CAIRO: As a groundbreaking entrepreneurship conference ended on Tuesday in Washington, DC, that saw over 200 Muslims gather under the tutelage of President Barack Obama, the continued question of entrepreneurship in Egypt is one of concern and often misunderstanding. Bikya Masr sat down with Danielle van de Kemenade, Communications and Outreach officer with Endeavor Egypt - an organization dedicated to promoting and helping potential high-growth entrepreneurs. In light of Obama's entrepreneur push, Endeavor has already made an imprint in Egypt in its short time in the country. Endeavor Egypt was founded in 2007, and is currently offering consultancy and support services to 9 entrepreneurs. Bikya Masr: Can you describe the atmosphere of entrepreneurship in Egypt currently? Endeavor: The atmosphere for entrepreneurship in Egypt is promising, but there are still a number of important obstacles that need to be overcome. Promising elements are the fact that more than 1 out of 10 adults in Egypt are actively trying to start or run a recently founded business (GEM Egypt report). Egypt ranks 11th of the 43 countries participating in the Global Entrepreneurship Monitor in terms of total entrepreneurial activity rate. So the taste for entrepreneurship is there. Obstacles that still exist include the lack of available finance for smaller tickets (which SMEs need), lack of role models, lack of trust, a closed and elite business environment, the criminalization of bankruptcy, the stigmatization of failure, low level of education, just to name a few. All these factors are crucial elements that need to be changed to build a more supportive environment for entrepreneurship. BM: How does Endeavor help foster these young businesses? Are their corruption issues? Endeavor: Endeavor works with small and medium sized companies (not necessarily young) that show a lot of promise to become big companies, and to have an impact on the economy or sector they work in. The success of a Fadi Ghandour or Naguib Sawiris takes a lot of commitment, connections and luck – and the latter two are hard to get by for promising companies in emerging countries. This is where Endeavor steps in. We help a select group of high-impact entrepreneurs take a critical look at themselves, refine their growth strategy, put them in touch with our global and local network of business leaders, tell their story in media, hook them up with mentors, consultants and potential investment leads. We look out for them, nurture them, and help them see and realize the huge potential they have. BM: What do you see as the number one thing that any young business leader can try to achieve? Endeavor: To make a difference in the field their company is – and put Egypt on the map as leader in that certain field. We have a great company in our portfolio – Timeline Interactive, that is a wonderful example of this. Timeline is a videogame development company that was founded by Mostafa Hafez after graduating from Ain Shams at the age of 21, 5 years ago. In 2009, Timeline was the first company around the world to release a high-quality videogame that can be downloaded at the click of a mouse online. If every entrepreneur in Egypt would strive to make an impact like that, the country’s economic development would significantly improve. BM: Does Endeavor create the future of middle-business in Egypt and how do you gauge who you should support? Endeavor: No, Endeavor does not create the future of middle-business in Egypt. While the companies we support come from a pool of small to middle-sized companies, our objective is to make them big. I’d rather say that Endeavor hopes to play a role in creating the future of big, job-creating, innovative companies in Egypt. In terms of selecting the companies we give our support services to, we have a due diligence selection process and selection criteria that we measure by. We look for companies that have a steady revenue stream, and that have been around for at least a year and a half. The entrepreneur has to show entrepreneurial initiative, role model potential, show values and ethics in his work, have the ability to create a lot of jobs through his company and generate significant revenues. The business has to be innovate, either by filling a gap in the market, creating a new trend, or improving a current business model. As last, but not least, the entrepreneur has to be willing to listen to our advice, and to give back to Endeavor in some way – by engaging in speaking opportunities, participating at events, and helping us expand our network. BM: Overall, how does entrepreneurship differ from Egypt compared to the US? Endeavor: The environment, educational, financial and policy support for entrepreneurs in the U.S. is (much) more established than in Egypt. This is in terms of the supporting environment. In terms of entrepreneurs themselves, once your company is up and running, an entrepreneur is an entrepreneur regardless of his location – someone with a vision, commitment and whose not afraid to take risks to make all of this happen. BM: What would you say is the biggest success that Endeavor has been involved in since it arrived in Egypt? Endeavor: There is no one thing that stands out as a ‘milestone’. The work we do every day with entrepreneurs is a success, because there is simply no one else there to help them. Entrepreneurs have told us we made them feel supported, we made their lives easier, that we’re creating their company’s growth. This is our biggest success. BM: What would you still like to see in terms of business development? Endeavor: There’s a lot we’d still like to see happen. We’d like to see more entrepreneurial role models in media, and improved business coverage. We’d like to improve access to finance for entrepreneurs. Mindsets regarding failure need to be changed – failure need to become a positive metric, a measure of commitment and experience, rather than a stigma. We’d like to change the way business is done in Egypt: building networks of trust, stimulating more private sector engagement with starting businesses, re-defining ROI to success measured according to ‘Return on Involvement’, rather than ‘Return on Investment’. BM
