Small and Medium Enterprises Definition
The term “Small and Medium Enterprises” (SMEs) or “small and medium-sized businesses” (SMBs) refers to companies with staff and income below a predetermined threshold. International institutions like the World Bank, the European Union, the United Nations, and the World Trade Organization all use the acronym Small and Medium Enterprises “SME” (WTO).
Small and Medium Enterprises Law
Law on the Development of Medium, Small, and Micro Enterprises
Law No. 152 of 2020 promulgating the Law on the Development of Small and Medium Enterprises and Micro Enterprises activates the role of the Enterprise Development Authority established by Prime Minister’s Decree No. 947 of 2017 and amended by Resolution No. 2370 of 2018 as the responsible authority and the legitimate father supporting this sector, and to reconcile the conditions of Small and Medium Enterprises and micro enterprises operating in the field of the informal economy to qualify and integrate them into the formal sector, and below we review the most prominent definitions of Small and Medium Enterprises and micro enterprises.
Types of Small and Medium Enterprises and Micro Enterprises
Medium Projects:
Any project with an annual turnover of EGP 50 mn and not exceeding EGP 200 mn, or every newly established industrial project with a paid-up capital or invested capital, as the case may be, of EGP 5 mn and not exceeding EGP 15 mn. Or any newly established non-industrial project with a paid-up capital or invested capital, as the case may be, of EGP 3 mn and not exceeding EGP 5 mn.
Small Projects:
Any project with an annual turnover of EGP 1 million and less than EGP 50 million, or every newly established industrial project with a paid-up or invested capital, as the case may be, of EGP 50,000 and less than EGP 5 million, or every newly established non-industrial project with a paid-up or invested capital, as the case may be, of EGP 50,000 and less than EGP 3 million.
Micro Enterprises:
Any project with an annual turnover of fewer than one million pounds, or every newly established project whose paid-up capital or invested capital, as the case may be, is less than 50 thousand pounds.
Newly established project:
A project that has not been established, registered, or engaged in its activity for more than two years.
You can check the official laws for Small and Medium Enterprises at the links below
Private sector participation law in infrastructure projects, public services and utilities
In addition to the previous oversight of the choice of executable projects through the partnership system with the sector, changes to some provisions of the Law Regulating Private Sector Participation in Infrastructure, Public Services, and Utilities promulgated by Law No. 67 of 2021 provided for the formation of a joint committee of specialists from the Ministries of Finance, Planning, and Economic Development and the Central Unit for Participation.
The law specified the principles to which contracting for projects that are implemented by the system of participation with the private sector is subject to, including the economic and financial balance of its provisions and the joint gains of its parties, as well as the transparency of contracting methods and equal treatment for all parties, in order to improve the standards of governance and give investors an investment map of projects that can be contracted with the system of prior participation. It also seeks to accomplish several goals represented by:
- The expansion of private sector business practices in the areas of infrastructure, energy, and public services.
- Introducing new contracting techniques appropriate for some projects’ nature, such as (direct contracting, contracting for a project submitted at the initiative of the private sector, and limited tenders and auctions).
- Establishing precise guidelines and standards for choosing initiatives that can be carried out in conjunction with the business sector.
- Establishing a system for choosing initiatives that can be implemented in collaboration with the private sector.
- Replacing the current law’s requirement that the pre-qualification stage be mandatory with one that permits it in projects whose nature calls for earlier confirmation of the qualification of contracted projects.
- Shortening the duration of the grievance period and the offering stages to expedite the conclusion of the processes in the stage previous to contracting.
- Permitting the most fiscally feasible proposal to be excluded from the offered tender or auction if its price differs unusually from other bids and the government comparator.
- The right to enter into negotiations with the most reasonable bidder in an auction or tender whose offer is unreasonably lower or higher than the government comparator in order to reach a fair price for him to serve the public interest.
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