PRESS RELEASE — The
Arab world has a promising opportunity to promote youth entrepreneurship with nearly
half of young Arabs saying they plan to start their own business in the next
five years. This entrepreneurial zeal also reflects an increased preference to
work for the private sector rather than the government.
اضافة اعلان
These
are some of the notable findings of the landmark 15th annual
ASDA’A BCW Arab Youth Survey, the
largest study of its kind of the Arab world’s largest demographic, its over 200
million youth, by
ASDA’A BCW, the
Middle East and North Africa’s leading communications consultancy.
Youth
unemployment in the region is one of the highest in the world at over 26% with
nearly one in three youth (32%) aged 15 to 24 not engaged in employment,
education or training, according to a
World Bank report.
The
United Nations observed that the region must create 33.3 million jobs by 2030 to absorb the large
number of young people entering the workforce, a daunting task that Governments
must take forward with urgency.
ASDA’A
BCW commissioned SixthFactor Consulting, a leading research company, to conduct
face-to-face interviews with 3,600 Arab citizens aged 18 to 24 in their home
nations from March 27 to April 12, 2023.
The
largest sample in the survey’s history covered 53 cities across 18 Arab states,
including for the first time South Sudan. The interviews were conducted face to
face rather than online to maximize accuracy and to reflect the nuances of Arab
youth opinion across the region as much as possible.
Exploring
Arab youth attitudes on their future careers, the survey found that 42% of
young Arab men and women would like to start their own business in the next
five years. This desire was strongest in the Gulf Cooperation Council (GCC)
states (53%), followed by the Levant (39%) and North Africa (37%).
GCC
youth were also more upbeat about their chances of going into business
themselves, with 58% saying that starting a business in their country was ‘very
easy/somewhat easy’. This compares with 79% of youth in the Levant and 73% in
North Africa who said it was ‘very difficult/somewhat difficult’ to start a
business in their country.
According
to the research, tax breaks, reduced fees for startups, enhanced training and
education, and government-backed loans would encourage more youth to become
entrepreneurs. When it comes to their preferred industry, 15% of the sample
said they wanted to start a business in the tech sector, followed by e-commerce
(13%), the creative industries (11%), manufacturing (11%), real estate (10%),
the food business (9%), and retail, hospitality and education (7% each).
Growing preference
for private sector jobsOne of
the significant trends that the survey has documented over the years is the
increasing preference of Arab youth for private sector jobs over a career in
government.
Compared
to nearly half of all respondents in 2019 who said that they preferred to work
in the government sector, less than a third (30%) feel the same now. Meanwhile,
a third (33%) of Arab youth said they would prefer to work in business, a 13%
increase from 2022.
One in
four (25%) young Arabs now say they want to work for themselves or their
family, a slight decline since last year (28%), but a six-percentage point jump
from 2019. Meanwhile, 11% said they preferred to work for a non-profit
organization.
Sunil
John, President, MENA, BCW and Founder of ASDA’A BCW, said: “The fact
that Arab youth are eager to start their own business is an encouraging sign,
but it is also a natural response to the great difficulty in certain countries
to find stable employment. Policymakers and the business community itself must
do more to support those young men and women willing to do it alone.”
“Meanwhile,
the increasing diversification of the GCC economies is casting the private
sector in a positive new light,” John added. “This is a promising trend for the
long-term sustainability of the regional economy and a potential source of jobs
and opportunity for Arab youth outside the Arabian Gulf.”
“However,
this growing interest in a business career must be matched by companies
themselves, with recruitment and career development pathways introduced to
empower the region’s rapidly evolving Arab national workforce,” John said.
In the
coming weeks, ASDA’A BCW will publish insights under the three remaining themes
covered in the study: My Identity, covering religion and issues of
personal identity; My Aspirations, the hopes of young Arabs for the
future; and My Lifestyle, highlighting their habits, pastimes, and the
media they consume. Findings on climate change, mental health and gender rights
will also be disclosed, making this year’s study the most extensive in the
survey’s history. The overall theme of the 15th edition of the
ASDA’A BCW Arab Youth Survey is ‘Living a New Reality'.
To know
more about the findings, log on to
arabyouthsurvey.com
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