MICRO AND SMALL ENTERPRISES IN LEBANON

• Effective quality assurance mechanisms and tools should be developed, based on clear standardsand quality criteria, to allow both training providers and trainees to identify effective trainingcourses and areas for improvement.3. Providing MSEs with accessibility to technology and services• Access to technology should be enhanced as it has been shown to enhance the performance ofMSEs. It is recommended that this increased access be included in any development strategytargeting enterprises.• MSEs should have access to knowledge based networks. Knowledge- intensity of production andthe emergence of innovation-based solutions would enhance the performance and survival offirms.• Access to basic infrastructure and services for the operation of MSEs should also be enhanced.The findings of the study highlighted the importance of the availability of an efficientinfrastructure to ensure sustained enterprise growth and performance. MSEs located in Beirut orMount Lebanon, with higher access to infrastructure and markets, perform better on all fronts: ahigher value-added, higher present value, higher profits, etc.4. Reinforcing linkage and interrelation between MSEs• There is a strong need to develop markets and marketing linkages between MSEs. Both verticaland horizontal expansion should be considered and assistance in marketing interventions shouldbe completed.• There is a need to establish a strong network among MSEs. This should be “incubated” for thefirst phase of its establishment, but could then be “hosted” by the business/professional groupingor associations.• Although international research indicates the importance of clustering for increasedcompetitiveness and higher earnings and profit, the survey did not validate this hypothesis.Furthermore, the survey did not show that MSEs in clusters have better performance indicators.This may be due to the fact that most of these enterprises have not yet felt the effects ofglobalization, as well as the fact that clustering in the Lebanon context is merely a grouping ofMSEs in one location.• An institutional body or a structured forum should be created, where agencies providing supportto MSEs can elaborate their common vision and concrete interests, share lessons learnt anddisseminate the experience gained. It should include all stakeholders, including central and localgovernments, non-governmental organizations, donors, associations, etc.5. Other recommendations• Special attention should be given to female-run enterprises in order for them to develop andprovide a leeway for persons out of poverty. The issue of gender differentials is an interestingone. The survey showed that women entrepreneurs resort to the establishment of micro and smallenterprises as an alternative out of their poverty. Women earn less; their enterprises have lessaccess to earnings and profit; perform less; have lower added-value; and have less access to assetsand resources.Based on the survey findings, the size of the enterprise is important for increased competitiveness andsustainability, as well as better performance. Size was found to significantly raise profit, presentvalue, value-added, increase performance, as well as assist enterprises to graduate into biggercategories, improve working conditions, and raise family/household incomes. The same holds true forthe organizational management of enterprises.48