Assessment of the status of youth-led startups supported by Shababeek 2023

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Introduction

The Arab States region is home to an unprecedented demographic phenomenon, boasting a youth population of over 113 million individuals aged between 15 and 29, constituting 25 percent of the entire Arab population[1]. Unfortunately, this significant youth cohort faces significant challenges, particularly in terms of employment opportunities. The region witnesses one of the highest and fastest-growing youth unemployment rate globally, surging from 18.9 to 28.60 percent between 2012 and 2024[2].

Moreover, the proportion of youth not in employment nor in education or training (NEET) has increased for both young women and men over the last decade. The rate in the region is estimated at 34.4 percent in 2021, compared to a global rate of 22.5 percent. This alarming trend disproportionately affects young women, with approximately one in two being NEET, compared to one in five young men[3].. Compounding these issues is the prevalence of informal sector engagement, with 39 percent of young women and 85 percent of working-age youth involved, often lacking access to essential services such as social and health insurance and credit facilities[4].

Young people have the potential to develop enterprises that generate decent employment opportunities, enhance resilience of communities, contribute towards diversification of economies, and have the positive impact on sustainable development of their countries.

The United Nations Development Programme (UNDP) Regional Bureau for the Arab States and The Big Heart Foundation (TBHF) signed a partnership to support young entrepreneurs in Lebanon and Palestine in 2022-2023 through developing the entrepreneurship ecosystems that create opportunities for impact-oriented youth-led businesses, employment generation and contributions towards green growth and resilient societies. The partnership is embodied in the Transformative Entrepreneurship Project as part of UNDP’s regional youth project for Arab States, the Youth Empowerment, Engagement and Knowledge Project (ShababEEK), that aims to empower young people through economic and civic participation to enhance their role as agents for sustainable development in their societies.

In Lebanon, the project addressed challenges that youth-led Micro, Small & Medium Enterprises (MSMEs) face in accessing new markets, and incubates viable, innovative, impactful and sustainable development solutions, such as social enterprises, non-profits and initiatives. The incubation has been implemented by national partners, Injaz Lebanon, Riyada for Social Innovation, and Digital Opportunity Trust (DOT).

In Palestine, the project focused on strengthening the resilience of MSMEs through enhancing business transformation and sustainability. It supported the national enterprise helpdesk initiative Monshati and develops impact assessments and surveys to inform policy reform processes that would support the development of youth-driven and innovative private sector. In addition, 12 youth-led ventures received incubation from the local partner, Flow.

OBJECTIVES AND SCOPE OF WORK

ShababEEK is seeking to recruit a firm[1] to undertake an assessment of the status and resilience of the 32 youth-led startups (20 in Lebanon and 12 in Palestine) that were supported by UNDP through its implementing partners. The assessment aims to evaluate business sustainability, market adaptation, and the effectiveness of the support provided through the incubation program, taking into account the ongoing crisis context in both countries.

In addition, the assessment aims to identify areas for further technical assistance and potential areas of improvement for future cohorts.

The assessment will focus on the following areas:

1.        Status and Performance of Startups: Assess the current operational status of the startups, including financial health, market presence, and scalability.

2.       Impact of Crises on Business Models: Examine how startups have been affected by ongoing crises in Lebanon and Palestine, including shifts in customer needs and or consumer behaviour, supply chain disruptions, and access to markets.

3.       Resilience and Coping Mechanisms: Explore the strategies employed by startups to adapt, pivot, or sustain operations in response to external shocks.

4.      Effectiveness of Support Provided: Evaluate the role of incubation, mentorship, and technical assistance in enhancing the startups' resilience and capacity to innovate.

5.       Contribute to building a crisis-adaptive framework for supporting youth entrepreneurship, ensuring UNDP and its partners are equipped to respond effectively to uncertainty and transboundary crises.

6.      Provide strategic recommendations for enhancing programmatic interventions, technical assistance, and ecosystem-level reforms to foster resilient, sustainable, and impact-driven youth entrepreneurship in crisis settings.


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RBAS Regional Center in Amman

Procurement Unit

 

Amendment

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