Small Business Getting Heard (Egypt, part 2)

How do you get the attention of politicians? Egypt’s small business federation simply whisked them away during their lunch break…

Traditionally, small businesses across Egypt received little attention from the government. Although market reforms began in the 1990s, commercial laws affecting small business remained antiquated or were geared toward big business. The prime minister saw no need for legislation fostering small business growth, and parliament never consulted small business owners about their needs.

When the Federation of Economic Development Associations (FEDA) decided it was time it got heard, it rented two buses and parked them outside the Parliament. As members of parliament exited their first session of the day, they were greeted by FEDA representatives who invited them to learn about small business needs over lunch. The 65 politicians who agreed to board the bus were taken to a hotel where they learned about the importance of small business to the economy, not to mention the power of 32,000 business owners’ votes.

FEDA explained gaps in existing law and offered solutions. Then, 25 members of parliament stayed after lunch to hear more, and this group of concerned politicians went on to sponsor new legislation for small and medium enterprises. It was unprecedented for a draft law to be introduced this way without going through the executive, yet the SME law was passed in 2004. 60% of FEDA’s recommendations were incorporated in this law and the new prime minister asked FEDA to help implement the law in cooperation with the Fund for Social Development.

Today, FEDA is tackling the 1954 unified law on industry. CIPE and FEDA are bringing together officials and people from commerce and industry all around the country to workshops on revising the law. Businesspeople are airing their views and officials are coming to listen.

Published Date: February 19, 2008