Entrepreneurship in Egypt: The Prospects

Entrepreneurship is the new buzz word in the Egypt. The last five years have witnessed a huge growth in entrepreneurship, very much like a wildfire on windy day. What is causing this boom in entrepreneurship? Pessimists are not surprised; job creation has been on halt for so long. An unemployed with little imagination can primitively see entrepreneurship as a near-zero risk venture with a positively skewed reward … and a tail that is longer than ever before. Who can blame them when success stories are all over the place!

An unemployed with little imagination can primitively see entrepreneurship as a near-zero risk venture with a positively skewed reward … and a tail that is longer than ever before.

However, this view doesn’t seems to give a fair answer to the question. It is true that young ambitious men and women no longer can rely in connections to get a prestigious jobs in a lucrative industries, but one can easily see how this generation is different from the parents. Thanks to Egyptian labour law reforms of the early 2000’s, young professionals are no longer in a divorce-free  relationship with their employers. Lifetime employment was one of the few privileges that were bestowed upon Egyptians by the suppressive ruling regimes of the second half of the last century. Some of us still have vague memories of subsidized housing, food and education, but for a young man in the early twenties the remaining traces of a socialist system are unidentifiable. As a result, the younger generations are growing more risk tolerant, though at times not necessarily as competitive as one would hope for.

Some of us still have vague memories of subsidized housing, food and education, but for a young man in the early twenties the remaining traces of a socialist system are unidentifiable.

The era of social media and information democratics crafted perfect opportunities for the less privileged ones to imitate and localize success stories carried over the Internet from the distant worlds literally at the speed of light. Egyptians entrepreneurs today are turning into ideation masters, they know that ideas are free, but not cheap. Few years ago business plan competition, mentorship and seed funding were foreign terms. Today such words are becoming increasingly common. Similarly, large multinational corporations were viewed as sole beneficiaries of technology parks. Today, more SMEs are gaining foothold in these modern innovation grinders.

The era of social media and information democratics crafted perfect opportunities for the less privileged ones to imitate and localize success stories carried over the Internet from the distant worlds literally at the speed of light.

Because smart money follows smart ideas, one can also notice  development in the venture capital investment landscape. Investment is growing, yet slowly but surely. Multinational corporations operating in Egypt as well as visionary investors and serial entrepreneurs are more active than ever before in the pursuit of business ideas that cannot be exploited using the conventional business practices, but rather innovation-centered start-ups. One cannot miss the new entrepreneurial spirit among youth, bravely challenging a several generations old myth that favors low pay low risk jobs and forgoes natural human aspirations.

Image By Flickr Oriol Pascual

اترك رد

هذا الموقع يستخدم Akismet للحدّ من التعليقات المزعجة والغير مرغوبة. تعرّف على كيفية معالجة بيانات تعليقك.