Small medium-sized enterprises are not only the most adapted enterprises for developing countries only, also are the unique categories of projects, which provide a lot to these countries in solving its critical problems even if these countries can or not attract foreign direct investment (FDI). Economists with their different ideologies rank these projects as the ideal solutions for many problems as unemployment, inflation, the deficit in the Balance of payment (the deficit in the developing countries in general is high and in Egypt specifically it is periodic & high, and that’s due to the structure of the economy in production, export & import). At Egypt, like any developing country this category of Business represents more than 99% of all Businesses and also more than two third of all workers are employed in this size.
What is SME
From a quantitative point of view, the term SME refers to companies in all sectors, including crafts and skills trade, so as long as a given size threshold is not exceeded The Ulrich refers to his own analysis in which he found more than 200 definitions for the term SME present in the literature, we also found the same problem in defining SME in Egypt. The definitions may vary according to the profit, invested capital, Balance sheet total, earnings, total capital, equity, market position, production and sales volume, No. of workers hired, these quantitative prospective may be touched, but there are also a qualitative ones such as the quality of leadership personnel, the utilization of capacity and the capital and wage intensity as well as the productivity. (Loecher.U, 2000, 261-264)
We depend in defining our SME at Egypt as the definition provided by the social fund for development which defined the SME as any Business -what ever its kind- who hire 10-50 workers & invest from 50,000-up to 1000,000 Egyptian pound. The definition of SME in Egypt is different a lot from the European definition which defines SMEs as...