The Basic Characteristics Of Microfinance In Egypt

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Register to read the introduction… Despite the issuance of this law, there is no specific definition of small enterprises and medium-sized enterprises in Egypt, where it differs from side to side, although most of them depend on the standard number of workers, and the size of the capital.

The properties of small projects:

Small and medium enterprises have a number of characteristics distinguish it from large-scale projects and indicates its importance in the economy and driving growth
, and here we are exposed to the most important of these characteristics:

1. Ease of Establishment:

These facilities are characterized by low capital required for its establishment and operation, as the procedures are easy to configure and has low expenses of incorporation and administrative expenses due to the ease and simplicity of its management structure and organizational structure.

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These guidelines aim to confirm the notion that microfinance contributes to the sustainable reduction of fiscal deficit and poverty focus of these principles to the following points:

• Low-income groups do not need not only credit, but to a diverse array of financial services.
• Microfinance is a powerful tool to reduce the fiscal deficit and poverty.
• Microfinance means building financial systems that provide services to low-income groups.
• the financial sustainability of microfinance institutions is necessary to reach a large number of low-and low-income as the financial sustainability lead to lower transaction costs and provide better products.
• Microfinance is interested in the establishment of permanent local financial institutions able to provide a diverse array of financial products and services appropriate for low-and
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• Regional policy to achieve an even regional distribution of MFIs.
• Public Awareness: In Egypt, as in other developing countries, development activities are often confused with charity activities. There should be a public awareness of the economic and social importance for developing MFIs among government officials, decision- makers, potential actors and investors (NGOs, bank, private Sector), opinion makers (newspapers, media,..etc)
• Inducing a demand oriented microfinance policy, which enables the creation of viable microfinance institutions.
• Creating and supervising of regulations and norms, that encourage sound and responsive microfinance operations (David S. Gibbons and Jennifer W. Meehan)
• Establishing of a conducive policy environment for integration of the banking system to have it as a significant player in microfinance, because of the advantages from branch office infrastructure and the ability to mobilize resources. In addition banking institutions are fulfilling the conditions of ownership, financial disclosure, and capital adequacy that help ensure prudent management, they have well established internal controls and administrative and accounting systems to keep track of a large number of transactions, their ownership structures of private capital tend to encourage sound governance structures, cost-effectiveness, and profitability, all of which lead to sustainability. Most important banks have deposits and equity

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