F1000Research F1000Research 2046-1402 F1000 Research Limited London, UK 10.12688/f1000research.156589.1 Policy Brief Articles Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon.

[version 1; peer review: 1 approved with reservations]

 Haj Youssef Moustafa Conceptualization Data Curation Formal Analysis Funding Acquisition Investigation Methodology Project Administration Resources Software Supervision Validation Visualization Writing – Original Draft Preparation Writing – Review & Editing https://orcid.org/0000-0002-6011-1605 a 1 Harakeh Mostafa Conceptualization Data Curation Formal Analysis Investigation Methodology Validation Visualization Writing – Original Draft Preparation Writing – Review & Editing 2 Hussein Hiba Conceptualization Data Curation Formal Analysis Investigation Methodology Validation Visualization Writing – Original Draft Preparation Writing – Review & Editing 1 Sayour Nagham Conceptualization Data Curation Formal Analysis Investigation Methodology Validation Visualization Writing – Original Draft Preparation Writing – Review & Editing https://orcid.org/0000-0002-9352-1782 3 Liverpool John Moores University Faculty of Business and Law, Liverpool, England, UK American University of Beirut, Beirut, Beirut Governorate, Lebanon Zayed University, Dubai, Dubai, United Arab Emirates m.hajyoussef@ljmu.ac.uk

No competing interests were disclosed.

 2 1 2025 2025 14 13 28 11 2024 Copyright: © 2025 Haj Youssef M et al. 2025 This is an open access article distributed under the terms of the Creative Commons Attribution Licence, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

This policy brief examines the key factors influencing entrepreneurial success in Lebanon, focusing on gender dynamics, socio-cultural barriers, and systemic challenges. Entrepreneurship plays a critical role in Lebanon’s economic growth, innovation, and job creation, yet local entrepreneurs face significant obstacles. These challenges, including high operational costs, political instability, and gender-based discrimination, are compounded by limited access to resources such as funding, networks, and mentorship, particularly for women.

The brief draws on data from the MENA Entrepreneurship and Labour Market Survey (MELMS) to provide insights into Lebanon’s entrepreneurial landscape. Based on the findings, this brief highlights the urgent need for targeted policy interventions aimed at enhancing the entrepreneurial ecosystem and addressing gender inequities. The recommendations include increasing awareness of support services, improving access to financial resources, fostering innovation through tech hubs and R&D incentives, and promoting a more inclusive entrepreneurial culture.

To address gender-specific barriers, the brief proposes expanding training and mentorship programs tailored for women, along with targeted outreach efforts to bridge the gap in access to information. Strengthening Lebanon’s entrepreneurial ecosystem through public-private partnerships, international collaborations, and leveraging the Lebanese diaspora is also critical for driving economic resilience.

The proposed recommendations call for the establishment of a National Entrepreneurship Strategy that integrates public institutions, NGOs, and private sector initiatives to foster sustainable growth. By creating a more supportive environment for entrepreneurs, Lebanon can unlock its entrepreneurial potential, driving long-term innovation, job creation, and global competitiveness. This brief aims to inform policymakers, donors, and stakeholders of strategic interventions that can contribute to Lebanon’s economic revitalisation.

 Entrepreneurship Lebanon Gender Dynamics Socio-cultural Barriers Economic Growth Entrepreneurial Ecosystem Policy Recommendations SME Development Templeton World Charity Foundation TWCF-2023-31800 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. 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 ):

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.

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.

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.

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.

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.

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.

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.

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.

Lebanon Roadmap for Supporting and Promoting Entrepreneurship in Lebanon – Toward the National Entrepreneurship Strategy.
Phase Activity Partners & Implementers Policies & Recommendations Stakeholders Involved
Phase 1 Assess and Build Foundation
Comprehensive Needs Assessment Ministry of Economy and Trade, UNDP, Local Universities, NGOs (e.g., Berytech) Conduct detailed assessments to identify gaps in support services, financial access, and educational programs. Government Agencies, NGOs, Academic Institutions
Policy Framework Development Ministry of Economy and Trade, Ministry of Finance, Central Bank of Lebanon, Private Sector Representatives Develop a comprehensive national entrepreneurship policy based on the needs assessment findings. Government Agencies, Private Sector
Phase 2 Enhance Awareness and Accessibility
Targeted Outreach Programs Ministry of Information, Local Media, Community Centers, Women’s Groups Launch awareness campaigns to inform potential entrepreneurs about available support services. Media, Community Organizations, Women's Groups
Support Service Directory Ministry of Digital Transformation, Local Tech Startups, UNDP Create and maintain a centralized online platform listing all available entrepreneurial support services. Government Agencies, Tech Startups, NGOs
Phase 3 Strengthen Support Systems
Financial Support Mechanisms Central Bank of Lebanon, Commercial Banks, Kafalat, International Donors (e.g., USAID, EU) Expand access to funding through grants, low-interest loans, and microfinancing. Financial Institutions, International Donors
Capacity Building Ministry of Education and Higher Education, Universities, Vocational Schools, NGOs (e.g., Lebanese Women’s Council) Implement entrepreneurship education and training programs, and establish mentorship networks. Educational Institutions, NGOs
Phase 4 Foster Innovation and Creativity
Innovation Hubs and Technology Parks Ministry of Economy and Trade, Private Sector (e.g., Berytech, Beirut Digital District), International Donors (e.g., World Bank) Develop and support innovation hubs and technology parks. Government Agencies, Private Sector, Donors
R&D Incentives Ministry of Industry, Universities, Private Sector, International Donors (e.g., European Union) Provide research and development incentives and grants to support new product and service development. Government Agencies, Academic Institutions, Donors
Phase 5 Enhance Networking and Collaboration
Networking Opportunities Ministry of Economy and Trade, Chamber of Commerce, Industry Associations, NGOs Organize industry events, conferences, and online platforms to facilitate networking. Business Associations, NGOs
Public-Private Partnerships Ministry of Planning, Private Sector, International Organizations (e.g., UNDP, UNIDO) Foster collaborations between governmental, non-governmental, and private sector entities. Government Agencies, Private Sector, NGOs
Phase 6 Monitor and Evaluate
Continuous Monitoring Ministry of Planning, UN Agencies (e.g., UNDP), NGOs, Civil Society Establish a monitoring and evaluation framework to track the progress and impact of entrepreneurial support initiatives. Government Agencies, UN Agencies, NGOs
Feedback Mechanisms Ministry of Economy and Trade, NGOs, Local Media Establish channels for entrepreneurs to provide feedback on support programs and policies. Government Agencies, Media, Civil Society
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.

 Acknowledgements

This paper was authored by Dr. Moustafa Haj Youssef, Dr. Mostafa Harakeh, Dr. Hiba Hussein, and Dr. Nagham Sayour. We extend our sincere thanks to Mohamad Al-Ashmar for his exceptional research assistance. We also express our gratitude to the Prime Minister of Lebanon, Mr. Najib Mikati, for generously dedicating his time to discuss our research findings and considering our suggestions. The formal meeting took place on 4th July, and further details can be accessed through the following link.

 Data availability

The data can be accessed through the following link: HERE. Haj Youssef, M. (2024). Survey summary stats & data insights on policy brief related to entrepreneurship in Lebanon (Version 1). Harvard Dataverse. https://doi.org/10.7910/DVN/ALASAZ.

 References African Development Bank (AfDB): Tunisia: Souk At-tanmia partnership. 2020. Reference Source Berytech: Impact Rise Program. 2021. Reference Source Christodoulou I Haj Youssef M Wasim J : Breaking barriers: unveiling motivations, challenges and policy recommendations for women’s entrepreneurship in Vietnam. J. Asia Bus. Stud. 2024;18(6):1541–1566. 10.1108/JABS-03-2024-0127 Global Entrepreneurship Monitor (GEM): GEM 2019/2020 Global Report. 2020. Reference Source Haj Youssef M Nolan S Hussein H : Navigating turbulence in the UK: how gender shapes self-employed social engagement during crises? Int. J. Gend. Entrep. 2024;16(3):315–340. 10.1108/IJGE-06-2023-0147 Hussein H Haj Youssef M : In and Out of Self-Employment, Are You Really an Entrepreneur: The Rise of a New Division? Entrep. Res. J. 2023;13(4):881–934. 10.1515/erj-2019-0373 Itani M Daou A : Breaking boundaries: The case of women tech-entrepreneurs in Lebanon. Gender, Women, and the Arab World. 2022; pp.399–419. 10.1515/9783110756159-025 Lebanese Ministry of Economy and Trade: Lebanon SME strategy: A roadmap to 2020. 2022. Mouazen AM Hernández-Lara AB : Entrepreneurial ecosystem, gig economy practices and women’s entrepreneurship: The case of Lebanon. Int. J. Gend. Entrep. 2023;15(3):249–274. 10.1108/IJGE-07-2022-0116 Nigam N Shatila K : Entrepreneurial intention among women entrepreneurs and the mediating effect of dynamic capabilities: empirical evidence from Lebanon. Int. J. Entrep. Behav. Res. 2024;30(4):916–937. 10.1108/IJEBR-07-2023-0690 OECD: Unlocking the potential of youth entrepreneurship in developing countries. Paris: OECD Publishing;2017. 10.1787/9789264277830-en Tlaiss H : Entrepreneurial leadership, patriarchy, gender, and identity in the Arab world. J. Small Bus. Manag. 2018;56(2):267–285. USAID: Mashrou3i: Youth entrepreneurship development in Tunisia. 2020. Reference Source Wasim J Haj Youssef M Christodoulou I : The Path to Entrepreneurship: The Role of Social Networks in Driving Entrepreneurial Learning and Education. J. Manag. Educ. 2024;48(3):459–493. 10.1177/10525629231219235 World Bank: Evaluating the impact of the Social Fund for Development in Egypt. 2018. Reference Source

Saleh L, Levy-Tadjine T (2023) Lebanese Entrepreneurs’ Adaptation to the Multilevel Crisis

. Advances in Logistics, Operations, and Management Science 113-136.

 10.5256/f1000research.171918.r387759 Reviewer response for version 1 El Chami Riad 1 Referee https://orcid.org/0000-0001-6254-8459 American University in the Emirates, Dubai, Dubai, United Arab Emirates

Competing interests: No competing interests were disclosed.

 14 6 2025 Copyright: © 2025 El Chami R 2025 This is an open access peer review report distributed under the terms of the Creative Commons Attribution Licence, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. recommendation approve-with-reservations

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 evidence-backed insights into gaps in awareness of support services, perceptions of entrepreneurship, and readiness to pursue business ventures. The brief culminates in a multi-phase National Entrepreneurship Strategy, supported by global benchmarks and tailored policy recommendations targeting awareness, training, financial access, innovation, and stakeholder coordination.

Does the paper provide a comprehensive overview of the policy and the context of its implementation in a way which is accessible to a general reader?

The manuscript delivers a well-researched and contextually grounded overview of Lebanon’s entrepreneurial environment. However, the accessibility for a general or non-expert audience could be improved. Several terms such as "entrepreneurial ecosystem," "regulatory sandbox," and "MELMS" are used without definition or introduction, which may limit comprehension for policymakers or practitioners unfamiliar with these concepts. A clearer explanation of these key elements early in the manuscript would significantly improve accessibility.

Must address: Introduce and briefly define core terms and frameworks used in the policy brief to enhance clarity for general readers.

Is the discussion on the implications clearly and accurately presented and does it cite the current literature?

The discussion is informed by solid empirical findings and draws on relevant, current literature from respected sources such as OECD, GEM, and peer-reviewed journals. However, the transition from data insights to policy implications occasionally lacks nuance. Some implications are presented as straightforward extensions of the data without fully acknowledging Lebanon's complex political and institutional context. Adding a paragraph that critically reflects on potential implementation challenges or contextual limitations would improve the analytical depth.

Must address: Strengthen the bridge between empirical insights and policy implications by acknowledging institutional constraints and implementation risks.

Are the recommendations made clear, balanced, and justified on the basis of the presented arguments?

The recommendations are a highlight of the paper. They are clear, well-structured, and actionable, backed by both local findings and international best practices. The inclusion of a phased national strategy and detailed implementation roadmap, with identified stakeholders and examples of successful programs, adds considerable value. While the breadth of recommendations is ambitious, they remain justified by the presented evidence and are responsive to the contextual realities of Lebanon.

Final Recommendation: Approved with Reservations

The manuscript is highly valuable and relevant to Lebanon’s policy context. With moderate revisions to improve accessibility, analytical framing, and presentation flow, this policy brief will serve as a strong contribution to the literature on entrepreneurship in fragile economies.

Additional Comments for Authors:

a. Consider trimming or restructuring the visual data (Figures 1–31). While rich in insight, the volume of graphs may overwhelm the reader. Grouping or moving some figures to an appendix might enhance flow.

b. Minor linguistic edits would improve readability. Repetitions such as “underscoring” and typographical errors like “awanress” should be corrected.

c. The conclusion would benefit from bolding or highlighting the top 3 to 5 prioritized recommendations to assist policy audiences in identifying immediate actions. Also, please revise the second paragraph of the conclusion to avoid using an em dash, as it can make the writing appear overly stylized or AI-generated.

Does the paper provide a comprehensive overview of the policy and the context of its implementation in a way which is accessible to a general reader?

Partly

Is the discussion on the implications clearly and accurately presented and does it cite the current literature?

Partly

Are the recommendations made clear, balanced, and justified on the basis of the presented arguments?

Yes

Reviewer Expertise:

Entrepreneurship Policy, Strategic Marketing, Corporate Social Responsibility (CSR), SME Development, Sustainable Supply Chains, Public-Private Partnerships, Gender and Economic Inclusion, Innovation Ecosystems, MENA Region Development Studies

I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above.

References : Policy Brief: Addressing Barriers and Empowering Entrepreneurs in Lebanon. F1000Research .2025;14: 10.12688/f1000research.156589.1 10.12688/f1000research.156589.1