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SME policies in the Middle East & North Africa

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Pilar SANCHEZ-BELLA, Policy Analyst, Middle East and Africa Division, OECD, 11 May 2016, Regional conference: Investment and inclusive growth in the midst of crisis, Beirut

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SME policies in the Middle East & North Africa

  1. 1. REGIONAL CONFERENCE Investment & inclusive growth in the midst of crisis SME policies in the Middle East & North Africa 11 May 2016
  2. 2. Why focus on SMEs? Inclusion (cost of rebellion, women & youth) Economic growth Government revenues 2MENA-OECD Competitiveness Programme Resilience, stability  Jobs: SMEs generally operate in labour intensive sectors and account for large % of job creation 13% 13% 6% 13% 23% 30% 17% 31% Egypt Jordan Lebanon Tunisia Unemployment Youth unemployment Sources:2013. World Development indicators. Youth group: 15-24 years.
  3. 3. SMEs landscape in MENA 3MENA-OECD Competitiveness Programme 3 Formal employment in SMEs is relatively low… … as is enterprise creation 0.63 0 2 4 6 8 10 India Egypt Algeria Jordan Morocco Canada Tunisia MENA average Oman UAE Qatar Brazil Switzerland France Israel Russia OECD UK 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 13.9 72.7 31.231.0 4.5 12.3 21.6 5.9 5.5 19.5 39.5 23.425.3 19.9 80.0 46.9 37.6 57.858.9 34.6 42.1 0 10 20 30 40 50 60 70 80 90 Algeria Bahrain Egypt Jordan Kuwait Lebanon Morocco Oman Qatar SaudiArabia UAE MENAaverage Brazil Russia China Canada France Israel Switzerland UK USA Source:IDC(2014)MSME… % of total employment SME density (per 1000 people) SME “density” and employment, 2009 or latest
  4. 4. Potential to integrate in global & regional GVCs 4MENA-OECD Competitiveness Programme 4 Sources: OECD & World Bank Group. Inclusive Value Chains. G20 discussion report. October 2015.
  5. 5. 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
  6. 6. SME policies in MENA at the regional level 6MENA-OECD Competitiveness Programme 0 1 2 3 4 5 1. Education and training for entrepreneurship, including women's entrepreneurship 2. 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 procurement 6. 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
  7. 7. Recommendations for better SME policies 7MENA-OECD Competitiveness Programme For MENA countries Step up efforts to improve the business climate Adopt strategic & comprehensive SME policies Strengthen monitoring & evaluation to assess policy effectiveness For international partners Foster the exchange of good practices among MENA countries & beyond Contribute to capacity building & strengthening of institutions Strengthen regional & international business networks
  8. 8. Contact details: Pilar SANCHEZ-BELLA Policy Analyst Middle East and Africa Division e-mail: carlos.conde@oecd.org

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