ESCWA Publication: E/ESCWA/ETC/2023/1
Country: Arab region
Publication Type: Reports & studies
Cluster: Shared Economic Prosperity
Focus Area: Macroeconomics
Initiatives: Arab Financing for Development Scorecard, Arab Financing for Development Gateway
SDGs: Goal 8: Decent Work and Economic Growth
Keywords: Arab countries, Case studies, Entrepreneurship, Project evaluation, Project implementation, Small and medium enterprises
Assessing and Improving the Entrepreneurship Enabling Environment in the Arab Region
March 2025
The Economic and Social Commission for Western Asia (ESCWA) has developed a comprehensive model to evaluate and improve the entrepreneurship enabling environment for micro-, small, and medium-sized enterprises (MSMEs) in the Arab region. This study surveys existing models and policy case studies, identifies relevant criteria and develops a customized model tested across different Arab countries.
The report highlights significant variations in MSME environments, revealing common challenges such as limited access to finance, weak entrepreneurial ecosystems and the effects of political and economic crises. Notably, Bahrain, Oman, Tunisia and the United Arab Emirates demonstrate strong MSME support environments, excelling in areas like internationalization, public procurement and business support.
The study underscores the need for coordinated efforts by policymakers, MSME development agencies and the private sector to enhance MSME development. Key recommendations include improving access to finance, creating a supportive regulatory environment, building human capital and fostering entrepreneurship. By addressing these challenges, the region can harness the potential of MSMEs to drive economic growth, job creation and social development.
Related content
Macroeconomics
The Economic and Social Commission for Western Asia (ESCWA) has developed a comprehensive model to evaluate and improve the entrepreneurship enabling environment for micro-, small, and medium-sized enterprises (MSMEs) in the Arab region. This study surveys existing models and policy case studies, identifies relevant criteria and develops a customized model tested across different Arab countries.
The report highlights significant variations in MSME environments, revealing common challenges such as limited access to finance, weak entrepreneurial ecosystems and the effects of political and economic crises. Notably, Bahrain, Oman, Tunisia and the United Arab Emirates demonstrate strong MSME support environments, excelling in areas like internationalization, public procurement and business support.
The study underscores the need for coordinated efforts by policymakers, MSME development agencies and the private sector to enhance MSME development. Key recommendations include improving access to finance, creating a supportive regulatory environment, building human capital and fostering entrepreneurship. By addressing these challenges, the region can harness the potential of MSMEs to drive economic growth, job creation and social development.
