MSMEDA Encourages Enterprise Owners To Shift To Formal Sector: Rahmi

5/30/2024 4:15:03 AM

(MENAFN- Daily News Egypt) Basil Rahmi, CEO of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), sheds light on efforts to promote the transition of enterprise owners from the informal sector to the formal one, in collaboration with the small enterprises committee of the House of Representatives.

Subscription Relief for Settled Enterprises:

The National Authority for Social Insurance has reached an agreement that settled enterprises will not be required to pay any subscriptions except for the period starting from obtaining settlement licenses from the agency.
This move aims to ease the financial burden on businesses during their transition.

Enhanced Networking and Assistance:

The agency is actively coordinating with the Insurance Authority to complete networking procedures across 22 branches in Egypt's governorates.
Agency representatives will be present to assist during this process, ensuring a smoother transition for enterprise owners.

Small Enterprises Committee's Role:

The Small Enterprises Committee in the House of Representatives, led by Mohamed Maraei, plays a pivotal role in activating the Enterprise Development Law 152/2020.
Their efforts aim to provide robust support to the Micro, Small, and Medium Enterprises (MSMEs) sector, which constitutes over 80% of Egypt's economy.

Government Contracts and Technical Specifications:

The agency facilitates the participation of enterprise owners in government contracts.
Coordination with the General Authority for Government Services ensures that 20% of contracts are allocated to medium enterprises and 20% to small and micro enterprises.
Technical specifications are tailored to the potential and capabilities of these projects, streamlining the process.

Streamlining Documentation Requirements:

Owners of these enterprises are exempted from submitting previous work history and budget details for previous years, provided the nature of the process does not necessitate such information.

Supporting Handicrafts and Heritage:

Rahmi recently met with representatives of the Small Enterprises Committee to discuss the agency's work plan for supporting and developing handicrafts and heritage.
Additional support mechanisms are being explored to facilitate the shift to the formal sector, allowing enterprise owners to fully benefit from existing laws.

This comprehensive approach aims to bolster Egypt's economic landscape by empowering its vibrant MSMEs.

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