Accelerating Entrepreneurship in the Arab World

The report argues that the MENA region must create 75 million jobs by 2020 to maintain current employment levels, identifying entrepreneurship as a key driver. While early-stage entrepreneurial activity is high at 13%, it is primarily driven by necessity rather than innovation. The document identifies an 'out-of-balance' ecosystem where personal enablers like mentoring are relatively strong, but formal education, equity investment, and regulatory frameworks are severely lacking. It proposes ten imperatives, including integrating entrepreneurship into school curricula, leveraging the diaspora, and reducing administrative 'red tape', to transition the region toward knowledge-based economies.

• The MENA region faces a critical employment challenge, requiring the creation of 75 million jobs by 2020—a more than 40% increase over 2011 levels—to keep employment stable.
• Although 13% of the MENA working population is engaged in entrepreneurial activity, this figure is deceptive because it is mostly driven by necessity (such as shop owners and farmers) rather than innovation or opportunity.
• Microenterprises (businesses with a value under US$ 15,000) are highly significant for employment, providing 65% of private sector jobs in Morocco and 40% in Saudi Arabia, yet they often lack the support to grow into sustainable small businesses.
• The region's formal education system is woefully deficient in entrepreneurship; fewer than 10% of MENA universities offer entrepreneurial courses, and only five offer a major in the subject.
• Financial enablers are underdeveloped, characterized by a 'yawning funding gap' for businesses valued between US$ 500,000 and US$ 8 million, and very low bank lending to SMEs (only 20% have a loan or line of credit).
• The regulatory and infrastructure environments hinder growth, with the MENA region's legal processes being more expensive and time-consuming than those in OECD countries, and internet penetration at 24% compared to 79% in the US.
• Cultural norms in the region often discourage risk-taking, with a preference for stable government jobs; a survey of youth in GCC countries found only 9% prioritized opening their own business.
• The report categorizes MENA countries by their entrepreneurial vibrancy: Lebanon and Jordan are 'Entrepreneur Havens', Saudi Arabia and Tunisia are 'Late Adopters', and Algeria and Kuwait are 'Laggards'.
• To improve the ecosystem, the report recommends ten imperatives, including integrating entrepreneurship into high school and university curricula, leveraging the diaspora for expertise, and expanding the venture capital model to provide deeper mentorship beyond funding.

APA

World Economic Forum (2011). Accelerating Entrepreneurship in the Arab World. http://www3.weforum.org/docs/WEF_YGL_AcceleratingEntrepreneurshipArabWorld_Report_2011.pdf

Chicago

World Economic Forum. Accelerating Entrepreneurship in the Arab World. 2011. http://www3.weforum.org/docs/WEF_YGL_AcceleratingEntrepreneurshipArabWorld_Report_2011.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Accelerating Entrepreneurship in the Arab World |date=October 2011 |url=http://www3.weforum.org/docs/WEF_YGL_AcceleratingEntrepreneurshipArabWorld_Report_2011.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2011accelerating, author = {{World Economic Forum}}, title = {{Accelerating Entrepreneurship in the Arab World}}, institution = {World Economic Forum}, year = {2011}, month = oct, url = {http://www3.weforum.org/docs/WEF_YGL_AcceleratingEntrepreneurshipArabWorld_Report_2011.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }