To capture a complete picture of an entrepreneurial ecosystem, it is important to go beyond official statistics, like the number of registered businesses. Stakeholders needs to understand the on the ground perceptions about entrepreneurship. For the fifth year, the Global Entrepreneurship Monitor (GEM) Tunisia National Team has been able to provide such insights.
Based on interviews with over 2,000 individuals in the country, the GEM 2022/2023 Tunisia National Report revealed a 51% rate of entrepreneurial intentions. More than 80% interviewed consider entrepreneurship as a good career choice that provides high status. Two thirds of those surveyed know at least one person who has started a business.
While these are all positive trends, the research findings also underscored some concerns related to Tunisia’s entrepreneurial ecosystem. The total early-stage entrepreneurial activity (TEA, the percentage of adults aged 18–64 who are starting or running a new business) is 17%; the majority of these entrepreneurs find themselves obliged to start a business due to job scarcity. Like in many other countries, necessity entrepreneurship has increased in recent years, following the onset of the COVID-19 pandemic. The established business ownership’ rate is approximately 10%, while the exit rate with a cessation of activity is approximately 7%, revealing the difficulties faced by entrepreneurs to survive.
As part of the National Expert Survey (NES) in Tunisia, 36 experts were asked to share their perspectives about the National Entrepreneurship Framework Conditions (EFCs). These conditions are:
- Entrepreneurial Finance - Are there sufficient funds for new startups?
- Ease of Access to Entrepreneurial Finance and are those funds easy to access?
- Government Policy: Support and Relevance - Do they promote and support startups?
- Government Policy: Taxes and Bureaucracy or are new businesses burdened?
- Government Entrepreneurial Programs - Are quality support programs available?
- Entrepreneurial Education at School - Do schools introduce entrepreneurship ideas?
- Entrepreneurial Education Post-School - Do colleges offer courses in starting a business?
- Research and Development Transfers - Can research be translated into new businesses?
- Commercial and Professional Infrastructure Are these sufficient and affordable?
- Ease of Entry: Market Dynamics - Are markets free, open and growing?
- Ease of Entry: Burdens and Regulation - Do regulations encourage or restrict entry?
- Physical Infrastructure - Is this sufficient and affordable?
“The experts’ rating for the national conditions were negative,” noted the conclusion. “Policymakers should consult this report and take into consideration all the findings when establishing new strategies and programs.”
Of particular note, the authors note adopting more effective strategies to promote and spread the culture of entrepreneurship since an early age (school and post-school). More efficient programs are needed to allow for early-stage businesses to reach higher maturity levels. Entrepreneurs at different levels need funding to increase job creation, innovation and expand their activities at an international level.
The report authors are Majdi Hassen, Associate Professor of Finance, University of Tunis and Executive Director of IACE; Hager Karaa, Head of Research and Studies Department at IACE; and Manara Toukabri, Economic Researcher at IACE.
The report was also made possible with the support of Innov’i – EU4Innovation, a project funded by the European Union and implemented by Expertise France. This project aims at strengthening and promoting the entrepreneurial and innovative ecosystem in Tunisia.
Access the full report.