Working Papers

Enhancing Linkages between SMEs and Large Enterprises in the Egyptian Industry

Publication Number: ECESWP140-A

October, 2008

Author : Nihal El-Megharbel

Type : Working Papers

In spite of the increasing contribution of small and medium enterprises (SMEs) to enhancing economic growth and job creation, a number of factors still impedes their growth and ability to contribute more effectively to economic development. This paper seeks to examine and analyze the impact of enhancing linkages between SMEs and large enterprises on removing the barriers facing SMEs in the Egyptian manufacturing sector, especially that other solutions adopted to resolve these problems proved ineffective. The focus on the manufacturing sector stems from its importance in generating output, employment and investment. In 2006/07, the contribution of this sector amounted to 16.8 percent in output; 13.2 percent in employment; and 26.9 percent in investment, in addition to the importance of its forward and backward linkages.