Fostering economic growth in frontier markets: Perceptions in the Tunisian Post-Arab Spring

Abstract

The need for economic reform is at the heart of the criticism for many frontier economies. Fostering entrepreneurship and identifying business opportunities generate paths for job creation and economic growth. Given the underlying tensions that led to the Arab Spring, our study focuses on the one country that is considered to be a post-Arab Spring success story and explores the Small-Medium Enterprise (SME) business environment in Tunisia. Perceived changes in the SME environment in Tunisia were examined qualitatively via in-depth personal interviews with 21 Tunisian economic experts. Analysis of the interview data followed the thematic analysis approach. Our findings indicate that social reforms and the development of financing alternatives should be paramount for the growth of SMEs and the economic success of frontier markets. Additionally, educational reform and communication to foster entrepreneurial behaviour and effective managerial practices are required to ensure that current and future generations are prepared to engage successfully in the formal economy. Although our research focused on a single frontier market economy, we believe these findings are generalizable to many emerging economies. The findings should hold considerable policy implications due to the nature of the reforms suggested. There are popular and business press articles about the post-Arab Spring and stories about Tunisia’s Jasmine Revolution; however, increased scholarly focus on entrepreneurial efforts post-Arab Spring in Tunisia will further solidify the intersection of economic gain and human development.