The revival of the Joint Comprehensive Plan of Action, the formal name of Iran nuclear deal, per se cannot help startup companies and entrepreneurs develop their businesses, Adel Talebi, a strategist for e-businesses, says. What follows is a translation of his article for the Persian economic daily Donya-e-Eqtesad:
The startup community has not forgotten the golden years between 2013 and 2018 that brimmed with dynamism and endeavors, hopes and aspirations. The years of “we’ll stay and build it”. It has not forgotten what came after either: years of restrictions, filtering of growth tools, years of liquidations and denial of access due to sanctions.
There is talk of the likely revival of JCPOA these days. Politicians say white smoke is emerging from Vienna, Austria, as the exchange rate of foreign currencies experiences a limited impact, which has rightly or wrongly become one of the gauges for assessing the state of Iran’s economy.
However, many players in the Iranian startup ecosystem are not hopeful. What we saw in the current year (2021-22) was disheartening: the approval and implementation of the so-called “Plan to Protect the Rights of Internet Users”, along with the filtering of e-businesses and increasing brain drain.
The most important factor that makes experts disappointed about the future, both in the short and even medium term, is the issue of brain drain, the frustration and migration of the elite. The startup ecosystem, unlike other areas, fully depends on human resources.
In the automotive industry, for example, the revival of Iran nuclear deal and a simple bylaw can quickly improve the market. The same is true of other sectors: housing, capital market and agriculture, as they could be quickly overhauled with a tweak in rules and regulations.
But when it comes to technology where the driving force is the skilled workforce, many professionals have migrated and those who have remained are thinking of leaving. And those who are not willing to migrate, for any reason, are disappointed about the future.
In practice, at least 10 years of tutoring are needed to educate a new generation of tech enthusiasts. Do not forget that what we saw between 2013 and 2018 was the outcome of the cooperation between two generations: a generation that was optimistic about the future following the political and economic developments of 1997-98 [the year a reformist government came to power] and a young generation that was full of optimism and dynamism.
Impact of JCPOA
Today, even the revival of JCPOA won’t help online businesses and startups. Some might be hopeful that potential foreign investments would energize this field, but they have forgotten that the startup sector needs long-term investments.
Given what happened during 2013-18, the dissemination of propaganda against investors and startup operators, and equating cyberspace with security threat, foreign investors won’t dare to enter Iran.
Under the circumstances, in the absence of investment and skilled workers, how can you be hopeful about the future?
Furthermore, a significant part of restrictions is internal; all kinds of investments in information technology are being regarded from a security perspective. Instead of being sanguine about the prospects of JCPOA, we need to pray for a change in the views of policymakers. They need to ditch their wrong perceptions and accept the world as it is. This is the first prerequisite for the improvement of online businesses and startups, regardless of what becomes of JCPOA.
Also, allowing the European and Asian countries to forge ties with Iran is the centerpiece of JCPOA. More than 50% of what we call “startups” and “startup ecosystem” are based in the US. Almost all marketing tools are in US digital space and most IT infrastructures are American.
The only way to improve the situation is seemingly direct negotiations with the US. You can’t be hopeful about the future of IT without holding talks and reaching understanding with the US since the nuclear deal has nothing to offer in this field.
