SME Contributions to Employment, Job Creation, and Growth in the Arab World

Recent economic and political developments have highlighted a challenge shared across the Arab region of generating employment, promoting inclusive growth, and improving competitiveness. In the short run, weakened macroeconomic fundamentals in the developing economies of the Middle East and North Africa are a key challenge. The region's main challenge is to achieve sustainable growth that delivers the quantity and quality of jobs needed. An inclusive and competitive private sector has proven to be one of the most effective and long-term solutions for this challenge. This paper provides an analytical framework to diagnose and identify key challenges to the growth of small and medium enterprises that is supported by a quantitative model based on the World Bank's Enterprise Surveys database. The findings reconfirm that the route to a sustained role for small and medium enterprises in job creation requires improving the credibility of reforms, the effectiveness of policies, and equitable enforcement. Although one size fits all is infeasible for Arab countries, it is important to design policies across sectors to create productive employment and promote economic growth. Supporting innovation and enhancing access to finance are central to the development agenda for small and medium enterprises. And creating an enabling environment and setting up accountable institutions are key to ensure equal opportunity and inclusive growth.

Bibliographic Details

Main Authors:	Nasr, Sahar, Rostom, Ahmed
Language:	English en_US
Published:	World Bank, Washington, DC 2013-10
Subjects:	ACCESS TO CREDIT, ACCESS TO EMPLOYMENT, ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCESS TO FINANCING, ACCESS TO FORMAL CREDIT, ACCESS TO INFORMATION, ACCESS TO MARKETS, ADMINISTRATIVE COSTS, ADVANCED TECHNOLOGY, AUDITS, BANK, BANK FINANCING, BANK LENDING, BANK LOANS, BANKING SYSTEMS, BANKRUPTCY, BANKS, BARRIERS TO ENTRY, BASIC METALS, BORROWERS, BORROWING, BRIBES, BUSINESS ACTIVITY, BUSINESS DEVELOPMENT, BUSINESS DEVELOPMENT SERVICES, BUSINESS PLAN, BUSINESS PLANS, BUSINESS STARTUPS, BUSINESS SUCCESS, CAPITAL, CAPITAL ADEQUACY, CAPITAL FUNDS, CAPITAL INVESTMENT, CAPITAL MARKETS, CASH FLOW, COLLATERAL REQUIREMENTS, COMMERCIAL BANKS, COMPETITIVE MARKETS, COMPLIANCE COST, CONSUMER PROTECTION, COOPERATION, CORRUPTION, COST OF CREDIT, CREDIT, CREDIT BUREAUS, CREDIT CARDS, CREDIT DECISIONS, CREDIT FACILITIES, CREDIT GAP, CREDIT HISTORY, CREDIT INFORMATION, CREDIT INFORMATION SYSTEM, CREDIT INSTITUTIONS, CREDIT PRODUCTS, CREDIT REGISTRIES, CREDITOR, CREDITWORTHINESS, DEMAND, DEMOGRAPHICS, DEVELOPED COUNTRIES, DEVELOPMENT OF VENTURE CAPITAL, DISCRIMINATION, DIVERSIFICATION, ECONOMIC ACTIVITIES, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC EMPOWERMENT, ECONOMIC GROWTH, ECONOMIC OPPORTUNITIES, ECONOMIC OPPORTUNITY, ECONOMIC REFORMS, ECONOMIC RESOURCES, ECONOMIC SITUATION, EDUCATION SYSTEM, EMPIRICAL EVIDENCE, EMPLOYEE, EMPLOYEES, EMPLOYER, EMPLOYERS, EMPLOYMENT DYNAMICS, EMPLOYMENT GROWTH, EMPLOYMENT OPPORTUNITIES, ENTERPRISE, ENTERPRISE REGISTRATION, ENTERPRISES, ENTREPRENEUR, ENTREPRENEURIAL POTENTIAL, ENTREPRENEURS, ENTREPRENEURSHIP OPPORTUNITIES, ENVIRONMENTS, EQUAL ACCESS, EQUAL OPPORTUNITIES, EQUAL OPPORTUNITY, EXCLUSION, EXPECTATIONS, FAMILIES, FAMILY, FEES, FINANCE ACCESS, FINANCE COSTS, FINANCIAL DEVELOPMENT, FINANCIAL INFRASTRUCTURE, FINANCIAL INNOVATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL INTERMEDIATION, FINANCIAL INTERMEDIATIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL NEEDS, FINANCIAL PRODUCT, FINANCIAL PRODUCTS, FINANCIAL SECTOR REFORMS, FINANCIAL SERVICES, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCING, FIRM DYNAMICS, FIRM SIZE, FISCAL DEFICITS, FIXED COST, FIXED COSTS, FOREIGN DIRECT INVESTMENT, FORMAL FINANCIAL MARKET, GENDER, GENDER EQUALITY, GENDER MAINSTREAMING, GOOD CREDIT, GOVERNMENT POLICIES, GREATER ACCESS, GROWTH OPPORTUNITIES, HIGH UNEMPLOYMENT, HOME MORTGAGES, HOUSEHOLD, HOUSEHOLDS, HUMAN CAPITAL, HUMAN RIGHTS, HUSBAND, INCENTIVES, INEQUALITY, INFORMAL WORKERS, INFORMATION ASYMMETRY, INTEREST, INTEREST RATE, INTERNAL FUNDS, INTERNATIONAL BANK, INVESTMENT, INVESTMENT BARRIERS, JOB, JOB CREATION, JOB OPPORTUNITIES, JOBS, JOBS CREATION, KEY CHALLENGE, KEY CHALLENGES, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKETS, LABOR PRODUCTIVITY, LACK OF ACCESS, LAND, LENDING DECISIONS, LENDING TECHNIQUES, LINE OF CREDIT, LOAN, LOAN APPLICATION, LOAN TERM, MARKET ECONOMY, MARKET INFORMATION, MICRO ENTERPRISES, MODELS, MOVABLE COLLATERAL, NEW BUSINESS, NEW BUSINESSES, OIL, OPTIONS, OUTREACH, PATENTS, PAYMENT, PAYMENTS, PEOPLE, PERSONAL ASSETS, PERSONAL FINANCE, POLICY DECISIONS, POLICY ENVIRONMENT, POLICY MAKERS, POLITICAL ECONOMY, PRIVATE CREDIT, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRIVATE SECTOR, PRIVILEGED ACCESS, PRODUCERS, PRODUCTIVE EMPLOYMENT, PRODUCTIVITY GROWTH, PROPERTY, PROPERTY AS COLLATERAL, PUBLIC CREDIT, PUBLIC FINANCES, RED TAPE, REGULATORY POLICY, REVENUES, SMALL BUSINESS, SMALL BUSINESSES, SMALL ENTERPRISES, SOCIAL DEVELOPMENT, SOURCE OF INCOME, START-UP, START-UPS, SUSTAINABLE GROWTH, TAX RATES, TAXES, TERM CREDIT, TRADE, TREASURY BILLS, UNEMPLOYMENT, UNEMPLOYMENT RATES, UNFAIR COMPETITION, UNION, VALUES, VENTURE CAPITAL FIRMS, WAGES, WOMAN, WOMAN ENTREPRENEURS, WOMEN, WOMEN ENTREPRENEURS, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2013/10/18459377/sme-contributions-employment-job-creation-growth-arab-world https://hdl.handle.net/10986/16897
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