Entrepreneurial Motives of Egyptian Entrepreneurs: Empirical Evidence From Egypt

2. Theoretical Background-Literature Review

Small and medium sized enterprises (SMEs) are acknowledged worldwide as the drivers of socio-economic development due to their important role in GDP growth, new job creation and entrepreneurship. The role of small and medium sized companies on the real gross domestic product (GDP) growth, new job creation and reduction of poverty is recognized at a worldwide level (Muller, et.al, 2014; OECD, 2014; Chowdhury, 2011). This role is particularly to curtail in developing economies, where there are comparably less number of large corporations (Narteh, 2013; Floyd& McManus, 2005), which leads to a larger impact of these economic units on the socio-economic development through reduced poverty and balanced income distribution.