technologies and their application in each industry.”As for startups, they are similar to the stock exchange, as some shares are purchased and sold for a greater value later, he added”. Eng. Tarek concluded that the impact of startups and venture capital can be significant to an economy. “Companies such as Uber, Netflix and Facebook had angel investors before they became companies that changed the way we live, he explained”.

Then the floor was then opened for questions and answers session, where several questions were asked about The Role of Medium Small and Micro Enterprises in boosting Economic Development, Job Creation and Sustainability”