Small-scale enterprise sectors in Egypt : a critical analysis of seven selected studies

Major findings of the studies are that: Egypt's Law 43 has spurred development of large-scale private and mixed enterprises, but not of small and very small enterprises; the latter-type enterprises are characterized by relatively localized marketing, low levels of fixed and working capital, and heavy reliance upon skilled labor; and expansion of these enterprises would be facilitated by relaxed regulation, the provision of credit available through mechanisms geared specifically to their needs, the development of labor training schemes, and more stable supplies of raw materials at more equitable prices. Negatively, the studies fail to specify: the prospects of the small-scale sector and of its subsectors in relation to the large-scale sector; the difference between production in the formal and the very large informal small-scale sector; and the important social role played by the informal small-scale sector in providing subsistence labor on a wide scale. Areas of additional study to remedy these lacunae are suggested.