sme policies in the middle east & north africa
TRANSCRIPT
REGIONAL CONFERENCE
Investment & inclusive growth in the midst of crisisSME policies in the Middle East & North Africa11 May 2016
Why focus on SMEs?
Inclusion (cost of rebellion, women & youth)
Economic growthGovernment revenues
2MENA-OECD Competitiveness Programme
Resilience, stability
Jobs: SMEs generally operate in labour intensive sectors and account for large % of job creation
Egypt Jordan Lebanon Tunisia
13% 13%6%
13%
23%30%
17%
31%
UnemploymentYouth unemployment
Sources:2013. World Development indicators. Youth group: 15-24 years.
SMEs landscape in MENA
3MENA-OECD Competitiveness Programme
3
Formal employment in SMEs is relatively low… … as is enterprise creation
IndiaEgypt
AlgeriaJordan
MoroccoCanadaTunisia
MENA averageOman
UAEQatarBrazil
SwitzerlandFrance
IsraelRussiaOECD
UK
0 1 2 3 4 5 6 7 8 9 10
0.63
Sources: IFC (2014) MSME Country Indicators and World Bank (2014) Entrepreneurship Database.
New limited liability companies per 1 000 working age people, average 2004-2012
Algeria
Bahrai
nEgy
pt
JordanKuwait
Leban
on
MoroccoOman
Qatar
Saudi A
rabia
UAE
MENA av
erage
BrazilRussi
aChina
Canad
aFra
nceIsr
ael
Switze
rland UK
USA
Source
: IDC (2
014) MSM
E Country
Indica
tors 0
102030405060708090
13.9
72.7
31.231.0
4.512.3
21.6
5.9 5.5
19.5
39.5
23.425.319.9
80.0
46.937.6
57.858.9
34.642.1
% of total employment SME density (per 1000 people)
SME “density” and employment, 2009 or latest
Potential to integrate in global & regional GVCs
4MENA-OECD Competitiveness Programme4
Sources: OECD & World Bank Group. Inclusive Value Chains. G20 discussion report. October 2015.
Main challenges & opportunities for SMEs
5MENA-OECD Competitiveness Programme
Challenges• Regulatory and business
environments need to improve
• Access to external finance remains limited
• Insufficient enterprise support networks and services
• Lack of quality vocational and managerial skills for SME growth
Opportunities• Growing domestic
markets
• Progressive integration and economic openness
• New prospects for entrepreneurship
• Improving literacy rates and education levels
SME policies in MENA at the regional level
6MENA-OECD Competitiveness Programme
1. Education and training for entrepreneurship, including women's entrepreneurship2. Efficient bankruptcy procedures and “second chance” for entrepreneurs
3. Institutional and regulatory framework for SME policy making
4. Operational environment for business creation
5.a. Support services for SMEs and public procurement
5.b. Public procurement6. Access to finance for SMEs
7. Supporting SMEs to benefit from Euro-MED networks and partnerships
8.a. Enterprise skills
8.b. Innovation
9. SMEs in a green economy
10. Internationalisation of SMEs
0
1
2
3
4
5
Recommendations for better SME policies
7MENA-OECD Competitiveness Programme
For MENA countriesStep up efforts to improve the business climateAdopt strategic & comprehensive SME policiesStrengthen monitoring & evaluation to assess policy effectiveness
For international partnersFoster the exchange of good practices among MENA countries
& beyondContribute to capacity building & strengthening of institutionsStrengthen regional & international business networks
Contact details:Pilar SANCHEZ-BELLAPolicy AnalystMiddle East and Africa Divisione-mail: [email protected]