Presented at the meeting of the Working Group on SME Policy, Entrepreneurship and Human Capital Development on 23-24 September 2014.

1. Politiques en faveur des PME
AFRIQUE DU NORD ET MOYEN-ORIENT 2014
Évaluation sur la base du Small Business Act pour l’Europe
SME Policy Index
THE MEDITERRANEAN MIDDLE EAST AND NORTH AFRICA 2014
Implementation of the Small Business Act for Europe
Meeting of the MENA-OECD Working Group on SME Policy and
Entrepreneurship
Paris, 23-24 September 2014

2. Outline of the presentation
1. Background, methodology and assessment process;
2. SMEs overview of the MED region;
3. Key findings and messages at the regional level;
4. Key findings and messages with respect to the last
evaluation in 2008;
5. Next steps
2

3. Background, methodology and assessment process
The assessment benchmarks SME policies:
 Among MED economies (ALG, EGY, LEB, LIB, MOR, ISR, JOR,
PA, TUN);
 With respect to the Small Business Act for Europe;
 With respect to the past assessment (done in 2008).
Uses the SME Policy Index as analytical tool
3

4. Background, methodology and assessment process
The Small Business Act for Europe The assessment grid
Dimensions Sub -dimensions
Sub- dimensions Indicators
6.1 Sources of external finance for SMEs
1
6 Access to finance for SMEs
Sub
-
Dimensions
6.1 Sources of external finance for SMEs
6.2 Legal and regulatory framework
5.3 ACAAs
Indicators
6.1.1 Credit guarantee schemes
Indicators Level of Reform
Indicators
1 2 3 4 5
Credit guarantee schemes
Public start-up funding
Businessangels network
Policy dimensions
1. Education and training for entrepreneurship,
including women’s entrepreneurship.
2. Efficient bankruptcy procedures and “second
chance” for entrepreneurs.
3. Institutional and regulatory framework for SME
policy making.
4. Operational environment for business creation.
5. Support services for SMEs and public
procurement.
6. Access to finance for SMEs.
7. Supporting SMEs to benefit from Euro-MED
networks and partnerships.
8. Enterprise skills and innovation.
9. SMEs in a green economy.
10. Internationalisation of SMEs.

5. Background, methodology and assessment process
Who is involved
5
The partner organisations
coordinate the assessment
and conduct analysis
National coordinators
manage the assessment at
country level
 Government officials in ministries of economy,
industry or SME agencies
 Perform self assessments in consultation with the
private sector and other stakeholders
Local experts support
independent assessment
 Individual experts or institutions
 Collect data and information in consultation with
the public and private sector
Private sector associations
provide feedback on policy
reach and performance
 Chambers of commerce and industry
 Provide advice on policy effectiveness and areas for
policy improvement

6. Overview of SMEs in the MED region
There is an important potential for SME development in
the MENA region
6
Formal employment in SMEs is relatively low… … As is enterprise creation
New limited liability companies per 1 000 working
0.63
0 2 4 6 8 10
UK
OECD
Russia
Israel
France
Switzerland
Brazil
Qatar
UAE
Oman
MENA average
Tunisia
Canada
Morocco
Jordan
Algeria
Egypt
India
90
80
70
60
50
40
30
20
10
SME “density” and employment, 2009 or latest
Sources: IFC (2014) MSME Country Indicators and World Bank (2014) Entrepreneurship Database.
age people, average 2004-2012
0
Algeria
Bahrain
Egypt
Jordan
Kuwait
Lebanon
Morocco
Oman
Qatar
Saudi Arabia
UAE
MENA average
Brazil
Russia
China
Canada
France
Israel
Switzerland
UK
USA
Source: IDC (2014) MSME…
% of total employment SME density (per 1000 people)

7. Key findings and messages at the regional level
Challenges
• Regulatory and business
environments need to
improve;
• Access to external finance
remains limited;
• Insufficient enterprise
support networks and
services;
• Lack of quality vocational
and managerial skills for
SME growth.
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Main challenges and opportunities for SME development in
MENA countries
Opportunities
• Growing domestic
markets;
• Progressive integration
and economic openness;
• New prospects for
entrepreneurship;
• Improving literacy rates
and education levels.

8. Key findings and messages at the regional level
• SME policy should be seen as economic policy to raise the potential for growth
and productivity of small enterprises;
• General (although incremental) progress achieved in key SME policy dimensions;
• Progress is more marked in economies with solid and structured institutional
framework;
• SME policy institutions and support agencies have continued to operate in
countries in transition.
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Regional overview of the results
1. Education and training for
entrepreneurship, including women's
entrepreneurship
5
4
3
2
1
0
2. Efficient bankruptcy procedures and
“second chance” for entrepreneurs
3. Institutional and regulatory framework
for SME policy making
4. Operational environment for business
creation
5.a. Support services for SMEs and public
procurement
5.b. Public procurement
10. Internationalisation of SMEs
9. SMEs in a green economy
8.b. Innovation
8.a. Enterprise skills
7. Supporting SMEs to benefit from Euro-
6. Access to finance for SMEs
MED networks and partnerships

9. Key findings and messages in key policy dimensions
• Improving business environments
 Morocco’s National Committee for the Business Climate (CNEA);
 Lebanon’s Improving Business Environment Initiative (IBEL).
• Enhancing policy coherence and coordination
 Morocco’s strategic initiatives in key economic areas;
 Algeria, Israel and Egypt’s designation of a ministry to lead SME policy;
 P.A. efforts to increase policy coordination among key actors;
 Jordan’s adoption a national strategy for SMEs for 2014-2018.
9
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Dimension 3. Institutional and regulatory framework for SME policy making
2013 results Comparison 2013 and 2008
Regional average
Algeria Egypt Israel Jordan Lebanon Morocco PA Tunisia
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Algeria Egypt Israel Jordan Lebanon Morocco PA Tunisia
2008 2013

10. Key findings and messages in key policy dimensions
• Improving access to finance
 P. A. new credit guarantee schemes, credit bureau, micro finance regulatory framework;
 New private credit bureaus in Egypt and Morocco; Jordan moving in the same direction;
 New registries for moveable assets in Algeria, Jordan and Tunisia.
• Enhancing enterprise support services
 Egypt has specialised institutions;
 Tunisia’s virtual one-stop-shop to facilitate foreign trade.
10
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Regional average
Algeria Egypt Israel Jordan Lebanon Morocco PA Tunisia
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Algeria Egypt Israel Jordan Lebanon Morocco PA Tunisia
2008 2013
Dimension 6. Access to finance for SMEs
2013 results Comparison 2013 and 2008

11. Key findings and messages in key policy dimensions
• Supporting innovation in SMEs:
 Israel and Morocco strategic approach to support innovation in
SMEs;
 New initiatives in all MED economies, although coordination
and evaluation remain an issue.
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5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Regional average
Algeria Egypt Israel Jordan Lebanon Morocco PA Tunisia
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Algeria Egypt Israel Jordan Lebanon Morocco PA Tunisia
2008 2013
Dimension 8.2. Policy framework for SME innovation
2013 results Comparison 2013 and 2008

12. Next steps for MENA countries
1. Step up efforts to improve the business climate
a) Undertake business climate assessments
b) Conduct regulatory impact analyses
2. Adopt strategic and comprehensive approaches to
SME policy
a) Identify SME policy objectives, targets, milestones,
responsible agencies
b) Establish coordination mechanisms and consult with the
private sector
c) Put SME policy into the wider economic policy context
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13. Next steps for MENA countries
3. Strengthen monitoring and evaluation to assess
policy effectiveness
a) Evidence on policy effectiveness is very limited
b) Consultation and coordination with the private sector is
essential
c) More and better data on private enterprise development
is needed to improve diagnoses
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14. Next steps for international organisations and key partners
• Foster the exchange of good practices among MENA
countries and beyond;
• Contribute to capacity building and strengthening of
policy institutions;
• Reinforce and extend regional and international
business networks;
• Encourage and support other MENA countries in
participating in assessments like the SME Policy Index
2014.
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