Getting competitive

Policy initiatives work best when they come as a full package. Seeking to elevate Lebanon’s knowledge economy from a struggling local sector to a world-class hub for entrepreneurship, in 2013 the central bank stepped outside of its monetary policy role by passing circular 331. The decision allows local banks to invest directly in startup companies or in venture capital funds, with 75 percent of the investments guaranteed by the central bank. The entrepreneurship ecosystem – at the time small despite having existed for more than 10 years – welcomed the capital infusion. Lebanon is a small market with a relatively small population, even including those seeking shelter on its soil. Stakeholders tell Executive that the ecosystem needs more of just about everything, including entrepreneurs with fundable ideas. Some VC funds are even trying to lure Lebanese entrepreneurs living abroad back home in order to qualify for 331-compliant investments (only companies