Introduction

Since the launch of the United Nations 2030 Agenda for Sustainable Development in

2015 (2030 Agenda), the private sector has contingently been called to incorporate

sustainability practices in their business activities, fostering a resilient economic

growth and taking into account the multi-expectations of their internal and external

stakeholders. Sean Markey (2010) illustrated that the efforts of many enterprises to

integrate sustainable development concept in their vision statements is encouraging,

but only very few of them have proved themselves successful in translating their goals

into actionable strategies. The past few years have witnessed an increase in the

commitment of the private sector to sustainability and a better understanding of the

adoption of its principles. The same does not apply to SMEs. The motives which have

driven enterprises to adopt sustainable development is that by practicing sustainability

a business can benefit, and the increasing pressure by stakeholders and authorities to

shift from sustainability strategies to implementation and follow-ups of these

strategies (Sy, 2016).

However, though the progress is promising but it has not been rapid enough as the

global sustainable development goals will only be reached when small medium

enterprises (SMEs) are fully onboard (UN, 2018), as they account for 99% of all

businesses globally (ACCA, 2019). A World Bank brief (2015) reported that although

SMEs are often slow to adapt to the changes and are moving slowly towards better

sustainable practices, yet the unique characteristics of SMEs make it easier for them

to implement the new sustainable principles than for large enterprises thanks to their
flexibility and agility.

Within the spectrum of sustainable development, there are many views pertaining to

what constitutes the contribution of SMEs in each of the three sustainable

development dimensions, namely; economic, social and, environmental (Rishi et al.,

2015). The contribution of SMEs to economic growth, poverty alleviation and job

creation is irrefutable and is manifested in the policies developed by many developed

and developing countries to support and promote the SME sector. SMEs strategically

contribute toward economic growth predominantly in deprived populations (Du Toit

et al., 2010) and are considered as the mainstay of the economy of mostthe African

nations (Asamoah, 2014). For that matter, the essence of SMEs is tied with theupsurge

of sustainability (Masocha, and Fatoki, 2018).

With regard to Egypt and in accordance with the 2030 Agenda, Egypt launched in

2016, its first-ever strategy for sustainable development, “Egypt’s Vision 2030” (SDS

2030). The SDSis unprecedented in its scope and significance at the national level. It

spans over the three dimensions of sustainable development, and outlines the broader

principles which will guideEgypt in pursuing its developmental goals. The SDS 2030

has been concurrently launchedwith the economic reform and stabilization program

and ever since Egypt’s efforts exhibitdetermination and ambition to ensure the

achievement of responsible economic growth whichis socially inclusive and

environmentally friendly. To achieve such forward-looking goal,Egypt values and

understands the important role SMEs can play in the attainment of the sustainable

development goals (SDGs) nationally and internationally. Considering that

micro,small, and medium enterprises (MSMEs) account for 99.9% of the enterprises

in Egypt, ofwhich 10.3% are SMEs (CAPMAS) data (2017), and as SMEs represent

the greatest share ofthe productive units of the Egyptian Economy, the Government of

Egypt focus on developingappropriate policies and procedures necessary to address

ways and means of developing thecapacity of SMEs and enhancing their

competitiveness (MoF, 2004). The entrepreneurialenterprises are considered the

engine of innovation and competitiveness. They may solvesocietal and environmental

problems. By Applying innovative environmental and/or social practices, SMEs can

obtain competitive advantages, that positively affects the economicalfacet of

sustainable development thus achieving its principles (Kardosa, 2012).Literature on

the contribution of SMEs to the world’s economies has grown immensely (Borim-de-

Souza et al. 2015). The sheer number of SMEs directly contributes to the increasing

environmental impact caused by their activities as well as the significant social impact

they haveon the communities. In this light, it is important that sustainability strategies

followed by SMEs be studied in detail. Hitherto, only few studies have dealt with the

SMEs’ economic, social, andenvironmental aspects combined. This leaves a research

gaps with respect to the related modalities of interaction between different

sustainability practices and the significant impact of

SMEs in the immediate surroundings, hence the country and subsequently the world.

Taking this gap as a starting point, this thesis investigates if SMEs in Egypt adopt

sustainability practices and if there are significant differences in adoption based on

size, age, type of activity, and sector. It highlights the degree of maturity in the
sustainability practices of SMEs and their weaknesses and strengths.

By and large, on one hand, the two mentioned facts above, namely; the differing and

inconsistent definitions and characteristics of SME worldwide and the established

relation between the criteria set by countries for defining SMEs and the policy

purposes, not only render international comparisons problematic but also add a

cultural and political sensitivity when comparisons are held (Storey, 1994; Bolton,

1971).

On the other hand, though the past few years have seen an increase in response to

sustainability practices as being part of any business strategy, studies have repeatedly

illustrated how enterprises struggle to implement sustainable development models,

even whentheir formal claims indicate strict adoption of principles of sustainable

development (SeanMarkey, 2010). Moreover, most of the available literature (Burlea-

Schiopoiu & Balan, 2018),focus on the sustainability practices of the large enterprises

with few researchers choosing to approach this concept at SME level because most

large enterprises are stock-listed thus disclose their data publicly while the publicly

available data from SMEs is quite scarce, highlighting the need for further research on

this area (Mihai et al., 2017).

Specifically, while Egypt’s efforts exhibit determination and ambition in the

attainment of the, SDGs, the holistic nature of the 2030 Agenda poses many

challenges due to addressing the people’s most urgent needs and wants. The private

sector is expected to play a vital role as it represents a significant source of jobs across

all economic sectors and geographical areas. The government of Egypt values and

understands the role and impact of SMEs in supporting the national emerging

economy, creating job opportunities specially for Youth and achieving the

transformational SDGs. Therefore, in the wake of declaring 2016 the year of youth,

the State, in addition to establishing a specialized authority to be a catalyst for SMEs

growth, launched several programs to empower SMEs, established a national

committee to monitor the development of the SMEs sector, and ensured their access

to finance through loans with an annually declining interest rate and grants.

The above-combined highlights the need to better understand the Egyptian context in

regard to SMEs, thus, help policy makers formulate informative decisions that

effectively address challenges and recognize opportunities. Policies that truly comply

with the strategic directions of Egypt in terms of empowering SMEs, fulfilling its

international commitments, and achieving inclusive and sustainable growth.