Nurturing Human Capital

NurturingHumanCapital:TheMissingPieceofMENA’sEntrepreneurshipPuzzle

WelcomeTheMENAregionhasbeenundergoingatremendousamountofturmoiloverthepastfewyears.Continuouspoliticalandeconomicinstabilityhascreatedmajorchallengesintheform ofstaggeringunemploymentratesaswellasfallingeducationandliteracylevelsacrosstheregion,leadingtoagrowingincomeinequalitygapandaleadershipchallenge.Publicsectorsintheregioncannotcontinuecarryingtheloadofemployingmoreandmorepeoplewiththeirdecliningbudgets.Addingtothesechallenges,themassmigrationofoveronemillionrefugeesfrom war-torncountriesintoEuropein2015isincreasingtheirunemploymentandeconomicchallenges.Thefuturedoesnotlookpromising,asthepotentialnumbersinthecomingyearsareextremelyalarmingandworrying.Alongterm andviablesolutionforinternationalandlocalgovernmentswhoaretryingtoaddressthesechallengesistheincubation,supportanddevelopmentofsustainableentrepreneurs,SMEsandentrepreneurshipacrossboththeprivateandpublicsectorsintheregion.However,thetruthremainsthatinorderforthese entrepreneurs to have the bestchances ofgrowth and thereby solve theemploymentandeconomicchallenges,attheratethatisrequiredtoday,theyneedmorethanjustfinancialsupport.They need to be nurtured within a balanced ecosystem thatplaces equalimportanceonthedevelopmentoftheircorehumancapacityandthestrengtheningoftheirleadership.ThiswillinturnensurethatthehighestReturnonEntrepreneurialInvestment(ROEI)isachieved ata time when government,especially localgovernment,budgets areoverstretchedandrealimpactiscriticallyneeded.Since2008,wehaveworkedwithover780entrepreneursfrom acrosstheMiddleEastandNorthAfrica(MENA)regionandourmentoringprogramshaveachievedanaverageReturnonMentoringInvestment(ROMI)of890%1forourgovernment,philanthropicandcorporatefunders.This paperoutlines ourviews on the importance ofthe ecosystem developingentrepreneurs’humancapacity,specificallythroughmentoring,asweseektodrivetheurgenteconomicimpactthatisrequiredandachieveincreasedROEIforfunders.Wesincerelywelcometheopportunitytoengagewithyouonthesubjectasweseektofurtherempowerentrepreneurstodriveentrepreneurialgrowth.TonyBury KathleenBuryFounderandChairman ChiefExecutiveOfficerMowgli Foundation 2016 © 1:TheMentoringEffectonEconomicGrowthReport,Mowgli2016 1

KeyTakeaways 1.Developmentofhumancapacityisthe “key\"toachievingsubstantially enhancedReturnonEntrepreneurialInvestment(ROEI) Return on EntrepreneurialInvestment(ROEI)willonlybe maximized ifhuman capacitydevelopmentisacriticalcomponentofbuilding entrepreneurship and leadership 2.Entrepreneursneedabalancedecosystem ofsupport Abalancedentrepreneurialecosystem acrossallofitspillars,withequalinvestment betweenfinancialandhumancapital,isneededtotrulysupportanentrepreneur achievegrowth 3.Entrepreneursarecreatedthroughnurture Truly successful entrepreneurs are created through nurture; through the developmentoftheirowncorehumanandleadershipcapacityandcapability.To achievethistheyneedsolidandempoweringsupportthroughoutthis journey 4.Mentoringprovidesentrepreneurswithtruenurturing Mentoringis“key” withinhumancapacitydevelopmentfortoday’sentrepreneursto deliverthemuchneededeconomicgrowthandleadershiprequired,especiallyas theenvironmentwithinMENAhasnotbeenconducivetonurturingentrepreneursto date 5.Holisticandtrainedmentoringmattersforentrepreneursifwewantthem to succeed For trulyeffectivenurturingtotakeplace,mentoringneedstobeholistic(focusedon personalandbusiness):entrepreneursneedtobementoredbytrainedmentorsand theinitialphaseofthementoring relationshipsneed closesupportso thatthe foundationsaresetfortheirfuturedevelopmentandlongevityofrelationshipMowgli Foundation 2016 © 2

TheLoomingandStarkRealityInvestinginhumancapitalisjustonepieceoftheentrepreneurialecosystem puzzle,yetitcouldbearguedthatitisthefoundationuponwhichalltheothercomponentscanbeoptimized and where the greatest return on investment can be made.How,wehearyousay?TheMENAregionhasbeenundergoingatremendousamountofturmoiloverthepastfewyears.Unemploymentlevelsintheregioncontinuetobethehighestintheworldat11.7%2withyouthunemploymentrisingbeyondthisat28.2% and30.5%2acrosstheMiddleEastandNorthAfricarespectively.Continuouspoliticalandeconomicinstabilityhascreatedmajorchallengesintheform ofstaggeringunemploymentratesaswellasfallingeducationandliteracylevelsamongstyouthandwomen,leadingtoagrowingincomeinequalitygapandaleadershipvacuum.Inaddition,publicsectorsintheregioncannotcontinuecarrying theload ofemploying moreand morepeoplewith theirdecliningbudgets.Adding to these challenges,the massmigration ofoverone million refugeesfromwar-torncountriesintoEuropehasalso spreadtheunemploymentchallengesacrossEurope,with youth unemploymentlevelsreaching 20%3in two thirdsofEuropeancountries.Whilstmanymigrantsfledtheircountriesbecauseofarmedconflicts,manyalsoleftduetoeconomichardship.ForEuropeancountries,thefuturedoesnotlookpromisingasthepotentialnumbersinthecomingyearsareextremelyalarmingandworrying,adding to the currentunemploymentand economic situation ofsomecountries.The incubation and Sustainableentrepreneurshipisasupport of sustainable longterm andviablesolutiontoentrepreneurship and addressthesechallengesSME developmentwithintheMENAregioncontinuestobehailedasalongterm andviablesolutionforinternationalandlocalgovernmentstoaddresstheseenormouschallenges.Mowgli Foundation 2016 © 2:InternationalLaborOrganization 3:WorldEconomicForum 3

Overthelastfewyears,MENAcountrieshavebeenincreasinglyfocusedonsupportingentrepreneurs,aspartoftheirpoliticalandeconomicreform efforts,withthestrongsupportofinternationalgovernmentsand donoragencies.Through these variousinitiatives,theentrepreneurshipecosystem intheregionhasdevelopedsignificantly.However,althoughcriticalcomponents,therearecertainareasoftheecosystem thathavebeenfocusedonmorethanothers,creatinganimbalancedecosystem and,asaresult,asub-optimalreturnoninvestment.Sowhatdoesabalancedecosystem,whichenablesandempowersentrepreneurstogrow,succeedandbecomebetterleadersoftheirorganisations,looklike?WhatneedstobefocusedontofurtherincreaseROEI?Throughthispaper,weshareourthoughtsonthesetwointerwovenquestionsandshedlightonthecriticalimportanceofnurturingandempoweringentrepreneurstoleverageeffectiveinvestmentinentrepreneurship.MowglihasbeenoperatingintheMENA regionsince2008,whenitsFounderandChairmanTonyBury,whohasa50yearhistoryintheregion,isaserialentrepreneurandhasstartedover19businesses,14ofwhichwereintheMiddleEast,wantedtotacklethedirectandindirectchallengesassociatedwiththisloomingunemploymentcrisis.Withinourpilotingofmentoringoverthepasteightyears,wehavedevelopedanalumniofover1680entrepreneursandmentorsacross13MENAcountriesandtheUK.Throughtheperseverance,effortandhardworkofouralumni,our780+MowgliEntrepreneurshavecreatedandsafeguardedmorethan3470jobs,providinganaverageReturnonMentoring Investmentof890%4forthosewho havefunded ourprogramsand aneconomicgenerationlevelofover$18millionfortheregionthroughthesalariesofthoseemployedbyMowgliEntrepreneurs.Thisisaphenomenalachievement,giventhatwehaveobservedthatitisfivetotentimesmoredifficultforanentrepreneurtogettobreakevenandbetrulysuccessfulintheMENAregionthaninEuropeortheUS. 13 900+ 890% MENA Mowgli ReturnonCountriesand Mentors Mentoring Investment UK 780+ 3470+ Mowgli Jobscreated& Entrepreneurs safeguardedby Mowgli EntrepreneursMowgli Foundation 2016 © 44::TThheeMMeennttoorriinnggEEffffeeccttoonnEEccoonnoommiiccGGrroowwtthhRReeppoorrtt,,MMoowwggllii22001166 4

80% ofstartupentrepreneurs failontheirfirstattempt... ...itisimperativethatthe surroundingecosystemsupportsthem ratherthan hindersthemMowgli Foundation 2016 © 5

BuildingaBalancedEntrepreneurshipEcosystemThrough ourown experience in the region,listening to the challenges thatourentrepreneursandmentors(manyofwhom arealsoentrepreneurs)faceandresearchingecosystemsthatareentrepreneur-centric,Mowglihascreated an entrepreneurshipecosystem maptohighlightthepillarsofsupportthatwebelievearerequiredtotrulydevelopsustainableentrepreneurs.Figure1:EntrepreneurshipEcosystemSource:Mowgli2013Beforeexploringtheareasofthemap,wewouldliketoposeathought-provokingquestion:Isitsensibletoprovidefinancialcapitaltowould-beentrepreneurs,whodonothavetherequiredentrepreneurialcapabilities?Mowgli Foundation 2016 © 6

Inourview,balanceisachievedbyfocusingoneachofthefollowingfourpillars: Environment Today’spotentialentrepreneurshavealreadybeenparentedandeducatedthrough primaryandsecondaryschoolsandinmanycaseshavereceivedtertiaryeducation. Currentparentingandeducationmodelsaretypicallynotconducivetodeveloping entrepreneurialbehavioursorculture Whilstrecentlyestablishedentrepreneurialinitiativeswithinschoolsanduniversities aredefinitelyrequiredforfuturegenerations,thegreaterfocushastobeontoday’s entrepreneurswhoareabove21yearsofage,toachieveafasterchangetocreate employment Thesocietyhasveryfew rolemodelswhohavebeensuccessfulwithoutusing relationships,influence orconnections (“wasta”)orwithoutbeing partofan establishedfamilybusinesswithtypicallyinherentfinancialsecurity Thereisaculturalreluctancetoriskingfailureaswellascelebratingitasastep towardsgrowth Infrastructure Thebureaucracy,lawsandregulationswithinmanycountrieshavenotbeenupdated toencouragealegalframeworkthatencouragesentrepreneurs.Inmostcountries therearenobankruptcylaws,noraretherepropertyrightsandlawsthatareproperly administered Poorinternetconnectivityandunstableelectricitysuppliesinmanycountriesofthe MENAregionarejustsomeexamplesofinterferencestheentrepreneursface Therehasbeenalackofreformstoopenupeconomicmarkets,whereestablished familybusinesseshavebeenabletomaintainquasi-monopoliesacrossarangeof businesssectorsMowgli Foundation 2016 © 7

HumanCapital Overthepastfiveyearswehaveseengreatstridesinmanyofthehumancapital componentsbeingintroducedatanembryoniclevel Mentoringisbeingrecognizedasimperativetoanentrepreneur’ssuccess,however, thementoringterm hasbecomeabuzzwordandthedefinitionispredominantly centeredaroundadviceratherthanaholisticlongterm relationshipwhichsupports theentrepreneur’scorespirit,behavioralandskilldevelopment Themainfocusofinvestmenthasbeenoncapacitybuildingthroughbusinessskills trainingandadvice FinanceTherehavebeensignificantenhancedlevelsoffinancebeingmadeavailabletoentrepreneursoverthepastfiveyears,however,thisisagainstaverylowbaseandisstillconsideredinadequatebymanystandards: Angelinvestingisstillverymuchatitsinfancywithintheregion.Angelinvestorsdo notonlyprovideinitialcapitalfinance,butmoreimportantlyprovideadisciplined structurefortheentrepreneur Successfulbusinessesneedworkingcapitaltogrow.Withworkingcapitalbeing generallyonlyavailableontheprovisionofadditionalnon-businessrelatedsecurity, manypotentiallysuccessfulbusinessesareunabletoexpand Growth equity capitalfor expansion ofsuccessfulbusiness models,whilst increasingbutstillthinlyavailable,isprovidedonthebasisthatinvestorssecure favourableterms,regardlessoftheimpactontheentrepreneur Duetothepaucityofinvestment,investorsareabletocommandapremium in termsofthelevelofshareholdingsecuredfortheinvestmentthattheyaremakingMowgli Foundation 2016 © 8

TheImperativeNeedforNurturingHumanCapitalGovernmentsand stakeholderswithin theecosystem havedevoted atremendousamountoffocustotheprovisionoffinancialcapitalinitsdifferentforms.However,itisstatingtheobviousthatifentrepreneursdonothavetherelevanthumancapabilityand/orinnerstrength,motivationandhope,thenfinanciallyinvestinginthem isunlikelytobesuccessful.Governments,stakeholdersandthegenerallynascentecosystemsaremissingakeyandmagicpieceofthejigsawbyfailingtonurturehumancapital.Inordertoprogressbeyondthis,thequestionastowhetherentrepreneursarecreatedbynatureornurtureneedstobeexplored.Whilsttherearedefinitelytwocampsonthisvexingquestion,itisourcontentionthat,whilstthevastmajorityofentrepreneursarebornwithcertaingenesthatwillstrengthentheirentrepreneurialtraits,trulysuccessfulentrepreneursarecreatedthroughnurturing.trulysuccessfulentrepreneursarecreatedthrough nurturingGiventhis,weneedtoensurethatthereisabalancebetweentheprovisionoffinancialandhumancapitalinnurturingentrepreneursandbalancingtheecosystem.Figure2:PhasesofEntrepreneurialNurturing 1 2 3 4parenting primary secondary the education andtertiary workplace educationSource:Mowgli2016 9Mowgli Foundation 2016 ©

Stage1:ParentingThefirststageofforminganentrepreneurstartsatbirth,withtheparentingofthechild.Whilstparentsneed to ensurethattheirchildrenaresafe,childrenshould notbeoverprotectedfrom alltheelements,buthavethespaceandchancetotry,fail,learnandtryagain.Childrenneedtohavesuitableearlychallengesthatempowerthem andallowthem togrow.ItisrecognisedthatwithinMENAparentstendnottoexposetheirchildrentoriskatanearlyageandseek\"safe\"subjectoptionsatschoolandthenemploymentthatistypicallywithinthepublicsectorandlargecorporates/familybusinessesfortheiroffspring.However,recentlyweareseeingsignsofchangeinthisregard.Stage2:PrimaryEducationThesecondstageoccursduringachild’sprimaryeducation,bothformalandinformal,wherepotentialentrepreneursneedtobeexposedtoandembraceboth“curiosity”and“skepticism”toharnesstheircriticalthinking,cognitiveflexibilityandcharacterforlaterinlife.Stage3:SecondaryandTertiaryEducationThe third stage occurs during a child’s secondary and tertiary education,whereentrepreneurs are equipped with advanced stages ofproblem solving,businessnetworkingandmulti-stakeholdercommunicationabilitiesandbehaviours.Thereareaconsiderablenumberofotherelementsthatcomeintoplay,forinstance: 1.Aretheyabletomakepersonalchoicesthatallowthem toleadtheirlivesthe waytheywishtoleadthem? 2.Dotheyhaveagoodpeergroupwithinwhichtheycandeveloptheiraspirations, questionandlearn? 3.Dotheyhaveentrepreneurialandleadershiprolemodelswhohavebeen successfulethicallydespitethechallengesthattheyface? 4.Dotheyhaveaccesstoandrelationshipswithmentorsintheirlives,whotheycan interactwith,learnfrom,developthemselvesandbechallengedby?ItiswellacceptedthatwithinMENAthereisalackofentrepreneurshipculturebeingdevelopedinthesethreestages.Mowgli Foundation 2016 © 10

Stage4:TheWorkplaceAsoneenterstheworkplace,thefocusisupondevelopingyourlevelofcompetencyaroundarangeofactivitiessuchasmanagingcomplexity,managingpeople,customerorientation,strategicorientationetc.Competencycomprisesthreecomponents;skills,knowledgeandbehaviours: Skillsandknowledgearetypicallygainedthroughactivitiessuchasreading,training andlisteningtoadvicewherethefeedbackisprovidedthroughatestorformal assessment Behavioursaretypicallydevelopedthroughexperiencesandcanonlybeassessed withfeedbackprovidedandacteduponthroughformsofcoachingandmentoring SkillsBehaviours KnowledgeIftwoofthethreelevelsarehighbutoneislow,theoverallcompetencyisdefinedasbeinglow,ratherthantheaverageofthethree.TypicallywithintheMENAregion,levelsofskillsandknowledgearesignificantlyhigherthanthebehaviourlevelsandtherefore,overallcompetencylevelsarereduced.Therefore,Mowgli’sfocusonthisaspectisdirectlyattributabletothehighreturnsonmentoringinvestment(ROMI)(890%)thatwehaveachieved.Thereisanotherdimensionthatneedstobecultivatedanddevelopedwhichisone’s“innerself”.Itisthroughdiscoveringandnurturingone’sinnerself,thatonecandevelopone’ssoul,senseofpurpose,leadership and followership propensity,appetiteandcapabilitytoundertakeandmanagerisk.Mowgli Foundation 2016 © 11

MassiveOpenOnlineCourses(MOOCs)andinpersontrainingcourses,businessskilldevelopmentcourses,universitydegrees,coachingandadvisoryservicesareplentifulwithintheregion.However,thelackoffocusonthedevelopmentofone’s“innerself”and behavioursunderminestheoveralllevelofcapabilitywithin theentrepreneurialecosystem.Thefinalstageofdevelopmentcomprisesacombinationofappraisalfeedback,training,advice,coachingandmentoring: AppraisalFeedback – receiving both positive and negative feedback on performance,identifyingareasofstrengthandthoseofdevelopmentthatrequire strenghteningcan behugelyvaluableinenhancing skills, knowledge and behaviours Training–undertakingandengagingwithvarioustypesofcoursestosignificantly enhancebothskillsandknowledge Advice – gaining advice from an experienced and trusted advisorcan be extremelyinvaluableinhelpingonetomaketherightdecisionsandcantypically onlyenhanceskillsandknowledge Coaching – within competency development,coaching is a transactional relationshipwhichfocusesuponbehaviouralchangewiththeview toenhance performancelevelsacrossatargetedrangeofactivities,typicallyworkorbusiness related Mentoring–isahighlytrustedandrespectedlongterm 1-2-1relationshipwhich enablesthementortoserveandsupportthementeeholistically,whichmeans both personally and professionally.Mentoring is notadvice.Mentoring is guidance,experiencesharing,perspectivegiving,mirroringandcheerleadingwith the view to ultimatelyhelping the mentee to develop theirinnerself,soul, confidence,senseofpurposeandempowermentaswellastheirappetiteand capabilitytoundertakethejourneyahead,especiallyaroundmanagingrisk.Within a mentoringrelationship,businessinsightsarealsogiventhroughexperience sharingmeaningthattheyarenotdirectsolutionsbutinspirationalandthought provokingoptionsthattheentrepreneurcanchoosetotakeornottotakeMowgli Foundation 2016 © 12

Anotherdimensionthatneedstobecultivatedisone’s“innerself”Mowgli Foundation 2016 © 13

Mentoring:anEntrepreneur’sLifelineLooking to the lastpointin stage 4,mentoring,a modelthathighlights theentrepreneurialjourney,theneedformentorsandtheneedtodevelophumancapitalthroughoutthisjourneyiscapturedbyakeypieceofphilosophy,developedbyJosephCampbell,“TheHero’sJourney”.TheHero’sJourneyspeakstousall,yetisparticularly applicabletotheentrepreneurialjourneyFigure3:TheHero’sJourney 7.Facingthe 8.Thejourney darkness9.Anew 6.Trials,allies&perspective enemies 5.Crossingtheline10.TheReturn 3.Refusingthecall1.Ordinaryworld 4.Meetingthe mentor 2.Thecallto changeSource:JosephCampbell 14Mowgli Foundation 2016 ©

Aswesitinourordinaryworld,manyofusreceivecallstochangefrom within;changejob,changecareer,changewhereweliveandsometimestheneedordesiretostartabusiness,etc.However,mostofthetimeweignorethesecallsandcontinueonwithour“normal”lives.Adaythencomeswhenwemeetsomeonewhowetypicallytrustandrespect,amentor,who‘seesus’andencouragesustotakethatplunge,despiteallofthefears.Withthementor’ssupport,wefinallylistentothecalland‘crosstheline’.Atthispointthereisnogoingback.Wefaceourfirsttrialsanddiscoverenemiesfromwithinevenwithourfamiliesandfriends,aswellasaneedtocreatenewallies.Wethenfacethedarknessasweenterintothestorm.Thereisnotimelimittohowlongthisstorm willlastandnoguaranteeastowhetherornotwearegoingtosucceedorfail.However,whatisclearisthatthejourneyafterthestorm willbeverydifferenttotheonewewereonbefore;ifwesucceedwewillhavelearntaconsiderableamount,andifwefailwewillhavebeen“burnt”bythestorm,butwillhavelearntevenmore.Thisistransformationatitsverycore.Theabilitytosucceedandsurvivethestorm isimmeasurablyenhancedbytravellingwithamentor,andwhetherwesurviveorfail,thelearningswillbethatmuchgreaterbyhavingamentorquestiondecision-makinginthefaceofthebattle. Theabilitytosucceedandsurvivethestorm is immeasurablyenhancedbytravellingwithamentorThistransformationleadstoanew perspective,whichistakenbackintothenewordinaryworldthatiscreated,untilitistime,untilitistimetofacethenextstorm.Thiscontinualprocessofgoingthroughthestormssignificantlyenhancesone’scapacity,resilience and leadership capability coupled with the ability to succeed in theever-increasingstormsthatentrepreneursfacethroughoutlife.Asthoseinvolvedinentrepreneurialandecosystem development,dowebelieve: 1.Wearecreatingtheenvironmenttonurtureentrepreneursduringtheirchildhood andadolescentyearswithintheregion? 2.Wehavecreatedanecosystem withinMENAthateffectivelynurtures,supports andnourishesentrepreneurs?Mowgli Foundation 2016 © 15

Asmentionedearlier,webelievethatitis5-10timesmoredifficulttosucceedasanentrepreneurintheMiddleEastthanineitherEuropeortheUS.So how do these budding entrepreneurs within MENA feelwhen taking on thischallenge? overwhelmedlacdkisoapflapsocuiknptmopefonstrstudlpoisnpealpionpersotsintlomneleinensstsstressstressllaacckkooffccoonnffiiddeenncceedisappointmdeisnapthpselopilnestmsents pressure stressThroughouralumniof1680+MowgliEntrepreneursandMentorsinMENA,wehaveheardthefollowingkeythemesfrom them: 1.Theirfeelingofloneliness 2.Theirlackofempowermenttoaskforhelpandmakechoicesforthemselves 3.Theirlackofconfidenceintheirownabilitytosucceedandtomakedecisions 4.Theirnervousnessoffailureanditsimplicationsonthem andtheirfamilies 5.Theirlackofparentalandfamilialsupportfortakingthedecisiontobecomean entrepreneur 6.Theirinabilitytoaddresspersonaldoubtsabouttheirbusiness 7.Theirinabilitytoachieveahealthywork-lifebalanceGiventhese,ifweareunabletoreachintothesouloftheentrepreneurtomotivatethem,give them confidence and empowerthem to take on the numerous challenges,overcomethemanyregionalbarriersandfightthenormalstormsofentrepreneurship,theinvestmentmadeinallotherareasoftheecosystem,particularlyfinancial,willnotproduceafavourableand/oroptimizedreturn.So what human capital interventions and support can we provide theentrepreneurs who todayhave alreadybeen through theirchildhood,variouseducationlevelsandarestartingorhavejuststartedtheirentrepreneurialjourneytoenablethem tobetrulysuccessful?Mowgli Foundation 2016 © 16

ThePowerofMentoringisBeingAcknowledgedWhenMowgliwasfoundedin2008,theterm ‘mentoring’wasnotwidelydiscussednorunderstood.Ourfirstmajorchallengewastoraiseawarenesswithintheregionastothepowerofmentoringandthebenefitsthatmentoringoffers,forboththeentrepreneursandmentors.Todaythingshavechangedandmentoringissynonymouswiththewordentrepreneur.MentoringhasbecomeextremelyfashionableacrossMENAwithvariouspartiesofferingdifferenttypes,platforms,scopesandlevelsofsupport,someofwhichinclude: ManyofthelargeprogramsbeingfundedbyvariousorganisationsincludingUK's DFID andFCO,USAID,WorldBanketc.havecontainedwithintheirrequestfor proposals,thedevelopmentofhumancapitalthroughmentoring Localorganisationswithintheregionhaveadoptedlocalmentoringprogramsto supporttheirentrepreneurs.SomeexampleswouldbeConnectinTunisiaand MicrofinanceforWomeninJordan MiddleEastbasedinvestorshaveincludedformsofmentoringwithintheirportfolio ofactivitiessuchasFlat6Labs,Oasis500,Wamdawiththeirmix/mentorsessions andCentennialFundutilizingYBIinSaudiArabia A majorcomponentofEndeavor’s value proposition revolves around their mentoringprogram forchosenpotentialhighimpactentrepreneurs Onlinementoring isnow being offered byorganisationssuchasCherieBlair FoundationandMercyCorpsAlthougheachoffersvaluetotheentrepreneur,thepredominantdefinitionoftheterm“mentoring”isoftenusedforcoachingorprovidingadvice,whichistypicallyundertakenonacasualbasis,orwheretherelationshipisunsupportedorvirtualandwherethehumanbond,whichisrequiredtodevelopatrustedrelationship,isdifficulttoachieve.Baseduponourimpactdata,totrulyempowerandnurturetheentrepreneurswhoarepersistingagainstgreatodds,westronglyadvocate,baseduponourimpactdata,thatmentoringisrequiredtoachievetherealbenefitsofnurturinghumancapitalandtoachievethesignificantreturnsonentrepreneurialinvestment.Inaddition,thementoringrelationshiphastobe: Holistic,coveringboththepersonalandbusinessaspectsoflife Undertakenbytrainedmentors Supported, supervised and facilitated through the initial phase of its journeytrust-based,developedthroughdeephumanbondingMowgli Foundation 2016 © 17

TimeforustoChangetheOutlookToachievesignificantjobcreationandsustainableeconomicgrowthwithinthenextdecade,entrepreneurswho havealreadypassed through theirfirstthreestagesofdevelopment,needsignificantinvestmentinthefourthstageoftheirdevelopmenttomake them investable and thereby given the opportunity to create sustainablebusinessesthatemploygrowingnumbersofpeople.Toovercomethelackofentrepreneurialculturecultivatedduringthefirstthreestagesofdevelopment,thesignificantbarrierswithintheentrepreneurshipecosystem,thelackofeconomic structuralreforms, we fundamentally believe that holistic mentoringrelationshipsareattheverycoreofnurturingentrepreneursinMENA.Mowgliutilisesaninterestingformulathatcapturestheessenceofthechallenge: Capability-Interference=PerformanceWehavebeenparticularlysurprisedatthesignificantlevelsofinterferenceexistinginthelives ofentrepreneurs within MENA and the extentto which the interferencessignificantlylimittheperformanceofmanyentrepreneurs.Whilstholistictrust-based mentoringdevelopstheinnerself,soul,confidenceandempowerstheentrepreneur’sdevelopmentofcapabilityofrisk-taking,mitigationandmanagement,itfurthergreatly enhances the reduction ofthese often cripplinginterferences.So whathuman capitalinterventionsand supportcan we provide to today'sentrepreneurstogivethem thebestchancesofgrowthandtherebysolvetheemploymentand economic challenges,atthe rate thatisrequired todayandtherebyprovidethehighestReturnonEntrepreneurialInvestment(ROEI)?Mowgli Foundation 2016 © 18

TheMowgliFoundationTheMowgliFoundationisaninternational UKheadquartered awardwinningmentoringorganisationthatworkswithinternationalandlocalgovernments,financialinstitutions,philanthropistsandcorporates globally toprovidementoringprogramsthatempoweren-trepreneurstodriveeconomicgrowthand strengthen leadership. Mowgliprovidesmentoringprogramsthat inspire,connectandguide entrepreneursandleaderstoovercomelife'spersonalandbusinesschallengesthroughthe:  Trainingandnurturingofmentors  Strengtheningofentrepreneursandtheirbusinessesbymatchingthem witha trainedmentorinfacilitatedandsupervisedlongterm relationships  Buildingofaglobalcommunityoftrainedmentorsandentrepreneursthatareable toaccessnetworking,learningandgrowthopportunities Mowglihasanalumniwithover1680membersandhasmatchedover780entrepreneurswithtrainedmentorsin14countries;Algeria,Bahrain,Egypt,Jordan,Lebanon,Libya,Morocco,Palestine,Qatar,SaudiArabia,Syria,Tunisia,YemenandtheUK. In2016,theEuropeanMentoring&CoachingCouncil(EMCC)awardedtheEuropeanQualityAward(EQA)toMowgliforitsMowgliMentoringExperience(MME)program andin2012,MowglireceivedtheMohammedbinRashidAwardforYoungBusinessLeadersAwardforthe'BestMentorNetworkintheArabRegion’ ConfidentialityTheinformationandmethodologiesoutlinedhereinareproprietaryandtheirexpressioninthisdocumentiscopyrighted,withallrightsreservedtoMowgliFoundation.Copyingordistributingthismaterialwithoutpriorpermissionfrom MowgliFoundationisstrictlyprohibited.Mowgli Foundation 2016 © 19

Endorsement“Economicstabilityleadstopoliticalandsocialstability.SohelpingentrepreneurstoflourishintheMiddleEastandNorthAfricaregionisofvitalimportancetotherestoftheworld.Thisreportprovidesvaluablebackgroundtowhatcanbedone— andindeed,whatisbeingdone— toaddresstheissue.Irecommend itasessentialreading forpolicymakers,NGOs,corporationsand internationalorganisationsofallkinds.”-ProfessorDavidClutterbuck,2016AboutDavidClutterbuck:FounderofClutterbuckAssociates,Co-FounderofEuropeanMentoringandCoachingCouncil,authorof60books,MowgliTrustee,regardedasoneofthetop25influentialthinkersinthefieldofHumanResourcesbyHRMagazine,consideredthesecondtopbusinesscoachintheUKbytheSundayIndependentandvisitingprofessoratYorkSt.John,SheffieldHallam andOxfordBrookesuniversitiesintheUK. Engagewithus /mowglitweets 20 /mowglifoundation /the-mowgli-foundation /mowglifoundationWeb:www.mowgli.org.ukEmail:[email protected]:SubscribeUKHeadquarters:St.NicholasHouseOfficeG.04,31-34HighStreetBristolBS12AW UKTel:+44(0)1172020137UKCharityNumber:1127087DunsRegistrationNumber:06587752Mowgli Foundation 2016 ©