MSEs Potentials and Success Determinants in Egypt 2003-2004: Special Reference to Gender Differentials

The interest in MSEs is of a relatively recent nature. Several reasons led to the current concern about the issue of small and micro-enterprises. The small firms make various indispensable contributions to the economy. They act as major job providers, produce a significant part of the total value added, feed the larger industries with their needed inputs of production and after-sale services, as well as act as distributors/buyers of their products. In addition, small firms provide a large segment of the poor and middle-income population with low priced consumption goods and services. Small firms also represent a useful channel through which small savings are being translated into investments. Finally, small enterprises could become major sources of constant innovation and experimentation and could thereby in some cases change the market structure. The continuous influx of small firms, in all sectors of the economy by all segments of the society, is considered a healthy phenomenon and a crucial barometer for social and economic well-being1. It reflects the extent of dynamism and movement in the market. The entry of new enterprises carries the possibility of the emergence of a group of dynamic, efficient, and ambitious entrepreneurs, who have the potential for growth, development, and expansion. Since informal economic units constitute the main bulk of small and micro enterprises, researchers were interested in studying the main characteristics of the informal enterprises.