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Endeavor Lebanon Impact Report (2014–2015)

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(6) The World Bank, Enterprise Surveys, http://www.enterprisesurveys.org (*) In the present research: Job creators are defined as firms that employed more or the same number of employees at the time of the survey than they did three years before. Job destroyers are defined as firms that employed fewer employees at the time of the survey than they did three years before. Source: Endeavor Insight Analysis - Adapted from World Bank Data In order to analyze the impact of scale-ups on job creation in Lebanon, Endeavor Insight used data from the 2013 World Bank Enterprise Survey which consists of a sample of 561 firms that are representative of the Lebanese non-agricultural sector 6 . Three types of firms were identified in the study: • Start-ups up to three years old • Scale-ups greater than three years old • Non-scale-ups greater than three years old The definition of scale-ups adopted was the following: a firm more than three years old with an average annual employment growth rate greater than or equal to 20% during the previous three years. The sample of non-high-growth firms (or non-scale-ups) includes job creators and job destroyers.* Non-scale-ups Scale-ups Start-ups 3% 85% 12% DATA ANALYSIS REVEALED THAT SCALE-UPS REPRESENT 12% OF FIRMS IN THE LEBANESE ECONOMY IMPACT REPORT 2014 – 2015 9

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