The popular uprisings in Tunisia and Egypt in 2011 were sparked by citizen frustration based on a range of grievances including lack of opportunity, dissatisfaction with local governance, corruption, and unemployment. The public self-immolation by Tunisian informal entrepreneur, Mohamed Bouazizi, was a shocking demonstration of the frustration and hopelessness felt by some sectors of society and led to calls for political and economic reforms to address citizen grievances. Today, however, North African economies still urgently need economic reforms to promote greater economic inclusion and provide opportunities for youth.
The Center on Development, Democracy, and the Rule of Law at Stanford, in cooperation with CIPE, has conducted a survey of 131 Egyptian and Tunisian entrepreneurs and business owners to find what that the greatest barriers are to the growth of businesses in these countries. As Global Entrepreneurship Week comes to a close, CIPE is releasing an Economic Reform Feature Service article by Amr Adly about the study to contribute to the continuing conversation on supporting entrepreneurs around the world.
Article at a glance:
- This article summarizes the main barriers to entry and growth as experienced by entrepreneurs and business owners in Egypt and Tunisia, and looks at regional
differences within each country, differences between formal and informal enterprises, and differences by gender of business owners. - Top barriers to growth in 2013 were reported to be political instability and public disorder, administrative inefficiency, and restrained access to finance. Even among formal businesses, informal mechanisms often compensate for the absence of effective state institutions and the rule of law.
- Administrative reforms and deeper investments in infrastructure and human capital are needed to build the business-friendly ecosystem needed to generate jobs, grow the economy, and create opportunities for all citizens.
Published Date: November 20, 2014