The impact of COVID19 on entrepreneurship in MENA region – Preliminary findings

By Maan Barazy

Much of the world's attention currently is focused on the COVID‐19 pandemic, particularly in terms of entrepreneurship public policy initiatives. The crisis resulting from this health pandemic has meant substantial alterations to mobility, international trade, consumption, and lifestyle patterns. This article discusses how innovation and risk‐taking can lead to productive policy outcomes. Thereby, it outlines the contemporary challenges of implementing an entrepreneurial policy strategy in the wake of COVID‐19 by suggesting new research avenues. In the present article, this gap in research on COVID‐19 public policy and entrepreneurship is filled by taking into account multi‐stakeholder interaction.

A research by the WEFORUM states that More than 70% of start-ups have had to terminate full-time employee contracts since the start of the COVID-19 pandemic; Many entrepreneurial businesses have pivoted to meet new needs for goods or services borne out of the crisis;The way entrepreneurial business models and approaches are affected by the pandemic will have an impact on how entrepreneurship is perceived as a job choice in the future. https://www.weforum.org/agenda/2020/06/how-covid-19-will-change-entrepreneurial-business/

The impact is still yet to be seen, but current projections mean that there will be ongoing policy interventions required, so more emphasis must be placed on the positive work that public policy planners are doing regarding societal changes derived from the COVID‐19 pandemic. 1-????????There is an increased awareness about how innovation and futuristic thinking can turn the hardships caused by the pandemic into opportunities. Some studies have carried out research on COVID‐19 and entrepreneurship. However, they have focused more on specific types of entrepreneurship such as family firm effects (Kraus et al., 2020) or social impact needs (Bacq, Geoghegan, Josefy, Stevenson, & Williams, 2020). In addition, so far, the literature does not include any comprehensive analysis of the role public policy plays in COVID‐19 related entrepreneurship endeavors.

A research by Wamda https://www.wamda.com/research/pdf/impact-covid-19-outbreak-entrepreneurship-ecosystem-mena quotes that Beyond travel restrictions, lockdown measures to curb the spread of the virus and the economic uncertainty have resulted in a negative impact on 71% of the startups, of which 22% have suspended operations, and 21% are witnessing a high decrease in demand resulting in significant losses.

Since the outbreak of Covid-19 in the region, these startups have either pivoted to maintain business or scaled back their operations to survive. On the other hand, most startups in e-grocery, edtech and fintech saw an increase in demand, which reflected in positive revenues. Specifically in e-grocery, 16.7% saw their revenues double since the outbreak of the pandemic while 47% of edtech startups saw a positive impact on their revenues the same research shows.

This paper will be structured along the following paths

1-???Analyze the impact of COVID 19 on startups through a questionnaire and opinion poll

2-???Draw sector responses on how startups have or have not answered the post covid challenge

3-???Suggest new practical suggestions and future research paths after analyzing the impact of the COVID19 outbreak in the MENA region.

4-???Analyze also how governments and policymakers are trying to utilize entrepreneurial thinking as a way of responding to the crisis.

5-???Understand if entrepreneurial policy initiatives have been utilized in the crisis Is it true to say that the uncertainty surrounding the COVID‐19 pandemic has provided an impetus for entrepreneurship. We will ask if policy practices that can lead to innovative solutions that occur quickly. These innovations can pave the way for further innovations developed quickly to respond to societal needs. However, the response time for innovation depends on the feasibility of an idea and the perseverance of those involved

6-???An understanding on the way governments, organizations, and society can utilize entrepreneurship.

7-???Propose ways to know more about how to maintain entrepreneurial thinking while under severe strain through policy directions (

8-???Suggestions for further policy research and practical implications complement the analysis.