Media Coverage: entrepreneuralarabiya


Startup Meter in Berlin Valley


  • Tunisia is the best in the status of startup ecosystems, followed by Oman by a narrow margin
  • Oman is the best for technical companies
  • Beirut the richest in funding and spending more on R&D
  • Cairo the best in manpower, Accra in labor market
  • Rabat, the strongest infrastructure in transport and communications

    Link to the original article

** Oman is the best for technical companies .. and Beirut richest funding
** Cairo and Accra for the labor market .. And the strongest infrastructure in transport and communications are in Rabat

Tunisia, Morocco, Egypt, Jordan, Lebanon, Kenya and Ghana, Tunisia is the best among these countries in the status of start-ups, followed by Oman by a narrow margin, followed by Cairo, Beirut, Nairobi, Accra, and Rabat.
The start-up index, published by the German company enpact and made available on an interactive website, was published in early December after a year of research, based on 80 indicators divided into six domains: human capital, finance, leadership landscape, infrastructure, 14 branches.
Ricardo Culnaghi, who is in charge of the index, explained to the Arab Interborder the choice of the seven countries under study with accurate and reliable data about them and the existence of a network of knowledge of the German institution in the result of different guidance programs to facilitate the study of their situation, pointing out that the search will extend to more Of cities later. The research was carried out at the city level and not by States, because the cities within the same country differed.

Results and abstractions:
The study concluded that Tunisia is the best city for entrepreneurs to start at the beginning of the journey, but the type of business determines later which cities to move to as the business grows. Oman is the best for high-tech technology companies, while the transport companies prefer Rabat, which has the highest figures for transport and communications infrastructure. If the company wants to complete the team, Cairo will be the best option for them because it is the highest city in manpower, although legal issues are easier if the company’s headquarters is registered in Tunisia. The Ghanaian capital Accra remains the most preferred labor market for start-ups.
There is no correlation between gross domestic product per capita and the performance of the city. There are rich cities such as Beirut did not outperform Tunisia, for example, despite the fact that the former occupies the 63rd place in the per capita GDP of the International Monetary Fund, compared to Tunisia, which is the 115th place.
Nairobi was the most spending on research and development, followed by Rabat. Accra and Tunisia are the most restrictive labor legislation, while they have little impact in Nairobi. Rabat has emerged as the weakest city in women’s entrepreneurship, and it is also the weakest in terms of funding. There are no accelerators, incubators or bank loans. Almost all applications are rejected, the highest in terms of funding constraints compared to Accra, where there are few restrictions. The city has great technology parks and infrastructure, but it is not exploited to serve the field of entrepreneurship. The index also recorded the spread of crime as a constraint on entrepreneurship.
In Tunisia, labor force restrictions are almost fading, while in Cairo, which is superior to skilled labor, it remains urgent. Business-related events are increasing in Tunisia despite poor ports and air transport. Bank loans and government and angelic financing are the main means of financing start-ups in Tunisia compared to the absence of accelerators or incubators. Tunisia has outperformed the rate of violent crime and the depth of bribery.
In Cairo, bank loans were weak. Emerging Egyptian companies rely mainly on angelic investment, followed by VC financing and less self-financing. Cairo is one of the top countries in the salaries of graduates and programmers. The weakness of angelic investors was striking compared to the size of the population. The Egyptian capital registered a deteriorating political situation.
Beirut and Accra led women’s entrepreneurship and women’s participation in the field in general. Sources of funding in Beirut relied on self-financing and financing of accelerators and incubators compared to Oman, where government funding was the primary source of funding, angel investment and self-financing.
In terms of human capital, Accra excels in Cairo, although the population difference between them is 6: 9 million, with fractures in favor of the Egyptian capital. On the financing side, Beirut took the lead, followed by Tunisia by a big margin. Rabat was the least. The indicator monitored the high rate of crimes in Amman and the absence of common workspaces.
On the leading scene, Beirut came first, followed by Tunisia by a narrow margin. Rabat also occupied the last position. In the infrastructure, Rabat and Oman were at the top, while Beirut at the bottom of the list was very weak. The indicator said that the common in the Lebanese capital is the disruption of electricity and the Internet, which is expensive in any case.
Given the overall framework, Oman leads the way, followed by Tunisia by a narrow margin. Cairo tops the list when comparing markets, followed by Rabat by a narrow margin.
According to Kulnaji, the figures given to each country in the index are relative to those of other countries. Cairo has zero in universities and angelic investors despite their presence in the Egyptian capital. does not mention. As well as Oman, which registered zero in the number of joint workspaces and Tunisia, which recorded zero in the financing of accelerators and incubators business start-ups. He explained that the real and not the relative figures are obtained after submitting an application to the institution that conducted the study and in exchange for money.

The methodology of the study
The study measures the six areas according to a number of variables; in human capital, the measurement is based on skills and the labor market. Skills are seen as constraints on the labor force, skilled labor, universities, university students, higher education and research and development spending. In the labor market, the restrictions on labor legislation, the salaries of graduates, the salaries of programmers, women’s participation, women’s entrepreneurship and unemployment rates are seen.
In funding, the study measures sources and order. Banks, self-financing, angel investors, accelerators and business incubators, VC investment and government financing are seen under the sources. While under consideration in the system variables in the restrictions on funding, rejected loan applications, collateral required, total VC investment companies, the inflow of foreign direct investment and the total number of angel investors.
In the pilot scene, the study looked at the main centers and activity. In the first, I looked at business accelerators, business incubators, joint workspaces and technological spaces. In the activity, I looked at the leading players, the total number of start-up companies, the financing of start-ups with over $ 5 million and other companies exceeding $ 1 million through equity.
In the infrastructure standard, the study dealt with transport, communications, services and information, and communication technology. Under transport, the study considered quality in general, quality of roads, trains, ports and quality and capacity of air transport. Under the services, the meter looked at the quality of water supply, access to electricity, power outages, pollution indicator, costs of common workspaces, cost of living, quality of electricity and service costs. In ICTs, prepaid bills, mobile phone penetration, Internet service cost and spread, Internet cost from mobile phones, smartphone penetration, cost of the subscription to mobile networks and subscriptions, Internet speed in upload and download.
As for the general framework of entrepreneurship, it was to look at the political circumstances, the legal framework and the crimes. In the political context, the indicator focused on stability, effective governance, quality of legislation and level of democracy. In the legislative framework, we looked at VAT, corporate tax, contract enforcement, insolvency, time and cost of business registration. Under the heading Crimes, the Index looked at violent crime, crime as a constraint, forms of informal crime as a constraint, the depth of bribery, the perception of corruption and its control.
Finally, in the markets, performance and interdependence were seen; sales growth, employment, labor productivity, trade balance and capacity utilization came under the heading of performance. In the correlation, the index looked at the opening up of trade, tourism, sister cities and the logistics performance index.