Palestine is classified as a factor-driven economy; it exhibits a low early-stage entrepreneurship rate (the proportion of the adult population who are involved in early stage entrepreneurial activity is around 9%) among factor-driven countries, and among the MENA seven GEM countries (14.7%). The low participation rate in early-stage entrepreneurship (TEA) is due to the low rate of involvement in nascent businesses (3% for Palestine and 8.6% for the MENA-7 countries). In the other stages of entrepreneurship, Palestine exhibits rates closer to that of the MENA-GEM countries (baby business rate is 6% for Palestine and 5.8% for the MENA-7 countries; established business rate is 6.9% for Palestine and 8.2% for the MENA-7 countries).

Global Entrepreneurship Monitor: Palestine Country Report 2009, The Global Entrepreneurship Monitor (GEM), MAS, and IDRC. Click here to read the study.