Raising the capacities of young entrepreneurs. Programmes and initiatives implemented
SAHWA Handbook
Several studies by the OECD and the World Bank have showed that young innovative firms (less than five years) accounted for a high proportion of job creation in developed economies. In 2011, a study published by the World Bank under the title “SME innovators and gazelles in MENA (Middle East-North Africa)”, argued that fast-growing small and medium enterprises (SMEs) are the most likely to generate new jobs. In a context of increased rates of unemployment, especially among young people, fostering the creation and development of new ventures with high-growth potential became one of the primary concerns for policy makers. National and local governments in MENA have been implementing measures to promote entrepreneurship and encourage entrepreneurial spirit among young people. In this sense, public policy can play a crucial role in stimulating the emergence of talents and flagship start-ups that would become job providers.
In recent years, a new generation of entrepreneurs has emerged in MENA countries, due to a combination of several factors: the creation of accelerators, co-working spaces, business plan competitions, investment funds and mentoring programmes, as well as the promise of empowerment, which resulted from the Arab uprisings. Diaspora talents also play an increasing role in the transfer of knowledge and dissemination of entrepreneurial models and success stories.
In MENA, there is a dual reality regarding start-ups. Most of the time, young entrepreneurs point out to a lack of access to finance. In the meantime, investors find it difficult to source qualitative and mature projects. In fact, there is a relatively weak entrepreneurial culture, which is not addressed by the education system. Despite the creation of instruments to provide funding in most countries, many challenges remain as the legal framework often fails to encourage private investment in SMEs.
To accompany the new entrepreneurship trend and overcome the challenges faced by the promoters, a range of programmes and initiatives dedicated to support young innovators and entrepreneurs have been launched in the MENA countries led by private, non-for-profit, national and foreign actors.