The Emergence of the Startup Ecosystem in Palestine
The Emergence of the Startup Ecosystem in Palestine:
How We Can Capitalize on the Wider Diaspora Community Abroad
Known throughout history as the ‘land of milk and honey’, Palestine has long since held its place in the world of trade and commerce through centuries of exporting local goods to regional, geographical locations. Goods such as honey, olives and olive oil, and lastly, oranges were exported to nearby countries. This export venture allowed Palestinian farmers to expand their local businesses by purchasing more land required for agricultural cultivation; however, now the opportunity had come for farmers to broaden their horizons in order that their products reach the wider, international world. Today, many goods and products produced in Palestine can be found in shops and markets worldwide from locally grown foods to traditionally-made handicrafts. In the past, people looked at this type of exporting venture as a way for small farmers to make money selling their goods in order to support their families. Today, on the other hand, these farmers can be recognized as the first entrepreneurs in the country who saw they had the opportunity to grow their small businesses into a massive exporting enterprise, and that they did.
It is to my belief that the startup ecosystem in Palestine began with these farmers and continued to grow ever more with today’s younger generation of entrepreneurs who, while they may possess different visions and ideas, all carry the same purpose: to work towards a better a brighter future for Palestine and Palestinians respectively. Any entrepreneur begins his or her journey with a simple thought or idea for a project which he or she believes could help benefit many people and in multiple ways, however, it’s not the thought itself but the action steps needed to be taken in order for the entrepreneur to see his or her idea turn into something tangible. As author Neil Gaiman points out:
“But the truth is, it’s not the idea,
It’s never the idea,
It’s always what you do with it.”
Gaiman’s words ring true for anyone looking to start their own business. For most people reaching the earliest stage of a project is always the hardest, as not many people come from wealthy backgrounds, nor do they possess the adequate amount of funds needed to get their projects up and running. This is where people start to seek investment opportunities from stakeholders, support organizations, or different organizations that typically focus on specific parts of the ecosystem function and startups at their specific development stage(s).
New startups emerge every day, yet small business owners often face difficulty finding the proper stakeholders or partners who are willing to invest and capitalize on their startup; therefore, it is important that any stakeholder, potential partner(s), or funding organization seek what they think is the best startup to engage in a business venture with, and to do so both parties must maintain honest, good intentions, and mutual agreement concerning funding structures and complex funding arrangements.
How we can capitalize on the wider diaspora community abroad?
Seeking out the best startup to invest in comes with a long list of external and internal factors that may impact the startup at any stage. External factors such as financial climate, big market disruptions and significant transitions control the overall structure of a startup ecosystem and the way things operate within it. Researchers suggest that internal attributes for startup ecosystems require cultural attributes (a culture of entrepreneurship and histories of successful entrepreneurship), social attributes that are accessed through social ties (worker talent, investment capital, social networks, and entrepreneurial mentors) and material attributes grounded in specific places (government policies, universities, support services, physical infrastructure, and open local markets).
The key element here is to choose from among the most unique and innovative ventures which possess the potential to maximize revenues and further strengthen your monopoly. The most leading startups in the world today offer products and services in the IT and technology sector that are growing at a fast pace and competing with tech giants across the globe, whilst at the same time creating employment opportunities along the way.
In order to capitalize on the wider diaspora community abroad, we must seek and reach out to Palestinians living in different regions of the world who are currently underway in their startup projects, discover and study which types of products and services they are offering, who their main target groups are and in what ways can their services be of benefit to Palestinian communities locally and internationally.
According to Feras Nasr, CEO and Co-Founder of AidBits, a Palestinian cloud-based data management platform designed for the non-profit sector that was founded in Palestine in 2011, stated in an article in the Telegraph that:
“For startup founders here, it's a difficult step to take the plunge and leave their jobs to devote their time and effort into making their startup succeed. Failure isn't widely accepted here and a social system that would provide security in terms of healthcare, education or un-employability assistance doesn’t yet exist.
“The legal structure in Palestine needs to be improved to encourage startups to grow. While the process of registering a company has been improved and shortened, it is expensive. The legal structure isn't investor-friendly, and startups will incorporate outside of Palestine to comply with most investor requirements, leading to more complexities and expenses.”
While a startup community exists in Palestine, there is definitely an ever-growing Palestinian startup ecosystem abroad where startup founders are seeking to outsource their business ventures, patents, and services locally, regionally and internationally, with the attempts at bringing service to others and creating employment opportunities simultaneously. Capitalizing on the wider diaspora community abroad would mean reaching out to, and assisting, new startups in increasing sales revenues, maximizing profits, and then returning to Palestine to branch out in the country and make use of the talent and creativity found here.