Support the operationalization of the newly created SME Unit of the Federation of Egyptian Industries by developing their capacity to analyse and address business environment challenges for MSMEs

The overall objective of the proposed action is to create a more enabling environment for micro, small and medium enterprises (MSMEs) in Egypt - including those owned by women and youth. The specific objectives are to capacitate the SME Unit within the Federation of Egyptian Industries (FEI) to: 1. Identify its mandate, market niche, delivery modality and relevant services for MSMEs; 2. Engage in evidence-based policy dialogue and advocacy for MSMEs; 3. Facilitate access to relevant business development services for MSMEs. The Theory of Change underlying the action is that a more enabling business environment for MSMEs will be created through a strengthened voice of MSMEs to influence policy making. In order to effectively advocate for the interests of MSMEs, employers’ organisations such as the FEI must therefore strengthen these enterprises and their representative bodies through advocacy and improved service delivery. This implies that the FEI’s SME Unit must build its in-house capacity to deliver or facilitate services to these enterprises and their representative bodies, as well as build its internal capacity to identify and formulate reform proposals which are based on solid research. The latter requires that the Unit strengthens its capacity to conduct assessments and to develop reform proposals. The expected results of the action are as follows: The SME Unit within the FEI is better able to: - Formulate evidence-based policy reform proposals on behalf of MSMEs; - Deliver relevant business development services (BDS) to MSMEs owned by women and men; - Facilitate access to relevant services for MSMEs through FEI’s affiliated business chambers. MSMEs: - Have increased their voice and representation at national fora; - Have improved access to relevant services offered by the FEI SME Unit and its affiliate business chambers. Government: - Has strengthened its dialogue with private sector counterparts based on more evidence-based advocacy. The FEI has been selected as the main beneficiary of this action. It is the ILO employer constituent and umbrella representative of the private sector and business chambers in the country. The FEI has therefore a clear mandate to advocate on behalf of its members for policy reforms towards a more conducive business environment for MSMEs in Egypt. As part of an ambitious reform program, the Federation has recently created a new SME Unit, and has appointed a manager. The objective of the FEI’s SME Unit is to expand its relevance and services to small enterprises, as historically the FEI’s membership and services have been directed mainly towards larger enterprises. This includes both a stronger engagement on policy making for MSME-friendly reforms and the delivery of demand-driven services that are tailored to the needs of this target group. Building on the excellent cooperation with the ILO, the FEI requested the ILO to support the further operationalization of this newly created unit.

Project symbol

EGY/17/01/EUR

Admin unit

DWT/CO-Cairo

Start date

01/09/2018

End date

30/06/2021

Total allocation

333614

Total expenditure

Status

Closed

267375

Development Partners

Delegation of the European Union to Egypt

Country/Countries

Egypt

Outcomes

Outcome 4: Sustainable enterprises as generators of employment and promoters of innovation and decent work