ENTREPRENEURSHIP IN LEBANON: PERCEPTIONS AND REALITIES
Private Equity Venture Capital
Subsidized Loans
Angel Investment
Loans
FINANCE
SECURING FUNDING IS ONE OF
THE MAIN CHALLENGES FOR
ENTREPRENEURS AT VARIOUS STAGES
OF THEIR BUSINESSES' LIFE CYCLE.
Endeavor Lebanon's survey results show that in
Lebanon debt financing is more available than
equity financing.
Entrepreneurs sometimes turn to banks for loans
but being risk averse, the latter often require
collateral of up to 200% of a business loan.
The launch of Kafalat, a financial institution that
None
Poor
Neutral
Moderate
High
16%
25%
4%
22%
32%
9%
21%
5%
21%
44%
14%
26%
5%
23%
32%
16%
21%
4%
19%
40%
14%
27%
3%
14%
42%
provides loan guarantees to select companies,
has given entrepreneurs access to more
affordable loans and is a resounding success in
Lebanon in terms of financing growth.
In regard to equity financing, angel investment
is considered by entrepreneurs to be the least
available in Lebanon. Research by Endeavor
Insight has revealed that entrepreneurs often
cite Venture Capital as the main source of
growth capital in the country, but that access to
it is limited due to the small number of Venture
Capital firms.
AVAILABILITY OF SOURCES OF FINANCE IN LEBANON
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