Keywords
Entrepreneurship, Lebanon, Gender Dynamics, Socio-cultural Barriers, Economic Growth, Entrepreneurial Ecosystem, Policy Recommendations, SME Development
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Haj Youssef M, Harakeh M, Hussein H and Sayour N. Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon. [version 1; peer review: 1 approved with reservations]. F1000Research 2025, 14:13 (https://doi.org/10.12688/f1000research.156589.1)
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Policy Brief
Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon.
[version 1; peer review: 1 approved with reservations]
PUBLISHED 02 Jan 2025
OPEN PEER REVIEW
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Abstract
Corresponding author:
Moustafa Haj Youssef
Competing interests:
No competing interests were disclosed.
Grant information:
This is a project funded by an external grant led by Dr. Moustafa Haj Youssef, with the following details:
Project dates: 01 May 2023 – 30 April 2025
Project title: Entrepreneurship in the MENA Region: The Uncharted Territory
Amount: $248,325
Awarding body: Economics and Human Flourishing Research Fund, Templeton World Charity Foundation, Inc.
Status: Awarded with ref number: TWCF-2023-31800.
https://doi.org/10.54224/31800
The Middle East and North African (MENA) region faces high unemployment. The research team has conducted a comprehensive survey to create a novel dataset on labor market trends and business ownership in the MENA region. The survey covers Egypt, Jordan, Kingdom of Saudi Arabia, Lebanon, Tunisia, and the United Arab Emirates. The data encompasses a large amount of information on individuals’ socio-economic and demographic characteristics, such as gender, age, education, income, marital status, labor market outcomes, household characteristics, and parental background. The survey includes questions about the respondent’s work experience, providing information that is lacking in other datasets in the MENA region. A section on the respondent’s personality traits and sense of agency in their own lives also provides data that is scarce for the MENA and several other regions.
The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.
Copyright:
© 2025 Haj Youssef M et al.
This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
How to cite: Haj Youssef M, Harakeh M, Hussein H and Sayour N. Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon. [version 1; peer review: 1 approved with reservations]. F1000Research 2025, 14:13 (https://doi.org/10.12688/f1000research.156589.1)
First published: 02 Jan 2025, 14:13 (https://doi.org/10.12688/f1000research.156589.1)
Latest published: 02 Jan 2025, 14:13 (https://doi.org/10.12688/f1000research.156589.1)
Project dates: 01 May 2023 – 30 April 2025
Project title: Entrepreneurship in the MENA Region: The Uncharted Territory
Amount: $248,325
Awarding body: Economics and Human Flourishing Research Fund, Templeton World Charity Foundation, Inc.
Status: Awarded with ref number: TWCF-2023-31800.
https://doi.org/10.54224/31800
The Middle East and North African (MENA) region faces high unemployment. The research team has conducted a comprehensive survey to create a novel dataset on labor market trends and business ownership in the MENA region. The survey covers Egypt, Jordan, Kingdom of Saudi Arabia, Lebanon, Tunisia, and the United Arab Emirates. The data encompasses a large amount of information on individuals’ socio-economic and demographic characteristics, such as gender, age, education, income, marital status, labor market outcomes, household characteristics, and parental background. The survey includes questions about the respondent’s work experience, providing information that is lacking in other datasets in the MENA region. A section on the respondent’s personality traits and sense of agency in their own lives also provides data that is scarce for the MENA and several other regions.
The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.
Introduction
Entrepreneurship is a crucial driver of economic growth, innovation, and job creation (Hussein and Haj Youssef, 2023), particularly in countries like Lebanon, where socio-economic and political challenges require creative solutions. This policy brief explores the key factors influencing entrepreneurial success in Lebanon, with a focus on gender dynamics, cultural perceptions, and systemic barriers. It aims to offer actionable policy recommendations that strengthen Lebanon’s entrepreneurial ecosystem and promote sustainable economic growth.
Despite Lebanon’s history of entrepreneurial success, especially within its diaspora, local entrepreneurs face substantial challenges. These include high operational costs, bureaucratic inefficiencies, and political instability. Cultural norms, particularly those related to gender, further complicate the landscape for women entrepreneurs, who often struggle to access funding, networks, and mentorship. This brief draws on data from the MENA Entrepreneurship and Labour Market Survey (MELMS), which offers comprehensive insights into the socio-economic characteristics of Lebanese entrepreneurs. The dataset covers 1,000 observations, with an average age of 38, providing a representative snapshot of Lebanon’s entrepreneurial landscape.
The central objective of this brief is to highlight entrepreneurship as a critical force for Lebanon’s economic recovery, especially given its ongoing political and economic crises. The policy recommendations seek to address both structural and cultural barriers, promoting a more inclusive and resilient ecosystem by enhancing gender equity and improving access to essential resources.
Lebanon’s entrepreneurial ecosystem is shaped by its unique historical and socio-economic context. Small and medium-sized enterprises (SMEs), which account for 90% of the country’s businesses, play a pivotal role in the economy. However, these businesses operate in a challenging environment marked by high costs, limited government support, and political instability. Recent initiatives, such as the “Lebanon SME Strategy” and the Kafalat loan guarantee programme, aim to improve the business environment. Additionally, international and non-governmental organisations like UNDP, USAID, and Berytech have launched programmes to support entrepreneurship and provide resources for SMEs and startups.
Despite these efforts, Lebanon’s entrepreneurial ecosystem continues to face significant hurdles, particularly in terms of access to funding, the shift from owner-managed to professionally managed businesses, and the underrepresentation of women. These challenges have been exacerbated by the multi-faceted crisis Lebanon has faced since 2019. This policy brief builds on empirical evidence and scholarly research to propose a holistic framework that aligns policy interventions with Lebanon’s specific entrepreneurial needs. By addressing these challenges through targeted policies and fostering gender-inclusive support systems, Lebanon can unlock its entrepreneurial potential, driving innovation, job creation, and sustainable economic growth. These efforts are crucial not only for enhancing Lebanon’s resilience but also for securing its competitive advantage in the global market.
Survey outcomes and data insights
What is the status of awareness and accessibility of entrepreneurial support services in Lebanon?
Entrepreneurial support services are vital for fostering economic growth, innovation, and job creation. However, their effectiveness is significantly influenced by the awareness and accessibility of these services among potential and current entrepreneurs. Our research shows significant gaps in awareness in Lebanon, especially among women, and highlights the need for targeted interventions to improve the effectiveness of these services.
When asked, “Are you aware of business associations and support bodies that support entrepreneurs?” the responses revealed a significant lack of awareness. Figure 1 shows that only 22% of men and 16% of women report knowing about such entities, revealing a clear gap in the awareness of specific entrepreneurial support services and associations among both genders. This low level of awareness indicates that many potential entrepreneurs are unaware of organizations that provide essential support services, underscoring a critical gap in communication and outreach efforts. This gap suggests an urgent need for targeted campaigns, enhanced communication, and outreach efforts to inform and educate aspiring entrepreneurs about available resources to help them succeed.
Figure 1. General Awareness of Entrepreneurial Support Organization by Gender.
Figure 2 shows that loans with favorable terms are the most well-known support service among respondents, with 47% of men and 43% of women aware of their availability. This relatively high level of awareness suggests that financial support services are either in high demand or effectively communicated, underscoring the importance of maintaining and enhancing the visibility of these programs.
Figure 2. General Awareness of Loans with Especially Favorable Terms by Gender.
Awareness of technical assistance services for starting a business is very low, with only 14% of men and 12% of women reporting knowledge of such services as can be seen in Figure 3. This indicates a pressing need for better promotion and dissemination of information about technical aid to ensure that more potential entrepreneurs can access these valuable resources.
Figure 3. General Awareness of Technical Aid to Start a Business by Gender.
Awareness of business centers, depicted in Figure 4, is similarly low, with only 10% of men and 11% of women aware of their existence. Given the crucial role that business centers can play in providing resources and support to entrepreneurs, this limited visibility points to a need for more effective communication strategies to raise awareness of these centers.
Figure 4. General Awanress of Business Centers by Gender.
Awareness of consulting services offered at favorable terms is low, with just 15% of men and 11% of women knowing about these services as shown in Figure 5. This suggests that consulting services, which can provide critical support to entrepreneurs, are not being adequately promoted to the entrepreneurial community.
Figure 5. General Awanress of Consulting Services on Favorable Terms by Gender.
Figure 6 shows a substantial percentage of respondents, 44% of men and 49% of women, are not aware of any of the listed entrepreneurial support services. This significant gap underscores the urgent need for better outreach and promotion to ensure that entrepreneurs are informed about the support services available to them.
Figure 6. Awareness of Any Entrepreneurial Support Services by Gender.
What are the challenges and perceptions of entrepreneurship in Lebanon?
As understanding the challenges and perceptions of entrepreneurship is crucial for creating a conducive environment for business growth, our research delves into the perceptions and challenges faced by entrepreneurs in Lebanon by asking them what their perspectives about entrepreneurship are. Our research findings below show the Lebanese entrepreneurs’ insights and perspectives, and how they see entrepreneurship:
Figure 7 shows that a majority of both men (56%) and women (63%) perceive moderate cultural clashes with entrepreneurship, with 16% of men and 18% of women perceiving high levels of cultural clashes.
Figure 7. Cultural Clashes with Entrepreneurship by Gender.
In terms of the level of unrecognition, Figure 8 depicts that 57% of men perceive a moderate level of unrecognition, and 23% perceive a high level. Similarly, 61% of women perceive a moderate level of unrecognition, with 21% perceiving a high level. This widespread lack of recognition may limit the support and resources allocated to entrepreneurs, affecting their ability to contribute effectively to the economy.
Figure 8. Unrecognized Role of Entrepreneurs by Gender.
Figure 9 shows 57% of men agree that Lebanese society hardly accepts entrepreneurs, while 54% of women perceive it as moderately unacceptable. This social stigma may discourage individuals from pursuing business ventures, thereby stifling entrepreneurial growth.
Figure 9. Entrepreneurship Viewed as Unacceptable by Gender.
High perceived risks associated with entrepreneurship are a deterrent for many. Among men, 65% perceive moderate risks, and 22% perceive high risks as can be seen in Figure 10. For women, 58% perceive moderate risks, and 24% perceive high risks. These perceptions of risk can discourage individuals from starting or expanding businesses, impacting the overall entrepreneurial landscape.
Figure 10. Perceived Risk of Entrepreneurship by Gender.
Lastly, Figure 11 shows that 57% of men and 56% of women perceive that entrepreneurs moderately take advantage of others, and 29% of men and 27% of women perceive a high level. This negative perception could damage the reputation of entrepreneurs and create a hostile business environment, further discouraging entrepreneurial initiatives.
Figure 11. Entrepreneurship Seen as Exploitative by Gender.
What are the entrepreneurial commitment and aspirations in Lebanon?
Entrepreneurial commitment and aspirations are crucial indicators of the potential for economic growth and innovation within a country. Our analysis evaluates the commitment and aspirations of entrepreneurs in Lebanon, highlighting gender differences and providing insights for policymakers to support entrepreneurial activities effectively.
A significant majority of respondents, 75% of men and 62% of women, report a high level of commitment to entrepreneurship and entrepreneurial spirit ( Figure 12). Notably, no men and only 2% of women indicate a low level of commitment, highlighting a strong entrepreneurial drive among both genders.
Figure 12. Commitment to Entrepreneurship/Entrepreneurial Spirit by Gender.
Figure 13 shows that high professional aspirations in entrepreneurship are expressed by 71% of men and 67% of women respondents, indicating a strong desire to choose entrepreneurship as a career path. No men and a small percentage of women (4%) report low aspirations in this regard, showcasing widespread interest in entrepreneurial careers.
Figure 13. Professional Aspirations in Entrepreneurship/Choosing Entrepreneurship as a Career Path by Gender.
Most respondents demonstrated high dedication to business success, with 74% of men and 57% of women showing strong commitment to launching and managing a business as can be seen in Figure 14. No men and only 1% of women report low commitment levels, underscoring a general determination to succeed in business ventures, underscoring a general determination to succeed in business ventures.
Figure 14. Dedication to Business Success/Commitment Levels to Launching and Managing a Business by Gender.
Figure 15 shows that a significant majority of respondents, 68% of men and 61% of women, display high determination and long-term commitment to starting a business. No men and only 2% of women indicate low levels of determination, reflecting a robust intent to pursue and succeed in entrepreneurial endeavors.
Figure 15. Future Business Plans by Gender.
High levels of seriousness and contemplation towards entrepreneurship are observed in 63% of men and 61% of women respondents, indicating a strong intent to consider entrepreneurship seriously ( Figure 16). Very few men (1%) and women (2%) report low levels of contemplation or seriousness, indicating a strong intent to consider entrepreneurship seriously.
Figure 16. Contemplating Entrepreneurship/Seriousness of Entrepreneurial Intentions by Gender.
The process of solidifying plans for future business ventures was highly prevalent, with 79% of men and 69% of women respondents expressing strong intentions, highlighting a proactive approach towards future entrepreneurial activities ( Figure 17).
Figure 17. Solidifying Plans for Future Business Ventures by Gender.
Figure 18 shows that a notable 39% of men and 37% of women respondents report being ready to start a business, indicating a considerable proportion of individuals who feel prepared to embark on entrepreneurial ventures.
Figure 18. Readiness to Start a Business by Gender.
What are the key factors influencing entrepreneurial success in Lebanon?
Entrepreneurial success is influenced by various factors, depicte in Figure 19, that facilitate or hinder the progress of new ventures. In this study, we explore how Lebanese individuals perceive their entrepreneurial capacities by asking them to rate their proficiency in key areas essential for entrepreneurship. We highlight gender differences in these self-assessments to provide a nuanced understanding of the factors influencing entrepreneurial success. This insight can help policymakers create an environment that nurtures and supports entrepreneurial activities effectively.
Figure 19. Factors Influencing Entrepreneurial Success by Gender.
Figure 20 shows that, among men, 42% rate themselves as having a high level of ease in starting and running a firm, 47% as moderate, and 12% as low. For women, these percentages are lower, with 34% rating themselves as high, 56% as moderate, and 9% as low. This suggests that men generally feel more confident in their ability to start and manage a business.
Figure 20. Ease of Starting and Running a Firm by Gender.
In terms of preparedness ( Figure 21), 51% of men rate themselves as highly prepared, 38% as moderately prepared, and 11% as low. Similarly, 47% of women feel highly prepared, 44% moderately, and 9% low. This indicates a strong sense of readiness among both genders, with men feeling slightly more prepared.
Figure 21. Preparedness for Launching a Viable Business by Gender.
Half of the men respondents believe that they had high control over new firm creation, with 44% feeling moderate control and 6% low control. Among women, 41% see high control, 50% moderate control, and 8% low control, as can be seen in Figure 22. This reflects a generally strong sense of control, though women feel slightly less assured than men.
Figure 22. Control Over New Firm Creation by Gender.
Figure 23 shows that a significant proportion of men, specifically 56%, rate their practical knowledge for starting a business as high, 38% as moderate, and 6% as low. Among women, 45% rate their knowledge as high, 43% as moderate, and 11% as low. This highlights a need for enhanced practical knowledge among women.
Figure 23. Practical Knowledge for Starting a Business by Gender.
Men self-report a strong ability to develop entrepreneurial projects, with 60% rate their ability as high, 37% as moderate, and 3% as low ( Figure 24). For women, 50% of women rate their ability as high, 45% as moderate, and 5% as low, indicating slightly lower confidence among women.
Figure 24. Developing Entrepreneurial Projects by Gender.
Both genders believe equally confident in their success probability, with 59% of men and 61% of women rating it as high, 38% and 35% as moderate for men and women, respectively, and 3% as low ( Figure 25). This parity suggests a shared optimism about entrepreneurial success.
Figure 25. High Success Probability in Starting a Firm by Gender.
In terms of opportunity recognition, depicted in Figure 26, 55% of men and 53% of women self-report to possess a high level of opportunity recognition skills, with moderate ratings from 44% of men and women, and low ratings from 2% of men and 3% of women. This indicates a perception of possessing a strong ability to recognize opportunities, with women slightly trailing men.
Figure 26. Opportunity Recognition by Gender.
Regarding creativity, Figure 27 shows that 60% of men and 64% of women Lebanese potential entrepreneurs rate themselves as highly creative, with moderate ratings from 38% of men and 34% of women, and low ratings from 2% of both genders. Women rated their creativity slightly higher than men, suggesting a strong creative drive among women.
Figure 27. Creativity by Gender.
Problem-solving skills are also rated highly by 57% of men and 54% of women, with moderate ratings from 42% of men and 45% of women, and low ratings from 2% of men and 1% of women, as shown in Figure 28. This reflects strong problem-solving abilities across both genders, with women showing slightly higher moderate ratings.
Figure 28. Problem Solving by Gender.
Leadership and communication skills are rated highly by 62% of men and 64% of women, with moderate ratings from 37% of men and 34% of women, and low ratings from 1% of both genders ( Figure 29). This indicates strong leadership and communication skills among both men and women, with women rating themselves slightly higher.
Figure 29. Leadership and Communication by Gender.
The ability to develop new products and services in Figure 30 is rated highly by 60% of men and 56% of women, with moderate ratings from 38% of men and 41% of women, and low ratings from 1% of men and 2% of women. Men believe they are slightly more confident in their ability to innovate.
Figure 30. Development of New Products and Services by Gender.
Lastly, Figure 31 shows that networking and professional contacts are rated highly by 69% of men and 66% of women, with moderate ratings from 30% of men and 32% of women, and low ratings from 1% of men and 2% of women, that indicates strong networking abilities among both genders.
Figure 31. Networking and Professional Contacts by Gender.
Policy outcomes and implications
Enhancing awareness and accessibility
Only 22% of men and 16% of women report awareness of entrepreneurial support organisations, revealing a significant disparity in access to resources. Although both genders exhibit low awareness, men tend to be better informed, indicating that current information dissemination efforts are insufficient, particularly for women. This gap may prevent potential entrepreneurs from accessing the necessary support to start and grow their businesses. To bridge this divide, targeted outreach programmes should focus on raising awareness among women through community centres, women’s groups, and digital platforms. These strategies can promote more inclusive access to entrepreneurial resources, fostering gender equality in the entrepreneurial ecosystem.
Addressing socio-cultural barriers and gender dynamics in Lebanese entrepreneurship
Cultural perceptions and social barriers greatly influence entrepreneurial activity, particularly for women. Our survey and various studies (Christodoulou et al., 2024; Haj Youssef et al., 2024; Mouazen & Hernández-Lara, 2023; Nigam and Shatila, 2024) highlight the deep socio-cultural and economic influences on entrepreneurship in Lebanon. Patriarchal values and gender roles often affect how men and women perceive and achieve success in entrepreneurship.
Research consistently shows that Lebanese women navigate these norms using strategies of compliance, disregard, or defiance against structural inequalities (Tlaiss, 2018). Key barriers include limited access to funding, networking opportunities, and knowledge, emphasising the need for targeted policy interventions to support women entrepreneurs and improve their access to resources.
Lebanon’s socio-economic landscape presents both challenges and opportunities for entrepreneurs. Cultural clashes, underrecognised economic roles, and high perceived risks, especially for women, often discourage entrepreneurial ventures. To combat these barriers, it is essential to implement educational programmes and community initiatives that promote entrepreneurship as a viable career option. Engaging community leaders and stakeholders can help address gender-specific challenges and create a more supportive environment.
Several studies agree on the need to create supportive ecosystems for women entrepreneurs (Mouazen & Hernández-Lara, 2023; Itani & Daou, 2022; Tlaiss, 2018). Despite the barriers, women are advancing in sectors like technology and social entrepreneurship. Initiatives such as the Lebanese Women Angel Fund (LWAF) are a step forward, but more comprehensive efforts, including policy support, enhanced education, and community engagement, are needed to close the gender gap in entrepreneurship.
Promoting an entrepreneurial culture
Changing societal attitudes and reducing the stigma around entrepreneurship can encourage more people to pursue business ventures. Public awareness campaigns highlighting the benefits of entrepreneurship and celebrating success stories can inspire others, fostering a culture that values and supports entrepreneurship. Such efforts can reshape cultural perceptions, making entrepreneurship a more accepted and viable career path.
Expanding training and mentorship programs
Comprehensive training programmes that cover all aspects of business preparation can equip Lebanese entrepreneurs with the necessary skills. Establishing mentorship networks to connect experienced entrepreneurs with newcomers can also provide valuable guidance and support, enhancing entrepreneurial commitment and fostering a culture of continuous learning. Our survey underscores the need for a supportive environment, consistent with global studies (Wasim et al., 2024) that highlight the importance of Entrepreneurship Education and Training Programmes (EETPs). Participation in these programmes significantly boosts individual entrepreneurial orientation and skills, ultimately enhancing autonomy and facilitating business creation.
Global Insights on EETPs:
• A study by the OECD Development Centre (2017) found that entrepreneurship education and training programmes in developing countries significantly increased participants’ likelihood of starting businesses. Practical training, such as business planning and management skills, was particularly effective.
• The Global Entrepreneurship Monitor (GEM) indicates that countries with robust entrepreneurship education frameworks, such as the United States and the United Kingdom, have higher rates of business creation and success. Early exposure to entrepreneurship through education significantly boosts entrepreneurial intentions.
Regional Examples:
• Oman: The “Intilaaqah” programme, supported by Shell, offers business planning, financial literacy, and market analysis training. Studies show that participants are more likely to sustain successful businesses than non-participants.
• Jordan: The Queen Rania Centre for Entrepreneurship (QRCE) offers workshops, boot camps, and mentorship sessions, which have led to higher business creation rates and improved business performance.
• Tunisia: The “Mashrou3i” project, funded by USAID and SECO, provides practical skills and mentorship to young entrepreneurs, contributing to local economic growth (USAID, 2020).
In the Lebanese Context:
In Lebanon, programmes like Berytech’s “ACT Smart Innovation Hub” provide incubation, acceleration, and mentorship to tech startups. Success stories like “FabricAid” highlight the impact of these initiatives in navigating Lebanon’s complex business environment. The “Lebanese SME Strategy” by the Ministry of Economy and Trade also focuses on entrepreneurship education, collaborating with universities and international organisations to equip aspiring entrepreneurs with the skills needed to succeed.
Providing financial support
The impact of entrepreneurship training programs can be magnified by combining training with access to finance, making these programs more effective in fostering self-employment and improving business performance and operations. In line with these insights, the readiness to start a business is closely linked to access to financial resources. Our survey highlights a significant portion of both genders not feeling ready to start a business, with women showing slightly lower readiness levels. This perceived lack of readiness underscores gaps in knowledge, resources, and support.
To address these gaps, establishing funding programs such as grants, low-interest loans, and microfinancing targeted at new entrepreneurs can reduce financial barriers. Creating partnerships with financial institutions to offer favourable loan terms for startup businesses can further support aspiring entrepreneurs. Additionally, enhancing financial literacy through training programs is crucial to help entrepreneurs manage their finances effectively. These combined efforts can create a more fertile entrepreneurial ecosystem in Lebanon, supporting both the development and sustainability of new businesses. For instance:
• Tunisia’s Souk At-tanmia initiative, supported by the African Development Bank (AfDB), provides a combination of grants and technical assistance, creating significant job opportunities. The integrated approach of offering financial support alongside business development services has proven crucial to its success.
• Egypt’s Social Fund for Development (SFD) offers microloans and business development services to small entrepreneurs. The World Bank (2018) found that SFD’s support significantly improved the performance and sustainability of small businesses, leading to thousands of jobs and enhanced economic resilience.
• In Lebanon, Berytech offers financial support through grants and equity investments for tech startups. Success stories like “DLOC Biosystems” highlight how financial backing combined with business development services can help nurture sustainable startups.
Fostering innovation and creativity: Technology and innovation hubs in Lebanese entrepreneurship
The resilience of Lebanon’s entrepreneurial ecosystem, particularly during economic crises, underscores the importance of supportive policies and initiatives. Enhancing digital infrastructure and leveraging international support are crucial for the continued development of Lebanon’s entrepreneurial sector, promoting innovation and job creation. Technology and innovation hubs play a central role in fostering creativity within this ecosystem.
Initiatives like Berytech and Beirut Digital District (BDD) offer essential support to tech startups, providing environments conducive to innovation. These hubs help startups scale and succeed, creating collaborative spaces that enhance networking and innovation.
Lebanon SoftShore is an initiative that aims to position Lebanon as a hub for software development and IT services, taking advantage of the country’s educated workforce and competitive costs. Similarly, Smart ESA supports innovative startups through mentorship, training, and access to investors. The Entrepreneurial Development Foundation (EDF) promotes entrepreneurship in underserved areas, playing a critical role in fostering inclusive growth.
Our survey results indicate strong capabilities in innovation and creativity among both men and women, with women showing slightly higher levels of creativity. Establishing more innovation hubs and creative workshops, alongside offering research and development (R&D) incentives, can further stimulate entrepreneurial innovation. By continuing to develop these programmes, Lebanon can harness its creative potential to drive business growth and economic development.
Strengthening networking opportunities
Networking and professional contacts are critical for entrepreneurial success. The survey highlights the importance of strong networking skills, with men showing slightly higher levels. Organising industry events, conferences, and online platforms can enhance networking and professional development, providing entrepreneurs with the connections they need to succeed. These opportunities help build a supportive ecosystem where entrepreneurs can share knowledge, collaborate, and grow their businesses.
Actionable recommendations
Lebanon has adopted a multifaceted approach to support entrepreneurship and SMEs, involving various actors, including governmental and non-governmental entities. Aligning these efforts is crucial for fostering a resilient entrepreneurial ecosystem capable of withstanding economic challenges and enhancing competitive advantage through knowledge and innovation. There is a clear need for a National Entrepreneurship Strategy that includes systematic and sustainable support infrastructure, rather than relying on fragmented, donor-driven, or foreign-funded programs. We present our envisioned recommendations and approach for a national strategy, detailing key stakeholders, examples of projects and initiatives, actors, and implementation pathways based on our survey and mapping of the sector ( Please see Table 1 for a comprehensive overview ):
1. Public Institutions and Ministries:
➢ Public-Private Innovation Clusters: Establish innovation clusters that unite public institutions, private companies, and research centers to foster collaboration and innovation. The Ministry of Economy and Trade, supported by local municipalities and the Ministry of Industry, will lead these initiatives.
➢ Entrepreneurship Hubs in Educational Institutions: Develop entrepreneurship hubs within universities and vocational schools to provide students with resources, mentorship, and networking opportunities. The Ministry of Education and Higher Education will collaborate with universities and technical institutes to establish these hubs.
➢ Regulatory Sandbox: Create a regulatory sandbox where startups can test innovative products and services in a controlled environment with temporary regulatory relaxations. The Central Bank of Lebanon, in coordination with the Ministry of Finance, will develop and manage the regulatory sandbox.
2. Involving UN Agencies, NGOs and Civil Society
➢ Capacity Building Programs by UNDP: Expand capacity-building programs focused on business management, financial literacy, and digital skills for aspiring entrepreneurs. UNDP can collaborate with local NGOs and educational institutions to deliver these programs, ensuring they reach underserved communities.
➢ Market Access Programs by UNIDO: Develop programs to help SMEs access international markets, including training on export procedures and compliance with international standards. UNIDO can work with the Ministry of Economy and Trade to identify potential markets and organize trade missions.
➢ Community-Based Incubators: Establish community-based incubators that provide localized support, including workspace, mentoring, and networking opportunities. NGOs can partner with local businesses and municipalities to set up and manage these incubators.
➢ Women’s Entrepreneurship Support Networks: Create support networks specifically for women entrepreneurs to provide mentorship, training, and peer support. NGOs focused on women’s empowerment, like the Lebanese Women’s Council, can lead these networks with support from international donors.
3. Assess and Build Foundation
➢ Comprehensive Needs Assessment: Conduct thorough evaluations to identify the unique needs and challenges faced by entrepreneurs in various sectors and regions of Lebanon. Leverage existing survey data to pinpoint deficiencies in support services, financial access, and educational programs.
➢ Policy Framework Development: Formulate a detailed national entrepreneurship policy based on the needs assessment findings. This policy should address regulatory reforms, financial support mechanisms, and initiatives for capacity building.
4. Enhance Awareness and Accessibility
➢ Targeted Outreach Programs: Initiate awareness campaigns across diverse channels such as social media, radio, and community workshops to educate potential entrepreneurs about available support services. Emphasize outreach to women and marginalized groups through community centres, women’s groups, and digital platforms.
➢ Support Service Directory: Develop and sustain a centralized online platform that lists all available entrepreneurial support services, including financial aid, mentorship programs, educational workshops, and business centres.
➢ Public Awareness and Cultural Change: Implement public awareness campaigns to elevate entrepreneurship as a respected and viable career choice. Highlight success stories, feature entrepreneurs in the media, and organize public recognition events to transform societal attitudes towards entrepreneurship.
5. Strengthen Support Systems
By enhancing digital infrastructure and leveraging international support, such as that provided by UN agencies, NGOs, and civil society, Lebanon can further develop its entrepreneurial sector. This collaborative approach promotes sustainable economic growth and job creation.
➢ Financial Support and Access to Capital: Enhance access to funding through grants, low-interest loans, and microfinancing tailored to the needs of both new and existing entrepreneurs. Strengthen programs like Kafalat to provide substantial guarantees and support to a wider array of SMEs. Collaborate with financial institutions to offer favourable loan terms and establish government-backed guarantee programs to reduce lending risks.
➢ Capacity Building: Implement comprehensive entrepreneurship education and training programs (EETPs) to equip entrepreneurs with essential skills and knowledge. Create mentorship networks to connect experienced entrepreneurs with newcomers, offering guidance and support.
➢ Gender-Specific Support Programs: Develop programs specifically designed to assist women entrepreneurs, including tailored training, funding, and networking opportunities. Launch media campaigns to showcase successful women entrepreneurs and engage community leaders to address cultural and social barriers.
6. Foster Innovation and Creativity:
The business environment in Lebanon is evolving with significant developments and trends that reflect global shifts. The rise of remote work and hybrid office models has influenced the local business landscape, with many startups adapting by offering related services and solutions.1 Additionally, sectors like artificial intelligence (AI) and digital transformation are becoming increasingly important. Numerous startups are focusing on these areas to enhance business efficiency and productivity.
➢ Innovation Hubs and Technology Parks: Develop and support innovation hubs and technology parks, such as Berytech and Beirut Digital District, to offer resources and environments conducive to innovation. The Ministry of Economy and Trade, in collaboration with private sector partners and international donors like the World Bank, will lead these efforts. These hubs will provide state-of-the-art facilities and resources for tech startups. Additionally, promoting collaboration between universities, research institutions, and private sector companies will drive technological advancements.
➢ R&D Incentives: Offer research and development incentives and grants to facilitate new product and service development. Encourage participation in innovation competitions to stimulate creative and innovative business ventures.
7. Enhance Networking and Collaboration
Innovative entrepreneurial actions and initiatives play a significant role in economic resilience, particularly in the face of Lebanon’s economic crisis. The resilience of the Lebanese entrepreneurial ecosystem, especially during economic downturns, underscores the importance of such supportive policies and initiatives.
➢ Networking Opportunities: Organize industry events, conferences, and online platforms to facilitate networking and professional development. Promote active participation in entrepreneurial communities to enhance opportunity recognition and collaboration.
➢ Public-Private Partnerships: Cultivate collaborations between governmental, non-governmental, and private sector entities to expand the reach of support services. Utilize international support from organizations like UNDP, ILO, and the European Union to strengthen local initiatives.
➢ Diaspora Investment Initiatives: Launch initiatives to attract investment from the Lebanese diaspora, such as investment funds and startup competitions. Seek support from international organizations like the World Bank to provide technical assistance and facilitate connections between diaspora investors and local entrepreneurs.
8. Monitor and Evaluate
➢ Continuous Monitoring: Develop a monitoring and evaluation framework to track the progress and impact of entrepreneurial support initiatives. Regularly collect feedback from entrepreneurs to adjust and enhance support programs.
➢ Policy Adjustment: Utilize data-driven decision-making to refine policies and programs based on evaluation results. Ensure the entrepreneurial ecosystem remains adaptive and continuously improves.
Table 1. Lebanon Roadmap for Supporting and Promoting Entrepreneurship in Lebanon – Toward the National Entrepreneurship Strategy.
Conclusion/Discussion
This policy brief has provided a comprehensive analysis of Lebanon’s entrepreneurial ecosystem, focusing on the significant barriers and opportunities encountered by entrepreneurs, particularly women. It has utilised empirical evidence and survey data to offer a nuanced understanding of the socio-cultural, economic, and political factors that shape entrepreneurship in Lebanon. The recommendations outlined are aimed at fostering a more inclusive, resilient, and dynamic ecosystem that supports innovation, job creation, and sustainable economic growth.
The core objectives of the brief centre on addressing systemic challenges, such as limited access to funding, inadequate support services, and gender-based barriers. By proposing targeted policies—including awareness campaigns, enhanced training and mentorship programmes, and improved financial support mechanisms—this brief seeks to empower Lebanese entrepreneurs with the tools they need to thrive. Additionally, promoting innovation hubs, strengthening professional networks, and engaging the Lebanese diaspora can drive growth and elevate Lebanon’s global competitiveness.
The path to implementation is clear: collaboration between public institutions, international organisations, NGOs, and the private sector is crucial for establishing a robust support system. Policies must be adaptive, inclusive, and subject to ongoing evaluation to ensure they meet the evolving needs of entrepreneurs. A cohesive, national entrepreneurship strategy will be vital in building a foundation for long-term economic resilience, enabling Lebanon to foster an entrepreneurial environment that can thrive despite ongoing political and economic challenges.
Ethics and consent declaration
Ethics approval has been obtained from Liverpool Business School/Liverpool John Moores University Ethics Committee. Approval number PG/23/3368 dated 27 November 2023. Written consent was obtained from all participants.
Data collection: The data collection was conducted as part of an externally funded grant within a larger research project on entrepreneurship in the MENA region between December 2023 and April 2024. A Computer-Assisted Personal Interviewing (CAPI) methodology was employed, with fieldwork data collected using this approach. The survey instruments were professionally translated into Arabic, taking into account linguistic nuances and cultural contexts to ensure accuracy and appropriateness for the region. The translated instruments were then programmed into proprietary CAPI platforms, which integrated scripting, data collection, field management, and quality control to enable real-time monitoring and data validation. Data collection was facilitated through the use of smart tablets, ensuring both efficiency and accuracy. The survey instrument, along with the data file, is available in the accompanying data repository.
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Haj Youssef M, Harakeh M, Hussein H and Sayour N. Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon. [version 1; peer review: 1 approved with reservations]. F1000Research 2025, 14:13 (https://doi.org/10.12688/f1000research.156589.1)
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How to cite this report:
El Chami R. Reviewer Report For: Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon. [version 1; peer review: 1 approved with reservations]. F1000Research 2025, 14:13 (https://doi.org/10.5256/f1000research.171918.r387759)
The direct URL for this report is:
https://f1000research.com/articles/14-13/v1#referee-response-387759
https://f1000research.com/articles/14-13/v1#referee-response-387759
NOTE: it is important to ensure the information in square brackets after the title is included in this citation.
Reviewer Report 14 Jun 2025
Approved with Reservations
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This policy brief presents a comprehensive analysis of the entrepreneurial landscape in Lebanon, with particular emphasis on gender-based disparities, socio-cultural barriers, and structural challenges. Drawing on primary data from the MENA Entrepreneurship and Labour Market Survey (MELMS), the authors provide
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HOW TO CITE THIS REPORT
El Chami R. Reviewer Report For: Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon. [version 1; peer review: 1 approved with reservations]. F1000Research 2025, 14:13 (https://doi.org/10.5256/f1000research.171918.r387759)
The direct URL for this report is:
https://f1000research.com/articles/14-13/v1#referee-response-387759
https://f1000research.com/articles/14-13/v1#referee-response-387759
NOTE: it is important to ensure the information in square brackets after the title is included in all citations of this article.
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