Week 12 - SOCIAL ENTREPRENEURSHIP IN THE MIDDLE EAST

We always hear so much about social enterprises and its development in Asia, the US, the UK, certain parts of Europe and even in Africa, but hardly is there any news on the social entrepreneurship sector in the Middle East and North Africa (MENA). MENA is made up of the following countries:

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From before, majority of the MENA countries were seen to be performing well on various different developmental fronts, showing impressive growth rates and an improving business sector of its own. However, many of those who took to the streets and have been to MENA believed that this growth only benefited a privileged minority. This article aims at looking at how the MENA region can adopt a new development model of social entrepreneurship for competitive economies to create decent jobs while promoting sustainable development, social justice and equity.

Ashoka was the first organization since 2003 to introduce the concept to the MENA region and to support Arab social entrepreneurs financially and technically. The Arab Spring had brought about much tumult to the Middle East, but the demonstrations have also resulted in new aspects to civil life in the Arab society. Researchers at Stanford University say that the Arab Spring has also been a key factor to furthering the development of social entrepreneurship in the region. According to Social Entrepreneurship: Why It Is Important After the Arab Spring, it states that "unanimously across the region, young people are more interested in improving their communities and contributing to the long-term development of their societies after the revolution."

So why then is social entrepreneurship still hardly heard of in MENA? Here are several main reasons why:

1. Lack of public awareness: The lack of exposure and knowledge about social entrepreneurship and the benefits it brings to communities means that some very good social entrepreneurs might not be known to the public. Greater exposure needs to be given to the contributions made by social entrepreneurs. Such heightened awareness would lead to greater trust and an environment that is more conducive to social entrepreneurship. In the meantime, the public remains skeptical.
2. Lack of governmental support: Although the Egyptian government has invested in development initiatives in the past, it has never prioritized social entrepreneurs. The current political environment and concurrent social instability have further complicated the situation and negatively affected a lot of development projects and activities. Increased bureaucracy and a focus on politics led to longer delays by the government in approving licenses or issuing funding approvals for not-for-profit organizations and small businesses. The media has also been attacking NGOs, accusing those who receive foreign funding of promoting foreign agendas. In Egypt, people are shutting down their organizations, not because anyone forces them to, but because they are not receiving the help and support they need. Because of Ashoka’s independence and lack of affiliation with the government, it is able to fulfill a vital role.
3. Lack of capacity: The lack of know-how is another significant challenge. What NGOs need is the transfer of know-how in order to produce the start-up project activities and organizations that are needed. As an example, social entrepreneurs who only receive a local education in the region do not have the skills to write a good investable business plan. Unless training is offered to build the capacity of local NGOs, there will be no good start-ups in the region.

But there are many opportunities coming about for the rise of social entrepreneurship in MENA, as after the Arab Awakening, an increasing number of younger people in the Arab continent have been applying for fellowships. Most applicants used to be in their thirties, but it is noted that Ashoka has been receiving many applicants who are in their early twenties. Projects are now generally more sustainable, less elitist and more geared towards the needs of the poor. Many proposals are more conscious of the real needs and priorities of the people.

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Such a change across the MENA region may just about remove the typical Arab stereotype about them being rich and selfishly spending all money they have for themselves on themselves. But this rich Arab community, geared with the right mindset, knowledge and tools of social entrepreneurship could indeed lift the entire continent out of its social unrest, and possibly even put an end to the political instability and economic discontent in time to come.   

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"Social entrepreneurship can be a powerful solution for the region." - Suzi Sosa, founder and president of the MPOWER Foundation

References

Sosa, S. (2011, February 23). Why we need social entrepreneurship in the middle east. Inc: Small business resources for the entrepreneur. Retrieved on 7th January 2013 from http://www.inc.com/articles/201102/suzi-sosa-why-we-need-social-entrepreneurship-in-the-middle-east.html

Townsend, J.C. (2012, October 10). Can social enterprise contribute to inclusive growth in middle east and north africa? In Ashoka's Youth Venture. Retrieved on 7th January 2013 from http://www.youthventure.org/can-social-enterprise-contribute-inclusive-growth-middle-east-north-africa