SME Innovators and Gazelles in MENA : Educate, Train, Certify, Compete!

The Middle East North Arica (MENA) region faces no greater challenge than employment generation. An expanding literature on 'gazelles' suggests that a small percentage of fast-growing small and medium enterprises (SMEs) generate the majority of new jobs in diverse economies. This paper observes the characteristics of fast growing SMEs included in World Bank Investment Climate Assessment (ICA) enterprise surveys in the MENA region. The identified enterprises characteristics associated with high growth among SMEs include being an innovator, offering workers formal training and receiving an international quality certification. In Egypt, a panel dataset allows observation of true 'gazelles' SMEs that grew an average of 20 percent or more over more than 4 years. There, analysis links enterprise gazelle status among manufacturers to training employees, using email or having a company website, being less than 10 years old, getting a high number of inspections, experiencing fewer power interruptions, and using foreign-licensed technology (considered here a type of innovative behavior).