MICRO AND SMALL ENTERPRISES IN LEBANON

III.17.11 Working Hours per WeekProductivity of workers rises at first to reach a peak, after which it starts to fall. This phenomenon isonly normal; it supports the theory of labour productivity in economics. According to theperformance indicators, the peak is at 48 working hours per week, which means that beyond thispoint, employees tend to work more inefficiently due to many reasons, exhaustion being one. Thistrend remains valid until working hours per week reach 72, after which productivity boosts again. Inthis case, a double-shift system is installed, representing nearly the same productivity, and thusperformance, as that of a single-shift one.Working hours/week48h and less 5.2948h-60h 4.8960h-72h 4.75more than 72h 5.28III.17.12 Geographic LocationThe geographic location also affects the performance of enterprises. Our indicator shows that MSEsin Beirut perform best and those in Bekaa record the least performance, compared to otherGovernorates. This is only logical due to the urban vs. rural nature of the locations mentioned.LocationBeirut 6.45Mount Lebanon 5.36Bekaa 4.04North 4.88South 5.17IV. RecommendationsThe importance of the contribution of the private sector to the Lebanese economy cannot behighlighted more. Similarly, the importance of micro and small enterprises has always characterizedthe economy of the country, a fact further confirmed in the current research. This indicates theimportance of supporting micro and small enterprises as one of the pillars for any long-termdevelopment strategy in the country.This is especially pertinent in terms of pro-poor development strategies, where these enterprises aremostly owned and operated by poorer groups of the society. Such enterprises are easy to support, theyrequire low capital per job created, they have the ability to generate a number of job opportunities toabsorb the growing labor force, and they target women, and those who have no other source ofincome. However, these enterprises are vulnerable to shocks, they lack access to financial assets andthey are not covered by social security schemes.The recommendations of this study are divided into the following five categories. It should be notedhowever that the effectiveness of these recommendations is conditional to pursuing macroeconomicreforms pertaining to infrastructural, fiscal, sectoral, and employment policies.1. Providing and supporting an enabling policy environment for MSEs• One of the more important conclusions of the study is the need for the inclusion of purposefulenterprise development strategies, guided by an overall vision of development.• An enabling legislative framework should be developed to facilitate and encourage engagement inthe formal, micro, and small scale enterprises. This will ensure their proper development,increased competitiveness, efficiency and sustainability.• This also needs providing incentives for enterprise establishment and growth, includinglicensing/registration procedures, regulating taxation, tax administration, customs fees, and costsof essential services in a way that would assist these MSEs. These incentives concernaccessibility to imports and domestic raw material.• There is a need to strengthen legislation related to membership of MSEs in professionalorganizations in order to tap into resources and partnerships.46