The Role of the Most Important Financial Institutions in the Development of Small and Micro Agricultural Projects in Egypt

UNEMPLOYMENT and poverty in Egypt are the main problems that the Egyptian economy is experiencing in the labor market at present. So development and rural development in particular are essential, where the rural is the backbone of the Egyptian society to achieve social security and still represents the rural about 60% of population sentence in Egypt in 2016. Therefore, the problem of the study was poverty, hunger and unemployment, where the unemployment rate reached about 13% of the total population. The research aimed to study the sources of financing small and micro enterprises, as well as the role and importance of financing institutions in the development of small and micro enterprises such as loans, facilities provided, the number of projects, projects types. The results of the study showed that 85% of the jobs available in the economy through small and micro enterprises. The Ministry of Social Solidarity is the least resource in terms of the cost of the job opportunity, which amounted to about 2950.67LE for the job opportunity. All sources finance micro projects except the Small Enterprise Development Authority and the Agricultural Bank of Egypt are funded small and micro projects. The number of projects financed by the Small Enterprise Development Authority since its inception is higher than the number of projects financed from all other sources of financing. Therefore, this study recommends encouragement of the financing sources mentioned above because its projects are characterized by increasing the net profit and return.