Struggles of start-ups in Egypt

Interviewer: Farah Medhat Refaat

Interviewee: Yahia Medhat
Date: 9-4-2022.

Music: fade in: Under pressure - Michael Kobrin 105bpm (0-6 sec)

Despite that in the last decade Egypt has experienced a dramatic increase in the number of start-ups that
flooded the market, still start-up businesses especially those with new, unconventional ideas face many
struggles, making the Egyptian market a risky place for such businesses. According to Failory, only 10%
of startups succeed each year in Egypt. (0-0:21)

Yahia Medhat, 24-year-old co-founder of Pastini, talks to us about his fresh pasta business which is a
start-up that serves a rare product in the Egyptian market. (0:21- 0:31)

YM: “What I saw from the technical point of view about fresh pasta is you could say a lack of or
you could say a deficiency maybe. Like it's not available in the market much. So, I just wanted to make it.
More available.” (0:31- 0:50)

According to Economic Research Forum, the shortage of skilled labor is at the top of the list of challenges
for growing businesses, especially if it’s a new product as it would require labor that would understand,
learn, and adapt to the new business model. (0:50- 1:06)

When asked about his worries for his start-up, Yahia demonstrated a precise angle which is the labor.
(1:06- 1:11)

YM: “I would say that I'm anxious about the staff making perhaps mistakes or just taking longer
than expected to adapt to the nature of our work. (1:11- 1:29)

Other remarkable struggle of start-ups with new products is the uncertainty that comes with it because,
especially in the beginning, they are still huge question marks. According to Egypt Innovate, in order for
a product to rapidly succeed, it most likely needs to be owned by a prestigious, well-established company.
Therefore, startups are faced with this dilemma of uncertainty regardless of their quality and performance.
(1:29- 2:53)

YM: “How people perceive our product, how they perceive the quality or offering a view. It's just
observing how the whole thing goes and how the market responds to our project.” (1:53- 2:07)

Some solutions to the challenges start-ups that offer new products face in Egypt could be the careful
exploration and evaluation of a similar product or idea outside of the country as it would act as a
representative model for the business. Yahia reveals how he initially planned to his fresh pasta business.
(2:07- 2:27)
 YM: “I went through a long process. It started with looking at similar models in different
countries. I started looking at the machinery, looking at the ingredients needed to really make a premium
product.” (2:27- 2:45)

Social media is another effective element that helps brands overcome challenges and aids start-ups to
reach their target audience. It essentially informs people about the brand, tremendously increasing brand
awareness and facilitates communication. (2:45- 3:00)

YM: It's an integral part of all businesses. It plays a huge role in shaping people's opinions and
interests.” (3:00- 3:14)

Despite that start-ups in Egypt face several challenges especially those who are providing new products,
there are some elements such as intensive research both on the local and global scale as well as the use of
social media that facilitates those businesses’ journey and help them overcome their challenges. (3:14-
3:35)

Farah Medhat, A-U-C Radio.