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Liberal Values & Their Impact on Entrepreneurship & Startups

Liberal Values and Their Impact on Entrepreneurship and Startups

Liberalism is a political and moral philosophy based on the principles of liberty, equality, and individualism. In general, liberals value individual freedom, human rights, democracy, social justice, and equality before the law. But how do these values impact entrepreneurs and startups? “Wikipidia” , in this article I wan to debate why economic liberalism is a good doctrine for enhancing entrepreneurship ecosystem, with a focus on the Arab countries.  

Individual Freedom and Democracy 

Starting with the main challenge for the Arab Countries, the “Political Stability”, these two words became a wish to many Arab Countries in since the 50s of the last century, while we know that individual freedom and democracy can create a climate of political stability and the rule of law, and this can make it easier for entrepreneurs to start and grow their businesses. There are some forces in the Arab Countries who works hard against this model. 

We can claim that freedom in Arab countries could not yet defeat those who fight against it, and since free market is crucial for entrepreneurs since, it provides a level of predictability and consistency that is essential for business planning and investment. In addition to the rule of law that provides a framework for the resolution of disputes, contract enforcement, and the protection of intellectual property rights. These are all essential for the development of a vibrant entrepreneurial ecosystem.

Economic Opportunity and Equality Before the Law

Economic opportunity and equality before the law can help create a more level playing field for entrepreneurs, regardless of their background, gender, race, or religion. This has helped promote competition and innovation, as entrepreneurs are judged on the quality of their ideas and execution, rather than on their social status or connections.

Policies that promote economic opportunity, such as access to capital, training, and mentorship programs, can help entrepreneurs overcome the challenges associated with starting and growing a business.  And these values are very limited in many Arab countries, where we witness the lack for finance, no trust between angels, VCs and banks in startups. This led to less training, less mentorship programs and more challenges for Arab entrepreneurs, who, in many cases, are stuck in two options, 1- to drop working on his idea or 2- to leave the country and causing more brain drainage.  I ask you as a reader to tell me on the number exists for startups, we have in all the Arab counties, in comparison with one city in the silicon valley.    Though Arab governments are known to have more money than the majority of the cities on this flying ball, called earth.  

Most of the Arab counties chose to use selected liberal values, and policies, such as high taxes, strict regulations, and extensive welfare programs, which is already causing challenges for entrepreneurs and startups.Therefore, it's important to strike a balance between promoting liberal values and policies that create a favorable environment for entrepreneurs, while also addressing any potential challenges and trade-offs.

One option for addressing this challenge is by working with policymakers and make them aware of the potential challenges associated with some liberal policies and strive to create policies that promote entrepreneurship and innovation, while also addressing the needs of all members of society.

Despite the grey entrepreneurship ecosystems in the MENA region, there are still some bright examples, where liberal values have impacted entrepreneurs and startups:

1. Many startups today recognize the importance of diversity and inclusion in building a successful and innovative team. By valuing diversity in all its forms, including gender, race, ethnicity, religion, and sexual orientation, startups can bring together a range of perspectives and experiences that lead to greater creativity, problem-solving, and innovation.
2. Liberal values of open-mindedness and a commitment to progress and innovation have driven many startups to develop new and disruptive technologies and business models.
3. While many entrepreneurs and startups may view government regulations as a hindrance, some liberal values prioritize the role of government in ensuring consumer protection, workplace safety, and environmental responsibility. For example, the Food and Drug Administration (FDA) provides regulations and oversight to ensure that drugs and medical devices are safe and effective before they are made available to the public.

One startup in Tunisia that has benefited from liberal values is Expensya, a cloud-based expense management platform. The company was founded in 2014 by Karim Jouini and Jihed Othmani, and has since grown to serve thousands of customers in Tunisia and around the world. Expensya has benefited from Tunisia's liberal economic policies, which have created a more open and competitive business environment. The company could attract investment and has received support from the Tunisian government's startup accelerator program.

Expensya is a great example of how Tunisia's liberal values and policies have helped to foster a thriving startup ecosystem, with companies that are innovative, competitive, and inclusive.

One example of a startup in the UAE that has benefited from liberal values is Careem, a ride-hailing service that was founded in Dubai in 2012. The company was able to capitalize on the UAE's liberal economic policies, which have encouraged entrepreneurship and foreign investment, and its relatively open and diverse society.

Careem was able to attract significant investment from international investors, including from Silicon Valley, and has since expanded to become one of the largest ride-hailing services in the Middle East and North Africa (MENA) region, with operations in more than 100 cities across 14 countries. UAE's liberal values and policies have helped to create a favorable environment for startups and entrepreneurs, with companies that are able to attract investment, develop innovative solutions, and serve a diverse and growing customer base.

The UAE's liberal values of tolerance and openness have also allowed many companies, to develop a diverse and inclusive team, with employees from a variety of backgrounds and nationalities. According to the Diversity & Inclusion Index, six companies form UAE were ranked on the index, such as Roche Ranked 3rd Globally in Diversity and Inclusion Index, VISA and Al Naboodah Group were on the same index in 2017. 

Liberal values and free markets has always helped companies to better understand the needs and preferences of its customers, who come from a wide range of cultural and linguistic backgrounds.

ِAuthor: Mahmoud Khweis