• Egypt-based think tank Entlaq has launched the results of its bi-annual report on the Egyptian entrepreneurship sector for the first half of 2024.
• Founded in 2022 by Mohamed Ehab, Omar Rezk, Menna Zaghloul and Aya Ismail, Entlaq is dedicated to reshaping Egypt’s entrepreneurial landscape through advisory and capacity-building programmes.
• The report reflects the state of the entrepreneurial sector in Egypt and lays the foundation for a deeper understanding of the challenges and opportunities faced by entrepreneurs and investors. It also highlighted that the Egyptian entrepreneurship sector achieved a performance score of 2.94, with a slight increase from the second half of 2023.
• As a knowledge partner, Wamda has contributed to the report by providing a deep analysis of the performance of the Egyptian entrepreneurial ecosystem.
• The other contributors included ITIDA, TikTok Flat6Labs, Sawari Ventures, Magnitt and EdVentures.

Press release:

Entlaq, a Cairo-based dynamic think tank dedicated to reshaping Egypt’s entrepreneurial landscape through advisory and capacity-building programs, has launched the results of its bi-annual report on the Egyptian entrepreneurship sector for the first half of 2024. The report reflects the state of the entrepreneurial sector in Egypt and lays the foundation for a deeper understanding of the challenges and opportunities faced by entrepreneurs and investors through qualitative (primary data) and quantitative (primary and secondary data) research methods.

The second edition of the report comes in partnership with various government entities, companies, and supporters of the Egyptian entrepreneurship sector, including the Micro, Small, and Medium Enterprises Development Agency, the Information Technology Industry Development Agency (ITIDA), the strategic partners of the report, TikTok as the main partner, Flat6Labs, Sawari Ventures, and Magnitt as the gold partner, knowledge partner Wamda, and finally EdVentures as the ed-tec partner.

Mohamed Ehab, CEO of Entlaq, stated, "Our issuance of the Egyptian Entrepreneurship Sector Diagnostic Report for the first half of 2024, in which Entlaq presents the first Egyptian Entrepreneurship index to measure the performance of the ecosystem reflects our strategic commitment to providing accurate and well-studied insights based on data. We acknowledge the progress the  strong entrepreneurship ecosystem in Egypt, but we also recognize the significant challenges that require well-considered interventions. At Entlaq, we continuously work on formulating strategies that enable us to address these challenges while capitalizing on the significant opportunities offered by the Egyptian market. Our vision is to strengthen 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 that contributes to guiding the dialogue among all stakeholders towards achieving sustainable growth and comprehensive transformation in the economic environment."

Omar Rezk, Co-founder and Managing Director of Entlaq, said, "Entlaq conducted extensive surveys and in-depth interviews with over 140 stakeholders in the Egyptian entrepreneurship sector, ranging from startups to large institutions, investors, venture capital firms, and other stakeholders in the entrepreneurship sector, in addition to decision-makers."

He pointed out that "the Egyptian entrepreneurship sector achieved a performance score of 2.94, with a slight increase from the second half of 2023, reflecting notable progress in many sectors compared to other regions. However, these results highlight the necessity of continuing collaborative efforts between the state, the private sector, and startups. While Egypt's business environment is generally positive, there are still significant challenges in areas such as venture capital financing, ease of doing business, and cross-border capital flows. This calls for enhanced and intensified joint efforts to improve the entrepreneurship sector, ensuring strategic and comprehensive development."

Mr. Emir Gelen, Director of Public Policy for the Middle East, Turkey, Africa, Pakistan and South Asia at TikTok "At TikTok, we believe in the potential of the entrepreneurial community in Egypt that can inspire, create, and make a difference. That's why we've chosen to partner with Entlaq to strengthen our commitment to building a safe and inclusive space where everyone feels empowered to express themselves authentically. Today's event brings together some of the brightest minds and most creative spirits, all united by a shared vision of fostering a dynamic and inclusive ecosystem."

Ms. Dalia Ibrahim, Founder and Chairperson of EdVentures and Chairperson of Nahdet Misr Publishing House, expressed, "We are pleased that Nahdet Misr for Entrepreneurship EdVentures is participating in Entlaq's bi-annual report by providing detailed information and indicators about the educational technology sector, its growth rate, the investments directed towards it, and the various 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 a funding volume reaching $8.4 million. We have also successfully formed several partnerships with global companies and institutions to provide further support to startups, including our partnership with VMS Saudi Arabia, which enabled our startups to enter the Saudi market. Additionally, our strategic partnership with the Mastercard Foundation to launch the Mastercard Fellowship Program in the field of educational technology in Egypt aims to support 36 startups in the educational technology field over three years. These startups will receive intensive programs and funding of up to $60,000 without taking equity. We emphasise our continued efforts to create a robust ecosystem for educational technology in this important sector by empowering young entrepreneurs. We also strive to create an encouraging environment for women to enter the entrepreneurship sector, focussing on creating investment opportunities for entrepreneurs across the country. We are confident that the collaboration of all stakeholders, including governments, institutions, and the private sector, will lead to enhanced innovation in the education field and build a better future for our coming generations."

The report highlights Egypt's advanced digital infrastructure, where mobile penetration reaches 100.44%, along with significant subscriptions to mobile internet services, creating a digitally connected society that is essential for the growth of tech startups. However, high unemployment rates continue to pose a major challenge, driving many individuals towards entrepreneurship and necessitating strong support systems to ensure the sustainability of new ventures.

The report issued by Entlaq emphasises Egypt's demographic potential, economic resilience, and comprehensive ICT infrastructure, while identifying areas for improvement in digital payment systems and addressing the unemployment issue. Targeted political and strategic interventions are deemed essential to further enhance the entrepreneurship sector, ensuring sustainable growth and creating a more inclusive and vibrant business environment.

The report also discusses the efforts of the Egyptian government and public-private partnerships aimed at enhancing entrepreneurship across various sectors. It highlights several significant efforts, such as educational hubs, fintech regulations, agricultural support programs, and ICT innovations. These initiatives collectively 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.

Given the gap in secondary data, the data collected from the surveys covered a diverse range of 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 financing, ease of doing business, cross-border capital flows, private sector contribution, and development sector contribution.