The idea of founding a network of entities who work in developing small enterprises was launched from the city of Port Said through small and medium industries association since the association found that there are a lot of obstacles that face its members the owners of small enterprises in land, in getting licenses, in finance and in marketing. These obstacles are similar in most of the governorate, in Port Said, Ismailia, el Menia, Alexandria, Kafr el Sheikh, 10th of Ramadan, 6th of October and North Sinai, forming FEDA expressed these problems strongly and this is a start.

In cooperation with Friedrich Ebert firm in February, 2001 we assembled 13 associations in 13 governorates and industrial zones, these are :

1- Association for developing small and medium industries                                  port said
2- Association for developing small and medium industries                                   north Sinai
3- Association for caring and developing small industries                                     10th of Ramadan
4- Association for developing small and medium industries                                  east kantara
5- The Egyptian association for investors and business owners                             Dakahleia
6- Association for businessmen in el Menia
7-bussinessmen association for developing agricultural mechanization                  Giza
8- Association for businessmen in Dakahleia                                                          Dakahleia
9-Association for businesswomen in Alexandria                                                    Alexandria
10- Association for businesswomen in Kafr elSheikh                                            Kafr elSheikh
11-Association for businesswomen in Egypt 21                                                     cairo
12-Association for businesswomen in Dkahleia                                                     Dakahleia
13-Association for developing furniture industry                                                   Damietta

The founders found that the best way to assemble this network in a federation is to be a specific federation specialized in the economic development. There wasn't any other except for an only one which is federation for economic development associations, so the federation was published, decision no.70, year2001.

After that the FEDA members increased as the following:
1-in 2001, members=13
2-in 2003, members=34
3-in 2005, members=71
4-in 2007, members=101
5-2009, members=120