Challenges of economic development in Libya: analysis of the impact of political and social factors on small and medium business structures (comparative study with Belarus)

Abstract

This study, “Challenges of Economic Development in Libya: Analysis of the Impact of Political and Social Factors on Small and Medium Enterprise Structures (Comparative Study with Belarus),” examines the challenges facing the small and medium enterprises (SMEs) sector in Libya, focusing on the impact of political and social factors. Small and medium enterprises (SMEs) are a vital part of the economy, contributing to job creation and economic growth. However, political instability, corruption, and lack of government support are major obstacles to the growth of this sector. The study reviews the political situation in Libya, which is investment. It also examines the impact of administrative corruption on the ability of SMEs to obtain necessary licenses and services, which increases operating costs and reduces their competitiveness. Furthermore, the study discusses social factors, including high unemployment rates and lack of education and vocational training, and their impact on the demand for products and services provided by small businesses. It also points to the weak entrepreneurial culture in Libyan society, which hinders the development of the entrepreneurial spirit among young people. The study includes a comparison with Belarus, which represents a different model in how to support SMEs, as it has a more stable political environment and government characterized by instability and ongoing tensions, leading to weak confidence among investors and hindering policies geared towards supporting this sector. This comparison provides valuable insights into how to improve the business environment in Libya. The study concludes with practical recommendations, calling on the government to adopt effective policies to support SMEs, including improving the business environment, enhancing education and training, and facilitating access to finance. By addressing these challenges, Libya can foster the growth of SMEs, contributing to sustainable economic development.