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The developmental role of SMEs in the Arab countries

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  • Elasrag, Hussein

Abstract

Small and medium enterprises (SMEs) have become one of the key instruments to face economic and social problems and achieve development objectives in most industrial and developing countries. SME contributions to employment creation, productivity improvement, and income generation are underutilized in the Arab countries at a time when economic transformation is shifting the onus for productivity from the public sector to the private sector. Population growth and economic restructuring in many Arab countries make the creation of substantial new employment opportunities a necessity. To do so, Arab enterprises must favorably face increased competition in both local and export market through improvements in product quality and work place efficiency. Sheer survival in theses business conditions forces both large companies and SMEs to restructure themselves in order to meet the global competition. Statistics show that SMEs represent 90% of total companies in the vast majority of economies worldwide and provide 40-80% of total job opportunities in addition to contributing largely to GDPs of many countries. The aim of this research is to study The developmental role of SMEs in the Arab countries.

Suggested Citation

  • Elasrag, Hussein, 2012. "The developmental role of SMEs in the Arab countries," MPRA Paper 40608, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40608
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    References listed on IDEAS

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    1. Wilfried Luetkenhorst, 2004. "Corporate social responsibility and the development agenda," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 39(3), pages 157-166, May.
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    More about this item

    Keywords

    Small and medium enterprises ; Arab countries; oil revenues;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D20 - Microeconomics - - Production and Organizations - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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