Are you looking for perfect opportunity which suits your qualifications and skills? Fratres will help you in this regard. Join Fratres now to get in touch with millions of jobs. Multiple employers are looking forward to get in touch with you. Upload your CV and join our social media platforms LinkedIn, Facebook, Twitter to get latest updates from our trusted employees.

Governments now a days all around the world have been under pressure due to current damage in overall economy of the world. Every country is looking for cutting down the economic expenses and decrease joblessness, particularly subsequent the worldwide monetary catastrophe. There has also remained an augmented emphasis on the essential for administrations to chase wide-ranging development, somewhat than only concentrating on macro-economic pointers like GDP. These tendencies remained reproduced in the eighth United Nations Sustainable Development Goal (SDG), which named for indorsing comprehensive and maintainable financial development, service, and dressed effort for all. Comprehensive development happens when financial wealth is lasting, maintainable, and feasts a broad spectrum of a population. Here, monetary development is observed as fruitful when it is expanded across segments, inclusive of various groups in the labor force, attributable to creative employ, and led by the market.

This new growth consensus has arisen at a time when many countries are contending with the root grounds of the uprisings. Exactly, governments have been progressively worried with the need to provide dressed and creative work, particularly for their growing youth inhabitants, which are likely to be jobless or underemployed at higher rates than in other regions.

This is no easy job. In the decade foremost up to the worldwide financial catastrophe and the rebellions, the growth nations experienced was chiefly macroeconomic rather than comprehensive. With international financial development at low taxes, Arab economies were then hit with lower oil prices, thereby reducing income for both oil exporters and countries benefiting from remittances from the Gulf region. Political turmoil and regional discord in many Arab countries is further adding to the region’s economic woes, as is the inability and hesitancy of many governments to continue using the public sector to achieve employment goals. It is therefore not surprising that unemployment rates remained stubbornly high in Egypt, Yemen, Jordan, Morocco, Libya, Syria, the West Bank and Gaza, and Tunisia between 2004 and 2014.

Hence, many Arab countries have begun to explore entrepreneurial initiatives as a means to facilitate job creation and inclusive economic growth. However, while the region has embraced rhetoric extolling the benefits of entrepreneurship, entrenched political, economic, and socio-cultural interests limit these efforts. The region has yet to create the economic ecosystem necessary for entrepreneurship to thrive—that is, an integrated policy environment that encourages startups and enables entrepreneurial ventures to take hold and succeed. Instead, many challenges continue to impede Arab entrepreneurs from reaching their full potential.

This policy briefing examines how regional entrepreneurship initiatives can help Arab countries achieve the SDG of inclusive growth and explores existing political, economic, and socio-cultural challenges such initiatives currently face. It argues that policy improvements—particularly when it comes to regulation, finance, education, “intrapreneurship”, and regional integration—must be implemented in order to both promote greater entrepreneurship and sustain an inclusive economic environment.

Entrepreneurs and SMEs: Engines of Inclusive Growth

As developing countries, including those in the Arab world, continue to struggle with limited fiscal capacity to create jobs and absorb new entrants into the labor market, the attractiveness of including entrepreneurship in job creation toolkits has grown. Globally, entrepreneurs and small- and medium-sized enterprises (SMEs) are widely considered to be vital to national economies, particularly because they create a higher share of total jobs than other employers. In the Middle East and North Africa (MENA) region, SMEs represent 80 to 90 percent of all businesses in the formal sector.

Research supports the general observation that entrepreneurship can be a crucial generator of jobs. While entrepreneurial activities invariably create some new jobs in the short term, more interestingly, evidence from Europe and the United States has shown that competition created by new firms can replace inefficient companies. The loss of jobs from those companies and from failing startups is offset by job creation in the first year of a firm’s life, providing a net increase in jobs for the overall economy in the long term.

At the policy level, such positive employment effects can help Arab governments create jobs, particularly given the dismal state of their youth labor markets. In Arab states, the youth labor force participation rate is around 30 percent, compared to 46 percent in the rest of the world.

Almost all Arab countries have youth unemployment rates that exceed the global rate (13.1 percent) and that of developing countries (9.5 percent). In fact, youth unemployment in the Arab states is the highest regional average in the world (30.6 percent). The rate is even higher in Egypt, Tunisia, Libya, and Iraq. Troublingly, these unemployment and labor force participation figures are combined with high rates of underemployment, as many youths are only employed because they have accepted jobs below their qualifications in order to earn money.

Despite an increased societal recognition of the importance of entrepreneurs and SMEs as viable job generators, the public sector remains the largest employer in Arab states. Public sector employment has historically absorbed excess labor, particularly the rising number of university graduates. It continues to account for 60-80 percent of total formal employment in the Gulf states, Egypt, Iraq, Jordan, and Tunisia.

This overreliance on public sector employment is a major problem. Public finances throughout the Arab world are increasingly burdened.  At the same time, bloated public sectors have crowded out private sector employment and deepened unproductive work cultures and habits. In many Arab countries, people seek or wait for the promised higher wages, benefits, and security of public sector jobs instead of searching for or accepting work in the private sector. These realities have turned policy attention to ways of promoting entrepreneurship as a policy tool to create private sector jobs in response to high unemployment rates.

Are you looking for perfect opportunity which suits your qualifications and skills? Fratres will help you in this regard. Join Fratres now to get in touch with millions of jobs. Multiple employers are looking forward to get in touch with you. Upload your CV and join our social media platforms LinkedIn, Facebook, Twitter to get latest updates from our trusted employees.

Governments now a days all around the world have been under pressure due to current damage in overall economy of the world. Every country is looking for cutting down the economic expenses and decrease joblessness, particularly subsequent the worldwide monetary catastrophe. There has also remained an augmented emphasis on the essential for administrations to chase wide-ranging development, somewhat than only concentrating on macro-economic pointers like GDP. These tendencies remained reproduced in the eighth United Nations Sustainable Development Goal (SDG), which named for indorsing comprehensive and maintainable financial development, service, and dressed effort for all. Comprehensive development happens when financial wealth is lasting, maintainable, and feasts a broad spectrum of a population. Here, monetary development is observed as fruitful when it is expanded across segments, inclusive of various groups in the labor force, attributable to creative employ, and led by the market.

This new growth consensus has arisen at a time when many countries are contending with the root grounds of the uprisings. Exactly, governments have been progressively worried with the need to provide dressed and creative work, particularly for their growing youth inhabitants, which are likely to be jobless or underemployed at higher rates than in other regions.

This is no easy job. In the decade foremost up to the worldwide financial catastrophe and the rebellions, the growth nations experienced was chiefly macroeconomic rather than comprehensive. With international financial development at low taxes, Arab economies were then hit with lower oil prices, thereby reducing income for both oil exporters and countries benefiting from remittances from the Gulf region. Political turmoil and regional discord in many Arab countries is further adding to the region’s economic woes, as is the inability and hesitancy of many governments to continue using the public sector to achieve employment goals. It is therefore not surprising that unemployment rates remained stubbornly high in Egypt, Yemen, Jordan, Morocco, Libya, Syria, the West Bank and Gaza, and Tunisia between 2004 and 2014.

Hence, many Arab countries have begun to explore entrepreneurial initiatives as a means to facilitate job creation and inclusive economic growth. However, while the region has embraced rhetoric extolling the benefits of entrepreneurship, entrenched political, economic, and socio-cultural interests limit these efforts. The region has yet to create the economic ecosystem necessary for entrepreneurship to thrive—that is, an integrated policy environment that encourages startups and enables entrepreneurial ventures to take hold and succeed. Instead, many challenges continue to impede Arab entrepreneurs from reaching their full potential.

This policy briefing examines how regional entrepreneurship initiatives can help Arab countries achieve the SDG of inclusive growth and explores existing political, economic, and socio-cultural challenges such initiatives currently face. It argues that policy improvements—particularly when it comes to regulation, finance, education, “intrapreneurship”, and regional integration—must be implemented in order to both promote greater entrepreneurship and sustain an inclusive economic environment.

Entrepreneurs and SMEs: Engines of Inclusive Growth

As developing countries, including those in the Arab world, continue to struggle with limited fiscal capacity to create jobs and absorb new entrants into the labor market, the attractiveness of including entrepreneurship in job creation toolkits has grown. Globally, entrepreneurs and small- and medium-sized enterprises (SMEs) are widely considered to be vital to national economies, particularly because they create a higher share of total jobs than other employers. In the Middle East and North Africa (MENA) region, SMEs represent 80 to 90 percent of all businesses in the formal sector.

Research supports the general observation that entrepreneurship can be a crucial generator of jobs. While entrepreneurial activities invariably create some new jobs in the short term, more interestingly, evidence from Europe and the United States has shown that competition created by new firms can replace inefficient companies. The loss of jobs from those companies and from failing startups is offset by job creation in the first year of a firm’s life, providing a net increase in jobs for the overall economy in the long term.

At the policy level, such positive employment effects can help Arab governments create jobs, particularly given the dismal state of their youth labor markets. In Arab states, the youth labor force participation rate is around 30 percent, compared to 46 percent in the rest of the world.

Almost all Arab countries have youth unemployment rates that exceed the global rate (13.1 percent) and that of developing countries (9.5 percent). In fact, youth unemployment in the Arab states is the highest regional average in the world (30.6 percent). The rate is even higher in Egypt, Tunisia, Libya, and Iraq. Troublingly, these unemployment and labor force participation figures are combined with high rates of underemployment, as many youths are only employed because they have accepted jobs below their qualifications in order to earn money.

Despite an increased societal recognition of the importance of entrepreneurs and SMEs as viable job generators, the public sector remains the largest employer in Arab states. Public sector employment has historically absorbed excess labor, particularly the rising number of university graduates. It continues to account for 60-80 percent of total formal employment in the Gulf states, Egypt, Iraq, Jordan, and Tunisia.

This overreliance on public sector employment is a major problem. Public finances throughout the Arab world are increasingly burdened.  At the same time, bloated public sectors have crowded out private sector employment and deepened unproductive work cultures and habits. In many Arab countries, people seek or wait for the promised higher wages, benefits, and security of public sector jobs instead of searching for or accepting work in the private sector. These realities have turned policy attention to ways of promoting entrepreneurship as a policy tool to create private sector jobs in response to high unemployment rates.

This policy shift coincides with a change in the attitudes of Arab youth to working in the public and private sectors. In 2012, 55 percent of Arab youth preferred a public sector job, but that figure dropped to 43 percent in 2014. Most interestingly, a pronounced drop has been observed in the Gulf states, where wages are higher in the public sector than the private sector. The percentage of Arab youth that prefer private sector employment increased over the same period. This new willingness among Arab youth to engage in the private sector highlights the need to prioritize policies that encourage and support entrepreneurs and SMEs.

This policy shift coincides with a change in the attitudes of Arab youth to working in the public and private sectors. In 2012, 55 percent of Arab youth preferred a public sector job, but that figure dropped to 43 percent in 2014. Most interestingly, a pronounced drop has been observed in the Gulf states, where wages are higher in the public sector than the private sector. The percentage of Arab youth that prefer private sector employment increased over the same period. This new willingness among Arab youth to engage in the private sector highlights the need to prioritize policies that encourage and support entrepreneurs and SMEs.