The Arab Spring has unleashed powerful social forces across the region ignited by young people seeking to reclaim their countries from the hands of long-standing dictators. In the aftermath of the revolutions, this younger generation has expressed a greater interest and responsibility towards improving their communities. Faced with crumbling economies and rising unemployment, young people in the region are combining their activism and entrepreneurial ingenuity to launch new businesses and non-profit organizations.

A new research study entitled, Social Entrepreneurship: Why is It Important Post Arab Spring? released by the Program on Arab Reform and Democracy at Stanford University's Center on Democracy, Development, and the Rule of Law finds that economic conditions coupled with social changes unleashed by the Arab Spring have created an environment ripe for social entrepreneurship.

Operating where the public and private sector have failed, social entrepreneurs introduce new ideas and approaches to solve intractable development challenges in their local communities. Applying business principles towards a social cause, social entrepreneurs create new programs, reforms, and goods that benefit disadvantaged and marginalized segments of society. Leading innovations in the non-profit and business sectors, they have generated new employment opportunities for youth, worked towards building more inclusive societies, and advanced sustainable environmental practices.

As more aid dollars flow towards social entrepreneurship programs, little research has been conducted to examine the sector post Arab Spring. Researchers with the Stanford Program on Arab Reform and Democracy launched this study to assess general economic conditions, attitudes towards entrepreneurship, and the challenges social entrepreneurs currently face.

The Stanford research team used data from an online survey issued in Arabic and English to more than 12,000 residents in 18 Arab countries by Bayt.com, the leading online jobsite in the Arab region, and YouGov, a research and consulting organization. The survey targeted respondents who are on average younger, better educated, and more technologically connected than the general Arab public—previous research issued by the Brookings Institution suggested that this target group is predisposed towards the entrepreneurial sector.

Citizen-led uprisings have inspired a new generation of youth who are increasingly invested in the future development of their societies across the larger region.

Youth-led social and economic development: One of the most revealing findings in the study uncovered the changing perceptions and attitudes of young people towards the long-term development of their societies after the revolutions. Citizen-led uprisings have inspired a new generation of youth who are increasingly invested in the future development of their societies across the larger region. In Arab Spring countries 71% of respondents in Egypt and 75% in Tunisia expressed interest in improving their communities, revealing this upward trend.

According to Jacqueline Kameel, managing director of Nahdet el Mahrousa, the first social enterprise incubator in Egypt, "Youth are more vocal than ever now, they have a sense of responsibility towards Egypt, believing that if we don't do enough now, we might never have a similar chance to take the lead and impact the future of Egypt." In addition, the survey found that volunteerism is on the rise with nearly one-third of Egyptian and Tunisian youth currently volunteering their time at local NGOs, religious establishments, and schools. These trends represent promising pathways towards social entrepreneurship for the region's youth.

Rising unemployment leads to increased interest in self-employment: The results revealed deteriorating economic conditions across the larger region, impacting all age groups and economic levels. However, the effect on countries that experienced protracted revolutions is particularly stark with 58% of respondents in Tunisia, 68% in Egypt, and 71% in Syria indicating that their employment situation now is either worse or much worse than before the revolutions. Those working in the private sector have been disproportionately impacted by the Arab Spring than their counterparts in the public sector, suffering higher levels of unemployment.

Despite this fact, respondents across the region expressed a strong desire to work in the private sector, reflecting a move away from the government as a primary employer. The survey also revealed widespread interest in business ownership as respondents in every country said that if given the choice they would opt for self-employment. While many cited the independence it would offer, others indicated they were drawn to entrepreneurship out of economic necessity, not opportunity. Current economic conditions and a move towards the private sector and business ownership point to the growth of the entrepreneurship sector across the region.

Growing awareness of entrepreneurial sector: With increasing interest in social entrepreneurship, the study evaluated the level of familiarity with entrepreneurship—in both the business and social sense—as the term is often perceived as an import from the West. Survey results concluded that overall there was a general level of familiarity with the term, but more respondents identified with the business side of entrepreneurship, indicating that there is more work to do to build awareness around the social sector. More encouraging was the number of respondents—63% in Tunisia and 56% in Egypt—who expressed an interest in starting their own business and a general openness towards working in the field of social entrepreneurship.

Challenges facing the sector: While survey results revealed several opportunities, there remains a high rate of failure for new businesses and NGOs, preventing them from reaching maturity. In Egypt 44% of business owners stated that their current businesses were not performing well, and in Syria the figures were higher at 50%. Those operating NGOs did not fare much better, as 56% of respondents in Egypt said that they had hoped to start an organization but were unable to do so. Government interference, the inability to obtain finance, bureaucratic hurdles, fear of failure, and corruption were the major obstacles to starting a new enterprise.Government interference, the inability to obtain finance, bureaucratic hurdles, fear of failure, and corruption were the major obstacles to starting a new enterprise. With transitions underway in Arab Spring countries, Stanford researchers called for a number of policy recommendations to create an ecosystem conducive for entrepreneurship to thrive. Some of their suggestions include: legal and regulatory reform in the banking sector; introducing entrepreneurial education in schools; and increasing the number of high-tech incubators.

While the Arab Spring has had an immediate negative impact on the economic landscape in the Arab world, the positive effect on citizens’ interest in social and economic development remains strong. As Arab Spring countries attempt to rebuild economically, social entrepreneurship represents a promising pathway for the post-revolutionary generation to engage in positive social change in the region and beyond. 

This spring four social entrepreneurs will be descending on the Stanford campus from as far away as Bosnia, Palestine, and Kenya and as close as San Francisco, to spend the quarter at the Center on Democracy, Development, and the Rule of Law (CDDRL) engaging researchers and students across the university. These social change leaders are part of the newly launched Program on Social Entrepreneurship at CDDRL, which brings the work of practitioners to the Stanford classroom where it is rarely on display.

Social entrepreneurs use new approaches and innovative methods to challenge existing systems that keep people socially, economically, and politically marginalized. Rather than generating personal or private wealth, dividends are paid directly to society through new programs, advocacy campaigns, and more.

The first cohort of Social Entrepreneurs in Residence at Stanford (SEERS) includes leaders working on the frontlines of gender justice and social reform in societies that have experienced civil war, ethnic division, and continued economic and social injustice. Zawadi Nyong'o and Taida Horozovic are both advancing the rights of women and girls in regions affected by violent conflict. Nyong'o, a Kenyan Afro-feminist, leads several initiatives across the African continent to advance the reproductive rights of women and sexual minorities, and works to promote a more participatory role for women in peace-building efforts. After fleeing the civil war in the 1990s, Horozovic returned to her home in Bosnia-Herzegovina to launch CURE, an organization committed to ending gender violence through educational awareness, media tools, and global campaigns.

The Program looks forward to welcoming the first class of Social Entrepreneurs-in-Residence to Stanford this April where they will have the opportunity to develop their initiatives further, enrich themselves in our academic community, and bring their experiences directly inside the classroom for students to learn first-hand about the realities on the ground.    Kavita Ramdas

Confronting racial and political injustice in their local communities, Ramzi Jaber and Steve Williams initiated innovative projects to give voice and resonance to these important issues. Jaber, a member of the Palestinian diaspora, returned to the West Bank to launch Visualizing Palestine, an initiative that uses visual stories and graphics to build international awareness around past and present injustices. Jaber was also the key organizer of the first TEDx conference in Ramallah in 2011, to give a global platform to Palestinian activists and change-makers. Williams, a Stanford graduate (‘92), co-founded the organization POWER, a grassroots organization that works to defend the rights of low income workers, immigrant women, and advocates for housing justice in some of San Francisco's poorer communities.

The Program on Social Entrepreneurship is led by two faculty co-directors, Kathryn Stoner, CDDRL deputy director and senior fellow at the Freeman Spogli Institute and Deborah Rhode, the Ernest W. McFarland Professor of Law and director of the Stanford Center on the Legal Profession at the Stanford Law School. Kavita N. Ramdas serves as the Program's executive director and brings her relevant experience as the former president and CEO of the Global Fund for Women where she worked to identify and support an international network of social entrepreneurs. 

Beginning in April, the SEERS will spend eight weeks at Stanford plugging into the academic community and benefiting from a brief respite from their professional lives to reflect on their experiences and recharge their batteries. Ramdas and Stoner-Weiss will be teaching a course (IR 142) examining how social entrepreneurs contribute to shaping democracy, development, and creating more just societies.According to Ramdas, "The Program looks forward to welcoming the first class of Social Entrepreneurs-in-Residence to Stanford this April where they will have the opportunity to develop their initiatives further, enrich themselves in our academic community, and bring their experiences directly inside the classroom for students to learn first-hand about the realities on the ground."

Students enrolled in the course will work with the social entrepreneurs to develop case studies that examine, document, and share lessons learned from their work. With little original research available on social entrepreneurship, this is a rare opportunity for the Stanford community to examine new practices and approaches to promoting social and economic change, highlighting what has worked and failed to work. Guest lecturers include leaders from IDEO.org and Lulan Artisans, as well as faculty members Sarah Soule of the Stanford Graduate School of Business and Stanford Professor Emeritus David Abernethy.

In addition to the course, the SEERS will be featured in events and gatherings on campus hosted by the Faculty Advisory Council whose members hail from the Haas Center for Public Service, the Clayman Institute for Gender Research, the Stanford Law School, the Stanford School of Medicine, the Center for Philanthropy and Civil Society, and the Graduate School of Business. The Launch of the Program on Social Entrepreneurship will be hosted at CDDRL on April 5 at 5:30 pm to introduce the SEERS to the larger Stanford community and kick-off their eight-week residency. It is free and open to the general public.

The Program is planning to welcome the second class of social entrepreneurs to Stanford during the fall of the 2012-13 academic year. Focusing on using legal frameworks as a force for change, the program will solicit nominations from experts in the field who have engaged with leaders working to transform and improve legal structures that challenge prevailing inequalities or protect the rights of marginalized groups in society.

For more information on the Program on Social Entrepreneurship, the Social Entrepreneurs in Residence at Stanford, or to view the calendar of events during their stay, please visit: pse.stanford.edu. 

The cloud offers game-changing opportunities for start-ups to large enterprises, if entrepreneurs and enterprise leaders know how best to harness its power. A panel of cloud computing experts shared their wealth of experience to a full house at the special event on Innovation in the Cloud: How Cloud Computing is Changing the Landscape of Entrepreneurship and Innovation, organized by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) in partnership with China America Innovation Network (CHAIN).

In this featured panel discussion at the Stanford Graduate School of Business for Stanford's Entrepreneurship Week 2012, the panel shared insights on cloud computing technology changes, enterprise transformation, business model innovation, investor strategies, and market opportunities, with more than 200 Stanford students, faculty, entrepreneurs and Valley professionals.

The panel was composed of serial entrepreneur Jim Dai, CEO of CalmSea, IT expert Sam Ghods, vice president of technology at Box.com, marketing expert Ken Oestreich, senior director of cloud and virtualization marketing at EMC, and investor Cindy Padnos, founder and managing director of Illuminate Ventures. Robert Scoble, startup liaison officer at Rackspace and a technical evangelist, moderated the discussion.

The panelists acknowledged that users had grown to accept everything could be virtual, and cloud is radically changing the face of enterprise strategy, processes, and outcomes. Cloud computing can dramatically decrease timelines and investment costs which encourages flexible growth and experimentation by rapid iteration. This shift, together with cloud computing’s cost effectiveness, strongly favors the way start-ups work.

For entrepreneurs, one piece of good news is that cloud allows smaller firms to compete with big players in new ways. This trend has also prompted the rise of micro VCs, with typical investments of $100,000 to $500,000. While SMEs continue to embrace cloud-based services, how large enterprises adapt and evolve the cloud market will remain interesting.

Stanford Entrepreneurship Week 2012 takes place February 27 through March 7. This collection of over 30 events is hosted by the Stanford Entrepreneurship Network (SEN), a federation of programs, student groups and organizations supporting entrepreneurship in the Stanford community.