An Economic Study of Small and Micro Projects in the Arab Republic of Egypt

The research mainly aims to conduct an economic study for small and micro projects. The problem of the study is also summarized in the fluctuation of the number of small and micro projects, which leads to the weakening of their role in reducing unemployment and its impact on economic growth, especially since these projects are labor-intensive. The rise in prices for most products is an indication of the weak effect of these projects in increasing production and thus the effect on increasing prices for these products. The study reached to the following results:
1- The total number of small and micro enterprises took a statistically positive trend at a significant level of 0.05. The annual increase in the total number of small and micro enterprises is estimated at 7.28 thousand projects, with a growth rate of about 3.68%.
2- The growth rate of the number of males benefiting from micro-enterprises took a general, statistically significant increasing trend at a level of 0.01 significant. The annual growth rate in the number of beneficiaries of micro-enterprises was about 5.5%, equivalent to about 5.02 thousand male beneficiaries, according to the annual average of the number of males benefiting from micro-enterprises during the study period.
3- The growth rate of the number of women beneficiaries of small enterprises took a general, statistically significant increasing trend at a significant level of 0.05. The annual growth rate is about 4%, equivalent to about 0.158 thousand female beneficiaries.
4- The total loans of small and micro enterprises took a general increasing trend, statistically significant, at the level of 0.01 significance. The annual increase in the total loans for small and micro enterprises is estimated at 501.29 million pounds.
5- The job opportunities provided by small and micro enterprises have taken a general, statistically significant, increasing trend at a significant level of 0.05. The annual increase in job opportunities in small and micro enterprises is estimated at 14.23 thousand job opportunities.
6- The commercial sector and animal production occupy the first and second place in terms of the number of micro-enterprises, and the number of projects is about 1199.40 thousand projects, 442.81 thousand projects represent about 59.86%, 22.1% of the total number of micro-enterprises for each of them respectively during the study period.
7- The commercial and service sectors also occupy the first and second ranks in terms of the number of small projects, and the number of projects is about 74.55 thousand projects, 55.067 thousand projects, representing about 44.02% and 32.53% of the total number of small projects for each them, respectively.
8-It is shown that about 31.307% of the micro-enterprises are located in three governorates, namely Minya, which occupies the first order with a percentage representing 13.45% of the total number of micro-enterprises, and Beni Suef Governorate and Sharkia Governorate come in the second and third order with a percentage representing 10.33%, 7.527% Of the total number of projects for each of them, respectively
9- As it turns out, 30.6% of the total number of small enterprises is located in four governorates: Cairo, which ranks first with 8.04% of the total small enterprises. Giza,Dakahlia, and Assiutgovernorates, which occupy the second, third and fourth places, with a rate of 7.94%, 7.02%, 6.09% of the total number of small projects.
10- Increasing the number of these small and micro enterprises and increasing job opportunities in these projects, especially job opportunities in micro enterprises, by increasing the financing of these projects.
11- Increasing the percentage of the micro-enterprises (Y2i) contribution to providing job opportunities. The annual increase rate is about 0.034%.
Based on the research results, the following can be recommended:
1- Creating a package of financial, legal and institutional incentives within an integrated program to attract informal sector projects to enter the formal economy after adjusting their positions.
2-Establishing an institutional entity that works on linking medium, small and micro enterprises with large projects to ensure continuity and increase the effectiveness of these projects in increasing the national product and providing job opportunities to eliminate the problem of unemployment.
3- Establishing an insurance fund against risks as independent units for small and micro enterprises working to support these projects in the event of their default. This fund is financed by determining a percentage of the annual profits of the projects in the equity system.
4- Increasing the sources of financing for these projects. This is done through allocating independent financing and credit units aimed at providing the necessary financing for these projects.
5- Creating an electronic platform for small and micro enterprises affiliated with the Council of Ministers or the Central Bank, working to provide economic feasibility studies, technical studies and various training programs related to the activity of the projects.