Promoting SMEs
THE SECOND SMEtech conference and exhibition ended earlier this week. Niveen Wahish was in attendance.
The event, organised by the Ministry of Foreign Trade, is part of ongoing efforts to strengthen Egypt's small and medium enterprise sector. The five-day exhibition included not only the products of assorted small and medium-sized companies, but also mechanical and technological inputs needed by SMEs in their manufacturing process. Four educational seminars held during the exhibition examined means of SME sector development and issues in marketing its products abroad.
Throughout both the exhibition and conference this year there was a special focus on the export potential of various traditional Egyptian crafts. Nabil El-Banhawy, head of the Arab Arts Association, spoke of the appeal of Egyptian handicrafts abroad, not only the products themselves, but also distinctive manufacturing processes. He illustrated this point by relating how American billionaire Bill Gates visited Egypt to see firsthand the construction of a Nubian house. Impressed, Gates commissioned a group of Egyptian workers to build himself a house using the Nubian technique.
While admitting the attractiveness of Egyptian handicrafts, Magdy El-Adawy, wood craftsman and owner of a workshop, stressed the importance of authenticity and originality. Crafts should not be mere replicas of existing motifs, but rather the artisan must understand the piece he or she is working on, and have a knowledge of its history and meaning. El-Adawy pointed out that Egyptian artisans can easily draw on Egypt's rich historical experience for inspiration.
The Ministry of Foreign Trade's efforts to promote SMEs stems from the fact that this sector represents 99 per cent of the non-agricultural private sector firms in Egypt and employs three quarters of total labour force in the private sector. Currently the sector badly needs to encourage more skilled labour, utilise advanced equipment, and develop efficient production and marketing plans. Moreover, they need affordable access to inputs whether produced abroad or in Egypt, improved banking services and information about international and domestic markets. The authorities are working to overcome these obstacles and create a suitable environment for the self- propelled growth of this sector. Central to this strategy is export promotion, since expanded exports could ameliorate many of Egypt's economic problems.
