This research discusses the importance of SMEs which denote an obvious source of growth for the Egyptian economy and underwrite greatly to its GDP. The presence of a high number of SMEs workers indicates that this type of business can help to cope with Egypt’s unemployment crisis. Within the SME sector, Egypt tolerate from the existence of informal sector. SMEs in normal modify inexpensive casting and services according to the needs of the consumers at rational prices and with rapid response times.
One of the greatest advantages of SMEs for the Egyptian economy is that they offer jobs at low cost. However, SMEs depend on their own saving and private resources which represent the network of small saving investments.
At that point, we will discuss the actual situation of the Egyptian economy and why it is too hard to develop SMEs in Egypt. Then, we will provide some insights based on our regression results concerning the basic factors which influence the development of SMEs and suggest some recommendations.
Therefore, we will overview the evolution of SMEs sector in Korea, it demonstrates how the industrial structure of Korea has changed over the years to contribute more in employment and value added realized through SMEs. The example of South Korea in their experience to develop the SMEs to help on economy growth can give us some perceptions to develop SMEs in Egypt.
