The Tunisian “Startup Act”: an entrepreneurial revolution
The contours of the “Startup Act”
The “Startup Act” includes numerous laws and regulations governing the various support schemes. However, there are 3 main thrusts to this initiative: the label, administrative facilities and tax benefits. The “Startup Label” is by far the most sought-after by technology startups, as it enables young companies meeting specific criteria - such as stage of creation, degree of innovation or scalability - to access various benefits. By 2023, over 900 startups had already obtained this label.
One of the main benefits of the label is access to the “Startup Grant”, an allowance for co-founders of startups in the launch phase. This grant covers living expenses for one year, with amounts indexed to previous earnings, ranging from 1,000 TND to 5,000 TND per month. This enables entrepreneurs to concentrate fully on developing their business without worrying about immediate financial constraints.
In addition, the “Congé pour la Création d'une Startup” offers co-founders the possibility of taking a year's leave, renewable once, to devote themselves entirely to their entrepreneurial project. This leave is protected by legislation, guaranteeing that the employer, whether public or private (with the exception of private companies with fewer than 100 employees), cannot oppose the departure. What's more, beneficiaries have the security of returning to their original job at any time, subject to a notice period.
Another advantage is that young graduates joining a startup can also continue to benefit from employment programs such as the CIVP. This means that even if they leave the startup, they can reactivate their eligibility for these programs for up to three years, offering additional security to young talent choosing the entrepreneurial path.
The new face of the Tunisian entrepreneurial eco-system
Since its launch over 6 years ago, the “Startup Act” has had a profound impact on the Tunisian economy and entrepreneurial eco-system. It has contributed to the creation of thousands of jobs, particularly for young people, and stimulated innovation in many sectors. According to an article by Resilient Digital Africa, “Tunisia's technology sector grew by 14% in 2022, largely thanks to Startup Act initiatives.” In addition, many Tunisian entrepreneurs testify to the benefits offered by the “Startup Act”. For example, Amel Saidane, co-founder of incubator “BetaCube”, says: “The Startup Act has been a catalyst for our ecosystem, enabling us to grow faster and more sustainably.”
Firstly, the initiative has fostered the creation of over 900 innovative startups in technology sectors such as healthcare, transport, education, climate and AI. These startups now benefit from simplified access to finance thanks to dedicated funds and tax exemptions, which has attracted the interest of foreign investors and boosted the local economy. Indeed, investment in Tunisian startups has exceeded 300 million dinars (around $100 million) since the initiative was launched. What's more, startups and entrepreneurship play a major role in job creation, reducing unemployment and “brain drain”. According to the GSMA report, this entrepreneurial eco-system boom has contributed to the creation of over 50,000 direct and indirect jobs.
The map below provides a clear perspective on the depth of the impact of the Startup Act:
The “Startup Act 2.0” to consolidate and improve
In 2023, the Tunisian government has decided to strengthen the “Startup Act” by introducing “Startup Act 2.0”, which aims to complement the initial framework and further stimulate the growth of startups. To achieve this, the Tunisian government will place internationalization at the heart of the new scheme. Tunisian startups will now benefit from specific programs to access international markets, forge foreign partnerships and obtain global funding. In 2023, for example, over 50 Tunisian startups took part in international trade fairs thanks to this initiative. Another crucial point is access to financing. Additional measures to facilitate access to investment funds and bank loans have been put in place. The government has introduced guarantees to encourage banks to lend to startups, increasing the flow of capital to young innovative companies by 30% by 2023.
Tunisia, a land of talent, continues its quest to diversify and stimulate its economy by creating a dynamic entrepreneurial ecosystem. The Startup Act and Startup Act 2.0, anchored in new legislation, provide solutions on the ground to enable the country to realize its ambitions. Thanks to these initiatives, Tunisia is positioning itself as a regional leader in innovation and entrepreneurship, moving resolutely forward in the direction of a prosperous economic future.
Sources :
https://startup.gov.tn/fr/startup_act/discover
https://www.linkedin.com/pulse/ecosystem-deep-dives-tunisias-start-up-act-timothy-motte/
https://www.facebook.com/eotunisia/?locale=sq_AL
https://startup.gov.tn/fr/startup_act/benefits_to_entrepreneurs
