The Libyan economy is entirely dependent on oil income, the private sector does not constitute more than 5% of GNP. About 95% of private sector companies are in fact small and medium enterprises operating in the shadow or in the informal parallel market. Oil and gas accounts for more than 65% of GNI, more than 95% of exports, and more than 96% of the public budget. Therefore, the Libyan economy is exposed to shocks of falling oil prices and increasing the rate of unemployment, especially among young people to high levels, which calls for diversification of the economy through the private sector and the promotion of small and medium enterprises.
Turkey as in the developed world, small and medium-sized enterprises play a key role in economic and social life. The significant growth in SME’s contribution to the Turkish economy in recent years is due to effective government policies, strong coordination between public institutions, and continuous interchange with the private sector. The SME’s contribute with 63% of business income. 76% of operations of employment and 60% of exports.
Libya is currently looking for developing the regulatory environment for small and medium enterprises and exploring effective mechanisms to provide the necessary funding and adopt the network of services and support needed. Given the historical and brotherly ties between the Libyan and Turkish peoples, Turkey’s successful experience in the field of SMEs is a rich source of knowledge transfer, good practices, and proven policies that Libya can take advantage to accelerate progress in encouraging and supporting these projects.
- Raise awareness of the importance of small and medium-sized enterprises (SMEs) as a major source of diversification of the economy away from oil dependence.
- Ensure reposition of the Libyan SME’s sector emerging in world trade.
- Facilitating access to the Turkish experience and practices of SME for supporters and initiators in Libya.
- To get a closer look at the successful Turkish experience in the field of small and medium enterprises, and to transfer the experience and good practices in this field to Libya.
- Creating Libyan-Turkish partnerships to build and support the SME’s sector in Libya through the establishment of joint financing funds.
The Libyan/Turkish Economic Forum for developing projects comes to gather the relevant parties f ram the Libyan and Turkish sides to study the Turkish experience and discuss how to benefit from this experience, in developing the support of small and medium.
The creation of small enterprises and to make it flourish, require concerted efforts of many specialized agencies in continuous cooperation organized by legislation and procedures to create an environment conducive to creativity, work, and production. The regulatory environment may be similar in the form in world countries, but each country has its characteristics. The efficiency, quality, and effectiveness to create the environment in favor of flourishing enterprises, rest the principal measure to distinguish among these countries. In less developed countries, we could find a similar regulatory environment in its form, but very weak in contents and lack of common vision, efficiency, and cooperation.
In this Forum we will highlight the details of the work of Turkish system of projects and compare them to the Libyan regulatory environment to transfer knowledge and good practices.
- The role of the government and its policy in supporting the SME’s.
- The environment is conducive to the growth of the SME’s.
- Developing scientific research and creative capabilities of projects.
- Institutional building to support the SME’s.
- Developing the skills of management of SME’s.
- Facilitate funding of SME’s.
- Free zones and technical gardens and creativity.
- Lectures and success workshops:
– Business incubators and their role in developing small and medium enterprises.
– The regulatory environment for small and medium enterprises in Turkey and Libya.
– General policies to support small and medium enterprises.
– Financing small and medium enterprises.
- Workshops and training courses in:
– A feasibility study.
– Management by results QKR
- Field visits to free zones, incubators and technology parks.
- Exhibition for commercial companies and institutions supporting small and medium enterprises.
The Turkish side
- Ministry of Trade
- Ministry of Industry and Technology
- The Ministry of Treasury and Finance
- Free Zones Department at the Ministry of Trade
- Istanbul Chamber of Commerce ITO
- Istanbul Chamber of Industry ISO
- Istanbul Municipality ( Industrial Zones department )
- Turkish Coordination and Cooperation Agency TIKA
- Small and medium enterprises development organization GOSKEB
- YILDIZ technopark
- Ikteli Organized Industrial Zone IOSB
- EXIM BANK
The Libyan side
- Ministry of Economy and Trade
- Ministry of Industry and Minerals
- Ministry of Finance
- Central Bank of Libya
- The Ministry of Labour and Rehabilitation
- Banks and financial institutions
- The National Projects Program small and medium.
- Administrations of free zones zone.
- The public property department
- Real estate registry office
- Urban Planning Department
- Libyan Industry Union
- Chamber of Commerce, Industry and Agriculture / Tripoli
- Chamber of Commerce, Industry and Agriculture / Sebha
- Chamber of Commerce, Industry and Agriculture / Western Mountain
- National Industry Promotion Authority
- Public Authority for Industrial Estates
- The Libyan Economic Organization
- The Libyan Foundation for Development and Entrepreneurship