Cairo
Source: Al-Wafd newspaper
Dr. Ali Mohamed Al-Khouri
Small and medium enterprises in Egypt face multiple challenges, most notably the debt crisis that threatens their continuity and growth. These projects are considered a fundamental pillar of the Egyptian economy, as they represent more than 99.7% of non-agricultural companies and provide about 85% of job opportunities in the non-agricultural private sector, and approximately 40% of the total employment in the country.
The debt crisis has increased pressure on the government budget and weakened investment capabilities in new projects, in addition to high financing costs and reduced lending, which has limited the ability of these projects to expand and innovate, despite continued government efforts to support the sector.
To overcome these challenges, it is necessary for Egypt to follow multidimensional strategies that include improving monetary and financial policies to stimulate investment in the private sector, especially small and medium enterprises. This can be achieved by restructuring existing debts in a way that is commensurate with the projects’ productive and financial capabilities, and providing incentives to investors and entrepreneurs by reducing taxes and providing technical and administrative support.
It is also essential to develop a technical support system that includes improving the digital infrastructure and providing advisory and training services to raise the efficiency of workers in these projects, with the aim of improving resource management and enhancing competitive capabilities in local and global markets. It is also important for the government to focus on facilitating access to international markets by establishing strategic partnerships and opening new export channels, which can help projects overcome trade barriers and achieve the desired growth.
To enhance the sustainability of small and medium enterprises and ensure their continuity, protective measures must be available for these projects from potential economic crises, such as establishing guarantee funds to provide financial support in times of crises, and developing special insurance programs that cover debts and losses resulting from natural disasters and severe economic fluctuations.
The current economic climate requires cooperation and teamwork between the government, the private sector, and international institutions to coordinate policies and programs that contribute to achieving sustainable development and supporting small and medium enterprises. Dealing with the debt crisis requires an integrated approach that combines smart economic policies and supportive initiatives that enhance the capabilities of projects to deal with economic fluctuations and financing challenges. The focus on innovation and rapid adaptation to market changes remains one of the main factors for success and sustainability in the globalized economy.
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