Policy Brief: Legal and regulatory and institutional growth challenges for startups supporting MSMEs in Tunisia

This policy brief by HiiL explores the impact of Tunisia’s legal, regulatory, and institutional frameworks on justice-driven startups that support micro, small, and medium enterprises (MSMEs). It highlights how these startups act as an essential bridge, helping smaller businesses navigate complex administrative workflows, compliance obligations, and dispute resolution paths. The publication relies on a qualitative, evidence-based methodology that integrates comprehensive desk reviews, stakeholder consultations, and direct insights from startup interviews, all validated through a multi-stakeholder roundtable discussion.

The research identifies critical systemic barriers that arise primarily from misalignments between written legislation and its practical enforcement across public institutions. These challenges manifest as fragmented administrative workflows, judicial hesitancy to fully adopt digital tools, and funding misalignments that restrict necessary capital for innovative enterprises. Startups frequently encounter operational delays, unpredictable fiscal responsibilities, and lengthy dispute processes, forcing them to adopt costly adaptation strategies to maintain business continuity and protect the businesses they serve.

To foster a more enabling ecosystem, the brief outlines a comprehensive roadmap with targeted policy recommendations for reform. These recommendations focus on establishing clear protocols for accessing public data, ensuring the mandatory and uniform recognition of electronic signatures, and developing unified digital platforms. Additionally, it advocates for clarifying regulations surrounding automation and artificial intelligence in legal services, while building institutionalized mechanisms for collaborative co-development between the government and the startup ecosystem.