Business survey shows SMEs struggling with lack of funding, currency fluctuations and policy instability
By Sami Zaptia.
London, 5 July 2021:
Expertise France released a field survey-based publication on the profile and needs of Libyan enterprises and business owners for business support services. It is based on a large survey of 568 enterprises who are members of Chambers of Commerce from all over Libya.
This dedicated publication presents results, key observations, and operational recommendations for international donors and development aid implementers. It provides critical information for enhancing ongoing technical assistance projects and shaping the upcoming technical assistance to Libya.
This publication takes place within the framework of the project EU for Private Sector in Libya (EU4PSL), financed by the European Union in Libya and implemented by Expertise France.
The survey results showed that only 24% of Libyan start-ups are profitable, 27% are operating without profits, and 49% are stressed and struggling. The difficulty in the procurement of funds, the instability of the local currency exchange rate and the unclear policies applied by the authorities are some of the challenges mentioned obstructing business growth.
EU4PSL aims at supporting business education, entrepreneurship, access to finance and at improving institutional support to Libyan enterprises.
“In this moment of transition and transformation for Libya, it is essential to understand better the private sector needs and have an objective vision of the 2021 updated economic situation” said Julien Schmitt, programme director at Expertise France. “supporting data generation cannot be a punctual aim, we are enhancing continuous monitoring so as to follow the trends and adjust the support services”
The survey is rich in findings and insights. It sheds light on the reality of the Libyan private sector and itself constitutes a must-read for any development aid project in the wider economic and social sphere in Libya.
“This survey is an important initiative, a tool towards better understanding the economic profile of the private sector in Libya. This insightful study will be of great help for both the international community, but most importantly the Libyan institutions in shaping policies and programs that give solutions to the real needs of the private sector in Libya, thus paving its way for a more active participation in the process of economic transformation ‘‘, said Sandra Goffin, Head of Cooperation, at the European Union Delegation to Libya.
Expertise France says it aims at sharing more knowledge and practical data on the existing situation of the private sector and SMEs in Libya through their “Practical Survey Series” publications. This series will provide an important source of valuable information to help build an actionable baseline for enhanced policies and relevant support to business and economic reforms thus contributing to the development of the private sector in Libya.