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All across the world people are in search of jobs. Jobs so they can raise their families and send their children to school. Jobs that provide access to social protection for them and their families. And, jobs in which they are respected, can organize and have a voice. What they want is decent work.
Enterprises play a key role in creating productive and decent work that helps meet the economic and social aspirations of people and their communities. Whether small, medium or large, enterprises – including cooperatives – they are a major source of growth and employment in all countries. Enterprises and the entrepreneurs who run them play a crucial role in creating jobs and reducing poverty.
“No decent work strategy can be successful without encouraging entrepreneurship, innovation and productivity.” Juan Somavia, Director-General, International Labour Organization.
Situation Analysis
The Arab region has the world’s fastest growing labour force and as increasing numbers of young people and women enter the labour market, the job creation challenge remains enormous. The private sector plays a fundamental in addressing this challenge.
One of the major impediments to private sector growth and development of enterprises in the region is the lack of cultural attitudes geared towards entrepreneurship development, the absence of required non-financial support services, the weak physical support infrastructure and the limited access to financial services and markets.
A favourable business climate and an efficient legal environment are also necessary conditions for promoting private sector development and creating the jobs needed for the rapidly growing labour force of the region. An enabling environment for sustainable enterprises is likely to be characterized by appropriate regulations, minimal red tape and bureaucratic procedures, good infrastructure, the rule of law and effective safeguards of property rights, the absence of corruption and so forth. The prevalence of informal economy in the Arab region is, in large part, due to a complex and unfriendly business environment, characterized by cumbersome laws, regulations, and administrative procedures that lack transparency.
The ILO through its Recommendation 189, 1998 concerning General Conditions to Stimulate Job Creation in Small and Medium-Sized Enterprises, insists on Member States to encourage a more positive attitude towards risk-taking and promote entrepreneurial role models and award schemes. One of the main objectives of the Recommendation is “to create and strengthen an enterprise culture which favours initiatives, enterprise creation, productivity, environmental consciousness, quality, good labour and industrial relations and adequate social practices, all of which are equitable”.
Furthermore, recognizing the key role of the private sector for growth, employment and poverty reduction, the 2007 International Labour Conference focused on the promotion of sustainable enterprises. In its conclusions, the Conference agreed on six enterprise level principles for responsible and sustainable enterprise level practices and 17 conditions for a conducive environment for sustainable enterprises ranging from peace and political stability through to responsible stewardship of the environment
Strategy of the ILO Regional Office
The Regional Office’s strategy to promote enterprise development in the Region is based on the following:
- Assisting governments to improve their policy and regulatory framework and make it conducive for enterprise development. A number of business environment assessments were conducted in the region based on which clear recommendations were formulated for Governments to consider. Currently a Jordan assessment is underway.
- Intervening at the institutional level to assist service providers and representatives’ association improve their services and provide the necessary support to enterprises.
- Training people in how to successfully start a business, improve it and eventually grow. A number of training programmes have been introduced in the region such as the Start and Improve Your Business, and Expand Your Business. These packages were translated to Arabic and adapted to the region’s need.
- Fostering the development of an entrepreneurship culture among youth by introducing the Know About Business educational curricula in secondary, vocational and higher education.
- Conducting research and sharing national, regional and international best practices among constituents in the region.
What’s new?
Publications in English:
- Micro, Small and Medium-sized Enterprises and the Global Economic Crisis: Impacts and Policy Responses
- Resilience of the Cooperative Business Model in Times of Crisis
- Promoting Responsible and Sustainable Enterprise-Level Practices at Times of Crisis : A Guide for Policy-Makers and Social Partners
- Reforming the Business Environment for Small Enterprises in Syria: Challenges and Recommendations (English and Arabic)
Assessments underway:
- Business Environment Assessment for SME Development in Jordan
- Expand Your Business impact assessment in Jordan
- Impact assessment of KAB in Syria planned to start in October 2009
Meetings:
- ILO/GCC Sub Regional Workshop on “Know about Business” for Promoters and Facilitators in the GCC States” 5-8 October 2009
UNDG Quarterly Newsletter
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