Roundup: Lebanon's startups face multiple challenges amid economic crisis

by Dana Halawi BEIRUT, Jan. 10 (Xinhua) -- Lebanon's startups are facing numerous challenges in light of the country's political instability and the economic crisis that started in 2019. Wassim Kari, a co-founder of Parallel Health and Beauty, a group of companies focusing on digital content and e-commerce in the beauty field in the Levant region, told Xinhua that one significant challenge facing Lebanese startups is the lack of access to funds as the local venture capital ecosystem slowed its activity amid the current political instability. So growth and profitability are big challenges in Lebanon, but it also provides an opportunity to learn new ways to run our startup," he said. Kari said the crisis in Lebanon pushed startups to expand outside the country to maintain their growth and survival. Kari's company is also facing the challenge of rebuilding talent amid the brain drain following the Beirut blast and financial crisis. "My partners and I had to recreate the whole team and provide training all over again to our new people," he said. Azar now puts the company's headquarters in the United States, where he thought the entity registration and fundraising are much quicker, leaving only a R&D office in Beirut. Maroun Chammas, CEO of Berytech, an institution that supports Lebanese entrepreneurs, startups and business owners, noted that Lebanese entrepreneurs need help accessing overseas markets, mainly when exporting food products, which requires a series of certifications. Chammas said that the startups in Lebanon currently provide around 10,000 direct and indirect jobs, mainly in agricultural technology and clean technology. He stated that the future of entrepreneurship could be promising in Lebanon if the country succeeds in restoring security and stability to provide the investor with a law-based framework.