Studies reveal that 500,000 to 1 million jobs per year could be created by new start-ups. Promising entrepreneurs are often restricted by limited national market sizes especially in the South of the Mediterranean in countries like Jordan, Lebanon, Morocco, Palestinian authority, Syria, Israel, but also in Algeria, Egypt Tunisia and Turkey. We identified a potential deal follow of 300 and 500 high growth start-ups that could be supported per year, in the framework of the Medibtikar programme, between 2006 and 2008. Our Med Funds study in 2008 confirmed this potential and highlighted the importance of working on the reduction of investments risks at an early stage

In a fierce international competition, European entrepreneurs and innovation clusters need to leverage regional markets and partners to build, test and develop new businesses. With 400 million inhabitants, a 5-10% average market growth, strong resources and investments on innovation, the Mediterranean partner countries, are key for the growth and the competitiveness of European innovation players. We intend involve European start-ups and focus on booming market segments such as mobile applications, agro-food products, cleantech applications or new services for urban development.

The Mediterranean high-skilled diaspora entrepreneurs in Europe are a strong asset for the economic development of the Region (check out our MedDiaspora study). With their capability to manage complex business relationships across cultural and linguistic boundaries, they are an underexploited bridging resource for the development of new businesses between Europe and the Mediterranean.

Lifting barriers to early stage financing

A growing number of investment funds are being launched in the Mediterranean, with the support of the European key players such as the European Commission, the European Investment Bank or bi-lateral development finance institutions (KFW, AFD, etc.). However, only 2% of the funds invested are effectively dedicated to small companies and new entrepreneurs. The key issue is the disconnection between investors and entrepreneurs, linked to the cost of assessing and managing the risk of new business.