The Egyptian Insurance Federation affirmed that nascent enterprises encounter numerous obstacles, notably financial hazards. Over 80% of these ventures grapple with this, stemming from cash flow difficulties; frequently, they expend more than they generate in their initial three years of operation.
In its recent weekly report, the Federation highlighted risks inherent in a startup’s product or service offerings and the subsequent liabilities to outside parties. Competitive threats were also mentioned; securing a patent for unique selling points is crucial to thwarting idea appropriation by rivals.
Cybersecurity breaches present a significant threat, the Federation added. Malicious actors actively seek vulnerabilities in fledgling companies’ systems, aiming to extort ransoms or pilfer sensitive data such as client information, personnel records, and financial details.
The Federation emphasized Egypt’s leading position in fostering burgeoning projects – not only domestically, but also across the African continent, making it a prime destination for investment in new ventures.
The Federation underscored the vital role of insurance for startups, countering the common misconception that it’s a dispensable luxury.
The Federation indicated that insurance policies serve as effective risk mitigation tools, enhancing a startup’s attractiveness to potential collaborators and financial backers.
The Federation also noted the highly individualized needs across the startup landscape, with no two businesses requiring identical insurance coverage.
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