Entlaq Releases Second Edition of Biannual Report on Egyptian Entrepreneurship Sector

Entlaq, a company supporting entrepreneurship, released the results of its biannual report on the Egyptian entrepreneurship sector for the first half of 2024.

The report reflects the state of the entrepreneurship sector in Egypt and lays the foundation for a deeper understanding of the challenges and opportunities faced by entrepreneurs and investors through qualitative  and quantitative research methods.

The second edition of the report comes in partnership with several government entities, companies, and organizations supporting the Egyptian entrepreneurship sector, including the Micro, Small, and Medium Enterprises Development Agency, the Information Technology Industry Development Agency (ITIDA) as strategic

Mohamed Ehab, CEO of Entlaq, stated, “The release of our report on the Egyptian entrepreneurship sector for the first half of 2024, in which Entlaq presents the first index to measure the performance of the Egyptian entrepreneurship sector, reflects our strategic commitment to providing accurate and well-studied insights based on data.

We acknowledge the progress we have made in building a strong entrepreneurship ecosystem in Egypt, but we also recognize the significant challenges that require well-planned interventions at the highest levels.

At Entlaq, we continuously work on formulating strategies that enable addressing these challenges while taking advantage of the vast opportunities offered by the Egyptian market.

Our vision is to enhance Egypt’s position as a hub for innovation and entrepreneurship in the region by creating an integrated and inclusive business environment that allows everyone to achieve long-term success.

This report not only reflects the reality of the entrepreneurship sector in Egypt but also serves as a strategic tool to guide the dialogue among all stakeholders towards achieving sustainable growth and comprehensive transformation in the economic environment.”

Omar Rizk, Co-Founder and General Manager of Entlaq, emphasized, “Entlaq conducted in-depth surveys and interviews with more than 140 stakeholders in the Egyptian entrepreneurship sector, from startups to large corporations, investors, venture capital firms, and other stakeholders, in addition to policymakers.

” He pointed out, “The Egyptian entrepreneurship sector’s performance score of 2.94, an increase from the second half of 2023, reflects significant progress in many sectors compared to other regions.

However, these results highlight the need for continued collaborative efforts between the government, the private sector, and startups.

While the business environment in Egypt is generally positive, there are still significant challenges in areas such as venture capital financing, ease of doing business, and cross-border capital flows, which call for intensified joint efforts to improve the entrepreneurship sector and ensure strategic and comprehensive development.”

Amir Jilin, Head of Public Policy for the Middle East, Turkey, Africa, Pakistan, and South Asia at TikTok, stated, “We believe that the entrepreneurial community in Egypt possesses immense potential and the ability to inspire, create, and drive positive change.

That’s why we chose to partner with Entlaq to reinforce our commitment to building a safe space where everyone can express themselves authentically.

Today’s event brings together a group of the strongest minds and creative talents who share a common vision aimed at providing a dynamic and inclusive environment.”

Dalia Ibrahim, Founder and Chairperson of EdVentures and Chairperson of Nahdet Misr Publishing House, said, “We are pleased to participate in the biannual report of Entlaq through Nahdet Misr for Entrepreneurship EdVentures by providing detailed information and indicators on the educational technology sector, its growth rate, investments directed towards it, and the multiple opportunities it offers to startups operating in this vital sector.”

She added, “Despite the slowdown in investment in startups globally during 2023, EdVentures continued to inject investments into the educational technology sector and capacity building, with funding reaching $8.4 million.

We also succeeded in forming several partnerships with global companies and institutions to provide further support to startups, including our partnership with Saudi Arabia’s VMS, which enabled our startups to enter the Saudi market.

Additionally, our strategic partnership with the Mastercard Foundation to launch the Mastercard Fellowship Program in educational technology in Egypt aims to support 36 startups in educational technology over three years, during which the companies receive an intensive program and funding of up to $60,000 without taking equity.

We reaffirm our continued efforts to create a strong ecosystem for educational technology in this important sector by empowering young entrepreneurs.

We aim to create an encouraging environment for women to enter the entrepreneurship sector, focusing on creating investment opportunities for entrepreneurs across the country.

We are confident that the cooperation of all stakeholders, from governments, institutions, and the private sector, will enhance innovation in education and build a better future for our coming generations.”

The report highlights Egypt’s advanced digital infrastructure, where mobile phone penetration reaches 100.44% with substantial subscriptions to mobile internet services, creating a digitally connected society—a key element for the growth of tech startups.

However, high unemployment rates remain a significant challenge, driving many individuals towards entrepreneurship, necessitating strong support systems to ensure the sustainability of new ventures.

The report by Entlaq emphasizes Egypt’s demographic potential, economic resilience, and comprehensive IT infrastructure, while identifying areas for improvement in digital payment systems and addressing unemployment.

Targeted political and strategic interventions are crucial to further enhancing the entrepreneurship sector and ensuring sustainable growth and creating a more inclusive and dynamic business environment.

The report also addresses the Egyptian government’s efforts and public-private partnerships aimed at boosting entrepreneurship across various sectors.

The report highlights several significant efforts, such as educational centers, fintech regulations, agricultural support programs, and ICT innovations.

These initiatives work cohesively to enhance capacity building, financial inclusion, and technological advancement.

The report also sheds light on social inclusion initiatives targeting youth and women, alongside substantial investments in venture capital and cross-border partnerships.

Due to a gap in secondary data, the data collected from the surveys covered diverse sectors totaling more than 18 sectors, providing comprehensive insights into the challenges and opportunities faced by each sector.

The analysis focused on eight distinct sectors, evaluating perspectives on government policies and regulations, social inclusion, financial inclusion, venture capital funding, ease of doing business, cross-border capital flows, private sector contribution, and development sector contribution.