Traditional monetary policy is focused on currency, prices, and banking stability, not entrepreneurship development. However, the document argues that innovative monetary policy in Lebanon has successfully built an entrepreneurial ecosystem by increasing various types of capital and making it more accessible and affordable. Loans and initiatives targeting social, cultural, economic capital and entrepreneurs increased capacity and empowered those lacking resources.

1. Does Monetary Policy Matter in
Developing an Entrepreneurial
Ecosystem?

2. Traditional Monetary Policy is Mandated
to:
1. Issue Currency
2. Uphold Value of National Currency
3. Ensure stability of prices (currency;
capital; goods & services)
4. Regulate the banking system (Bank of
Banks)
5. Bank for the Government

3. If we mean by Development of an
Entrepreneurial Ecosystem: “building
capacity and empowering the have-
nots”…IT DOES NOT PROPOSE TO DO THIS!

4. But we have done it in Lebanon:
And how?
We used “innovative” monetary policy to
build:
1. Capital
2. Environment

5. 1. Capital
- Social Capital (Green loans; housing
for first-time buyers)
- Cultural Capital (student loans; R&D)
- Economic Capital (for SME’s in all
sectors, recognizing country’s forte
[innovation; knowledge; creative
initiatives]; targeted Entrepreneurs)

6. 2. Environment
Supported the Environment Needed
for Building Capacity and Empowering
the have-nots by making capital:
a. Accessible to the people
b. Affordable for the people

7. a. Accessible to the people:
- Ensured no one is “left behind” by
making capital “accessible” to
everybody: Debt or Equity
- Informed people (beneficiaries of bank
loans almost doubled between 2008
[340,000] and 2012 [637,000]; GDP up
25%, same period; & created jobs); E-L;
and networking events
- Built institutional infrastructure both
Financial and Academic

8. b. Affordable for the people
- Limited the cost of capital to bear
minimum: bank administrative costs (e.g.
student loans)
- Provided framework to ensure
financial transparency and consumer
protection

9. Our New Entrepreneurial Ecosystem is
Proof that Monetary Policy, after all,
Does Matter!