MICRO AND SMALL ENTERPRISES IN LEBANON

Table of ContentsAcknowledgementPrefaceExecutive Summary ------------------------------------------------------------------------------------------------------------- 1I. Background, Objective and Methodology of the Study ----------------------------------------------------------------- 7I.1 Background------------------------------------------------------------------------------------------------------------------- 7I.2 Objective of the study------------------------------------------------------------------------------------------------------- 8I.3 Methodology ----------------------------------------------------------------------------------------------------------------- 8I.3.1 Sampling Methodology ----------------------------------------------------------------------------------------------- 8A. Evaluation of the existing data-------------------------------------------------------------------------------------- 8B. Sampling methodology of the preliminary field survey--------------------------------------------------------- 9C. Results of the preliminary field survey --------------------------------------------------------------------------- 10D. Sampling ratios and “target” vs. “effective” analysis ---------------------------------------------------------- 12I.3.2 Correction Methodology--------------------------------------------------------------------------------------------- 13II. Overview: The MSEs in Lebanon ---------------------------------------------------------------------------------------- 14III. The Survey: Main Findings----------------------------------------------------------------------------------------------- 15III.1 Size and sector of activity-------------------------------------------------------------------------------------------- 15III.2 Age of enterprises----------------------------------------------------------------------------------------------------- 16III.3 Geographic distribution of MSEs and other variants ------------------------------------------------------------ 19III.4 Seasonality of Activity of MSEs------------------------------------------------------------------------------------ 19III.5 Working Conditions -------------------------------------------------------------------------------------------------- 20III.5.1 Working days ---------------------------------------------------------------------------------------------------- 20III.5.2 Work place ------------------------------------------------------------------------------------------------------- 20III.5.3 Access to infrastructure ---------------------------------------------------------------------------------- 21III.5.4 Access to advisory/training services ------------------------------------------------------------------- 21III.6 Major Constraints ----------------------------------------------------------------------------------------------------- 22III.7 Customer and Market Structures------------------------------------------------------------------------------------ 22III.8 Ownership-------------------------------------------------------------------------------------------------------------- 23III.9 Formality and NSSF Membership---------------------------------------------------------------------------------- 23III.9.1 Commercial registration---------------------------------------------------------------------------------------- 23III.9.2 Registration in the National Social Security Fund (NSSF) ----------------------------------------------- 24III.9.3 Tax registration (VAT and Income Tax Registration)----------------------------------------------- 25III.10 Initial Capital and Access to Credit------------------------------------------------------------------------------- 26III.11 Average Present Value of Enterprise ----------------------------------------------------------------------------- 27III.12 Value-added of MSEs---------------------------------------------------------------------------------------- 27III.12.1 Value-added of MSEs and size------------------------------------------------------------------------ 28III.12.2 Value-added and sector of activity --------------------------------------------------------------------- 28III.12.3 Value-added and geographic location------------------------------------------------------------------ 29III.12.4 Value added and gender---------------------------------------------------------------------------------- 29III.12.5 Value-added and Clusters-------------------------------------------------------------------------------- 29III.12.6 Value-added and technology ---------------------------------------------------------------------------- 30III.12.7 Value added and internal organization----------------------------------------------------------------- 30III.12.8 Value-added and present value ------------------------------------------------------------------------- 31III.12.9 Value added and subcontracting ------------------------------------------------------------------------ 31III.12.10 Value-added evolution -------------------------------------------------------------------------------------- 31III.13 Characteristics of entrepreneurs ----------------------------------------------------------------------------------- 31III.13.1 Owners and managers ------------------------------------------------------------------------------------ 31III.13.2 Age and marital status ---------------------------------------------------------------------------------------- 31III.13.3 Educational characteristics ----------------------------------------------------------------------------------- 34III.13.4 Years of experience ------------------------------------------------------------------------------------------- 35III.13.5 Employment history------------------------------------------------------------------------------------------- 35III.13.6 Gender considerations ---------------------------------------------------------------------------------------- 36III.14 Employment Generated by MSEs in Lebanon ------------------------------------------------------------------ 36III.15 Mixed income and wages ------------------------------------------------------------------------------------------ 37III.15.1 Mixed income -------------------------------------------------------------------------------------------------- 37III.15.2 Wages ----------------------------------------------------------------------------------------------------------- 38III.15.3 Household income--------------------------------------------------------------------------------------------- 38III.16 Future expectations-------------------------------------------------------------------------------------------------- 39III.17 Performance ---------------------------------------------------------------------------------------------------------- 41III.17.1 Size of the MSE------------------------------------------------------------------------------------------------ 43III.17.2 Date of establishment ----------------------------------------------------------------------------------------- 43