- Liberal Club of Cairo founder presents the features of the national strategy for entrepreneurship in Egypt"
- The ecosystem value grew to about $2.7 billion.
- Emerging companies are facing problems related to financing, business facilities and contracts.
- It is necessary to take an action to overcome the obstacles facing the companies at their growth phase.
- The losses due to emerging companies leaving Egypt between 2017 and 2021 amounted to about $11.3 billion.
- The file of entrepreneurship needs a common vision between government and the private sector.
- We need to adopt a national strategy on entrepreneurship.
CAIRO - 18 June 2023: Emad Raouf, founder of the Liberal Club of Cairo, said the Egyptian administration focused on preparing the investment environment to accommodate startups and facilitating their establishment procedures in the last ten years.
This was reflected in the increase in the number of startups, Raouf said. However, this was only the first step, he added as he addressed a session on youth empowerment in the file of entrepreneurship of the National Dialogue’s youth committee.
The investment climate for startups witnessed an annual increase in capital in 2021 totaling 168 percent at a value of $491 million, Raouf said. Hence, the ecosystem value grew to about $2.7 billion.
In light of efforts made by the Egyptian state, represented in the ministries of investment, communications, and planning through the government initiatives to encourage and create a suitable environment for start-up companies, the first stage of incorporation obstacles has ended, Raouf said.
However, an action must be taken to overcome the obstacles facing the growth stage in these companies, so that they do not have to leave Egypt, leading to a loss in investment opportunities and a negative impact on Egypt's ranking on economic indicators, he added.
Start-up companies face problems related to financing, business facilities, contracts, obtaining loans, attracting Egyptian and foreign human talents, registering in Egyptian and international stock exchanges, and enforcing contracts, Raouf said.
This has obstructed the way of some companies and led others to leave the country due to the difficulty of working under these conditions, and in light of regional alternatives with attractive investment incentives, Raouf explained.
The rate of business discontinuation amounted to 10.2% in 2017 and the losses due to emerging companies leaving Egypt from 2017 to 2021 amounted to about $11.3 billion as 16 companies left the country, Raouf stated.
Hence, the entrepreneurship file requires a common vision between government and the private bodies working in this field to unify their efforts in order to achieve an integrated supportive environment, he added.
“We are facing a real problem and one of its main reasons is the overlap between the various ministries with regard to entrepreneurship, and the lack of clear responsibility for those who manage the entrepreneurship file, especially in the absence of the Ministry of Investment,” Raouf warned.
Raouf called for adopting a “national strategy that sets the basic frameworks and interim goals” in order to constitute a “roadmap” for the various ministries concerned with the entrepreneurship file.
The strategy will help the ministries coordinate in order to benefit from the enormous capabilities of this sector and help it become a driver for economy, attract foreign investments, prepare the legislative climate, and reconsider tax structure and investment and free zone incentives, he added.
The strategy will also work to bridge the gap between education, skills and market requirements, support creativity and open communication channels to connect the entrepreneurs community with the industrial sector to achieve partnership and integration, he clarified.
Raouf noted that the strategy provides implementation guidelines to help institutions and decision-makers in designing initiatives that improve the entrepreneurship ecosystem.
The strategy will also help the institutions define policy objectives, available options and alternatives, recommended procedures and follow-up lists. In addition, the strategy will also provide a user guide and methods for monitoring and evaluation.
Comments
Leave a Comment