Given the limited the capabilities of the companies to confront and bear many business risks as a result of their size, finances, administrative practices, or marketing, many of these companies cannot face the risks they are exposed to and soon exit from the market. The importance of risk management and the growth of MSMEs in Egypt And this is an integral part of risk management It is about taking action when opportunities present themselves based on a comprehensive assessment of all circumstances. This is in no way an invitation to recklessness or gambling with resources. It also allows them to prepare for obstacles and risks that enable them to develop appropriate solutions to confront them. Taking an approach based on risk management enables MSMEs to pursue their goals boldly in a safer environment with a clearer vision for the future. ![]() The lack of data regarding the reasons behind the failure of these businesses in the Egyptian market leads to difficulty in developing quick and accurate solutions that suit the nature of the Egyptian economy to reduce or limit these rates and ensure the sustainability of the company in the market. How to reduce the exit rates of MSMEs in the Egyptian market It is certain that maintaining the continuity of these companies in the market and helping them face and deal with these various risks will lead to a decrease in the failure rates of these companies and their exit from the market, and thus double the desired growth rates of the country. Certainly, this negative impact reflects on the country’s growth rates. ![]() ![]() In fact, it has been found that about 70% of MSMEs cannot survive for a long time in the market, and that a very small number of them can remain in the market for more than five years. Maintaining the country’s growth rates is closely related to the growth rate of these businesses, however, there are many challenges and obstacles that stop many of these MSMEs. According to Egypt’s 2030 Vision, MSMEs in Egypt play a major role in achieving economic and social development to meet the needs of the local market of Egyptian products, in addition to reducing the imports rate and increasing the exports in some sectors. The country has about 3.4 million small enterprises, 2,200 medium ones, and 217,000 micro businesses.Ĭertainly, the importance of supporting this sector is to achieve several goals. Medium, small, and micro enterprises (MSMEs) in Egypt account for 98% of the private sector’s activity and contribute about 43% of the country’s GDP. This sector is currently receiving much attention from the state because of its great importance in driving economic growth, creating job opportunities, and achieving sustainable development. It is clear how important small and medium enterprises are to a national economy, as they are considered one of the pillars of the Egyptian economy. ![]() In Egypt, in 1963, Mahmoud Al-Arabi - the owner of Toshiba Al-Arabi’s factories - founded his company with a capital of EGP 5,000. Since then, it’s become a revolutionary company in the tech industry. Steve Jobs invested in Apple with $1,350. Nowadays, the number of Pizza Hut branches around the world is exceeds 18,000. Michael Dell founded Dell while he was a student in university with an initial capital of $1,000.ĭan and Frank Carney started Pizza Hut in 1958 with a bank loan of $600. Colonel David Sanders started Kentucky Fried Chicken (KFC) in 1952 as a small restaurant selling fried chicken on the side of the road in the American county of Kentucky, eventually becoming the owner of more than 20,000 branches in the world.
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