Historically, Egyptian micro, small, and medium enterprises (MSMEs) have not been able to benefit from robust business support services. As a result, most MSMEs have had limited access to reliable market information, inadequate skills, tools, and processes to act on market opportunities, and poor access to finance. USAID’s Strengthening Entrepreneurship and Enterprise Development (SEED) project sought to counteract this trend by building the capacity of Egyptian business development services (BDS) providers, financial institutions, and sector/industry associations to deliver better services to MSMEs.

As a subcontractor to DT Global, SEGURA played a major role in implementing Component C: Integration of MSMEs in Value Chains. SEGURA’s three long-term local Value Chain Advisors and highly specialized short-term consultants worked with Egyptian business associations to link MSMEs in selected sectors (dairy, fisheries, plastics, automotive parts, and ready-made garments) with larger firms to help them integrate into domestic and foreign value chains. 

SEGURA built the capacity of business associations to sustainably serve MSMEs, supported MSMEs’ participation in business-to-business (B2B) events, and raised awareness of inclusive corporate social responsibility (CSR) practices. Through these activities, MSMEs obtained a range of technical and managerial skills that allowed them to take advantage of market opportunities. SEGURA enhanced its in-person interventions through online market information systems (MIS) that captured and disseminated market data and connected MSME sellers with large buyers. SEGURA was able to achieve SEED’s Life of Project target for B2B linkages by the end of Year 3. 

Strengthening the capacity of business associations to serve MSMEs

SEGURA strengthened the capacity of Egyptian sector/industry associations to provide reliable and timely market information to MSMEs and facilitate B2B linkages among MSMEs and larger buyers and suppliers. Trainings covered business management topics, including sales and marketing, supply chain management, financial management, Six Sigma, and lean manufacturing, and technical subjects such as equipment calibration, product tracing, and quality standards.

SEGURA delivered these programs to key intermediary organizations in a Training of Trainers (ToT) format to enable them to cascade the knowledge acquired to the MSMEs they serve. For example, SEGURA conducted workshops in supply chain management with the Federation of Egyptian Industries (FEI) and the Industrial Training Council (ITC) to enable MSMEs to use demand forecasting to effectively source materials, plan production, and distribute product. Similarly, SEGURA collaborated with value chain participants like dairy packaging company Tetra Pak, MTI’s Fashion and Design Center, and the Chamber of Food Industries to create new training programs that helped dairy, fish, garment, and plastics producers offer value-added products in line with national and international standards. 

Tapping into value chains through business-to-business (B2B) events

SEGURA enabled over 200 MSMEs to explore new export markets by supporting their participation in local and international exhibitions, matchmaking events, trade missions, and study trips. SEED contributed up to 50 percent of the cost for MSMEs to participate in buyers’ conferences and exhibitions. In cooperation with the Export Development Authority, SEGURA trained the MSMEs to effectively pitch their products and services to buyers to get the maximum benefit from each event. Post-event, SEGURA offered technical support to assist MSMEs in becoming suppliers to new buyers. By project close, supported MSMEs generated more than 19 percent revenue growth.  

SEGURA hosted 18 matchmaking events and buyers’ conferences, connecting MSMEs with individual large buyers like General Motors and Samsung. Buyers shared their product requirements, presented their procurement procedures, demonstrated manufacturing and packaging processes, and worked with the MSMEs to close the quality gaps that prevented them from enjoying new market opportunities. SEGURA also helped organize export exhibitions by offering continuous support to Yalla Nsadar, an association of entrepreneurs focused on export markets. SEGURA developed Yalla Nsadar’s business plan and financial model, facilitated its co-sponsorship of MSME events with other Egyptian organizations, and procured an online payment module and mobile application for the association. SEGURA prioritized MSMEs with the greatest export potential via assessment field visits to MSMEs throughout Egypt as well as nominations from trusted local partners, such as the Egyptian Chamber of Apparel & Home Textiles and the Egyptian Auto-Feeders Association. 

Enhancing market access via corporate social responsibility 

SEGURA facilitated the inclusion of MSMEs in the supply chains of corporate lead firms through corporate social responsibility initiatives, such as:

  • Integrating agri-waste management MSMEs into the supply chain of Daltex, a leading agribusiness company, to strengthen Daltex’s environmental stewardship 

  • Developing financial literacy programs with Commercial Industrial Bank to make 50 MSMEs bankable and more easily able to access finance

  • Supporting law firm Sharkawy & Sharhan in training 12 business incubators to improve the legal knowledge of Egyptian startups, especially regarding business registration

Digitizing B2B interactions with market information systems

To ensure that MSMEs are capable of capitalizing on value chain integration opportunities, SEED developed three Market Information Systems (MIS) for the plastics, dairy, and ready-made garment sectors. Each MIS facilitates B2B linkages and supports business development and marketing by providing access to reliable and regularly updated digital directories of companies, associations, and stakeholders. 

FEI’s Chamber of Chemical Industries now owns the Plastics MIS, the Knowledge Economy Foundation owns the Dairy MIS, and the Egyptian Chamber of Apparel and Home Textile Industry owns the RMG MIS, ensuring long-term sustainability and utility beyond SEED. SEED’s IT team trained the local MIS managers on data validation, entry, and management, as well as marketing, to make sure they are equipped to manage and promote the system themselves.

Select results

  • 239 MSMEs integrated into large value chains through 92 deals, propelling more than $2 million in revenue growth 

  • Over 30 capacity-building trainings delivered to help MSMEs identify and execute commercially viable business linkages with large buyers

  • 28 private companies and associations assisted in implementing CSR activities valued at over $835,000

  • Three sector-specific digital market information systems owned and operated by local stakeholders

Client:
DT Global (formerly AECOM International Development) | USAID/Egypt

Years:
2015-2020

Location:
Egypt

Technical Areas:
Competitiveness;
Trade & Investment