Over 50 percent of Arab youth said that they plan to start their own business in the next five years, reflecting an increased preference to work for the private sector rather than the government, new data revealed.
According to a new survey, 58 percent of GCC youth viewed starting a business in their country as either “very easy” or “somewhat easy.” In contrast, 79 percent of youth in Levant and 73 percent in North Africa found it “very difficult” or “somewhat difficult” to embark on entrepreneurial ventures in their respective countries.
Arab Youth Survey: Entrepreneurship and aspirations
The 15th annual ASDA’A BCW Arab Youth Survey, the largest study of the Arab world’s demographic, unveiled the findings of a large sample survey of its over 200 million youth. The largest sample in the survey’s history covered 53 cities across 18 Arab states, including for the first time South Sudan.
The study further identified key factors that would encourage more youth to become entrepreneurs, including tax breaks, reduced fees for startups, enhanced training and education programs, and government-backed loans. These findings emphasise the importance of creating a supportive ecosystem that fosters entrepreneurship and provides necessary resources for aspiring young business owners.
When asked about their preferred industry for starting a business, 15 percent of the surveyed youth expressed interest in the tech sector, making it the top choice. This was followed by e-commerce (13 percent), the creative industries (11 percent), manufacturing (11 percent), real estate (10 percent), the food business (9 percent), and retail, hospitality, and education (7 percent each). These preferences highlight the diverse range of entrepreneurial aspirations among young Arabs men and women.
Another significant trend documented in the survey is the increasing preference for private sector jobs among Arab youth. In 2019, nearly half of the respondents expressed a desire to work in the government sector.
However, the latest findings reveal a shift in this preference, with only 30 percent of youth still favoring government employment. On the other hand, a third (33 percent) of Arab youth now express a preference for working in the business sector, marking a 13 percent increase from the previous year.
Furthermore, one in four (25 percent) young Arabs now aspire to work for themselves or their family, showcasing a slight decline from the previous year (28 percent) but a significant six-percentage point jump compared to 2019. Additionally, 11 percent of respondents indicated a preference for working in non-profit organisations.
Sunil John, President, MENA, BCW and Founder of ASDA’A BCW, said: “The fact that Arab youth are eager to start their own business is an encouraging sign, but it is also a natural response to the great difficulty in certain countries to find stable employment. Policymakers and the business community itself must do more to support those young men and women willing to do it alone.”
“Meanwhile, the increasing diversification of the GCC economies is casting the private sector in a positive new light,” John added. “This is a promising trend for the long-term sustainability of the regional economy and a potential source of jobs and opportunity for Arab youth outside the Arabian Gulf,” he added.
“However, this growing interest in a business career must be matched by companies themselves, with recruitment and career development pathways introduced to empower the region’s rapidly evolving Arab national workforce,” John concluded.
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