Entrepreneurial Orientation and performance in SMEs: A Study of Algerian SMEs Performance in some Macro Indicators

Abstract

Through this study, the ongoing developments within Algeria's SME sector and its part in stimulating economic expansion and reinforcing the entrepreneurship culture in Algeria will be assessed since the issuance of law N° 01-18 in 2001. To accomplish this the study analyzes data derived from over 130 government reports from 2001 to 2022. Using the inductive approach, the study evaluates the effectiveness of SMEs in creating jobs and wealth.

The findings from the study indicate that SMEs in Algeria currently face many challenges and do not significantly contribute to the economy. This is noticeable in a context where unemployment rates, especially among the youth remain elevated. While Algeria has made efforts to broaden its economic base, economic diversification remains weak with a significant portion of the productive sector continuing to be focused in the hydrocarbon field. Furthermore, the labor-intensive SMEs (50 to 250 workers) remain inadequately developed.