Using Entrepreneurship to Promote Stability in Fragile Regions

Summary

• Described as the productive combination of innovation, initiative, risk and capital, entrepreneurship could provide a crucial underpinning for stability in conflict-affected regions via job creation and improved human security.
• State building initiatives regularly tout entrepreneurship as an integral part of broader economic development, political or security strategies but seldom explain the thinking behind purported causal linkages.
• The Six + Six model offers a targeted and comprehensive strategy to promote entrepreneurship in conflict-affected states. It provides a dynamic alternative to aid-based strategies.
• Given the growing success of impact investing, it is imperative for bilateral and multilateral development agencies to help facilitate such investment by co-investing and seeding further impact investing.
• Entrepreneurs in fragile regions urgently need support in the form of enabling environments and innovative approaches that reward their creativity and risk-taking. To bolster entrepreneurs’ chances for success, policymakers should consider: redirecting foreign assistance; re-focusing private sector development interventions; re-conceptualizing state building; and re-valuing individuals.

About this Brief

USIP’s Center for Sustainable Economies hosted a series of blogs on entrepreneurship in conflict-affected states on the International Network for Economics and Conflict (http://inec.usip. org) from March to July 2012. The lead contributor was Steven Koltai, an executive with 30 years of experience in entrepreneurship. This paper synthesizes the main conclusions and pertinent lessons for policymakers and practitioners.

About the Authors

As director of USIP’s Center for Sustainable Economies, Raymond Gilpin co-chairs the Business and Peace Taskforce and manages the International Network on Economics and Conflict.

Steven Koltai is a multi-time successful entrepreneur, who created and ran the State Department’s Global Entrepreneurship Program (GEP) from 2010 to 2012.

Research assistance from Brett Boor is gratefully acknowledged.