Entlaq Holding released its Egyptian Entrepreneurship Sector Diagnostics Report for the first half (H1) of 2024 on Monday. The report unveils key recommendations that will contribute to the growth of the entrepreneurship sector.
It reflects the state of the entrepreneurship ecosystem in Egypt and provides a foundation for a deeper understanding of the challenges and opportunities faced by entrepreneurs and investors through both qualitative (primary data) and quantitative (primary and secondary data) research methods. The report aims to equip the ecosystem with evidence-based methods that offer greater insight into the sector, primarily by expanding access to data.
During a press conference held at the company’s headquarters, Mohamed Ehab, the CEO of Entlaq, stated that the company's strategy for the upcoming period will focus on supporting entrepreneurship not only in Egypt but also across Africa.
Ehab highlighted the significance of the semi-annual report, which provides data and information about the entrepreneurship and startup sector in Egypt, identifying both challenges and opportunities in this field.
He added that Entlaq has numerous joint programs with Egyptian universities to support young entrepreneurs, as well as programs for supporting women and entrepreneurs from other nationalities.
The CEO pointed out that 7% of foreign direct investment is channeled into the entrepreneurship sector.
Ehab noted that his company operates through various stages, including research, different programs, and the preparation of necessary reports in specific sectors such as logistics, agriculture, renewable energy, and others.
He also confirmed that the entrepreneurship sector has created approximately 50,000 direct jobs and 250,000 indirect jobs.
Omar Rezk, Co-Founder and Managing Director of Entlaq, stated that over the past nine years, the entrepreneurship sector has attracted around $2 billion in direct foreign investments, creating approximately 50,000 direct jobs and 250,000 indirect jobs. This demonstrates the sector's significant contribution to economic growth and its capacity to employ a large number of young people, according to Rezk.
He emphasized that the innovation space drives the growth of startups and discussed the challenges facing the sector, noting that it requires greater incentives and government support, particularly within the entrepreneurship domain.
For his part, Hany Emad, Head of Investment and Venture Capital at the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), stated that the lack of information about the scale of investments in the startup sector leads to missed investment and funding opportunities from international entities like the World Bank. Emad emphasized that the primary goal of the Venture Capital program is to support and assist startups.
"In my view, support programs are more important than investments themselves because successful investment opportunities will emerge from addressing the sector's shortcomings. There must be a connection between the Egyptian market and the African market at the level of startups due to the similar economic structure of Egypt and the continent,” Emad added.
He also highlighted that the startup sector in Egypt has significant opportunities and advantages for achieving top global and regional rankings, such as low operating costs and a strong base of startups and outstanding entrepreneurs.
He concluded by stating, "The reports from MSMEDA are not just numbers and statistics; they are presented to global investment funds to affirm the strength of the Egyptian market and startups, thereby increasing investment opportunities in this leading sector."
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