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New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications
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New Entrepreneurs and High Growth Entreprises in the MENA Region: Policy Implications

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Presented at the July 2012 Meeting of the OECD-MENA Initiative's Working Group on SME Policy, Entrepreneurship and Human Capital Development http://www.oecd.org/mena/investment

Presented at the July 2012 Meeting of the OECD-MENA Initiative's Working Group on SME Policy, Entrepreneurship and Human Capital Development http://www.oecd.org/mena/investment

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  • 1. NEW ENTREPRENEURS AND HIGH GROWTH ENTERPRISES IN THE MENA REGION CONCLUSIONS AND POLICY IMPLICATIONS Antonio Fanelli OECD – Private Sector Development Division Rome, 17 July, 2012
  • 2. Research questions and conclusions Where do MENA economies stand in terms of high performance enterprises vis-à-vis developed and other emerging economies?  While the number of enterprises in MENA is lower than in other emerging markets, the share of high potential enterprises is comparable. 2
  • 3. Research questions and conclusions  What obstacles prevent high potential enterprises in MENA from becoming high performance?  A inefficient and non-transparent regulatory environment, corruption, a lack of external finance, and a shortage of skilled staff. 3
  • 4. Research questions and conclusions Is there evidence of an incoming new generation of entrepreneurs?  A new generation is indeed emerging. Work experience and high education are critical for success. The gender gap persists but appears to be narrowing. Further analysis is required. 4
  • 5. Research questions and conclusions  Is the business environment conducive to high performance firms? What can public policy do to promote high performance firms and what are MENA governments doing in this regard?  The transition from high potential to high growth is affected by inefficient and nontransparent regulatory environment, a lack of external finance, a shortage of skilled staff, and distorting competition of incumbents. 5
  • 6. Policy implications Two sets of broad policy recommendations emerge from the report: 1) Improvement of the business environment for all enterprises. Objectives: To increase the pool of formal enterprises and develop a level playing field. 2) Measures targeted to high-growth enterprises. Objectives: To facilitate the transition from high potential to high growth and improve growth performance. 6
  • 7. Businesses environment - 1 Five priority areas: 1. Regulatory policy and regulatory simplification in order to lower the administrative burden and to increase competition; 2. Increase competition and diversification in the banking and financial sectors; 7
  • 8. Businesses environment - 2 3. Increase women’s participation in the labour market and in enterprise creation; 4. Legal and judiciary reform to improve contract enforcement; 5. Human capital development to improve skills and promote an entrepreneurial culture. 8
  • 9. High-growth enterprises - 1 Access to finance: • External equity financing, either provided by business angels, seed funds, venture capital or equity funds; • Stimulation of the eco-system for equity financing; • Introduction of credit guarantee facilities for enterprises whose main assets are intangible. 9
  • 10. High-growth enterprises - 2 Skills development • Tailored publicly-funded training schemes; • Voucher schemes allowing enterprises to select the trainers or advisors; • Internship programmes with universities and vocational institutes; • Hiring programmes for new graduates supported by public funds (i.e. Tunisia). 10
  • 11. High-growth enterprises - 3 Develop linkages programmes: • Connect high potential SMEs with large companies and multinationals; • Target the advanced business services sector (ITC, consultancy and accounting services, etc), relatively under-developed in the MENA region; • Help SMEs in learning how to work with large companies and multinationals and in adopting quality standards. 11
  • 12. High-growth enterprises - 4 Three additional horizontal areas: •Introduce an active gender policy to reduce the gender gap; •Ensure the provision of reliable and low cost public services (enterprise/industrial locations, power supply , ITC services, etc); •Remove obstacles to business entry and expansion through sectorial reviews of the competitive and regulatory environment. 12
  • 13. Final policy implications  There is no magic formula leading to an increase in the number of high growth enterprises;  Policy experience is built through piloting, testing and careful evaluation;  Experimenting could offer new insights and open new perspectives;  The current context provides an opportunity for moving towards a more inclusive and evidence based policymaking. 13
  • 14. Antonio Fanelli Deputy Head OECD - Private Sector Development Division E-mail: antonio.fanelli@oecd.org 14

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