MENAinc Network takes Action

The Tunis Workshop brought together ca. 170 participants from nine countries of the MENA region, four countries represented by infoDev grantees – Iran, Morocco, Palestine, and Tunisia - as well as five additional countries: Bahrain, Libya, Qatar, Syria, and Turkey. Experience in business incubation from other regions was contributed by experts from Germany and infoDev integrated the global perspective.

The 4th MENAinc Workshop in Tunis did not only help raising awareness for entrepreneurship and innovation. It also kicked-off work on a network project developed by the network members “after Amman” and funded by infoDev. The growing momentum this networks is developing possibly best is illustrated by the fact that two new members joined by signing the MENAinc Charter.

The workshop was opened by Mrs. Khadija Hamouda Ghariani, Secretary of State to the Tunisian Ministry for Communication Technologies emphasizing that the Tunisian government is putting emphasis on development of technology, innovation, and business creation namely in the sector of information and communication technology. She also described the support given to develop innovation and entrepreneurship through establishing technology parks (with the hosting Elgazala Technopark being the first of its kind in the country) and business incubators at all universities throughout the country.  

The range of issues related with business incubation was illustrated by the keynote presentations of the first workshop day: .Ellen Olafsen, infoDev, presenting experience from the infoDev Incubator Initiative, provided an overview about the “state of the art” in developing countries. This did not only help evaluating the position of incubators in MENA countries in the global network. It also promoted understanding regarding the need for networking and cooperation on all levels within a country as well as internationally. The traditional versus the actual role of education was one of the focuses of Mr. Ahmed Gdoura / BID Consulting. He described the system and potential of education and research in Tunisia and the results of action taken for increasing the innovation capacities, promoting life-long learning, and taking advantage of  the entrepreneurial potential of the country. He also described challenges still to be met for reaching a sustainable innovation based development of the economy. For example, that entrepreneurs lack understanding the need for cooperation and networking. Flexible cooperation of SMEs, however,  is one of the best options for increasing competitiveness, secure better market reach, achieve a better supply with goods and services, and secure increasing income for a growing part of the society. ”Innovation needs supportive environment” was a summarized description for the discussion section and “Tunisia does not only need 500 new enterprises annually, it needs 500 successful SMEs” . The financial sector was represented by Alaya Bettaieb, President of Tunisia’s Venture Capital and Private Equity Association. He presented the functioning of financing start-up enterprises and SMEs in Tunisia (with actually 40 funds operation together managing about 0.5 billion Euro) and identified important challenges for business development. For example, a lack of applied research and mechanisms for transferring research know how and results into practical us, a lack of knowledge and expertise in technology management and intellectual property related issues, and a not yet developed exit mechanism for the venture capital sector. Although there is clear progress and development to be seen in Tunisia, much is left to be done.

The “Bahrain Model” of business incubation was presented by Dr. Hashim Hussein, UNIDI, ITPO, Investment and Technology Promotion Office and Arab Center for Entrepreneurship and Investment Training. The 4-step-model of business incubation consists of Step 1 – Collective Capacity Building, Step 2 - Counseling & Technology Tie-up, Step 3 - Financial Linkages, and Step 4 – Incubation & Growth. The core financial model is a low-interest “soft” loan provided by Kuwait Finance House to a country / bank for supporting SME development. The receiving institution uses these funds for providing loans to SMEs at a higher – but still favorable -  interest rate and the difference allows for supporting infrastructure (like business incubators) for supporting entrepreneurship in the country. This successful model meanwhile has been implemented in a number of developing countries (e.g. Bahrain, Jordan, Kuwait, Laos, Mozambique, Sudan, Uruguay, and Yemen) and funds are available for introducing this model to more developing countries.

The other important part of the first workshop day was introducing participants to existing business incubators, technology parks, and networking activities.

Tunisia does not only have seven operating technology parks and 24 business incubators there also are networking activities like the “Association of Entrepreneurship and Culture” (Association Tunisienne pour l’Entrepreneuriat et l’Essaimage) presented by Kamil Jeradi An important objective of this association is to raise awareness for entrepreneurship in the young population of Tunisia and at the same time to establish understanding for business culture and ethics. The Network of Business Incubators in Tunisia, presented by Mahmoud Chouchene, API, Agence de Promotion de l’Industrie is another important initiative for the 15 business incubators supported by API in the country. Further four incubators are active within universities and additionally 7 technology parks are operating. The hosting El Gazala Technology Park, presented by Nejib Abida, was the first in the country and shows a positive track record.  The relation between universities and technology parks / incubators and instruments for increasing the interest in entrepreneurship in the education and science sector are important issues to work on for further developing the technology park.. Although there is a significant number of start-up enterprises sourced from universities a need for strengthening this development is seen.  Relations and cooperation between tenant firms in the technology park and clients of the business incubator are an important potential for supporting positive development of new enterprises.

Syria: Business incubation in Syria was presented by Rima Shaban, Director of the ICT incubator in Damascus. She emphasized the importance of SMEs for economic development as well as entrepreneurship and SME support as means to fight unemployment and poverty. The Syrian economy is facing challenges like a high unemployment rate and the need for creating a large number of new jobs to match growth of population. On the other hand Syria has a long tradition of entrepreneurship (“Syrian entrepreneurs are legendary in the region and in most of Africa”) and SMEs present 80% of the private sector workforce. In 2003 the concept of incubation and entrepreneurship support was introduced to Syria. Since than programs for supporting business development have been implemented, e.g. a small loans program, business incubators, the FIRDOS Fund for Integrated Rural Development of Syria, and the MAWRED Women business incubator including 8 projects of virtual incubation. The Syrian Computer Society (SCS), a non-governmental, non-profit organization aimed at introducing IT into Syrian economy, education, and administration established the first ICT incubator in Syria that is meant as a pilot project for a series of incubators throughout Syria and a first step towards building sciences and technology parks. The incubator works in a network of many partners, e.g. Damascus university, Ministry of ICT, Damascus chamber of commerce, research centers, and private sector entities. Through seminars, articles in ICT magazines, TV programs, conferences, and ICT exhibitions the incubator helps raising awareness for entrepreneurship. Since starting in 2006 the incubator helped seven start ups (two are graduating) and actually has six new candidates. The most important steps for future development are a regional workshop on entrepreneurship, a national workshop on incubator management training a virtual incubation program and building incubators in Aleppo and Homs.

Turkey: As an example for an advanced system of business incubation Hayri Solmaz, Kosgeb Ankara, presented an overview on “Technologically oriented incubators and technology parks in Turkey”. In Turkey technology incubators (TEKMERs) are service centers of “KOSGEB”, a governmental organization (affiliate of Ministry of Industry and Trade). Operation of these incubators started in 1991 based on an agreement between Kosgeb and universities. Today 20 incubators with 1256 enterprises are operating in Turkey. The presentation also provided brief information about the financial support system offered to technology start-ups in Turkey ranging from seed capital and financial support for consulting to help with securing intellectual property rights. By presenting one incubator and client companies in more detail the presentation provided insight into the practice of incubation in Turkey. The actual development in Turkey furthermore is characterized by 14 operations technology parks (set up on the basis of the “Technological Development Zones (TDZ) Law”) at this hosting ca. 400 tenant firms. The example METUTECH at the Middle East Technical University included in the presentation and provided interesting information about the development of this park).  Further eight technology parks are planned and since the year 2001.                        

Bahrain: Based on the “Bahrain Model” the Bahrain Business Incubator Center, presented by Omer Oz, BBIIC Managing Director and also MENAinc Network Coordinator, is working successfully for several years already. At this time an extension of the incubator is under construction – with the land for this purpose already provided at the beginning of BBIC’s development. Strong support from the Bahrain development bank helps the incubator to works successfully and also the Government of Bahrain is aware of the need for strengthening the entrepreneurial basis of the country. Based on the success of BBIC now more incubators are in the planning stage, for example the establishment of an incubator medicine technology will be built together with a new hospital, and incubator for light industry is projected, and a handicrafts center will be extended to provide systematic support to this sector.

Qatar: Qatar Science and Technology Park (QSTP), presented by Lindsey Jones, is a large project under construction. The basis for QSTP is the Qatar Foundation, founded in 1995 as an independent, nonprofit organization committed to the development of Qatar and its people. Qatar Foundation established branch campuses as a unique model by partnering with top quality institutions of higher education in the world. The objective is to develop, offer and sustain academic programs of the highest quality in an Education City (EC) as home for degree-granting internationally recognized institutions, based on comprehensive quality standards. EC will offer all kinds of learning from pre-kindergarten to postgraduates and researchers including Qatar Academy a high quality childhood, primary & secondary schools, an Academic Bridge Program to prepare students for university entrance, a world class multi-institutional academic campus, a specialty teaching hospital - research capabilities, the Qatar Science & Technology Park (120 hectares with tax free status) and other facilities like hotel, retail, housing, sports facilities, Mosque, and stud farm.

Libya: The Libyan network of Business Incubators, ELITE, has entered the process of realization. This project started in the third quarter of 2006 and is carried out by the Libyan National Bureau for Research & Development, the Ministry of Manpower, and VDI-IT. Feasibility studies and business plans are ready developed in cooperation with the VDI/VDE Innovation + Technik GmbH, Germany (VDI-IT). Feasibility studies and business plans are ready developed in cooperation with the (VDI-IT) and approved and the starting of the first two incubators (Biotechnology and Engineering Technology Incubator) only depends on acquiring appropriate buildings, as Omar Annakou, Manager of ELITE presented.

Iran has already a number of experienced business incubators and Habibollah Asghari,  Rooyesh Business Incubator, focused on describing lessons learned from business incubation management. 43 Incubators and 15 Science Parks operate in Iran with 4,500 full staff members in SMEs and about 900 SMEs incubated. Half of the incubators belong to universities. The presentation also included a brief description of the legal and financial basis for business incubation in Iran. Much effort has been invested into monitoring and measuring impact of business incubators and now emphasis is put on creating new products/services in ICT market, upgrading existing products/services, establishing establish and create new ICT companies, upgrading existing ICT companies, and internationalization of Iranian ICT companies. The Teheran Business Incubator Network, TINet, started in September 2004 and has the mission to help incubators and their tenant companies to an environment supportive to collaboration, and to use the network as an enabler to empower individuals so as to participate creatively in their societies to promote sustainable economic growth. Concrete activities of the network are for example work groups on  Human Resources and Training; Laws, Rules and Regulations;  Intellectual Property;  Public Relations and International Affairs;  Incubators Operational Models; and  Investment and Funding.                                      

Palestine: A presentation of PICTI, Palestine Information and Communication Technology Incubator by Laith Kassis, Managing Director, provided concrete experience and tools developed by PICTI; for example

-         Business Plan Competitions that proved to be an effective instrument for attracting new clients to the incubator and also for raising awareness for entrepreneurship in general

-         A student internship program for raising the ability of small business to develop innovative products and services as well as for providing practical business experience to students as a basis for business planning and starting enterprises

-         Working with financiers for finding ways to provide investment and operational capital to start-up businesses. This activity is targeted at one of the most important gaps identified by all incubators in the region and results are far from being satisfying

Discussion showed that financing the start of new companies as well as their growth is a critical bottleneck. Although this issue is problematic all around the world, in the MENA region effects of the lack are of stronger negative impact. The main reason is that the financial sector, (e.g. “traditional” bank loan financing for SMES) in general needs to be developed towards the needs of SMEs and the enterprise sector in general. Only within a generally functioning financial sector the specific needs of start-up businesses can find an appropriate answer. Another question discussed was the need to target incubator activities to specific groups (like entrepreneurs from scientific institutions) or technology / business sectors.

Session 5: MENAinc Network

A short introduction to the development “after Amman”, the MENAinc project proposal to infoDev, and coming activities was provided by Omer Oz, network coordinator of MENAinc. The Focal Point in Bahrain shortly will employ a new staff person for supporting the network activities like collecting and disseminating information or preparing and organizing events. As soon as this person has been employed a short training program is planned (as included in the MENAinc project proposal). This training will be organized “on the job” by inviting experienced “networkers” to Bahrain to work side-by-side for a short time with the new staff and later on continue support by taking advantage of ICT tools.

Discussing in smaller parallel workgroups along the “activities” planned as part of the MENAinc project proposal to infoDev participants generated “network content” and structured the collaboration for the weeks to come. The workgroup sessions focused on

-         Tools an good practices for business incubation management

-          Training programs for business incubator staff

-         Technical Assistance provided by members of the network to each other

-         Stakeholders Contacts

-         Monitoring and Measuring Business Incubator Performance

-         Marketing for business incubators

This work contributed much to strengthening the “network feeling” and providing better information about the special experiences network members have developed and are ready to share with others.

In another plenary session members of the network together worked on structuring the 5th MENAinc Workshop to be held in Bahrain, September 3 – 6, 2007. Well before this event the Network Focal Point will be operational. On this basis the Bahrain Conference is planned to be the “official inauguration” of MENAinc. Consequently “Raising Awareness for Entrepreneurship and Innovation” in the MENA region (and beyond) is one of the main aims fro this event. Other important components are

-         continuation of work within the network aimed at providing content and supporting each other

-         providing training in specific fields as required by participants and according the result of the respective activity of the MENAinc project

Informing about the development of existing information sources and discussing nest steps (besides the already agreed work on the project activities) was the content of the last workshop session. The iDISC website provides increasingly interesting content and all members are invited to provide information, tools, and templates for sharing knowledge with others. Going online through selected features of the iDISC website /en/index.html) Ellen Olafsen explained the functioning of tools provided and also gave an outlook on feature to come. Namely for the directory (/en/Incubators.html)  all incubators are requested to implement their information. Most MENAinc members already have their complete profiles presented in the iDISC Directory. Also presented where the websites of the Tunisian incubators (www.tunisieindustrie.nat.tn) and the incubators in Iran (www.incubators.ir)

Cooperation with other infoDev Regional Networks is important for making information, experience, and tools available on the broadest possible basis. Therefore the activity of the ECAbit network (Eastern Europe / Central Asia) in cooperation with the infoDev ASIA Regional Network for developing cross-border technology transfer was discussed. This includes the business-to-business transfer as well as the science-to-business sector and members of MENAinc indicated interest in collaboration..