An Ecosystem Value Chain Approach to

Enterpreneurship

The experience of African Development Bank in Tunisia

GEC+ Daegou, Entrepreneurship Ecosystem Building, 26 August

High Unemploymen

t

High expectation for a

concrete response to

major concerns in a country facing

transition

Regional and Social

Disparities

Weak Enterpreneursh

ip culture

Difficult access to traditional financial

system

Fragmentation of

players

Capi

tal Lack of and

non inclusiveness of financial services

Vulnerable to moods swings and changing riskappetite (post-revolution)

“valley of death”

Skill

s Informal microenterprises Skills for business usually gained outside formal education

Inefficient Support structure

Entrepreneurship Ecosystem

Mar

ketsSmall local

markets

Undeveloped regional integration

Difficult business conditions

Money and beyond: Tunisian pioneer gap

New development approach centered around people and their ideas

Selected based on (i) capacity to generate employment, (ii) reduce disparities, (iii) innovation (iv) financial viability, and (v) replicability

Start up grant fund + Co-financing

A mentoring program

An Innovative Approach

IDEAS

Seed grant funding

Mentoring coaching

Economic & social IMPACT

Co financing by local

bank

Private Sector Banks Civil

Society

AcademiaDonors and International Organizations

More than just a PARTNESHIP: a VALUE CHAIN

Synergies

Resources

Know-How Outreach, Selection and Fol low up

Strenghtening Ecosystem

AfDB: Convener/ Catalyst

Overcoming INFORMATION GAPs and Ensuring TRANSPARENCY troughout the process Massive outreach

campain (5 Millions SMS, 50+ CSOs) to provide opportunities to all

Assistance to on-line submission

Regular Media updates

Social Media and Geo-platform to ensure follow up (200,000 visits) and accountability

Virtual Souk

Key Numbers (first edition)Demand: 2000 applications (61 selected for grant funding) Leveraging: 1 Million euros helped raise over

twice such amount Million TND through local Bank,

Cutting Partner Bank ‘s approval process from 20 to 3 monthsSocial Impact : 62% from the most

disadvantaged regions, 54% from youth, 52%

unemployed, 32% from women, 1000 jobs estimated

Ecosystem : 20 partners including Banks, Business Associations, Multilateral and Bilateral Development Organizations, Private Companies, CSO and Academia

Man Women

10%

24%

7%

31%

15%

13%

Profile of laureates

Student Entrepreneur Employee Unemployed Manager Other

Wide representation of the Tunisian population: women, unemployed, youth

Ariana

Beja

Ben Aro

us

Bizerte

Gabes

Gafsa

Jendouba

Kairouan

Kasseri

neKeb

ili Kef

Meden

ine

Mehdia

Mennouba

Monastir

Nabeu

lSfa

x

Sidi B

ouzidSili

ana

Sousse

Tatao

uineTo

zeur

Tunis

Zaghouan

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1

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3

4

5

6

7

4

6

3

2

5

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5

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5

1 1 1 1 1

2

4

2 2

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5

3

Geographical distribution 60% of the

projects from the under

privileged

areas

Difficulties in moving from ideas to projects (strenghten incubation) - Phase 2 has stronger selection and face interview

Importance of an integrated approach: equity + debt + training + coaching

Early engagement of local Banks, and diversity of selection committee

Importance of Transperency Credibility vs Hazard

Flexible capital (missing middle) can help get business start quickly and raise funds. Grant vs Loan?

Need to differenciate needs and more tailoring: next phase: Start Ups vs SMEs

Next steps• 3rd edition of Souk Attanmia and replication

in other countries (e.g. Cote Ivoire – Jeune Up)

• Jobs for Youth in Africa: comprehensive initiative combining intervention in skills development to SME support

• Boost Africa, blended finance vehicle to support the emergence of VC and business incubators across teh continent

Partnership approach extended to private sector, foundation and other players

www.soukattanmia.org

www.afdb.org

@SoukAttanmia

Thank you

Emanuele SantiLeas Strategy Advisore.santi@afdb.org

SoukAttanmia