MICRO AND SMALL ENTERPRISES IN LEBANON

Table 34: Mixed Income and Sector of ActivityNo. of responsesAverage mixed incomeIndustry 41 $1,208Construction 1 $256Trade 209 $1,624Hotels & restaurants 32 $1,740Other sectors 41 $892Total 324 $1,486Mixed income follows patterns set earlier in present value and value added in that there is a clearpositive correlation between the size and the level of mixed income. The highest mixed income isobserved in larger MSEs ($14,822 in enterprises with 10-49 employees), compared to small MSEs($4,262 for enterprises with 5-9 employees and $830 in 2-4 employee enterprises), and microenterprises ($300 for one-worker enterprises).Finally, as is the case for other variables, location also has a bearing on mixed income, with Beiruthaving an average mixed income 4.5 times higher than the national average ($7,072), while NorthLebanon has a mixed income 3.3 times lower than the national average ($303), knowing that thenational average is $1,486. South Lebanon has an average mixed income of $1,130, reflecting perhapsthe fact that it is more urbanized with three major cities, which may explain the discrepancy withrespect to North Lebanon and the Bekaa. The low levels in the latter two regions are indicative ofwealth distribution and poverty in the country.III.15.2 WagesThe data gathered does not allow us to draw conclusions regarding wages of employees working inMSEs. However, the numbers obtained do provide a picture of the prevalent situation, althoughfurther analysis and studies are needed to elaborate on this issue. This section will present the wageresults according to gender, size, and sector.Although the number of responses is not representative, the survey reveals that the average monthlywage is $280/employee, and is higher in female-owned enterprises ($333) than in male-ownedenterprises ($277). Furthermore, the wages of employees are relatively low – well below the povertyline yet well above the minimum wage declared by the government. These results of wagedifferentials can partially explain the difference in mixed income between males and females, and alsothe near equality in terms of value added per worker in female and male-owned enterprises.Since one-employee enterprises do not have any workers, there is no wage bill in these MSEs.However, it is noted that the average wage increases according to the size of the enterprise, reaching$417 in enterprises of 10-49 employees. What is of interest is that the average wage in all thesurveyed enterprises (amounting at $280) is 40% higher than the national minimum wage ratedeclared by the government of $200/month. However, the average for categories 2-4 and 5-9enterprises is lower than the national average of earning per worker registered at $450/month in 1997- $261 and $325 respectively. In addition, most of the employees working in MSEs earn less than thehousehold poverty line estimated at $340/month for a family of 4.6 members in 2003.The highest average wages are registered in the hotel and restaurant sector ($368), followed byindustry ($335), other sectors ($305), and trade ($249). The low level of wages in trade activitiescontrasts with the high mixed income averages obtained for this sector, while the low level of mixedincome generated in hotels and restaurants and in industry can be partially justified by their higherwage averages.III.15.3 Household incomeThe field survey also included a specific questionnaire related to the entrepreneur’s household. Thehousehold income distribution is shown in the tables below which provide data on the monthlyhousehold income according to the size of enterprise, gender, and region.In general, the highest percentage of surveyed households earn a monthly income in the LBP1,200,000-1,600,000 range (19.9%), followed by those earning LBP 800,000-1,200,000 (17.9%) or38