Rubble to revenue: Revival of Syria’s entrepreneurship landscape

The revival of Syria’s entrepreneurial ecosystem - buffeted by years of conflict and economic deteoriation - is contingent on key support initiatives, according to experts. 

The country has battled unrest and political upheaval since 2021, with its civil war decimating the country’s economic stability and social fabric. Syrian president Bashar Al Assad was toppled last December, forcing him to flee the country. 

The civil war in Syria, which has triggered its collapse, has been billed as the world’s deadliest and one of the most protracted conflicts of the past three decades, according to a World Bank report published last May.

The country’s gross domestic product (GDP) shrank by 54% between 2010 and 2021, with its real GDP projected to contract 1.5% in 2024, extending the 1.2% decline in 2023, the report added. 

Political instability and a dearth of opportunities has taken a toll on the country’s entrepreneurial landscape. The startup ecosystem in Syria remains largely underdeveloped, under-researched and without sufficient support, a recent study conducted in the immediate aftermath of December 2024 events, has revealed.  

The country’s entrepreneurial ecosystem was beginning to take shape in the pre-conflict era - the Syrian Young Entrepreneurs Association, a non-governmental organization dedicated to building entrepreneurial capacity, was established in 2001, followed by the launch of the Syrian Investment Agency in 2007, the Competition Law and Antitrust Act in 2008 and the creation of the Syrian Market Stocks in 2009, the report by Startup Syria said. 

However, the budding environment was marred as the conflict lead to plummeting business activity and infrastructure collapse. Recovery began in 2014 with grassroot initiatives and cross-border support. At present, over 200 startups operate within Syria, with only a dozen having reached growth stage. Damascus remains the main hub for startups (33.57%), followed by Homs (14.71%) and Aleppo (12.14%), the report added. 

Top challenges
Economic instability emerges as the most pressing challenge for Syrian startups, the Startup Syria report said, and with good reason. Frail consumer purchasing power limits businesses from scaling and sustaining operations. Limited internet penetration, cultural hesitancy toward digital adoption, and unfamiliarity with app-based services restrict market expansion.

“Continued uncertainty can deter investment and complicate   business   planning.   Stability   and   security   are   crucial   for   fostering entrepreneurship,” Conor Clifford Murphy, partner at DinarStandard told Salaam Gateway. 

Other challenges include scarcity of financial investment, collapsing infrastructure, market access restrictions and dwindling human skills, among others. Entrepreneurs primarily rely on personal savings, family contributions, and small grants to launch their ventures, the Startup Syria report further identified. 

“The current banking system is one of the obstacles, as it is undercapitalized, and not proactive towards projects,” Khalid Al Terkawi, economic consultant at Jusoor Studies Centre told Salaam Gateway. 

According to the World Bank report, poverty affected 69% of the country’s population as of 2022, equivalent to about 14.5 million Syrians. Extreme poverty, which virtually did not exist before the conflict, affected more than one in four Syrians in 2022. 

“Poverty is a very bad thing, it shackles the mind and closes positive thinking, and it hinders not only entrepreneurship but many other things,” Al Terkawi added. 

Potential resurrection
Despite its current threadbare state, there are several factors that offer a glimmer of hope for the Syrian entrepreneurial ecosystem. The Startup Syria report suggests that women participation has increased over the years, with females representing 34.7% of entrepreneurs in 2025, soaring from a mere 4.4% in 2009. 

However, reviving the country's entrepreneurial ecosystem requires several key initiatives, according to DinarStandard’s Murphy. 

“[Firstly], economic reforms - the Syrian government has indicated a shift towards a free-market economy, aiming to privatize state-owned enterprises and liberalize trade regulations to attract foreign investment. Secondly, infrastructure development - rebuilding critical infrastructure such as transportation, energy, and telecommunications is necessary to support business operations and facilitate economic growth.”

Access to finance, lifting international sanctions and educational and training programs are other essential initiatives, Murphy added. “Strengthening entrepreneurship education and vocational training will equip individuals with the skills needed to start and sustain businesses.”  

Al Terkawi believes that entrepreneurship is a way of thinking first of all, so higher education and sub-university education will play a big role in the entrepreneurial thinking pattern. 

“Business incubators are very important for encouraging entrepreneurship and incubating the most capable of growth, as well as banks that provide support to startups are also important,” added Al Terkawi. 

As Syria undergoes a renaissance in more ways than one, key trends such as the return of experienced founders, increased focus on digital transformation by startups, support structures, and rising global-minded startups are likely to shape the industry, the Startup Syria report suggested.

But for the initiatives to come into play, they must be timely and dynamic. 

And the change seems to already be underway. Syria hosted a two-day tech conference, connecting Silicon Valley Syrians with those on the ground, looking to empower local talent and reimagine the country's tech future. 

As Ahmad Sufian Bayram, the Startup Syria report author, puts it: “Entrepreneurship must not wait for recovery. Entrepreneurship is recovery.”

Updated on February 13, 2025