A new approach to developing startups in Algeria through university engagement: an examination of the implementation of Ministerial Decision no. 1275 at Annaba University and The Higher School of Management Sciences (ESSG)
DOI:
https://doi.org/10.26661/2522-1566/2024-3/29-13Keywords:
entrepreneurship, startups, innovation, university, students, Ministerial Decision 1275Abstract
In 2023, startups in Algeria witnessed significant development, making them a promising sector for diversifying the Algerian economy and reducing dependence on hydrocarbons. This progress is due to various measures taken by the government, including the issuance of laws and regulations to support and accompany startups, the creation of electronic platforms for registering, protecting, and providing technical support to these enterprises, and the establishment of specific funding sources for startups. Within this framework, the Algerian Ministry of Higher Education and Scientific Research (MESRS) has outlined a special program to contribute to this new direction by involving universities in supporting the creation of startups through Ministerial Decision No. 1275. This study aims to analyze and evaluate this new initiative adopted by the Ministry of Higher Education by examining several startup projects initiated by students as part of their graduation thesis discussions at the Faculty of Economic, Commercial, and Management Sciences (FSECSG) at Annaba University and the Higher School of Management Sciences (ESSG) in Annaba. The study concludes that this new vision adopted by the Ministry of Higher Education has several positive aspects that should be valued, including: supporting the linkage of Algerian universities with their socio-economic environment, supporting the local economy, and enhancing the level of Algerian universities. However, this new approach also has several weaknesses and negative points that need solutions, such as the lack of consideration in many startup projects for key aspects like SWOT analysis, legal aspects, and innovation. Additionally, the experience is generally new, resulting in a lack of an encouraging ecosystem for startups in Algeria.
JEL Classification: M13, M130, I23
References
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Bianchi, M., Campodall'Orto, S., Frattini, F., & Vercesi, P. (2010). Enabling open innovation in small- and medium-sized enterprises: How to find alternative applications for your technologies. R&D Management, 40(04), pp. 414-431. doi: https://doi.org/10.1111/j.1467-9310.2010.00613.x
Binh, K. B., Jhang, H., Park, D., & Ryu, D. (2020). apital Markets for Small- and Medium-Sized Enterprises and Startups in Korea. The Journal of Asian Finance, Economics and Business, 07(12), pp. 195-210. doi:https://doi.org/10.13106/jafeb.2020.vol7.no12.195
Bosch, J., Olsson, H. H., Björk, J., & Ljungblad, J. (2013). The Early Stage Software Startup Development Model: A Framework for Operationalizing Lean Principles in Software Startups. Lean Enterprise Software and Systems, pp. 01-15. doi: https://doi.org/10.1007/978-3-642-44930-7_1
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Bouredja, S., & Bourouaha, A. (2022). Factors of startups success: To not fail, what should startups do? Journal of Finance & Corporate Governance, 06(02), pp. 63-85. doi: https://doi.org/10.54960/jfcg.v6i2.87
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Dahmani, J., & Miloudi, M. (2020). Governance as a Mechanism to Support the Growth of Startups: The Case of Startups in Algeria. Journal of Commercial Sciences, 19(04), pp. 111-133.
Danarahmanto, P. A., & Azis, Y. (2019). A Business Model to Support Sustainable Performance of Digital Startup Companies. CSID Journal of Infrastructure Development, 02(02), p. 168. doi:https://doi.org/10.32783/csid-jid.v2i2.73
Djekidel, Y., Doua, M., & Merrad, R. (2010). The Startup in Algeria: Characteristics and Obligations. Journal of Excellence in Research in Economics and Management, 05(01), pp. 417-427.
Djelti, M., & Chouam, B. (2017). The State of Incubators in Algeria: Case of the INTTIC Incubator in Oran. Algerian Journal of Economics and Management, 09(01), pp. 36-65.
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Freytag, R. (2019). n a Growth Path with Startups: How Established Companies Can Pursue Innovation. Strategy & Leadership, 47(04), pp. 26-33. doi: https://doi.org/10.1108/SL-05-2019-0070
FSECSG. (2022). Teaching Staff, Faculty of Economic Sciences, Commercial Sciences and Management Sciences. Retrieved from https://facsceg.univ-annaba.dz/?p=74
Ghezzi, A., Cavallo, A., Sanasi, S., & Rangone, A. (2021). Opening up to startup collaborations: Open business models and value co-creation in SMEs. Competitiveness Review: An International Business Journal, 32(07), pp. 40-61. doi:https://doi.org/10.1108/cr-04-2020-0057
Ighilmane, B. (2020). Mobile Applications and the Creation of Startups in the Transportation Sector: The Case of Uber. Journal of Organization and Work, 10(01), pp. 133-145.
Klotins, E., Unterkalmsteiner, M., & Gorschek, T. (2015). Knowledge Areas of Software Engineering in Startup Companies: A Mapping Study. Lecture Notes in Business Information Processing, pp. 245-257. doi:https://doi.org/10.1007/978-3-319-19593-3_22
Korunka, C., Frank, H., Lueger, M., & Mugler, J. (2003). The Entrepreneurial Personality in the Context of Resources, Environment, and the Startup Process—A Configurational Approach. Entrepreneurship Theory and Practice, 28(01), pp. 23-42. doi:https://doi.org/10.1111/1540-8520.00030
l’arrêté ministériel 1275. (2022). Guide du projet pour obtenir un diplôme/startup dans le cadre de l’arrêté ministériel 1275. (MESRS, Éd.) Alger.
Ma, H., Lang, C., Sun, Q., & Singh, D. (2020). Capability development in startup and mature enterprises. Management Decision, 59(06), pp. 1442-1461. doi:https://doi.org/10.1108/md-03-2020-0313
Matika, Y., & cherchem, M. (2013). Reflection on the Experience of the Algerian Startup in Strategic Innovation: Case Study. Idara, 30(01), pp. 135-164.
Matos, F. M., Monteiro, M. J., Rosa, Á., & Campino, J. (2022). Organizational resilience factors of startups: Exploratory case study. European Conference on Management Leadership and Governance, 18(01), pp. 291-299. doi:https://doi.org/10.34190/ecmlg.18.1.724
Matricano, D. (2023). Designing Policy Based on Entrepreneurial Venture Type: The Effects of Innovation, Hiring Practices, and Patent Ownership on Enterprise Development. Journal of Small Business and Enterprise Development, 30(07), pp. 1377-1395. doi:https://doi.org/10.1108/jsbed-09-2022-0375
Mebtouche, N. (2024). The Start-Up.DZ: Conceptual Insights and Creation. Rakmana: Journal of Information and Communication Sciences Studies, 02(02), pp. 111-123.
Ministériel Décision 1275. (2022). Mécanismes d’exécution du projet de la décision 1275 Diplôme-Startup-Certificat de brevet d’invention. (MESRS, Éd.) Alger.
Musyck, B., & Robota, D. (2018). ales of an Early-Stage Entrepreneurial Ecosystem for Startups in Cyprus: Prolific, Superficial, and Dysfunctional? Regions Magazine. doi:https://doi.org/10.1080/13673882.2018.00001005
Nadji, M., & Bourennane, M. (2023). Factors Affecting the success of startup company: a case study of Yassir transportation company in Algiers. Journal of Economics and sustainable Development, 06(01), pp. 777-779.
Osterwalder, A., & Pigneur, Y. (2010). Business model Generation. USA.
Peter, L., Bäck, A., & Werro, T. (2020). Conceptual Framework for Collaborative Open Innovation with a Startup Ecosystem. International Journal of Innovation in the Digital Economy, 11(01), pp. 21-43. doi:https://doi.org/10.4018/ijide.2020010102
Safari, A., Ismail, V. B., Parast, M. M., Gölgeci, İ., & Pokharel, S. (2023). Supply Chain Risk and Resilience in Startups, SMEs, and Large Enterprises: A Systematic Review and Directions for Research. The International Journal of Logistics Management, 35(02), pp. 680-709. doi:https://doi.org/10.1108/ijlm-10-2022-0422
Salamzadeh, A., & Kawamorita, H. (2017). The Enterprising Communities and Startup Ecosystem in Iran. Journal of Enterprising Communities: People and Places in the Global Economy, 11(04), pp. 456-479. doi:https://doi.org/10.1108/jec-07-2015-0036
Sedláček, P., & Sterk, V. (2017). The growth potential of startups over the business cycle. American Economic Review, 107(1), pp. 3182-3210. doi:https://doi.org/10.1257/aer.20141280
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Wang, X., Edison, H., Bajwa, S. S., Giardino, C., & Abrahamsson, P. (2016). Key challenges in software startups across life cycle stages. Agile Processes, in Software Engineering, and Extreme Programming. Springer, Cham, pp. 169-182. doi: https://doi.org/10.1007/978-3-319-33515-5_14
Zaazou, Z., & Salman, D. (2021). Egyptian small and medium-sized enterprises' battle against the COVID-19 pandemic: March–July 2020. Journal of Humanities and Applied Social Sciences, 04(02), pp. 94-112. doi:https://doi.org/10.1108/jhass-09-2020-0161
Zaid, H., & Derrardja, N. (2023). The Role of Islamic Finance in the Development of Startups. Journal of Economic Integration, 11(01), pp. 358-370.
Zaidi, R. A., Khan, M. M., Khan, R. A., & Mujtaba, B. G. (2021). Do Entrepreneurship Ecosystem and Managerial Skills Contribute to Startup Development? South Asian Journal of Business Studies, 12(01), pp. 25-53. doi:https://doi.org/10.1108/sajbs-07-2020-0233
Zhou, Y., Park, S., Wang, Q., Zhang, Z., & Behl, A. (2022). Survival of Bike-Sharing Startups in China: An Empirical Analysis of Influencing Factors. Kybernetes, 52(02), pp. 566-584. doi: https://doi.org/10.1108/K-12-2021-137
Attar, N. A. (2023). The impact of entrepreneurship training on students' intentions to start a business. Manager Review, 10(13), pp. 436-473.
Bajwa, S. S., Duc, A. N., & Abrahamsson, P. (2016). How Do Software Startups Pivot? Empirical Results from a Multiple Case Study. Lecture Notes in Business Information Processing, pp. 169-176. doi:https://doi.org/10.1007/978-3-319-40515-5_14
Belaid, D. (2013). Venture Capital as a Growth Engine for Startups and the Economy: The ASF as a Synonym for Recognition. Economic Studies Journal, 17(01), pp. 94-117.
Berg, V., Birkeland, J., Pappas, I. O., & Jaccheri, L. (2018). The Role of Data Analytics in Startup Companies: Exploring Challenges and Barriers. Lecture Notes in Computer Science, pp. 205-216. doi:https://doi.org/10.1007/978-3-030-02131-3_19
Beztouh, D. (2021). Venture Capital as an Alternative Financing Means for SMEs and Startups. Contemporary Economic Research Review, 04(01), pp. 135-149.
Bianchi, M., Campodall'Orto, S., Frattini, F., & Vercesi, P. (2010). Enabling open innovation in small- and medium-sized enterprises: How to find alternative applications for your technologies. R&D Management, 40(04), pp. 414-431. doi: https://doi.org/10.1111/j.1467-9310.2010.00613.x
Binh, K. B., Jhang, H., Park, D., & Ryu, D. (2020). apital Markets for Small- and Medium-Sized Enterprises and Startups in Korea. The Journal of Asian Finance, Economics and Business, 07(12), pp. 195-210. doi:https://doi.org/10.13106/jafeb.2020.vol7.no12.195
Bosch, J., Olsson, H. H., Björk, J., & Ljungblad, J. (2013). The Early Stage Software Startup Development Model: A Framework for Operationalizing Lean Principles in Software Startups. Lean Enterprise Software and Systems, pp. 01-15. doi: https://doi.org/10.1007/978-3-642-44930-7_1
Boubaghela, C. (2013). Strategic Marketing: A Crucial Element for the Growth and Success of Startups. Economic Studies Journal, 17(01), pp. 186-198.
Boumendil, M., Arkoub, O., & Moumou, O. (2022). Influence of the Maturity of the Venture Capital Market on the Decision-Making of Venture Capital Companies: A Case Study of the Algerian Startup Fund. Management and Development for Research and Studies, 11(02), pp. 468-489.
Bouredja, S., & Bourouaha, A. (2022). Factors of startups success: To not fail, what should startups do? Journal of Finance & Corporate Governance, 06(02), pp. 63-85. doi: https://doi.org/10.54960/jfcg.v6i2.87
Bouredja, S., & Bourouaha, A. (2022). Factors of Startups Success: To Not Fail, What Should Startups Do? Journal of Finance & Corporate Governance, 06(02), pp. 63-85.
Bouros, L. (2013). Ministerial Decree no 1275: Creation of Values. Commercial Sciences Review, 22(01), pp. 172-191.
Cantamessa, M., Gatteschi, V., Perboli, G., & Rosano, M. (2018). Startups’ Roads to Failure. Sustainability, 10(07), pp. 23-46. doi:https://doi.org/10.3390/su10072346
Chaudhari, S. L., & Sinha, M. (2021). A Study on Emerging Trends in the Indian Startup Ecosystem: Big Data, Crowdfunding, Shared Economy. International Journal of Innovation Science, 13(01), pp. 1-16.
Condom-Vilà, P. (2020). How Technology Evolution and Disruption are Defining the World’s Entrepreneurial Ecosystems: The Case of Barcelona’s Startup Ecosystem. Journal of Evolutionary Studies in Business, 05(01), pp. 14-51. doi:https://doi.org/10.1344/jesb2020.1.j067
Dahmani, J., & Miloudi, M. (2020). Governance as a Mechanism to Support the Growth of Startups: The Case of Startups in Algeria. Journal of Commercial Sciences, 19(04), pp. 111-133.
Danarahmanto, P. A., & Azis, Y. (2019). A Business Model to Support Sustainable Performance of Digital Startup Companies. CSID Journal of Infrastructure Development, 02(02), p. 168. doi:https://doi.org/10.32783/csid-jid.v2i2.73
Djekidel, Y., Doua, M., & Merrad, R. (2010). The Startup in Algeria: Characteristics and Obligations. Journal of Excellence in Research in Economics and Management, 05(01), pp. 417-427.
Djelti, M., & Chouam, B. (2017). The State of Incubators in Algeria: Case of the INTTIC Incubator in Oran. Algerian Journal of Economics and Management, 09(01), pp. 36-65.
ESSG. (2022). Bulletin N 5. Ecole Supérieure des Sciences de Gestion. Retrieved from https://ensm.dz/bulletins/3/
Freytag, R. (2019). n a Growth Path with Startups: How Established Companies Can Pursue Innovation. Strategy & Leadership, 47(04), pp. 26-33. doi: https://doi.org/10.1108/SL-05-2019-0070
FSECSG. (2022). Teaching Staff, Faculty of Economic Sciences, Commercial Sciences and Management Sciences. Retrieved from https://facsceg.univ-annaba.dz/?p=74
Ghezzi, A., Cavallo, A., Sanasi, S., & Rangone, A. (2021). Opening up to startup collaborations: Open business models and value co-creation in SMEs. Competitiveness Review: An International Business Journal, 32(07), pp. 40-61. doi:https://doi.org/10.1108/cr-04-2020-0057
Ighilmane, B. (2020). Mobile Applications and the Creation of Startups in the Transportation Sector: The Case of Uber. Journal of Organization and Work, 10(01), pp. 133-145.
Klotins, E., Unterkalmsteiner, M., & Gorschek, T. (2015). Knowledge Areas of Software Engineering in Startup Companies: A Mapping Study. Lecture Notes in Business Information Processing, pp. 245-257. doi:https://doi.org/10.1007/978-3-319-19593-3_22
Korunka, C., Frank, H., Lueger, M., & Mugler, J. (2003). The Entrepreneurial Personality in the Context of Resources, Environment, and the Startup Process—A Configurational Approach. Entrepreneurship Theory and Practice, 28(01), pp. 23-42. doi:https://doi.org/10.1111/1540-8520.00030
l’arrêté ministériel 1275. (2022). Guide du projet pour obtenir un diplôme/startup dans le cadre de l’arrêté ministériel 1275. (MESRS, Éd.) Alger.
Ma, H., Lang, C., Sun, Q., & Singh, D. (2020). Capability development in startup and mature enterprises. Management Decision, 59(06), pp. 1442-1461. doi:https://doi.org/10.1108/md-03-2020-0313
Matika, Y., & cherchem, M. (2013). Reflection on the Experience of the Algerian Startup in Strategic Innovation: Case Study. Idara, 30(01), pp. 135-164.
Matos, F. M., Monteiro, M. J., Rosa, Á., & Campino, J. (2022). Organizational resilience factors of startups: Exploratory case study. European Conference on Management Leadership and Governance, 18(01), pp. 291-299. doi:https://doi.org/10.34190/ecmlg.18.1.724
Matricano, D. (2023). Designing Policy Based on Entrepreneurial Venture Type: The Effects of Innovation, Hiring Practices, and Patent Ownership on Enterprise Development. Journal of Small Business and Enterprise Development, 30(07), pp. 1377-1395. doi:https://doi.org/10.1108/jsbed-09-2022-0375
Mebtouche, N. (2024). The Start-Up.DZ: Conceptual Insights and Creation. Rakmana: Journal of Information and Communication Sciences Studies, 02(02), pp. 111-123.
Ministériel Décision 1275. (2022). Mécanismes d’exécution du projet de la décision 1275 Diplôme-Startup-Certificat de brevet d’invention. (MESRS, Éd.) Alger.
Musyck, B., & Robota, D. (2018). ales of an Early-Stage Entrepreneurial Ecosystem for Startups in Cyprus: Prolific, Superficial, and Dysfunctional? Regions Magazine. doi:https://doi.org/10.1080/13673882.2018.00001005
Nadji, M., & Bourennane, M. (2023). Factors Affecting the success of startup company: a case study of Yassir transportation company in Algiers. Journal of Economics and sustainable Development, 06(01), pp. 777-779.
Osterwalder, A., & Pigneur, Y. (2010). Business model Generation. USA.
Peter, L., Bäck, A., & Werro, T. (2020). Conceptual Framework for Collaborative Open Innovation with a Startup Ecosystem. International Journal of Innovation in the Digital Economy, 11(01), pp. 21-43. doi:https://doi.org/10.4018/ijide.2020010102
Safari, A., Ismail, V. B., Parast, M. M., Gölgeci, İ., & Pokharel, S. (2023). Supply Chain Risk and Resilience in Startups, SMEs, and Large Enterprises: A Systematic Review and Directions for Research. The International Journal of Logistics Management, 35(02), pp. 680-709. doi:https://doi.org/10.1108/ijlm-10-2022-0422
Salamzadeh, A., & Kawamorita, H. (2017). The Enterprising Communities and Startup Ecosystem in Iran. Journal of Enterprising Communities: People and Places in the Global Economy, 11(04), pp. 456-479. doi:https://doi.org/10.1108/jec-07-2015-0036
Sedláček, P., & Sterk, V. (2017). The growth potential of startups over the business cycle. American Economic Review, 107(1), pp. 3182-3210. doi:https://doi.org/10.1257/aer.20141280
Startup Blink. (2023). Global Ecosystem Index. Retrieved 05 12, 2024, from Startup Blink: https://lp.startupblink.com/report/
Startup Ranking. (2023). Country. Retrieved 05 12, 2024, from Startup Ranking: https://www.startupranking.com/countries
Wang, X., Edison, H., Bajwa, S. S., Giardino, C., & Abrahamsson, P. (2016). Key challenges in software startups across life cycle stages. Agile Processes, in Software Engineering, and Extreme Programming. Springer, Cham, pp. 169-182. doi: https://doi.org/10.1007/978-3-319-33515-5_14
Zaazou, Z., & Salman, D. (2021). Egyptian small and medium-sized enterprises' battle against the COVID-19 pandemic: March–July 2020. Journal of Humanities and Applied Social Sciences, 04(02), pp. 94-112. doi:https://doi.org/10.1108/jhass-09-2020-0161
Zaid, H., & Derrardja, N. (2023). The Role of Islamic Finance in the Development of Startups. Journal of Economic Integration, 11(01), pp. 358-370.
Zaidi, R. A., Khan, M. M., Khan, R. A., & Mujtaba, B. G. (2021). Do Entrepreneurship Ecosystem and Managerial Skills Contribute to Startup Development? South Asian Journal of Business Studies, 12(01), pp. 25-53. doi:https://doi.org/10.1108/sajbs-07-2020-0233
Zhou, Y., Park, S., Wang, Q., Zhang, Z., & Behl, A. (2022). Survival of Bike-Sharing Startups in China: An Empirical Analysis of Influencing Factors. Kybernetes, 52(02), pp. 566-584. doi: https://doi.org/10.1108/K-12-2021-137
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Published
2024-10-18
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Entrepreneurship, Trade and Exchange Activities
How to Cite
Khoualed, A. (2024) “A new approach to developing startups in Algeria through university engagement: an examination of the implementation of Ministerial Decision no. 1275 at Annaba University and The Higher School of Management Sciences (ESSG)”, Management and Entrepreneurship: Trends of Development, 3(29), pp. 140–163. doi:10.26661/2522-1566/2024-3/29-13.
