Project Background

In the framework of the International Labour Organization (ILO)’s partnership with the Micro, Small and Medium Enterprises Development Agency (MSMEDA) to address the growing needs of micro, small and medium enterprises (MSMEs) in the Egyptian market and further contribute to more inclusive and decent job opportunities, the ILO is implementing the European Union (EU) funded project Business Development Services for Growth (BDS4GROWTH).

The project will work on the shift in the business development services (BDS) paradigm in Egypt, moving from the traditional approach to market based approach, addressing the supply as well as the demand side of business development services with a focus on value chains development of two targeted sectors, namely agrifood in Minya governorate as well as tourism in Luxor governorate.

The core rationale for the intervention is market development, through addressing the gaps & constraints, which prevent MSMEs from solving their problems through existing market mechanisms. The objective of the project is to overcome these gaps & constraints to facilitate more effective market provision of BDS and institutionalising the facilitation of such BDS in core local actors like MSMEDA.

Objectives and expected outcomes

The overall objective of the project is to enable high quality business development services (BDS) provision to MSMEs in the agrifood and tourism sectors in Egypt to boost their contribution towards economic growth and employment.

Specific objectives

1. Enhance the capacity of MSMEDA to play a facilitative role in enabling governmental and non-governmental institutions to provide quality BDS.
2. Enable MSMEs in target sectors to access BDS to increase their competitiveness, productivity and internationalization.

Target sectors & geographical focus

• Agrifood– Minya governorate;
• Tourism– Luxor governorate;
• MSMEDA– HQ in Cairo governorate.

Why agrifood and tourism?

The two sectors were chosen in collaboration with MSMEDA- the main project’s counterpart- on account for national priorities, inclusive growth potential; market demand and potential for value addition; opportunities for green jobs.

Expected results of the action are as follows:

MSMEs

• Access quality business development services (BDS) in the targeted sectors, namely agrifood in Minya and tourism in Luxor;
• Enhance their competitiveness and productivity to create new and improved jobs;
• Access financial services through MSMEDA and relevant microfinance institutions (MFIs).

Micro, Small and Medium Enterprise Development Agency (MSMEDA)

• Will be able to play a facilitative role among governmental and non-governmental institutions to provide quality BDS to MSMEs;
• Will be able to capacitate partner organizations to make readymade as well as tailored BDS to MSMEs.

BDS providers in selected value chains

• Enhance their capacities to provide quality BDS;
• Provide quality BDS based on a commercial model.

Value Chain Development

• Market system analysis is conducted in the two targeted sectors to identify value chains of intervention;
• Market gaps are addressed through interventions in the selected value chains where the potential of decent jobs creation and economic growth is evident.