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English Firm.” Meanwhile, Is Responsible for Communications, HABIDEM Is Also Currently Competing Against Four Customer Relations and Business Management august 2019 Public Disclosure Authorized Public Disclosure Authorized THE UNTAPPED POTENTIAL OF MAURITANIA’S ENTREPRENEURIAL ECOSySTEM Public Disclosure Authorized Lessons from the Entrepreneur’s Marathon Public Disclosure Authorized THE UNTAPPED POTENTIAL OF MAURITANIA’S ENTREPRENEURIAL ECOSYSTEM Table of Content Acknowledgments 66 Introduction 77 I. The Entrepreneur’s Marathon 1111 A. The Entrepreneur’s Marathon 1111 B. The Entrepreneur’s Caravan 1414 C. Gender strategy for the 2018 Marathon 1515 D. The Marathon: 42-day incubation 1717 E. Entrepreneur’s Week 1818 F. Spotlight on Marathon winners 1919 2017 best prototype winner: Habidem 19 19 2018 overall winner: SmartTrash 2020 G. Key Statistics and Results 2121 H. Key Lessons learned 2323 II. Mauritania start-up and entrepreneurship ecosystem 2929 A. Introduction 2929 B. Skills and Human Capital 3030 C. Policies and Regulations 3434 D. The Mauritanian entrepreneurial ecosystem and the emerging landscape of incubators 3737 E. Access to Finance: early stage and venture capital 4242 F. Infrastructure and Networks 4343 G. Next steps and recommendations 4343 Annex I: Marathon 2017 and 2018 Key Results 4949 Marathon 2017 4949 Marathon 2018 5252 Annex II: Budget 5454 Lessons from the Entrepreneur’s Marathon THE UNTAPPED POTENTIAL OF MAURITANIA’S ENTREPRENEURIAL ECOSYSTEM List of Figures Figure 1: Theory of Change 11 Figure 2: Gender/Proposition of permanent fulltime Production Workers that are Female % (Total) 16 Figure 3: Gender/ Percentage of Firms with Majority Female Entrepreneurship (Total) 16 Figure 4: Global Entrepreneurship Index vs. GDP per capita, 2018 29 Figure 5: Global Entrepreneurship Index, 2018 29 Figure 6: Mauritania GEI overall score, 2018 30 Figure 7: GEI overall score Mauritania, West Africa and World average, 2018 30 Figure 8: Capacity to innovate 31 Figure 9: Country Capacity to attract talent 31 Figure 10: Distribution of employment in Mauritania 31 Figure 11: Poverty rate by occupation in Mauritania 31 Figure 12: Mauritania’s Human Capital Index with Comparators 32 Figure 13: Tertiary Education enrollment 33 Figure 14: Quality of Math and Science Education 33 Figure 15: Quality of vocational training 33 Figure 16: Availability of latest technologies 33 Figure 17: DB Ranking progress 2015-2019 35 Figure 18: DB ranking and number of reforms 2015-2019 35 Figure 19: Company Creation, 2015 -2018 36 Figure 20: Score Doing Business topics, 2019 37 Figure 21: Mauritanian Entrepreneurship Stakeholder Landscape 38 Figure 22: Mauritanian incubators Landscape 42 Lessons from the Entrepreneur’s Marathon 5 THE UNTAPPED POTENTIAL OF MAURITANIA’S ENTREPRENEURIAL ECOSYSTEM Acknowledgments his report was prepared under the leadership of Cristina Navarrete Moreno, Private Sector Specialist at the TWorld Bank, with the support of Niamh O’Sullivan, Gender Consultant, and Vincent Kienzler, Private Sec- tor Consultant. his report would not have been possible, however, without the valuable contribution of several colleagues. We are grateful for the many suggestions and contributions received from Anne Ytreland, Cornelia Tesliuc, Diletta Doretti, Elaine Tinsley, and Haroune Sidatt. We thank Alexandre Laure, Laurent Corthay, Raquel de la Orden, and Simon Pierre Jules Duchatelet for their extremely helpful support and guidance in designing and delivering the Entrepreneur’s Marathon program. Our gratitude also goes to Laurent Msellati, Mauritania Country Manager, Consolate Rusagara, World Bank Practice Manager for West Africa, and Alejandro Alvarez de la Campa, IFC Practice Manager for MENA and Africa who offered insights and constant support to deliver on this Advisory Service and Analytical work. The report uses data and information gathered by Hadina RIMTIC, SahelInvest, and the Youth Chamber of Commerce (JCCM). We wish to acknowledge the inputs received from these partners and their teams, and the particular efforts of Aissata Lam, Diagana Sidi Mohamed, Lalya Kamara, Mariem Kane, Teslem Zeln, and Zeinebou Abdeljelil. 6 Lessons from the Entrepreneur’s Marathon THE UNTAPPED POTENTIAL OF MAURITANIA’S ENTREPRENEURIAL ECOSYSTEM INTRODUCTION Increasingly, however, entrepreneurship’s profile has risen across many circles in Mauritania, not least Supporting youth entrepreneurship and start-up among young people. Responding to a survey in creation in Mauritania 2016, 77% of young Mauritanians expressed strong motivation to launch their own business though n Mauritania – a country dominated by the Saha- just one in five felt “fully ready” to embark on their Ira Desert and defined by tradition – players from entrepreneurial adventure2. across society are coming together to encourage in- Entrepreneurship represents hope to many young novation and set a new path for the country’s deve- people who perceive fewer and fewer opportunities lopment. From the public sector to local and inter- in the public sector, as well as traditional rural national businesses, as well as the donor community, sectors which has also resulted in the mass exodus entrepreneurship is beginning to emerge as a cru- of particularly men and young people to already- cial element in any strategy to address Mauritania’s overpopulated urban areas. Nouakchott alone is now greatest challenges: socio-economic inclusion, pover- home to over one million Mauritanians (27% of the ty reduction, youth employment, economic diversifi- total population). cation and climate change. Mauritania’s population is predominantly young and Since independence, the country has pursued a urban, constituting both a major opportunity and risk traditional state-driven model that has failed to to the country. 60% of working-age Mauritanians are catalyze the necessary investments and private young3 and especially vulnerable to unemployment. sector-driven solutions to these problems. Due to Nearly half of the country’s entire youth population structural limitations of competition in the economy, (47%) is neither working nor attending school. Those the country’s private sector is a concentration of large who do work, meanwhile, tend to do so informally business groups that dominate the trade, banking and (just 16% of jobs are in the formal sector4) , with all procurement markets. New entrants are crowded out, the associated risks, including to human rights from with formal micro, small and medium enterprises underemployment. Young people’s presence on the (MSMEs) in Mauritania numbering a mere 3,0001. labor market is further dampened by an especially Informal self-employment and micro-businesses low participation rate from women who account for in agriculture, livestock and commerce currently just one in four jobs. Girls and young women are also make up the vast majority of jobs among the poorest more likely to drop out of school as well as suffer from households in Mauritania. Smaller independent firms restrictive social norms that favor women’s exclusion continue to encounter obstacles, discouraging the from economic activities, particularly in the formal emergence of local suppliers and directly impacting sector. Moreover, with a poverty rate of 33%, the international investors who face higher operating need to deliver on job opportunities for young people costs. Poor quality in education and professional in Mauritania is intrinsically linked to economic training reinforce these challenges, limiting job inclusion. After a decade of poverty reduction opportunities even in expanding sectors in the and development policy primarily targeting pure economy. A lack of expertise and practical skills are economic growth, the Government launched a new compounded by complex labor regulations, making it iteration of its development strategy - the SCAPP - that even harder for businesses to recruit and retain young emphasized socio-economic inclusion and delivering job-seeking Mauritanians. on shared prosperity (one of the twin goals of the World Bank Group) and sustainable development. 1 Mauritanian Ministry of Economy, 2019, Guichet unique création d’entreprise, Direction Générale Promotion du Secteur Privé. 2 World Bank and Centre Mauritanien d’Analyse des Politiques (CMAP), 2016, Mauritania Rapid Labor Market Diagnostic Survey on Youth Employment Constraint. 3 World Bank, 2018, Country Partnership Framework (CPF) for the Islamic Republic of Mauritania for the Period FY18-23. 4 World Bank, 2018, Mauritania: Transforming the Jobs Trajectory for Youth Policy Note. Lessons from the Entrepreneur’s Marathon 7 THE UNTAPPED POTENTIAL OF MAURITANIA’S ENTREPRENEURIAL ECOSYSTEM Fostering a more dynamic and entrepreneurial the WB team recognizes that the vast majority of private sector is critical to generating new sources entrepreneurs in Mauritania are subsistence-based, of growth, creating employment for Mauritania’s 2.3 the purpose of these activities is to help budding million-strong young population5 and boosting social entrepreneurs identify and exploit opportunities inclusion. This requires not only creating new startups in local markets and establish businesses that can and MSMEs, but also boosting the productivity and generate jobs and value, which is why we target high- growth of existing ones. The country has made some capacity young people rather than the typical profile strides in its investment climate in recent years, gaining of a Mauritanian entrepreneur. Over the medium 28 places since 2015 in its Doing Business ranking and long term, World Bank projects will encourage from 176th to 148th thanks to reforms in trade across the Mauritanian government
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