22 June 2010 - Cairo, Egypt
The 4th Annual Meeting of the Egyptian Institute of Directors, co-organised by the OECD, focused on corporate governance of small and medium-sized enterprises (SMEs).
Corporate governance of SMEs is increasingly gaining importance on the corporate governance agenda in the MENA region. In Egypt for example, SMEs are estimated to account for 80% of the total value added produced by the private sector. Over 13% of adults in Egypt are reported to be in the process of starting a business or own a young enterprise.
Available research demonstrates that better corporate governance of SMEs is positively linked to their growth and long term sustainability. Better governance is not a panacea to all problems faced by SMEs, but it is an undeniably important ingredient to their success. Better governance improves SMEs' access to finance, ensures their sustainability and supports better financial performance.
Speakers and participants in the meeting debated on how corporate governance of Egyptian SMEs can be improved, in the context of ongoing corporate governance reform in Egypt, including the revision of the corporate governance code.