Customer Relationship Management (CRM) Practices by Small Businesses in Developing Economies: A Case Study of Egypt

Theoretical Background: Crm And Egyptian Sbes

The importance of SBEs is grounded in their inherent ability to generate wealth and create jobs; indeed, they bear the greatest responsibility for employment in the private sector globally. The development of SBEs is recognized as an important factor for the achievement of economic development objectives - including poverty alleviation and the promotion of democratic societies. According to Mulhern (1995), 99% of all European companies are Small and Medium sized Enterprises (SMEs) with less than 10 employees and provides more new jobs than bigger companies. From 1985-1995, SMEs provided 66% of all employment in Europe (ibid). Similar pattern are replicated in Less Developing Countries (LDC’s) with SBEs representing a high percentage of the total number of enterprises. According to the Egyptian Ministry of Trade and Industry - EMTI (2010), SBEs represent a startling 84.42% of the total number of registered enterprises in Egypt. Since SBEs provide an economic engine that drives global development, they have attracted considerable academic attention. Much of this focus derives from the belief that innovation, particularly in the high tech and IT areas, is crucially dependent on the flourishing entrepreneurial sector presented by SBEs.