External publications

Household micro and small enterprises in Egypt: overview and developments through 2023

in: ERF Working Paper Series No. 1772

Volltext/Full text

We use household enterprise data from the Egypt Labor Market Panel Surveys (ELMPS) in 1998, 2006, 2012, 2012 and 2023 to track the state of household micro and small enterprises (MSEs), particularly considering the enactment of the new micro, small, and medium enterprise (MSME) law in 2020. In 2023, we find that the sector continues to be dominated by informal, male-owned microenterprises. It also exhibits limited diversification and sophistication. There has been a trend toward informalization. Despite numerous initiatives and reforms in the institutional and regulatory environment, MSEs remain heavily self-financed. These characteristics suggest that the sector functions more as a 'survival sector' or a last-resort employer rather than as a competitive, high-tech and high-value one. With the challenges facing the sector and barriers to entry into the formal sector, this sector is the only way to earn a living for many people.

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