YGLs at the Forum’s Special Meeting at the Dead Sea, Jordan – Accelerating Entrepreneurship in the Arab World

The last session of the afternoon session brought together Young Global Leaders, Global Shapers, and Schwab Foundation Social Entrepreneurs to address the issues of job creation, youth unemployment, and entrepreneurship in the Arab world.

The session began with the unveiling of "Accelerating Entrepreneurship in the Arab World", a report created through a collaboration between the Forum of Young Global Leaders and Booz & Company. The briefing highlighted ten recommendations critical to the development of entrepreneurship in the region. Discussion leaders introduced six critical topics before the participants broke off into small groups to tackle the issues. At the conclusion of the meeting each team came back to the general body to share their recommendations. Here’s what they came up with:

Employment and Job Creation

Big Challenge: Bringing new sectors, occupations, and opportunities to young people.

Recommendation:

– Change perceptions toward SMEs and entrepreneurs in the post-revolution culture and encourage stronger work ethics. The jobs are there, the opportunities are there, the kids are there. Bring them together.

Red Tape

Big Challenge: Entrepreneurs are "guilty until proven innocent" in the Middle East.

Recommendation:

– Entrepreneurs should promote the success stories of businesses that have benefited from eschewing unnecessary regulation. Governments should take note and consider establishing a "ministry of entrepreneurship".

Expanding the Venture Capital Model

Big Challenge: Early-round financing is hard to come by for entrepreneurs in the MENA region.

Recommendation:

– Credibility Mechanisms:  means to assure investors that investments are real, safe, and investor rights are protected. Examples like Oasis500 which generates a pipeline of tested entrepreneurs, ideas, and market traction. – Regulatory and government incentives: laws that define and protect investor rights in private companies, tax breaks for startup investments much like has been tries elsewhere in the world and has worked very well.

 Support Availability

Big Challenge: Entrepreneurship is a mindset and certain factors in the region might be detrimental to the entrepreneurial world view.

Recommendation:

– Establish an e-mentor program for budding entrepreneurs to connect with Arab business leaders. Also consider the role media plays in portraying entrepreneurship.

Leveraging Resources

Big Challenge: How can the Arab world leverage its advantages to foster innovation?

Recommendation:

– Establish a world-class online Arabic University, similar to TED U, with the best Arab professors from around the world teaching entrepreneurship and other subjects in Arabic over the internet to students across the region.

– Leverage large local or nearby markets as an extension domestic possibilities for a given sector.

Education

Big Challenge: Schools and universities in the Middle East fail to encourage entrepreneurship and productive risk-taking.

Recommendation:

– Start a program to influence MENA schools to develop critical thinking skills in students from a young age. Consider teaching a course or creating a program of games that make students think independently.