ABSTRACT
During the last decades of the twentieth century, SMEs began to occupy an important position thus playing a significant role in the global economy. In Palestine, SMEs have played a critical role in the building of a strong and independent economy (UNRWA, 1998, p.4). There are 22,495 businesses in the GS (PCBS, 1999), 91 per cent of which is comprised of the SMEs sector (20,470). These have only one to four employees, while 83 per cent of the businesses were reported to have sole proprietorships (PCBS, 1996, p.70). In the same vein, the International Labour Organisation reports that 97 per cent of the Palestinian businesses are micro-and small, with fewer than ten workers, although the majority of the businesses are family businesses. Male ownership still prevails since less than 10 per cent of the total businesses are owned by women (PCBS, 1996, p.80).
