Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. In the developing world, successful small businesses are the primary engines of job creation, income growth, and poverty reduction. Entrepreneurship is a major source of innovation, which is considered the main driving force behind economic development and progress. Nevertheless, MENA’s entrepreneurship and business climate is severely burdened by its inefficient bureaucracy, ineffective judiciary, bloated governments as well as unstable and insufficient enforcement mechanisms. The fundamental restraints to economic success in today’s MENA entail inconsistent business and tax administration policies, rigid regulations on entry into the country, property rights, land titling and lax enforcement of contracts. Normally, the excessive formal bureaucratic procedures in any country add monetary and time costs to investors. Those exhausting procedures can also encourage investors, due to the high costs and expected low profits, to terminate their investments or invest elsewhere. The long bureaucratic processes and administrative procedures also harm start-ups and small businesses. Inefficient judiciary that fails to protect property rights and ensures the facilitation of contracts make businessmen skeptical and hesitant, which may result in…
