Small and medium enterprises are an economic necessity to combat unemployment but face financial and institutional obstacles

The Arab Banks Forum which is focusing on small and medium enterprises kicked off yesterday.  The Forum which will take place over three days included a speech by the Minister of Economy and Trade, Alain Hakim, who stressed the importance of SME in raising growth rates.  Hakim also spoke about the role of his Ministry on supporting SMEs especially in terms of drawing their practical institutional frameworks for improving the situation of the SMEs in Lebanon which total some 67000 enterprises.  The President of the International Arab Banks Federation, Joseph Torbey, spoke about the resilience of SMEs especially in withstanding challenges and economic crisis.  He shared with the participants the learning form the Lebanese experience noting that SMEs represent 90% of the private sector enterprises and employ 80% of the total labor of that sector.
For his part, the first Vice President of Lebanon’s Central Bank, Raed Charafeddine, noted that most enterprises in the Arab work are small and medium enterprises.  He underlined the need to reconsider lending policies so as to take into consideration the needs of SMEs.  The honorary president of the general federation of chambers of commerce, industry and agriculture in the Arab World, Adnan Kassar, noted that SMEs are key vehicles to address the problem of growing unemployment in the Arab region which is estimated at 16% on average and at 25% amongst the youth.  

Source: Al-Mustaqbal, Al-Nahar, Al-Diyar, 22 August 2014