Sme Policy Index The Mediterranean Middle East And North Africa 2014 Implementation Of The Small Business Act For Europe PDF Download

Economies in the Mediterranean Middle East and North Africa (MED economies) are engaged in proactive policies to support SMEs. This is a relatively recent development and a significant shift from past policies that focused on supporting strategic enterprises and sectors. An important factor behind this shift has been the unrelenting pressure to generate more and better jobs: the region's labour supply is rapidly expanding while new entrants to the labour market have higher education levels than those of previous generations. This certainly represents a major opportunity for development, but also a potential liability for social and political stability if that opportunity does not materialise. SME policy is a key instrument for economic growth and development through enterprise creation, expansion and increased productivity.^This report points to significant constraints for SME development in the MED region such as poor incentives for entrepreneurship; high entry barriers for new enterprises; restrictive market access; lack of quality vocational and managerial skills to support SME growth; rigid regulations favouring incumbents; high levels of economic informality and limited access to finance due to weak creditor rights, underdeveloped collateral registries and weak bank competition. Constraints are counterbalanced by significant opportunities, notably growing domestic markets resulting from demographic growth and decreasing dependency rates; a progressive integration and opening up of MED economies to the Euro-MED region and the global economy; new prospects for entrepreneurship derived from the opening up of societies and demand for transparency and economic participation, including for women; and progressive improvements in literacy rates and education levels.^The intensity of these challenges and opportunities differs among MED economies. The challenges are stronger in economies with lower levels of institutional and economic development and economic diversification.