Household Micro and Small Enterprises in Egypt: Overview and Developments through 2023

Amirah El-Haddad ()
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Amirah El-Haddad: German Institute of Development and Sustainability (IDOS)Author-Name: Chahir Zaki

No 1772, Working Papers from Economic Research Forum

Abstract: We use household enterprise data from the Egypt Labor Market Panel Surveys (ELMPS) in 1998, 2006, 2012, 2012 and 2023 to track the state of household micro and small enterprises (MSEs), particularly considering the enactment of the new micro, small, and medium enterprise (MSME) law in 2020. In 2023, we find that the sector continues to be dominated by informal, male-owned microenterprises. It also exhibits limited diversification and sophistication. There has been a trend toward informalization. Despite numerous initiatives and reforms in the institutional and regulatory environment, MSEs remain heavily self-financed. These characteristics suggest that the sector functions more as a 'survival sector' or a last-resort employer rather than as a competitive, high-tech and high-value one. With the challenges facing the sector and barriers to entry into the formal sector, this sector is the only way to earn a living for many people.

Pages: 28
Date: 2025-05-20, Revised 2025-05-20
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Published by The Economic Research Forum (ERF)

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