ArticlesSmall Enterprises

How can Arab societies be developed through small enterprises?


The majority of the Arab countries suffer from the repercussions of the economic and social deterioration, which is reflected in the increase in the size of the external debt and the high rates of poverty and unemployment compared to the decline in per capita GDP, although it owns about 60% of the world oil reserves and 25.5% of the gas reserves, In which more than one third of arable land is used, which confirms the absence of a precise and unified strategy for the investment of these various resources and potentials.

Small and medium-sized enterprises are “new” opportunities for exploiting these resources and potentials in Arab societies; for labor employment and export development, for reducing imports, for raising average per capita income, for achieving well-being with equity in distribution, and for attracting non-investment opportunities Exploited in certain areas, such as: desert and rural areas.

Despite the importance of large projects, they can not in any way advance economic progress on their own. Rather, they need to diversify their sources of income, expand the productive base, integrate various economic activities, balance the development process and achieve stability in the same way. Accounting for 90% of the world’s economies, contributing 30% of the GDP in developed countries and perhaps up to 75% in some, and providing jobs for 50% of the working human population.

Considerations that lead small enterprises to development

Small enterprises, in their holistic sense, contribute to achieving these objectives on the basis of several considerations, such as being the first nucleus of medium and large enterprises, as well as the most effective mechanisms for diversifying the product / service base and local industries.

In addition to being one of the balancing circles in the business environment, because it is flexible and responsive to local and global market variables, and serves the optimal use of savings, national capital and local technology. It reduces the risk factor because it is characterized by small investments, Of young people to experiment.

The constraints of small enterprises in the Arab countries

Thus, small enterprises have become the subject of great interest from Arab governments, and official trends have emerged to support the important role they play in their economies by changing policies and regulations that may hinder their work and provide a healthy economic environment for emerging entrepreneurs 95% in Egypt, 42% in Tunisia, and 50% in Morocco. (“Small Projects and Their Impact on Economic Development Egypt as a Model”, Publisher: “Dr. Ahmed Dahshan’s Blog”, 2017).

However, despite the increase in these rates, small enterprises still face many challenges in the Arab world. These are weak funding, lack of mechanisms, poor relations with medium and large enterprises, marginalization of innovation and creativity, absence of a culture of free enterprise, and stable.

The bureaucratic procedures are also the biggest administrative obstacles, and are evident in the high cost of extracting the documents, the length of time they are terminated, and the multiplicity of governmental parties concerned, in addition to the lack of transparency, high levels of administrative corruption, Due to the lack of accurate market data, the absence of intellectual property laws and the high cost of patent registration.

How do we benefit from small projects?

The legal and economic measures taken by Arab governments represent only a small fraction of the serious steps they must take towards maximizing the use of these projects in the development process. They must take some important recommendations into consideration when looking at the procedures for supporting small enterprises, The definition of small enterprises and their laws varies from one country to another; national integration efforts are dispersed among them. Therefore, the formulation of a unified and comprehensive definition helps to achieve the And the breadth of interest to include more than one Arab country.

In addition, the integration of the Arab enterprise system under the umbrella of official government works allows its owners to benefit from the administrative and financial advantages offered by the government sector. This is reflected in the reduction of costs and the maximum utilization of resources. The importance of removing the bureaucratic restrictions that hinder the functioning of small enterprises , And hurt their owners and other entrepreneurs and the reluctance to experience again, and the negative impact on foreign investment.

Reform of administrative policies to increase competitiveness

Small enterprises have an important aspect: they are the economic activity that is more dependent on local resources and available technology. Therefore, when it comes to “developing education and training systems” and focusing on the entrepreneurial and creative aspects of entrepreneurship, they will be better able to achieve their goals in a small record time, And will achieve greater outreach internally and externally.

This can be achieved by taking advantage of the experiences of immigrant Arab minds, or bringing foreign experts to the Arab countries, organizing research meetings that contribute to the development of technological capabilities, and enhancing the skills of young people in the fields of management, business and technological technology.

When discussing economic policy reform, we will examine a research study issued by the Gulf Cooperation Council (GCC) chambers, which confirm that there are no economic policies that stimulate small projects, and that most of them are biased against them. (“Small Projects and Their Impact on Economic Development Egypt as a Model”, Publisher: “Dr. Ahmed Dahshan’s Blog”, 2017).

Therefore, if Arab countries change management policies in favor of developing the business environment and supporting entrepreneurs in line with their political, social and environmental frameworks, they will achieve amazing results in the short term And distant.

Arab Projects Fund. National incubator for small investors

The success of small enterprises is determined by their ability to continue in the market and their products or services are superior in terms of quality and price to the products of competitors, especially foreigners. Hence, Arab governments must support their small investors by adopting policies that increase their competitiveness, , And gives them competitive advantage to foreign investors, both at home and abroad. Finally, it is perhaps the most feasible to establish a fund to support small enterprises in all Arab countries, such as the Arab Union of Small Enterprises, which has the means of financial, administrative, technical and technological support from their governments. The national incubator is the efforts of small investors to benefit them and their Arab country. They are also burdened with adventure, of course, without forgetting the unity of civil society efforts with the official efforts to provide an encouraging environment for the establishment and operation of such projects in order to be able to compete and support the Arab economy

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