Tunisia is still consolidating the democratic transition that resulted from the 2011 Revolution. Despite the progress in the political realm, the country has yet to address successfully the drivers of the revolution, i.e., social and economic problems including high unemployment, corruption, limited public accountability, and social justice, and persistent regional inequalities. The country also faces environmental challenges including land degradation due to the extraction of groundwater; overgrazing and exploitation of pastoral resources; inappropriate soil management; unsustainable agricultural practices; and pollution. In addition, the country is vulnerable to increasing threats of climate change. Gender inequalities are mainly reflected in women’s low economic participation. Historically, Tunisia has been regarded as one of the most progressive states in the Arab region with respect to women’s legal and social status. For the past decade, the country made additional strides in advancing women’s empowerment, passing the first national law to combat violence against women as well as electoral laws that have incorporated gender parity. Tunisia is one of the few countries in the world where a higher level of education decreases employability, in particular for women. Youth and women in inland areas of Tunisia are affected the most, and the resulting outward migration of youth poses a threat to Tunisia’s long-term prospects of economic competitiveness.

• Awareness of social entrepreneurship is considered to be extremely low in Tunisia.
• Lack of a strong legal framework.
• Access to impact investments.
• Bureaucracy.
• Corruption.