10th WIEF - Creating A Vibrant Entrepreneurial Ecosystem in OIC Markets

Transcription

1. Creating A Vibrant Entrepreneurial Ecosystem in OIC Markets Wednesday , 29th October 2014
2. OIC have a critical need for entrepreneurial finance The need emerges as a result of : Demographics and young people entering into the workforce Shifts from industrial to knowledge based economy Industrial based economy Evolving role of government Knowledge based economy Fajr Capital Advisors | 2
3. A culture of entrepreneurship entails multiple aspects Aspiration Funding and capital markets Culture of entrepreneurship Entrepreneurial Skills Regulatory market enablement Fajr Capital Advisors | 3
4. Challenges in fostering entrepreneurship vary greatly across OIC countries PROSPERITY (GDP/ Capita) UAE Brunei High Qatar Kuwait Saudi Arabia Medium Malaysia Egypt Low Indonesia Low Medium POPULATION High Fajr Capital Advisors | 4
5. Governments can help , but need the right business models Common pitfalls faced by governments: 1 ‘Moral hazard’ – Only the least attractive business seek government funding 2 ‘Hobbies, not businesses’ – Funders pursuing personal interest while maintaining their jobs 3 Lack of rigor in selection process – Due diligence and review of business not adequately extensive 4 Focus on quantity rather than quality – Emphasis made on quickly deploying funds rather than finding great entrepreneurs Fajr Capital Advisors | 5
6. Banks are generally a poor fit for entrepreneurial finance 1 Mismatch of risk appetite 2 Require hard assets and track record 3 Focus on lagging rather than lending indicators Fajr Capital Advisors | 6
7. Contributions are required from the public and private sectors Government • Basics • “Plus” • Supportive laws for company formation, ownership, employment, and bankruptcy • Government funding for entrepreneurships Local contents, SMEs, and similar policies • • • • School & media Investors Banks Personal financing for entrepreneur Secured financing for businesses • Equity investment in companies • Basic skills development Collaboration with government programs Promotion of business skills and training “Smart” financing based on skills assessment • Incubators and training • Financial literacy development • Crowd funding • Entrepreneurship education • Other innovative models Fajr Capital Advisors | 7
8. Entrepreneurship requires concerted efforts 1 Entrepreneurial development is a key strategic need 2 Entrepreneurial development is a system … not an initiative 3 Building the system requires contributions from governments, banks, private investors, and education system 4 Examples of good practices are available for application in OIC markets Fajr Capital Advisors | 8
9. Aamir Rehman aamir .rehman@fajrcapital.com @aamir_rehman