MICRO AND SMALL ENTERPRISES IN LEBANON

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The travel duration (in minutes) from home to work is not long, where only 7.8% of surveyed MSEshave a travel duration of more than 30 minutes between home and work, while traveling time is lessthan 5 minutes for 15.1% of surveyed MSEs, 5-9 minutes for 26.2% of them, 10-15 minutes for26.6% and 15-29 minutes for 24.2% of MSEs. The close distances between home and work is apredominance of the one-employee MSEs who live usually near their working stations (Figure 6).III.5.3 Access to infrastructureAccess to infrastructure is a determinant enabling or constraining factor for the work of MSEs. Ingeneral, most surveyed enterprises have access to water, electricity, sewerage systems, and roads. Alower percentage has access to telecommunication networks, and transportation facilities for goodsand workers.As shown in the Figure below, around 65% of surveyed enterprises have access to water, 42% ofwhom estimate its quality as “good” 13 , while 22% perceive it as “bad”. Around 85% of MSEs accesselectricity, but 36% of them regard it as a “fair” quality asset, and only 29% consider it “good”.Access to roads is highlighted by 70% of MSEs, and 50% perceive it as a “good” service.Furthermore, it is noted that less than 50% of surveyed MSEs have access to telecommunicationnetworks, and 65% of them consider the quality of the service as “good”. Only 40% of MSEs haveaccess to transportation means for goods while only 15% access transportation services for workers.Finally, only 2% of MSEs have daycare centers (Figure 7).Figure 7: Infrastructure Availability and Quality90.084.780.070.060.064.865.459.669.962.750.040.042.535.036.534.548.453.049.336.048.539.737.145.240.530.020.010.022.429.019.414.830.116.714.614.726.19.314.210.70.0Water Electricity Telephone Sewage Roads Transportation forworkers% good fair badTransportation forgoods1.8Daycare centersIII.5.4 Access to advisory/training servicesAccess to information and advisory services is important for optimizing efficiency and effectivenessof enterprises. The survey found that a minimal number of surveyed MSEs have access to suchservices, whether in terms of information or comparative experiences. It appears that, on average, only4.7% of surveyed enterprises acquire services pertaining to management, trainings, marketing,exports, production, etc…. The least used service is the one concerning exports where only 0.68percent of enterprises resort to it, while the most consumed service is domestic marketing (7%).13The indicators of measure considered for the evaluation of the services’ quality are: good, fair, and bad. The infrastructureparameters are: water, electricity, telephone, sewage, roads, transportation for workers, transportation for goods, and daycare centers.21
The survey also showed that larger MSEs have more access to such services. Whenever this type ofassistance is available, it is usually done by business associates and is positively evaluated for itsimpact on the enterprise.Other survey results indicated that female entrepreneurs are more likely to use these types of services.III.6 Major ConstraintsTable 16 details the list of constraints that are faced by MSEs, classifying them into three categoriesbased on the response of the surveyed enterprise.Table 16: Problem EvaluationType of constraints None Moderate Major TotalFinancial issuesSecuring initial capital 21.8% 30.0% 48.2% 100%Financial services 54.7% 21.7% 23.6% 100%Profitability 40.1% 29.5% 30.4% 100%Regulatory frameworkLicensing and registration procedures 39.6% 25.7% 34.7% 100%Tax rates 38.6% 18.7% 42.7% 100%Custom duties 53.7% 14.1% 32.2% 100%Tax administration 49.7% 14.2% 36.1% 100%Labor IssuesLabor law 53.9% 22.4% 23.7% 100%Labor inspections 68.8% 22.4% 8.8% 100%Labor cost 56.2% 29.9% 13.8% 100%Finding qualified workers 57.0% 20.2% 22.8% 100%Retaining qualified workers 56.6% 19.5% 23.9% 100%Un-utilized capacity 52.4% 35.4% 12.2% 100%Raw materialAvailability of raw materials 66.4% 26.6% 7.0% 100%Raw material cost 47.5% 34.6% 17.8% 100%Marketing issuesLow demand for output 33.2% 42.7% 24.1% 100%Strong domestic competition from MSEs (
Page 1 and 2: ERF RESEARCH REPORTProject on “Pr
Page 3 and 4: III.17.3 Clusters------------------
Page 5 and 6: AcknowledgementThis is the first re
Page 7 and 8: By presenting this unique, serious
Page 9 and 10: The overall environment in Lebanon
Page 11 and 12: 3.6 Major ConstraintsThe most promi
Page 13 and 14: The distribution of entrepreneurs a
Page 15 and 16: project includes a field survey, th
Page 17 and 18: the same probability to be selected
Page 19: Table 8: MSE Distribution per Gende
Page 23 and 24: person enterprises is an evidence o
Page 25 and 26: Figure 3: Distribution of MSEs Acco
Page 27: Most of the surveyed MSEs operate i
Page 31 and 32: The percentage of MSEs that are not
Page 33 and 34: Finally, it appears through the rel
Page 35 and 36: practiced. Nevertheless, value adde
Page 37 and 38: III.12.6 Value-added and technology
Page 39 and 40: of age compared to 19% of male entr
Page 41 and 42: Table 26: Age (current) Distributio
Page 43 and 44: The entrepreneurs opted to change o
Page 45 and 46: Table 34: Mixed Income and Sector o
Page 47 and 48: • Acquisition of modern technolog
Page 49 and 50: frequency distribution do not show
Page 51 and 52: do not belong to a cluster achieve
Page 53 and 54: III.17.11 Working Hours per WeekPro
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