Entrepreneur Resources Your source for small business information
Small businesses are the backbone of economies all across the Middle East and North Africa (MENA) region. But, by any stretch of the imagination, small does not mean weak. In times of political and economic turmoil, as seen over the last two or three years in Egypt, for example, it can mean great strength and resilience. Having the ability to adapt quickly to changing, sometimes violent circumstances can be key when it comes to survival.
Whilst the diminutive business, whether owned or operated by one or more family members, may have little access to even the most basic of business banking services, never mind the rather more grandiose services offered by the huge international banking conglomerates, nevertheless they have ears to the ground in terms of local intelligence, contacts and market expertise, all priceless commodities when trading conditions become tough.
Bigger players, especially those backed by international investors, have tended to pull their money out and watch developments from afar. At least, that was the initial reaction following the January 2011 revolution and the unrest which followed. Small, local businesses usually had no such option. They simply had to adapt to the day-to-day realities and somehow carry on – or go under.
Egypt has been fortunate in having so many supportive Arab neighbours who over the subsequent months and years have stepped in with financial aid worth billions of dollars in total. The latest effort, worth $200 million and aimed at boosting development and opportunities for small and micro-sized enterprises, was kick-started with the signing of a framework agreement between the Khalifa Fund for Enterprise Development based in Abu Dhabi in the United Arab Emirates and Egypt’s Social Fund for Development (SFD). The agreement was signed on the sidelines of the recently-held Egypt/GCC Investment Forum held in Cairo.
The agreement aims to establish a mutually-beneficial cooperative framework between the Khalifa Fund and the SFD through investments in projects contributing to the development of impoverished areas throughout Egypt, with a focus on expanding social funding programs for women and young people with the object of increasing employment opportunities and income generation.
The Khalifa Fund’s chief operations officer, Ibrahim Ahmed Al Mansouri, said the agreement was an important step towards building strategic relations with the SFD as it sought to reduce poverty and unemployment. He described it as an opportunity to work closely with its new partners and learn more about Egypt’s numerous promising industries and sectors that may benefit from the joint venture.
SFD managing director Ghada Fathy Waly said the two funds would work side by side to put in place the organizational and financial frameworks that will determine the features of future cooperation.
And she added, “The focus will be on developing the poorest areas, and maximizing job creation especially for young people and women.”
According to the framework agreement, the Khalifa Fund will provide financial and non-financial support for small and micro ventures through the SFD. The agreement also stipulates new levels of cooperation between both parties and the necessity of data sharing to ensure the success of the mission. Find out more about the work of the Khalifa Fund here.
