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1Mahi Al-Jazzar - June 21st
, 2013
Case Study of Bedaya Centre forCase Study of Bedaya Centre for
Entrepreneurship & SMEsE...
2
ContentContent
I-Bedaya Centre Profile
3
 Establishment:
– Bedaya Centre for Entrepreneurship and SMEs Development was
established in Ja...
Key Pillars
4
Improve Business ClimateImprove Business Climate
Perfect
Place for
SMEs
Business
Developme
nt Services
Infor...
5
II-Business Development Services
Business Clinics Program
 Providing free-of-charge consultations from professional vol...
6
III- Access to Finance
Financing gap: SMEs sector accounts for 80% of the active
economic units in Egypt; however, can a...
7
III- Access to Finance
Bedaya Private Equity Fund
 Established according to the provisions of the Capital Market Law no...
8
IV- Entrepreneurship
Bedaya Center designed its entrepreneurship program to promote the entrepreneurial culture
among yo...
9
V- Informal Sector
 Studies have shown that:
– Number of the informal economic units in Egypt was estimated by around 1...
V- Informal Sector
Pilot Project
10
 GAFI Bedaya launched an initiative to formalize the informal units in cooperation wi...
VI- Underway Efforts to Commercialize R&D
11
 MoU has been signed between “Bedaya 1” investment Fund and the Academy for
...
12
VII- Challenges & Key Policy Priorities
13
Challenges
 Ecosystem Challenges:
• No unified definition for SMEs in Egypt
• Lack of a champion responsible for SMEs
...
14
Challenges
 Bedaya Centre Challenges
• Sustainability of the provided BDS (mainly depending on volunteers consultants)...
15
Policy Priorities
 General Policies
• National Strategy for the development of SMEs and Entrepreneurship that would
ad...
16
Thank You
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Case study of bedaya centre for entrepreneurship & sm es development,mahi al jazzar project coordinator

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Case study of bedaya centre for entrepreneurship & sm es development,mahi al jazzar project coordinator

  1. 1. 1Mahi Al-Jazzar - June 21st , 2013 Case Study of Bedaya Centre forCase Study of Bedaya Centre for Entrepreneurship & SMEsEntrepreneurship & SMEs DevelopmentDevelopment
  2. 2. 2 ContentContent
  3. 3. I-Bedaya Centre Profile 3  Establishment: – Bedaya Centre for Entrepreneurship and SMEs Development was established in January 2010 according to GAFI Board statement, in order to implement the strategy of supporting and developing small & medium investments  Mission: – To support the growth and development of the SMEs in Egypt; in line with the National strategy toward raising the economic development indicators.
  4. 4. Key Pillars 4 Improve Business ClimateImprove Business Climate Perfect Place for SMEs Business Developme nt Services Informal To Formal Entreprene urship programs Access to Finance
  5. 5. 5 II-Business Development Services Business Clinics Program  Providing free-of-charge consultations from professional volunteer consultants in various business disciplines including but not limited to: Legal Financial HR Planning Management Marketing Business Improvement IT  Consultations are provided through one-to-one meetings between the SME and the consultant or through workshops.  Until May 2013, Bedaya has provided 552 consultations to entrepreneurs and SMEs
  6. 6. 6 III- Access to Finance Financing gap: SMEs sector accounts for 80% of the active economic units in Egypt; however, can access only 10% of the available finance from banks. 1.Conventional Financing: •Referrals to banks •Credit Guarantee Company Only 5 SMEs have got the required funding out of total Number of 43 files that were submitted through Bedaya Centre 2.Non- Conventional Financing: •“Bedaya 1” Private Equity Fund
  7. 7. 7 III- Access to Finance Bedaya Private Equity Fund  Established according to the provisions of the Capital Market Law no. 95/1992  Main objective is to provide  -SMART CAPITAL- and know-how support required to promote the growth of the Egyptian SMEs  “Bedaya 1” fund has been launched in 18th February 2013; licensed with total size of EGP 134 Million and fixed term of 10 years.  It invests in companies registered under the provision of Egyptian laws, with capital not less than EGP 2m and do not exceed EGP 50m  “Bedaya 1” fund is managed by Al-Ahly for Development & Investment (ADI) one of the most competent and experienced local fund managers in Egypt  “Bedaya 1” invests in all sectors except in Tobacco, Alcohol, gambling, import and real estate  Investment policy considers sectors and geographic diversification, with majority of the fund portfolio dedicated to investments outside Greater Cairo (60%)  10% of the fund portfolio is VC, with special focus on innovative start-ups  “Bedaya1” has already invested in 3 companies; another 3 companies are about to sign the terms sheets shortly and other 8 projects are currently in the
  8. 8. 8 IV- Entrepreneurship Bedaya Center designed its entrepreneurship program to promote the entrepreneurial culture among youth and transfer their mindset from job seekers to job creators. Meanwhile, acting as a catalyst, building and integrating with other entrepreneurship initiatives and programs.
  9. 9. 9 V- Informal Sector  Studies have shown that: – Number of the informal economic units in Egypt was estimated by around 1.5 million in 2010 (MBDI – EIB 2010) – Informal employment was estimated at 8 million workers excluding agricultural activities according to ILO statistics in 2009.
  10. 10. V- Informal Sector Pilot Project 10  GAFI Bedaya launched an initiative to formalize the informal units in cooperation with key government stakeholder  Two key areas were selected for the pilot project namely “Masheyet Nasser and Ezbet El Nakhl” • The high volume of working entities estimated at around 4,300 in both areas with an annual turn- over rate ranging from EGP 1 – 2 million each  A working group was formed under the leadership of GAFI and Bedaya Centre and including several governmental stakeholders.  Key outcomes: • 70 economic units were formalized • Tax law is being reviewed to exempt formalized units from the previous tax due • Streamlining government procedures (Registration, Licensing, land allocation …)
  11. 11. VI- Underway Efforts to Commercialize R&D 11  MoU has been signed between “Bedaya 1” investment Fund and the Academy for Scientific Research & Technology ASRT to: 1. Cooperate in supporting innovative and technology-based entrepreneurs and SMEs 2. Establish an intermediary corporation similar to the Malaysian model “MTDC”, which provides funds, mentoring and incubation; in addition to other value added services for technological and scientific research in order to travel to the market  The Company’s objectives revolve around: • Facilitating patency and IPR registrations for scientific & technological researches, • Guiding entrepreneurs through all the technical support and consultations required for their businesses • Selecting the best qualified entrepreneurs to run and manage new ventures based on the transformation of scientific researches into market applicable products and services • Facilitating licensing of universities techno-researches through various means such as alliances, joint ventures or through new ventures
  12. 12. 12 VII- Challenges & Key Policy Priorities
  13. 13. 13 Challenges  Ecosystem Challenges: • No unified definition for SMEs in Egypt • Lack of a champion responsible for SMEs • Lack of information on number of SMEs and their contribution to GDP • Weakness of the legislative environment especially the bankruptcy law  SMEs Challenges • Access to equipped, feasible priced lands • Licensing (no central mechanism, high cost for hiring legal representative) • Weak competitive advantage in front of larger businesses • Access to Finance • Access to BDS (on both levels, the supply and the demand)
  14. 14. 14 Challenges  Bedaya Centre Challenges • Sustainability of the provided BDS (mainly depending on volunteers consultants) • Entrepreneurship support efforts are scattered and not embedded officially in the national economic agenda  Commercializing R&D Challenges • Complete separation between academia and industry (an innovation study on Egypt has shown that less than 6% of companies go to universities when they face problems) • Earning the trust of researchers is a challenge, as they may not believe in the possibility of real commercialization and may be skeptical in working with business. • Academia is not oriented towards commercialization, as commercialization does not go in the promotion process along with publication. Therefore, its not applicable to have applied research and clear IP strategy • Financing early start-ups is very challenging • No formal networking between the academia and the private sector; also between entrepreneurs and potential investors (no mechanism of finding the right match) • Lack of ability to assess the feasibility of the idea traveling to market
  15. 15. 15 Policy Priorities  General Policies • National Strategy for the development of SMEs and Entrepreneurship that would advocate Bedaya Centre as the champion in this concern • Creating the link between BDS and access to finance in a structured mechanism • Drafting a law for SMEs with a set of incentives, which some efforts are currently underway.  Commercializing R&D Policies • Government to interfere in early financing for entrepreneurs, especially that private sector is skeptic in this phase • Develop an incentive scheme for companies spending on R&D • R&D financing policy, with an eye on commercialization • IP policies and its enforceability • Establish and properly structure university incubators where R&D could be commercialized
  16. 16. 16 Thank You

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