مجلة الإدارة والتنمية للبحوث والدراسات
Volume 15, Numéro 1, Pages 62-77
2026-06-01

The Role Of Small And Medium-sized Enterprises In Diversifying The Algerian Economy Outside The Hydrocarbon Sector



Authors : Boukhedir Wahid .

Abstract

Algeria's economy has historically relied on its hydrocarbon industry, which accounts for over 90% of exports. However, SMEs are increasingly seen as economic diversifiers. This paper examines SMEs' genuine contribution to Algeria's non-hydrocarbon economy using recent empirical research and official statistical data from 2001 to 2024. The analysis shows that SMEs' impact on industrial transformation and export diversification is negligible despite their rapid growth—they will exceed 1.3 million by 2022. This paper uses firm-level surveys and entropy-based analyses of government reports to conclude that structural barriers related to financing, bureaucratic inefficiencies, low innovation capacity, and regional disparities are still limiting the sector's transformative potential. Without deliberate changes to overcome these underlying restrictions, leveraging SMEs for major economic diversification would remain unattainable.

Keywords

small and medium enterprises ; economic diversification ; hydrocarbon dependence ; non-oil exports ; SME policy

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