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New mechanisms for
Small Enterprise Development
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At the Small Enterprise Development
Higher Committee meeting presided by Egypt’s Prime Minister Dr.
Atef Ebied, SFD Managing Director Mr. Hani Seif El Nasr submitted
a study entitled: “Small Enterprise Development: A Summary of
Achievements and A Future Overview”. The study demonstrated that
SFD, since its inception until June 2002, succeeded in financing
174,813 small enterprises at a total cost of L.E. 3,5 billion
creating 651,563 new job opportunities. |
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The study reviewed the positive aspects and
opportunities available before the Small Enterprise Development
Organization (SEDO), established by the Presidential Decree number
434/1999 as an autonomous entity specializing in sponsoring and
developing the small enterprise sector in Egypt. It also cited
many bottlenecks and regulatory hurdles facing their advancement.
Among these hurdles are the diversity of institutions concerned
with small enterprise development, lack of a national and
consolidated policy for these enterprises under one institution,
complex loan collateral and tiresome governmental procedures,
inadequacy of entrepreneurial skills and qualifications, absence
of flexible laws and regulations to encourage a free enterprise,
and defaulting cases, which were largely attributable to
insufficient managerial and marketing capabilities.
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To counter these pitfalls, the study
came out with many recommendations to be duly considered and
put into action when coming to grips with a private
business: |
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Developing a consolidated policy for
small enterprises, assigned to one agency charged with
putting it into effect in accordance with the State’s
national objectives. |
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Establishing a higher coordinating
council for developing small enterprises to represent all
agencies working in this sector, give advice and coordinate
among these agencies to execute the national small
enterprise development policy. |
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Laying down a marketing policy taking
into consideration local and international needs to direct
small enterprises toward the realization of national goals. |
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Cooperating with banks to shortcut
collateral required in re-lending process. |
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Applying proper and developed finance
mechanisms in dealing with banks and NGO’s to facilitate the
obtainment of loans in a short time according to a clear
credit policy. |
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Decreasing defaulting cases and
increasing success prospects through numerous initiatives: |
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1- |
Deepening
entrepreneurial concept and culture among the youth hand in
hand with universities and higher institutes. |
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2- |
Applying
the financial principle for small enterprises |
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3- |
Cooperating with local units to provide more small
enterprise venues |
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4- |
Establishing a governmental organization capable of
marketing products of small enterprises locally and
internationally |
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5- |
Working
with specialized marketing companies within targeted export
markets. |
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6- |
Establishing cluster networks for feeding industries. |
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7- |
Expanding
business incubators/business technical support
centers/specialized technology centers to upgrade quality
and enhance competitiveness of small enterprise products. |
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8- |
Fostering
areas of cooperation with advanced institutions- local and
international- in terms of training, quality, and technology
transfer. |
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Copyright © 2001 Social Fund for Development Egypt All rights
reserved |
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