The Contribution of SMEs to the Algerian Economy: Analysis of Added Value by Sectors and Legal Categories
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Abstract
This study explores the crucial role of small and medium-sized enterprises (SMEs) in Algeria’s economic development from 2012 to 2022, focusing on growth trends, sectoral contributions, and policy effectiveness. Using both qualitative and quantitative methodologies, the research evaluates SME performance in agriculture and public works sectors, relying on official data. It also examines the impact of government policies, SME classification systems, and regional and sectoral imbalances.
Findings indicate that the number of SMEs nearly doubled over the past decade, demonstrating significant sectoral growth. However, persistent regional disparities and the dominance of micro-enterprises pose major challenges to inclusive development. While Algeria’s SME classification aligns with international standards, it does not fully address structural imbalances across regions and sectors.
The study provides comparative insights with global trends and recommends targeted reforms to foster balanced development by supporting underrepresented regions, enhancing financial mechanisms, and promoting strategic investments. It underscores the importance of economic diversification and regional equilibrium to ensure sustainable growth and resilience against external shocks. These insights offer valuable guidance for policymakers seeking to harness the full potential of SMEs as key drivers of economic transformation in Algeria.
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Small and Medium Enterprises, Algerian Economy, Added Value, Key Economic Sectors, Public Sector, Family-Owned Private Sector
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