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Entrepreneurship

Mapping Morocco’s green entrepreneurship ecosystem

Rosa Lin's picture


A World Bank team set out to answer the questions: Who are Moroccan green entrepreneurs, and what is the entrepreneurial landscape they operate in? They found that:

  • Almost half of surveyed Moroccan green entrepreneur businesses are solo-run.

  • 84 percent of surveyed entrepreneurs were self-funded at the early-stages.

  • 54percent of entrepreneurs identified a lack of access to market information as the biggest barrier to doing business in Morocco.

Those are just a few findings from their work on the first World Bank climate entrepreneurship ecosystem diagnostic in Morocco, a deep dive into the North African nation’s green start-up ecosystem.

The diagnostic, surveying more than 300 entrepreneurs and industry players, shines unprecedented insight into multiple facets of Morocco’s climate entrepreneurship ecosystem, and how different political, financial, and cultural forces play out to drive the sector.
 

In a highly visual format, a new report explores the top findings from the diagnostic, bolstering them with case studies, key facts, and graphics. The report uncovers interesting clues to Morocco’s strengths and challenges: Typical Moroccan green entrepreneurs are young, educated, and started their businesses because they wanted to be their own boss. These entrepreneurs work in diverse sectors — from green information technology to energy efficiency — and are creating and adapting technologies and solutions to solve some of Morocco’s greatest environmental challenges.

The Middle East, version 2.0.

Bassam Sebti's picture


Let’s be honest. The Middle East and North Africa is burning, and in some areas it is literally burning. Conflict and fragility have long warped what once was the cradle of civilization and the inspiration for the many inventions we can’t live without today. However, in the midst of that fire hope rises, a driver of change that is transforming the ugly reality into a bright future.
 
After I fled the war in Iraq in 2006, I was pessimistic about what the future was holding for that region. Year after another, the domino-effect of collapse became a reality that shaped the region and its people. Yet, fast-forward to 2017, I have witnessed what I never thought I would see in my lifetime: the new renaissance in the Middle East and North Africa.
 
I have just recently come back from attending the World Economic Forum on the Middle East and North Africa at the Dead Sea in Jordan. This year, the Forum and the International Finance Corporation (IFC), the private sector arm of the World Bank Group, partnered to bring together 100 Arab start-ups that are shaping the Fourth Industrial Revolution.
 
There, the positive vibe was all around; no negativity, no pessimism. Instead there was a new sense of optimism and enthusiasm, hunger for change, and the will to take the region to a whole new future, away from conflict and the current norm of pessimism.

Six innovations from the Digital Youth Summit that inspired me

Joe Qián's picture
What do speakers say about the Digital Youth Summit?
What foreign speakers say about DYS17!

Foreign delegates to Digital Youth Summit 2017 reflect on their experiences, and the bright minds of youth in Khyber Pakhtunkhwa. Many thanks to all the foreign delegates for visiting Peshawar from May 5-7, 2017! #DYS17 #KPITB #KPGoesTech #KPWentTech Imran Khan (official)Shahram Khan Tarakai Official Khyber Pakhtunkhwa Information Technology Board - KPITB World Bank South Asia Jazz USAID Pakistan UNDP Pakistan Gloria Jean's Coffees Pakistan Anna O'Donnell Sam Bretzfield Iliana Montauk Justin Wong Alexander Ferguson Max Krueger Nicola Magri

Posted by Digital Youth Summit on Thursday, May 18, 2017

Entrepreneurs and technologists from Pakistan and around the world converged last week at the Digital Youth Summit (DYS) in Peshawar to share their knowledge, inspire local talent, and bring digital investments.

Over four days, 4,000 attendees, some as young as age 10, interacted with industry leaders, engaged in technology demonstrations, and benefitted from hands-on training. Everyone learnt a lot about digital entrepreneurship and was inspired by many cutting-edge innovations.

Here are six of them that struck a high note with me:
Most sessions at #DYS17 were livestreamed by Jazz xlr8 and OurKPK. Photo Credit: Joe Qian/World Bank
  1. Sessions on Facebook Live. Did you miss the summit, want to learn more about digital entrepreneurship, or simply want to relive highlights of DYS? Jazz xlr8 and OurKPK livestreamed many sessions at DYS. Inspired to start or grow your own business after watching the sessions? There are also resources to support you at the National Incubation Center and Khyber Pakhtunkhwa’s Youth Employment Program!
     
    Travel Across Pakistan
     
  2. Travel Startups that made me want to travel across Pakistan. Let’s face it, I have a serious case of wanderlust and few things make me happier than going to new places, connecting with people, and gaining insights and perspectives I was unaware of before. For people outside of Pakistan may know of it as a country full of beauty and tourism potential. However, two of the winners of DYS’s Startup Cup in which budding companies presented their products and services to prospective investors changed my perspectives. Watch these two videos made by travel platform Find My Adventure and home-sharing company Qayyam and tell me if they also inspire you to travel across Pakistan!

Four ways to maximize the effectiveness of youth employment programs

Jochen Kluve's picture
Youth employment programs have shown positive effects on skills development, entrepreneurship, subsidized employment, and employment services for youth. Photo © Dominic Chavez/World Bank

The youth employment challenge is a stubborn reality in all regions and nearly every country. Over 35 per cent of the estimated 201 million unemployed people today are youth (between the ages of 15 and 24).  Worldwide, the challenge is not only to create jobs but to ensure quality jobs for young people who are often underemployed, work in the informal economy, or engage in vulnerable employment. Today, two out of every five young people in the labor force are either working but poor or unemployed.

To foster innovation, let a hundred flowers bloom?

Jean-Louis Racine's picture


Helen Mwangi and her solar-powered water pump in Kenya © infoDev/World Bank

Managers of initiatives that support innovative entrepreneurs have a choice to spread their resources (and luck) among many opportunities or focus them on the most promising few. In developing countries, public and donor programs can learn a lot from how private investors pick and back innovative ventures.

In the early days of infoDev’s Climate Technology Program, our thinking was very much about letting a hundred flowers bloom: supporting a large number of firms with the hope that a few would emerge as blockbusters. Firms were selected on the basis of objective metrics tied to the innovative nature of their ideas and their economic, social and climate-change impacts. For example, while infoDev’s partner the Kenya Climate Innovation Center has more than 130 companies in its portfolio, a $50 million venture-capital fund in California would have at most six. Inspired by private investors, we have since rethought our program objectives for these centers, as well as the way we select and support businesses. The Kenya center is going through a rationalization of the firms it supports.

Like many public programs, infoDev and its network of Climate Innovation Centers had good reasons to support large numbers of companies. The main reason is the need to spread the entrepreneurship risk through a diversified portfolio. A recent infoDev literature review found that up to a third of all new firms do not survive beyond two years, let alone grow. Out of those that survive, data from high-income countries suggest that fewer than 10 percent become high-growth firms. So casting a wide net increases the chances of hitting the jackpot. The opposite approach, picking winners, is seen as destined to fail and distort the market. 

Six tips to balance the gender scale in start-up programs

Charlotte Ntim's picture

Sinah Legong and her team meet at Raeketsetsa, a program that encourages young women in South Africa to get involved in information and communications technologies. © Mutoni Karasanyi/World Bank

Olou Koucoi founded Focus Energy, a company that brings light, news and entertainment to people living off-grid in his country, Benin. Its spinoff program ElleAllume hopes to train more than 1,000 women to bring power to 100,000 Beninois homes this year. “At the end of the day, [inclusive hiring] is not a gender decision, it’s a business decision,” he says.
 
Over the past few months, I interviewed a number of incubator and accelerator programs to compile best practices for the World Bank Group’s Climate Technology Program. The research spanned 150 programs in 39 countries, ranging from relatively new to seasoned veterans of the clean tech incubation space. The consensus regarding gender diversity and inclusion was almost unanimous; all but one program echoed Koucoi’s sentiments – in principle.
 
In practice, however, encouraging more women into the clean energy sector and related programs has proved challenging. Below are some of the most popular explanations for the low levels of female representation:
 
“We can’t find them.”
Many clean energy incubation programs said they had difficulty recruiting due to a lack of women in the industry and strong women’s networks to tap into. While there is no shortage of women in clean energy (with industry-specific examples such as clean cookstoves serving as a good example) there are few women-led businesses. This lack of visible leadership translates into lower rates of participation.
 
“We would love to focus on bringing more women into the program, but we have limited resources.”
Incubation programs are often lean, with little time and few resources to expand on offerings and create targeted programs for women. Instead, to create quick wins and draw in additional funds, programs often take a “low-hanging fruit” approach, seeking out the most visible companies to recruit and invest in, which tend to have male co-founders.
 
“Does it really matter at the end of the day?”
Many programs are pro-gender-diversity in principle, but gender-agnostic in practice. This stems from a disconnect between the “gendered-lens” approach discussed when fundraising for incubation programs and the results frameworks which judge their success. Such factors as the number of companies exited are still weighed much more heavily than gender balance.

Below are some of the best ways I have found to create more gender-diverse and inclusive programs:

Scaling up inclusive innovations: 10 lessons for donors

Johannes Linn's picture
Women in Jharkhand, India
Women in Jharkhand, India. © Natalia Agapitova/World Bank

Only a small fraction of women in rural India have a bank account, reinforcing existing gender inequity. Without access to financial services, women miss out on government benefits, like cash transfers. Alternative for India Development (AID) delivers financial products to women and other underprivileged populations through a unique business model. In partnership with the government and commercial banks, AID established more than 600 Common Service Centers that serve as one-stop delivery points to financial and government services. In just three years of operation, AID opened 200,000 deposit accounts, one-third of which belong to women. Thanks to these accounts, underprivileged populations was able to receive pensions, government subsidies and access free savings accounts.

AID is just one of a large and growing number of businesses that combine profits with impressive development results. These businesses are known as social enterprises, and the innovations they develop play a critical role in providing life-improving goods, services, and employment to hundreds of millions of poor people. Social enterprises can be distinguished from other public and private organizations by the fact that they pursue social objectives through commercially viable business models and are independent from the government.
In his recent blog, World Bank Group President Jim Kim urged the development community to partner with social enterprises to achieve the Sustainable Development Goals. This will require a different approach to scaling results of successful social enterprises, their inclusive innovations, and business models. In a recent Brookings Working Paper we reviewed the literature and experience with scaling up social enterprise innovations and summarized lessons for how scaling up can be best managed. Here we briefly explore the main implications for external donors.

A year in the life of an incubator

Alexandre Laure's picture

Also available in: Français

Youth trained with The Next Economy methodology.
© Cesar Gbedema/Impact Hub Bamako

Last month, Impact Hub Bamako celebrated its first birthday. The first of its kind in Mali, Impact Hub Bamako is part of a global network of more than 15,000 members in more than 80 locations worldwide, from Bogota to Phnom Penh. Combining innovation lab services with incubator and accelerator programs and a center for social entrepreneurship, Impact Hub Bamako provides a unique ecosystem of resources, inspiration and collaboration opportunities for young, creative Malians working towards a common goal.

Co-founded by four young Malians Fayelle Ouane, Kadidia Konaré, Mohamed Keita and Issam Chleuh Impact Hub Bamako seeks to promote entrepreneurship and generate youth-driven solutions to Mali’s problems, as well as support women’s entrepreneurship and encourage social entrepreneurs to build a shared vision and work together for a collective impact.

“Establishing a community of young entrepreneurs was very important to us,” says Ouane, “so that everyone can build on and benefit from each other’s expertise and knowledge.” Indeed, Impact Hub Bamako hosts a diverse community of entrepreneurs, strategic advisors, architects, social workers, students, consultants, renewable energy specialists, and experts in agribusiness, ICT and corporate social responsibility.

By providing a shared space to work, as well as access to meeting rooms, events and that all-important internet connection, Impact Hub Bamako has given participants the opportunity to leverage each other’s expertise, as well as grow their professional networks not just nationally but globally, as Impact Hub boasts a multinational presence.

“This is our comparative advantage,” agrees Keita, now the hub’s director. “Our incubation/acceleration programs seek not only to promote the necessary conditions for job creation in our country, but also to professionalize our workforce and give them the tools to meet the demands of any employer.”

The Hills are Alive: Credit, Livelihood and Micro-enterprises Empower Women’s Groups in North-East India

Mohini Datt's picture
India’s North-East Region (NER) – comprising ‘the seven sister’ states plus the small state of Sikkim - is a uniquely rich and complex tapestry of social, cultural, natural resource and biological diversity. This remote region, of poor connectivity but with an eager and literate workforce[1], is increasingly being transformed into a key frontier under India’s ‘Act East’ policy and its NER Vision 2020 . The World Bank supported North-East Rural Livelihoods Project (NERLP) is working with nearly 23,000 women’s Self-Help Groups (SHGs) in Sikkim, Nagaland, Mizoram and Tripura. It is steadily adding value to the region’s labor pool – scoping out economic opportunities for the poorest of the poor, training the young workforce in the skills they are hungry for, seeding SHGs, providing them credit, and enabling them to set up new enterprises and improve their socioeconomic status.   

An Eggless Bakery in Sikkim

Tucked away behind the monastery at the popular Buddha Park, on one of South Sikkim’s many serene hilltops, stands the eggless Tatagatha Bakery. The bakery is run by a Self-Help Group of local village women with funding through a microcredit program supported by the NERLP. A bakery is an unusual, innovative idea for microcredit, but the Buddha Park attracts many pilgrims, and the bakery is always in demand.  Going eggless and dairy free has meant it can better cater to its core clientele of monks, pilgrims and visitors; it has also reduced the need to transport perishable supplies up the steep hilltop.

The project team mobilized a veteran baker from the rail head town of Siliguri to train the local women initially.  The project ran into teething problems early on: a single SHG was rallied, but not all members were equally committed, which saw high dropouts after training. The team changed tack, and elicited individual interest regardless of membership.  Twenty women have now been trained. Uptake by SHGs has undoubtedly been gradual, but it is early days yet – the bakery only opened in May 2016.  These women see the bakery’s potential and are willing to bet on its success, accepting lower wages for now.  
Tatagatha bakery was recognized by the South District Zilla Panchayat as an excellent sustainable but profitable venture, run with good business acumen.

Demystifying start-ups, or why Snapchat is an outlier

Ganesh Rasagam's picture



A market in Ramallah, West Bank. © Arne Hoel/The World Bank

Snapchat made its historic initial public offering this month with a market valuation of $33 billion, which qualifies it as a decacorn (a firm valued at least $10 billion, compared to a unicorn, which is valued at a mere $1 billion). Snapchat, once the bane of parents as a teenage distraction, overtook Alibaba’s record of raising $22 billion in 2014 and has spawned two 26-year-old multi-billionaires.
 
It is tempting to be dazzled by the likes of Snapchat, Uber, Facebook and Airbnb and to conclude that the start-up scene is dynamic and thriving. However, the reality is rather different, and perhaps even somewhat grim: U.S. Census data released in 2016 show that new business creation is near a 40-year low. According to a number of researchers, the rate of business start-ups and the pace of employment dynamism in the U.S. economy have fallen over the past decades.

A critical factor in accounting for the decline in business dynamics is a lower rate of business start-ups and the related decreasing role of dynamic young firms in the economy. For example, the share of U.S. employment accounted for by young firms has declined by almost 30 percent over the past 30 years. This statistic has significant implications given that the churning effect of new firms is an important means of reallocating capital and labor from low-productivity to high-productivity activities, which in turn is required for long-term productivity-led growth.
 
If this were not worryisome enough, the data also shows that since around the year 2000, there are far fewer high-growth young firms being created in the United States. Most start-ups fail, but a very small percentage (between 1 percent and 5 percent, based primarily on data from OECD countries) are innovative and dynamic, grow rapidly and create the most jobs and value, thus making a disproportionate contribution to overall productivity growth.
 
The likelihood of a start-up in the United States becoming a high-growth firm is now lower than before the year 2000, which is counterfactual in the age of digital disruption. No one is quite certain of the economic, social, and demographic factors behind these trends of declining start-up activity and the dearth of high-growth firms in the United States, but there are a number of theories, including the effects of the Great Recession, generational cultural changes and changing risk appetite of young people, a burdensome regulatory environment, and the increasing importance of large, innovative firms that have adapted many of the appealing features of startups.
 
A World Bank Group team is exploring the topic of high-growth entrepreneurship in developing countries to examine whether there are similar patterns and trends as in the United States and OECD countries. This study looks at the prevalence and characteristics of high-growth firms in various economies, the attributes of the firm and the entrepreneur, the business environment, and other factors such as the role of foreign direct investment and spillovers/linkages and agglomeration effects. The focus of the study will be also to assess the policy instruments being deployed and how effective are these in providing targeted support to high growth firms.
 
The Global Entrepreneurship Congress (GEC) this week in Johannesburg, South Africa provides an excellent opportunity to exchange ideas and deepen insights on the challenges of identifying and nurturing high-growth firms. This year’s GEC theme is “Digital Disruption.” More than 4,000 disruptors — entrepreneurs, investors, policymakers and ecosystem builders from more than 160 countries — are coming together to exchange market-specific insights on how to identify and nurture the most innovative high-growth entrepreneurs from across the world to create high-quality jobs, drive productivity-led sustainable growth and find solutions to global challenges.

 


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