Growth of Micro, Small and Medium Enterprises (MSMEs) in MENA Countries: Constraints and Success Factors

Abstract

Purpose: This study attempts to contribute to a better understanding of the main constraints/ boosters for MSME growth in selected countries of the MENA region (Tunisia, Egypt, Morocco and Jordan). Design/Methodology/Approach: A multinomial logit model is used to investigate the impact of a three-fold classification of firm growth determinants (company characteristics, manager characteristics and business environment characteristics). The database is provided by the World Bank Enterprise Surveys (MENA ES). Findings: Results give statistically robust evidence that innovative firms are more likely to grow. Implications/Originality/Value: Therefore, the implementation of efficient and well-governed systems of innovation is a priority in the MENA region.

Keywords

• Micro, small and medium enterprises (MSMEs),
• Growth,
• Innovation,
• Multinomial logit