Fostering Job Creation Through Inclusive Entrepreneurship in the Southern and Eastern Mediterranean Countries

30^th of May, 2024

Tunis, Tunisia

Post Event Report and Policy Recommendations

 

Executive Summary

The workshop entitled “Fostering Job Creation Through Inclusive Entrepreneurship in the Southern and Eastern Mediterranean Countries,” organised by FEMISE in collaboration with the European Institute of the Mediterranean (EMed,) the Union of Mediterranean Confederations of Enterprises (BUSINESSMED ) and the Spanish Agency for International Development Cooperation (AECID), took place on May 30, 2024, in Tunis, Tunisia.

As part of the Team Europe Initiative (TEI) “Jobs Through Trade and Investment in the Southern Neighbourhood,” the workshop aimed to leverage entrepreneurship as a catalyst for economic development, job creation, and sustainable growth in the Southern and Eastern Mediterranean countries (SEMCs). By focusing on youth and women, the event positioned entrepreneurship as a solution to unemployment and a means of social integration and  empowerment.

You can download the full report of the workshop here

You can download the agenda of the workshop here

Summary of points addressed
In the four sessions, the high- level speakers representing stakeholders from across the EU-Med Region, from international organisations, academia, young entrepreneurs, BSOs, private sectors, vowed their unified vision: entrepreneurship is essential for addressing the region’s high unemployment rates.

They highlighted five major challenges impacting the region’s human development, including high youth unemployment, a significant informal economy, gender disparities in labour participation, challenges faced by micro and small businesses, and ineffective public governance. They raised their concern that high rates of unemployment among youth and women can lead to long-term economic and social implications, including migration and decreased productivity.

It was emphasised that more strategic programs are needed in the region: the TEI program is providing support creating an ecosystem that nurtures inclusive entrepreneurship through policy support, innovation, and risk-taking to drive economic growth and social equity. The AECID’s “Masar Al’an, Masar Ahora” program aims to assist the social, ecological, and economic transitions in Arab countries by focusing on innovative employment initiatives and inclusive digital trade. In addition, the EU is committed to enhancing the business climate in the region through joint initiatives like the Tunisia Investment Forum, aiming to encourage sustainable investments and promote entrepreneurship.

Participants highlighted the gap between research, skills and business and the need for educational reform that focus on creativity and fostering entrepreneurship. With a skills-Job mismatch, particularly among women and youth, there is a need to create models to anticipate labour market requirement and align educational programs with actual job opportunities and create opportunities for continuous training.

Young Entrepreneurs from across the SEMCs (Lebanon, Egypt, Algeria, Morocco, Palestine and Tunisia) were given the floor to share their experiences, challenges and recommendations. They agreed that some of the major challenges they are facing as entrepreneurs include: access to finance, government and regulatory hurdles; talent retention; market barriers, including digitalisation; gender bias against woman; and economic and political instability, particularly in Palestine and Lebanon.  They recommend the need to:  Develop a comprehensive supportive entrepreneurial ecosystem, including financial incentives, integrate entrepreneurship education in school curricula from a young age, promote innovation and R&D in universities and research centres, foster regional collaboration within the region and to provide unified support from the different actors, and systems. This session emphasized the need for structural and policy changes, better access to resources, and targeted support to help youth and women entrepreneurs overcome challenges and succeed in emerging sectors.

Business Support Organisation (BSOs) from SEMCs (Lebanon, Tunisia, Jordan and Egypt) shared the same view with the entrepreneurs and added that an effective approach to promote entrepreneurship include: embracing digital technologies and leveraging data analytics; championing environment, social, and governance (ESG) principals to attract investment; adopting a gender lens in support programs to encourage and promote women’s participation in entrepreneurship. They also agreed that a reform of the education system is needed and further collaboration between BSOs, academic institutions and the private sector would enhance the ecosystem. Encouraging local production in supply chains and promoting women in business are other measures that should be taken. The session underscored the importance of a holistic approach to supporting entrepreneurs, focusing on digital transformation, gender inclusivity, and the alignment of education with market demands to foster a more vibrant entrepreneurial ecosystem in the region.

Speakers of the policy roundtable session agreed that to foster an inclusive entrepreneurship in the SMCs there is a need:  to create innovative financial instruments to overcome financial barriers, to enforce existing regulations and address their complexity, to grasp the opportunities offered by digitalization and to create an enabling environment that is fostering regional integration. They call for a transformation in the public policy for an inclusive entrepreneurship that takes into account climate change, which could represent an opportunity for entrepreneurs. Overall, the session emphasized the need for improved access to finance, regulatory support, collaboration among stakeholders, and targeted initiatives to promote inclusive entrepreneurship, particularly for youth and women in the MENA region.

Several Recommendations have been drawn and concluded, which can be summarised in 7 main ones:

1.   Foster Regional Collaboration: Promote regional and international partnerships, including deeper EU-Med integration, to improve the entrepreneurial ecosystem, share best practices, and foster innovation, while focusing on job creation, economic growth, and promoting peace and stability.

2.   Strengthen SMEs Ecosystem: Develop tailored support mechanisms and incentives for SMEs, while encouraging the private sector to invest in skills, R&D and training programs. Enhancing coordination and collaboration among actors in the ecosystem.

3.    Improve Access to Finance: Establish innovative funding avenues, such as crowdfunding, and intermediary credit lines to facilitate access to finance. Financial institutions should be incentivized to support start-ups and broaden their definitions of SMEs to include digital enterprises. Disconnections between private and banking sectors should be addressed.

4.   Simplify Legal and Regulatory Framework: Enforce and improve the legal and regulatory environment for SMEs by streamlining processes for obtaining permits and licenses, and providing targeted training programs to help entrepreneurs understand their rights and obligations. A unified definition of start-ups is crucial for targeted support.

5.   Invest in Education and Skills Training: Reform the educational systems to better align with market needs by enhancing curricula, promoting entrepreneurship from a young age, and implementing practical training programs. Facilitate matchmaking between job seekers and employers to better understand job prospects.

6.   Promote Innovation and Sustainability: Encourage research valorization, digital technology adoption, and green transition initiatives within SMEs. Governments should create supportive frameworks for green entrepreneurship and raise awareness about environmental and social responsibilities.

7.   Empower Women Entrepreneurs: Address gender-specific challenges by conducting awareness campaigns, integrating women into promising sectors, and developing targeted programs that promote their inclusion in entrepreneurship and decision-making roles. Support initiatives that remove cultural barriers and facilitate access to resources for women entrepreneurs.

You can download the full report of the workshop here

You can also watch the opening session here, featuring:

Tarek Tawfik, President, BUSINESSMED

Roger Albinyana, Managing Director, IEMed

Luisa M. García, Head of Department for Cooperation with Arab World and Asia, AECID

Marco Stella, Head of Economic Development, EU Delegation, Tunisia:

 

You can watch the first session here:

Moderator & Speakers:

Jihen BOUTIBA, Director-General, BUSINESSMED

Moundir Lassassi, Research Director, Centre de Recherche en Economie Appliquée pour le Development (CREAD), Algeria and FEMISE

Mohamed Ali Marouani, ResRep of the Institute of Research for Development (IRD) in Tunisia, and FEMISE

-Dolores Sammut Bonnici, BUSINESSMED Board Member, Senior Vice President, MEA, Malta

Leila Belkhiria, President, La Chambre Nationale des Femmes Chefs d’Entreprises chez UTICA