Does Monetary Policy Matter in Developing an Entrepreneurial

Ecosystem?

Traditional Monetary Policy is Mandated to:1. Issue Currency2. Uphold Value of National Currency3. Ensure stability of prices (currency; capital; goods & services)4. Regulate the banking system (Bank of Banks)5. Bank for the Government

If we mean by Development of an Entrepreneurial Ecosystem: “building capacity and empowering the have-nots”…IT DOES NOT PROPOSE TO DO THIS!

But we have done it in Lebanon:And how?We used “innovative” monetary policy to build:1. Capital2. Environment

1. Capital- Social Capital (Green loans; housing for first-time buyers)- Cultural Capital (student loans; R&D)- Economic Capital (for SME’s in all sectors, recognizing country’s forte [innovation; knowledge; creative initiatives]; targeted Entrepreneurs)

2. EnvironmentSupported the Environment Needed for Building Capacity and Empowering the have-nots by making capital:a. Accessible to the peopleb. Affordable for the people

a. Accessible to the people: - Ensured no one is “left behind” by

making capital “accessible” to everybody: Debt or Equity

- Informed people (beneficiaries of bank loans almost doubled between 2008 [340,000] and 2012 [637,000]; GDP up 25%, same period; & created jobs); E-L; and networking events

- Built institutional infrastructure both Financial and Academic

b. Affordable for the people - Limited the cost of capital to bear minimum: bank administrative costs (e.g. student loans) - Provided framework to ensure financial transparency and consumer protection

Our New Entrepreneurial Ecosystem is Proof that Monetary Policy, after all, Does Matter!