Econostrum | Economic News in the Mediterranean

EMNES underlines vital role of entrepreneurship training in developing start-up in Jordan, Morocco and Egypt

Written by Frédéric Dubessy on Friday, May 24th 2019 à 15:07 | Read 656 times

The Euro-Mediterranean Network for Economic Studies (EMNES) has published two working documents to better understand the success of start-up in Morocco, Jordan and Egypt. The studies undertaken highlight the opportunities and challenges faced by innovating entrepreneurs. Version française

EMNES underlines vital role of entrepreneurship training in developing start-up in Jordan, Morocco and Egypt

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Incubators and accelerators help to reduce the culture of aversion to entrepreneurial risk (photo : F.Dubessy)
Incubators and accelerators help to reduce the culture of aversion to entrepreneurial risk (photo : F.Dubessy)
Two reports published by the Euro-Mediterranean Network for Economic Studies (EMNES) examine the development paths taken by start-up in Morocco, Jordan and Egypt, very different to the one in northern Mediterranean countries. In the reports, economists analyse, in particular, start-up entrepreneurs’ motivations in seeking innovative opportunities, a theme chosen because, the authors point out, “most available studies covering the Southern Mediterranean focus on the macro level and generally ignore the micro side of entrepreneurship.”
The first working document is based on a survey carried out among 72 innovating entrepreneurs starting businesses in Jordan and Morocco. The second uses case studies of 156 recently-founded Egyptian companies.
Eighty percent of the companies concerned in Morocco are based in and around Casablanca (the economic hub) and Rabat (the administrative capital) while in Jordan, only 67% have set up in Amman and 32% in Irbid, the country’s second-largest city.
For more than a third of the newly-founded businesses in Egypt, start-up financing and a skills mismatch remain the biggest problems. Businesses manage to get started thanks to very limited personal funds, comprising mainly of founders’ savings, and the support of family and friends.

Entrepreneurship training plays a vital role

The EMNES recommends looking at alternative ways of financing innovating enterprise creation. Sixty-nine percent of Moroccan business founders and 55% of Jordanian started their companies along with friends. The report reveals that, in Jordan, 61% of start-ups are founded and are held as partnerships, while 29% are sole proprietorships. In Morocco, however, sole proprietorships are in the majority. “This could be explained by the amount of funds invested, which are generally smaller for Moroccan start-ups than for their Jordanian counterparts,” the report notes.
In Morocco, with an average age of 27, the forty-one start-up founders are younger than in Jordan (average age of 29). Ninety-three percent of the Moroccans have a university degree and 63% have an engineer’s degree or master’s. All the Jordanians interviewed, bar one, have at least a baccalaureate.
The two working documents underline the vital role of entrepreneurship training, as much in universities as in the post-education sphere, with the contribution made by incubators and accelerators, helping to “reduce the culture of aversion to entrepreneurial risk” the authors say. Especially as the “accumulated knowledge and experience enhance the potential for the business succeeding and reduce the risk of failure.”
Learning to be an entrepreneur also needs to involve new programmes that encourage women to start their own businesses.
"Descriptive analysis of the entrepreneurship ecosystem in Egypt from a start-up perspective: Challenges and opportunities"
Authors: Heba M. Zaki and Nahed T. Zeini
"Innovative nascent and early-stage entrepreneurship in the Southern Mediterranean - Evidence in Jordan and Morocco
Authors: Serena Sandri, Nooj Ashyab, Elyas Azzioui.)

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