How a new generation of entrepreneurs is tackling the world’s biggest challenges

How a new generation of entrepreneurs is tackling the world’s biggest challenges

Advertisements

How a new generation of entrepreneurs is tackling the world’s biggest challenges head on could not be a better story to illustrate the current goings-on amongst all and above all the doers in this world of today.  It is by the World Economic Forum.  Here it is.

How a new generation of entrepreneurs is tackling the world’s biggest challenges head on

  • From the climate crisis to the destruction of natural ecosystems, the world faces an unprecedented set of interconnected challenges.
  • Innovative entrepreneurs are building businesses that protect and restore the planet and everything that lives on it.
  • UpLink is helping over 260 entrepreneurs find the resources, experts and funding they need to take their promising solutions to the next level.

The impact driven by innovative entrepreneurs

From drones that detect illegal fishing and robots that sort plastic waste, to sustainable solutions for the world’s forests and remote learning tools for students struggling during the COVID-19 pandemic – these are just some ways entrepreneurs are using their creative energy to tackle issues within their communities and beyond.

The World Economic Forum created UpLink, an open innovation platform launched in partnership with Salesforce and Deloitte, to unlock an entrepreneur revolution and support positive systemic change for people and planet. Its mission is to create the necessary bridges to the expert help that entrepreneurs need to take their innovations to the next level.

Since its launch in January 2020, UpLink has identified over 260 individuals with highly promising solutions and is working to support their growth through visibility, access and introductions that allow them to scale their businesses. These entrepreneurs are already achieving tremendous impact and, in 2021-2022, they were able to collectively secure more than $942 million in funding to support their activities.

UpLink’s 2021-2022 Impact Report highlights how Top Innovators are addressing issues spanning the environment, economy and society, including protecting or actively managing some 10 million hectares of natural habitat and restoring over 812,000 hectares. They have provided 16.4 million people with access to essential health services and ensured 1.87 million people have gained access to basic sanitation. Additionally, they have successfully educated or trained 5.5 million people and ensured more than 25 million people benefited from greater market access.

“We must ignite an ecopreneur revolution, which is why I’m so excited about UpLink.”

— Marc Benioff, Co-Chief Executive Officer of Salesforce

Which challenges are entrepreneurs facing today?

The world faces an unprecedented set of global issues. From the climate crisis and the destruction of natural ecosystems to the COVID-19 pandemic and rampant income inequality, there is a critical need to advance the UN Sustainable Development Goals (SDGs) by 2030.

Yet, there are a number of entrepreneurial solutions that can already accelerate the SDGs. Indeed, as US Climate Envoy John Kerry recently said, almost half of the emissions cuts needed to achieve net-zero will come from early-stage solutions and future technologies.

But for many of these entrepreneurs, finding the mentorship, resources and – crucially – funding they need to scale their operations, expand their teams and widen their impact is often beyond their reach, especially for those operating in developing economies.

Unleashing the creative energy of the world’s brightest entrepreneurs is essential and it is crucial to build a collaborative framework around them that can support their innovations and help them thrive.

“Problems and issues that we face as a global community cannot be solved by individual entities or governments. We have to collectively address these issues.”

— Punit Renjen, Chief Executive Officer, Deloitte

Our approach to collaborating with entrepreneurs.

UpLink Since its launch, UpLink has been dedicated to creating this collaborative environment for the world’s entrepreneurs.

The platform is building a digital space where investors, experts and other organizations can work together to elevate and support innovations.

This innovation ecosystem is enabled by:

  • An open digital platform, which sources entrepreneurs from all over the world through innovation challenges in a range of critical areas, including nature, the ocean, plastics, climate change, the circular economy, water, health and education – with many more to come. These are designed and run in collaboration with a diverse set of partners across the public and private sectors, including Accenture, HCL, IKEA Foundation, Friends of Ocean Action, Nestlé, UNICEF, and the World Health Organization.
  • The convening and amplification power of the Forum, which offers increased access to events, initiatives, multi-stakeholder communities and funding opportunities for innovators.

Over the last two years, 46,000 users have joined the UpLink platform and entrepreneurs have submitted 3,500 solutions via 34 innovation challenges. The community has recognized 265 Top Innovators in four categories who are now receiving support to grow their companies.

“Initiatives shouldn’t just come from enlightened business leaders or governments. We have to engage people. They have ideas. We have to give them the means to translate their ideas into action.”

— World Economic Forum Founder and Executive Chairman Klaus Schwab.

How can you get involved?

We invite visionary leaders, organizations, businesses, governments and philanthropists to join UpLink in driving the entrepreneur revolution. Through UpLink, we are accelerating progress on the SDGs by sourcing and scaling innovative solutions to the world’s most pressing issues, raising awareness for key sustainability issues and unlocking funding opportunities.

How will MENA countries hit FDI targets? 

Advertisements

According to the IMF, the Middle East saw a surge in capital inflows, the emerging market investments are shrinking. How will MENA countries hit FDI targets?  Let us see how.

Emerging market investments are shrinking. How will MENA countries hit FDI targets? 

By Amjad Ahmad in Atlantic Council

As the pandemic-fuelled liquidity begins to wane and the reality of inflation and higher interest rates sets in, many economies will face considerable challenges.  Middle East and North Africa (MENA) countries are vying to attract global investors and increase Foreign Direct Investment (FDI).  Yet, capital flows are reversing from emerging to developed markets—specifically in the United States, where interest rates are rising to levels not seen since 2018.  The year 2018 is illustrative: during that time, emerging markets experienced substantial capital outflows as international investors reduced their exposure and consolidated their risk into emerging economies with fewer perceived risks, given their proactive and progressive economic policies.

Attracting foreign investors into emerging market economies has always been difficult.  Nevertheless, thanks to the extended period of near-zero interest rates, emerging markets were blessed with investors hungry for higher returns. The plentiful supply of money coupled with historically low yields in rich countries led investors to explore higher yields in riskier markets across various assets, including public equities, public debt, private equity, and venture capital.  The lower cost of capital allowed investors to finance opportunities that otherwise would have been unfeasible.

Unfortunately, the party is over, and the pain is just beginning.  The US Federal Reserve has started an aggressive interest rate hiking campaign, which will likely be the sharpest rise in interest rates since former chair of the Federal Reserve Paul Volcker’s war on inflation from 1979 to 1982.  Many economists believe this will likely lead to a recession in the world’s biggest economy.

A US economic slowdown or a recession couldn’t come at a worse time for emerging markets, particularly those in MENA, where most are fighting chronic unemployment, especially among youth and women, slowing growth, and higher debt levels.  Large oil-exporting countries in the Gulf Cooperation Council (GCC) — such as Qatar, Saudi Arabia, and the United Arab Emirates (UAE) — are better positioned given heightened commodity prices. However, their lack of interest rate autonomy given the dollar peg limits their ability to deviate their monetary policy from that of the United States.

Additionally, the global demand destruction cannot be ignored as the post-pandemic surge in demand levels off, with consumers beginning to feel the pinch from inflation and rising interest rates.  This may put a damper on global energy demand and tourism. Inflation also impacts global emerging markets, causing a perfect storm for the arrival of tough economic times.  Currency depreciation against the dollar is increasing the cost of imports and repaying foreign currency debts for banks, companies, and governments, many of which racked up significant debt during the pandemic.

Research suggests that the impact of US monetary tightening on emerging markets will vary depending on the factors for the change. Interest rate hikes driven by US economic expansion will likely lead to positive spillover effects that benefit more than hurt emerging markets and, therefore, are neutral on capital flows.  On the other hand, interest rate hikes to fend off inflation will likely lead to emerging markets disruption.  Here, there are two key points to mention.  First, there is a more significant effect on emerging markets from rising interest rates due to inflation than those due to growth.  Second, emerging economies with stable domestic conditions and policies tend to fare better and experience less volatility. In a global economic environment with slower growth, higher cost of capital, and a shrinking capital pool for riskier assets, discerning international investors will consolidate their investments in the highest-quality emerging markets.

The Goldilocks moment experienced in markets over the past couple of years is subsiding.  Geopolitical risk, inflation, and US interest rates are all rising. In addition, two crucial macroeconomic trends will impact the future capital flows to emerging markets.  First, globalization policies that have focused overwhelmingly on cost efficiency and rationalization will now focus on resiliency and values-based investments.  At an Atlantic Council event on April 13, US Treasury Secretary Janet Yellen articulated a blueprint for US trade policy, stating, “The US would now favor the friend-shoring of supply chains to a large number of trusted countries that share a set of norms and values about how to operate in the global economy.”

Second, Environmental, Social, and Governance (ESG) issues are gaining more attention with countries and companies putting them on the agenda.  For an indication of what’s to come, consider Total, the French oil and gas giant, marking its shift to renewable energy and rebranding to TotalEnergies, as well as Engine No. 1, a US impact hedge fund, hijacking ExxonMobil’s board to drive a green strategy at the company.  As a result of the confluence of these complex issues on top of challenging macro-economic concerns, investor appetite for emerging market assets is weakening.  It will become more discerning in the coming years.

But all isn’t lost.  There will be divergent outcomes and risks depending on the domestic conditions of each emerging market.  Thoughtful investors will continue to seek opportunities in emerging markets, especially in private markets, where the predominant share of opportunities exists.  However, as financial conditions tighten, differentiation between emerging markets will increase. MENA countries can better position themselves amongst others competing for capital by:

  1. Attracting and empowering strong policymakers to make dynamic and bold decisions that complex changes in the global economy require. Deepening the bench of talented policymakers should be another priority.
  2. Driving policies supportive of private sector development and investment. Reducing government-owned enterprises and providing ample space for private companies to grow and prosper on an even playing field is critical to building a dynamic economy.
  3. Continuing to nurture the nascent entrepreneurial ecosystem. Entrepreneurial economies are consistently more resilient and lead to better outcomes over the long term.
  4. Enhancing regional and international economic integration through bilateral and multilateral agreements with more robust economies. Proactive engagement with multilateral financial institutions will also increase financial stability and resilience.
  5. Standardizing policies according to global norms for greater regional and international integration. Investor appetite is greatly improved in emerging markets that adopt regulations and standards from developed countries.
  6. Increasing transparency and reducing uncertainty around laws and regulations. Investors and companies need more clarity on the game’s rules in order to play it confidently and competently.

Several MENA countries continue to take bold steps to improve their global competitiveness. One such example is the privatization programs of government-owned enterprises in Egypt, Saudi Arabia, and the UAE to increase liquidity in local capital markets, improve transparency, and expand private sector participation.  Those countries that maintain their momentum will be clear winners in the coming years. History is rich with evidence that economic challenges are followed by periods of historic gains.

Amjad Ahmad is Director and Senior Fellow at the Atlantic Council’s empower ME Initiative at the Rafik Hariri Center for the Middle East.  

Twitter: @AmjadAhmadVC.

 

Can Dubai be the next Silicon Valley technology hub?

Advertisements

The Arabian Business tells us a story about the ongoing trends in high-tech businesses, technological innovation and the use of social media in the Emirate, wondered if Dubai can be the next Silicon Valley technology hub?

The emirate provides those in the Web 3 space with the ‘perfect balance of work and fun,’ making it attractive for talent, said the 26-year-old co-founder of interactive short video platform Vurse

Originally intending to stay in Dubai for only 12 days, Shadman Sakib ended up “falling in love” with the city and choosing it to launch his interactive short video platform Vurse from, set for the second half of 2022.

Vurse will be one of the first deep tech companies to come out of the Middle East and 26-year-old Sakib said Dubai “has so much potential and can become the next Silicon Valley.”

“We just have to fine-tune people’s mentality on a deep tech perspective and once that happens, the sky is the limit. For us people in the Web 3.0 space, we really want a nice balance between fun and work and Dubai really has the capability to provide both,” said Sakib.

“We are in the process of hiring our team members from across the world and it is actually much easier for us to attract them being based here in Dubai versus other cities because of the fine balance between work and life, plus the entertainment aspect. This is why we chose Dubai and we feel like it is going to be our long-term home,” he continued.

Shadman Sakib, Tech Entrepreneur

Sakib believes Vurse’s growth will translate into the growth of Dubai in the deep tech and Web 3.0 space, giving the example of how the presence of the big tech companies in San Francisco led to the development of the American state’s tech reputation.

“Dubai is one of the smartest cities in the world. You go to the airport and immigration is done in minutes, not many cities in the world can compete with that kind of technology,” explained Sakib.

“It is therefore high time we have a homegrown company that goes beyond the traditional businesses we have in this city. Traditional companies can only grow so far versus the companies in deep tech or Web 3 space – especially the ones with proper resources – where the sky is the limit; you have the whole world to play with,” he continued.

How Sakib got into tech and conceived of Vurse

Sakib grew up in Bangladesh and says he was “pretty much of an underdog,” for most of his life, recounting how he dropped out of his undergraduate studies in the US before moving to the UK where he again pursued his studies while working as a waiter on the side.

Lying on his couch one day and playing with his phone Sakib wondered why he was using someone else’s product instead of developing a product that people could use.

“I was 20 years old at the time and while my peers were focused on enjoying life, I was consumed with finding a purpose for mine,” he recalled.

“My philosophy was all about being determined that I would have a strong footfall by the time my friends finish university so that they would come to me and ask for a job,” added Sakib.

Sakib believes Vurse’s growth will translate into the growth of Dubai in the deep tech and Web 3.0 space

Having no background in technology, Sakib talked to a few of his friends and contacts in the app design space but was frustrated with the ideas they came up with as they were a copy of what already existed.

“I wanted to look at how I can wow the customer or my user not recreate the same thing – I wanted to build something different,” explained Sakib. As such, he taught himself coding before meeting the co-founder of Vurse who is a “coding genius.”

It is within this context that the idea of Vurse came about to take the social media experience into the Web 3 space and give content creators ownership over their content rather than having a platform control that.

“Our target is to make the content creators bigger because once they are a big brand themselves, a similar effect will happen to the company itself,” explained Sakib.

“My co-founder and I have been wanting to work on a consumer-facing product for some time now because that is where we think the main fun is. We want to understand the newer generations that are coming up and their culture. We also want to understand the music industry very well,” he continued.

As such, Sakib has delegated his other businesses to fully focus on Vurse, a business he self-funded. And while he declined disclosing much information about Vurse itself, he said it is built on three verticals: a content creator marketplace where people will be able to trade NFTs, a short video platform and the AI verse, a self-created metaverse within the platform.

“The metaverse will stay but the way we see and think of it will change. Currently, you have to have a specialised device to access the metaverse which restricts access somehow,” said Sakib.

“Once the technology catches up to the extent that it is easily accessible to anyone anywhere, then the real game begins,” he continued.

‘Insufficient, uneven’ growth rates to weigh on MENA

Advertisements

The above-featured image is that of the World Bank’s MENA Economic Update on how ‘Insufficient, uneven’ growth rates to weigh on MENA, is explained in Gulf Times of Qatar ViewPoint. Here it is:

Just as the war in Ukraine is disrupting supplies and fuelling already-high inflation, economic growth in the Middle East and North Africa (Mena) region is forecast to be “uneven and insufficient” this year, according to the World Bank.

Growth rates in the region envisage a narrative of diverging trends.
As oil exporters benefit from surging prices, higher food prices have hit the whole region.

The GCC is expected to notch up 5.9% growth this year, buoyed by oil prices and helped by a vaccination rate much higher than the rest of Mena.
But most Mena economies — 11 out of 17 — are not seen exceeding their pre-pandemic GDP per capita in 2022, says the World Bank.

GCC economies have seen a relatively strong start to 2022 with the hydrocarbons sector having benefited from increased oil production so far this year, says Emirates NBD.
Its survey data for the first quarter of the year point to a solid expansion in non-oil sectors as well, with strong growth in business activity in the UAE, Saudi Arabia and Qatar.
In the wider Mena region, however, countries like Egypt, Morocco and Tunisia – home to large, mainly urban populations, but lacking oil wealth – are struggling to maintain subsidies for food and fuel that have helped keep a lid on discontent.

Egypt has been struggling to maintain a bread subsidy programme used by about 70mn of its citizens with the coronavirus pandemic hitting the national budget, and surging wheat prices are exacerbating the challenge.

The World Food Programme has warned that people’s resilience is at “breaking point,” in the region.
Global foods costs are up more than 50% from mid-2020 to a record and households worldwide are trying to cope with the strains on their budgets.
In North Africa, the challenge is more acute because of a legacy of economic mismanagement, drought and social unrest that’s forcing governments to walk a political tightrope at a precarious time.

The MENA region’s net food and energy importers are especially vulnerable to shocks to commodity markets and supply chains resulting from Russia’s war on Ukraine, according to the International Monetary Fund.

That’s in countries where the rising cost of living helped trigger the Arab Spring uprisings a little over a decade ago.
The region’s GDP is forecast to rise 5.2% this year after an estimated 3.3% expansion last year and a 3.1% contraction in 2020.

“Even if this high growth rate for the region as a whole materialises in this context of uncertainty, and there’s no guarantee that it will…(it) will be both insufficient and uneven across the region,” according to Daniel Lederman, World Bank lead economist for the MENA region.

Countries that are net importers of oil and food and which entered 2022 with high levels of debt as a ratio of GDP are most vulnerable, he said, pointing to Egypt and Lebanon as examples.
Even before Russia invaded Ukraine, food prices had been rising around the world, driven by the higher shipping costs, energy inflation and labour shortages that have followed in the pandemic’s wake, along with extreme weather.
Food crisis was likely to worsen in the Middle East and North Africa as Covid-19 continued, according to a report from the regional directors of Unicef, the Food and Agriculture Organisation, WFP and World Health Organisation in July 2021.

Saudi start-ups rewriting the big MENA growth story

Advertisements

Start-ups are these days rewriting the big MENA growth. A story that sums up the new trend at this conjecture in business life in the MENA region. Most importantly, it is showing the way of a hydrocarbon-based economy moving into a more diversified one . . .

The above featured image is of World Economic Forum that explored the same topic back in 2019. Here is the story as it stands in 2022:

Saudi start-ups rewriting the big MENA growth story

Start-ups from across the Middle East and North Africa (MENA) had raised nearly $375 million during the past month, with the Saudi firms taking a sizeable chunk of the pie, netting $219 million across 23 investment deals in February, according to a report.

With 58% of overall funding in the wider region going towards Saudi Arabia, it is no surprise to hear that headcount has grown by 20% within the kingdom’s start-ups over the past 12 months, said the report by leading recruitment consultancy Robert Walters Group, adding that this figure is expected to grow further this year as the government continues to create the ideal environment for start-up growth and international investment.

The competitive recruitment landscape between big corporates and start-ups continues to grow, with approximately 3 times the number of jobs posted vs available talent.

Faisal Saqallah, the Consultant from Robert Walters Saudi Arabia, shares his thoughts on why start-ups are winning the race on talent.

The Career Accelerator

With relatively flat structures and hands-on founders and CEOs – new starters can find themselves lining up into the senior leadership team from day one, explained Saqallah.

By taking on several different responsibilities and working closely with senior members of the team, start-up environments enable you to prove your worth early on, as well providing an opportunity for your work will be recognised if it has had a direct impact on the business, he stated.

Unlike within corporate structures, leaders will be able to clearly see your involvement in a project’s initial stages to completion, and as a result, the rate of advancement at start-ups tends to be much faster.

According to the Robert Walters Report – Act Like a Start-Up and Win the War on Talent – 50% of professionals in Saudi Arabia are interested in working for a start-up for their next career move.

“This is not surprising therefore to see that our survey found that over half of professionals (52%) would be willing to take a pay cut and join a start-up if they saw an opportunity to progress much quicker than they would do within a corporate set-up,” stated Saqallah.

“After any period of economic change, we typically see a wave of entrepreneurial or start-up activity – and so it doesn’t surprise me to hear of the success of this sector, so much so that Saudi Arabia now ranks sixth in global entrepreneurial competitiveness,” he stated.

“But what is most interesting is how these relatively-new 10-30 person companies are managing to draw some of the county’s top talent away from established firms who typically offer much higher levels of job security,” noted Saqallah.

“Post pandemic we have seen a significant shift in what professionals want from their employer – with purpose, culture, and people, rated above competitive pay and the well mapped-out corporate ladder,” he added.

Scale-Up Mentality

Start-ups are designed to have high growth potential – and so it is not surprising to see that on average decisions are processed 4x quicker in a start-up than within a large firm (250+).

The changing and fast-paced nature of a start-up will keep employees on their toes, encouraging them to develop new skills as they go, and push boundaries beyond the initial job description.

Working for a start-up, you’ll understand how the whole company works and develops commercial acumen not expected of you when lower down in corporate structures. Some start-up leaders argue that these on-the-job business lessons are in fact better than an MBA. 

Our survey found that 33% of professionals are leaving their corporate jobs in order to ‘try something new,’ with a further 15% looking to reskill.

Being a start-up team member comes with great responsibilities. No matter what your title is, your work will make an impact on the company’s growth and success – and so in turn this will make you feel like the job you’re doing has an actual purpose and is a huge motivation.

In fact, a third of professionals (34%) state that the reason they move to a start-up is for challenging and interesting work – with many stating that the skills they adopt in self-management and task prioritisation then cross over into their personal life.

According to the Robert Walters, working for a fast-growth start-up can be an intense experience, so you’ll inevitably become more proactive and ambitious outside of work too. 

You’ll be constantly thinking about how to improve things, be more aware of problems and how to solve them and become more open to new cultures and ways of thinking. You’ll also learn to love challenges and even look for them!, it stated.

True Team Spirit

Almost half of professionals (42%) state that the most important value when looking for a future workplace is ‘colleagues and culture that inspire them to do their best – that’s why the company culture at start-ups is something to be valued.

Due to their smaller size, start-ups tend to foster a close-knit, collaborative environment, that encourages people to help where they can on tasks outside of their original remit.

“You’ll be surrounded by highly hardworking, talented, and ambitious people willing to do the impossible. There is a huge motivation to learn from others and contribute with your own knowledge and experience,” explained Saqallah.

Start-ups often favour a fluid structure over a rigid corporate-inspired hierarchy, enabling open discussion and co-operation between all team members. 

It is not surprising then to hear that 30% of professionals state that the most appealing thing about a start-up is the open & effective management structure.

Talent the only criteria

Start-ups have a core focus of finding the very best talent who can help achieve their ambitious goals, and as a result, remove any sort of socio-economic or geographical barriers in order to find their stars.

As a result within a start-up, it is not surprising to come across all kinds of co-workers, from all kinds of nationalities, backgrounds, and ideologies – and due to the small nature of the teams, there will naturally be ample cross-over working with colleagues with different skill sets or working styles.

This strong multicultural environment can open your mind beyond work and tasks. It also leads employees to have a global vision.

And diversity doesn’t just rest with the people, it is safe to say that almost no two days are the same within a start-up. Typically, most members of the team have to ‘juggle many hats and take on duties outside of their specific role to contribute to the success of the wider business.

The diversity of tasks helps you to develop new skills very quickly, added to that you will often be learning directly from the founder of the company and/or senior employees.

This an invaluable opportunity when you are in the early stages of your career. Not only will this keep you stimulated in your day-to-day role, but it will also give you the opportunity to find out what you are most interested in and discover what you are best at.

Innovation is the key

Start-ups are different from traditional businesses primarily because they are grounded on disruptive innovation, created to address a perceived ‘problem’ in the market.

Joining a start-up means adopting an ‘out of the box’ mindset – an ability to think on your feet and get creative with smaller budgets and fewer resources.

Autonomy is not considered a perk within a start-up but a given – in fact, it is the reason why 28% of professionals leave a corporate job to join a newly established business.

However, it is not all ‘small-time,’ in order to aid your creativity you’ll find yourself learning and using the most modern and innovative tools and platforms on a daily basis – whilst shaky to start off with you’ll soon start to embrace and speak the ‘start-up language’ in no time!

Exit Strategy

Many start-ups have an ‘exit strategy’ in mind, which means you will be working towards an ambitious deadline right from the get-go, according to Robert Walters Group.

Growth targets will be ambitious, but if achieved by the team then they stand to cash in from significant rounds of funding as shares are often offered as part of job packages as a way of competing with corporate pay, it stated.

At a start-up, your hard work can payback sometimes 10x the amount you’d get in yearly corporate bonuses within 5-7 years of joining a fast-growth start-up. The key here is to join a business whose product and vision you will truly believe in, it added.

TradeArabia News Service

.