The war on Lebanon, while selective and impacting some sectors less than others, has left no sector untouched.

Niche businesses in the real economy — those small, specialized enterprises that often represent the heart of the community — are more vulnerable than large enterprises. And previously rising agro-entrepreneurs – ventures which in the 2010s were nurtured as startups and who were the darlings of external funders during the economic crisis of the past five years, are among the hardest hit.

Take for example a niche venture that debuted seven years ago.

“The Good Thymes started with a simple focus on zaatar, but it became more than just a product line—it’s a connection to our culture,” says Fady Aziz, founder of The Good Thymes, a Lebanese agricultural company with a focus on producing all things Zaatar. The digitally savvy venture has grown to the level of operating a proprietary retail outlet in the vicinity of a premier shopping mall. In recent weeks, Aziz tells Executive, the company’s birthplace and home base in South Lebanon was forced to close, operations and even stock had to be relocated, and sales in the short term came crashing down by double-digit percentages.

Whereas economic numbers and the fate of agro-entrepreneurs and the entire agro-food sector remain violently in flux and the fortunes or misfortunes of individual enterprises are uncertain and varied, it is plain to see from the market that some niche brands, including local dairy, legume, and juice processors with dedicated followings among consumers, have vanished from store shelves within days of the current conflict.

Other Lebanese agro-food brands are hanging on and even maintaining their export capabilities.

The context of agro-food entrepreneurship in Lebanon, and all agricultural producers, is defined by a long-term dependency on food imports, against which background agro-producers in recent years were impacted heavily in the first phase of sharp GDP contraction in 2020 and 21 but seemed to recover relatively well from 2022 and faster than sectors in the services economy.

Today all businesses in the agricultural value chain, from artisanal producers to large agro-food processors, face an uphill battle as they navigate supply chain disruptions, financial instability, and infrastructure challenges in an increasingly volatile environment.

Yet, amid these difficulties, Lebanon’s niche businesses are adapting innovatively and uncovering unexpected opportunities to sustain themselves, such as pivoting to digital channels, strengthening ties with the diaspora, and embracing locally sourced materials. “Since 2019, Lebanon has faced one crisis after another.

We’ve survived multiple economic shocks, and it’s no longer just about running a business—it’s about finding ways to keep going in the face of everything,” says Samer Tutunji, founder of Eshmoon Holistics, a brand of natural and organic agricultural products.

 Capitalizing on deep roots

Niche businesses in Lebanon often operate within unique cultural and regional contexts, focusing on traditional Lebanese products, artisanal crafts, and specialty foods. A common thread amongst them is a vision of preserving the country’s heritage through their production. “We are deeply tied to the land and the farmers we work with. It’s not just about producing food; it’s about sustaining a tradition that’s been passed down through generations,” says Fady Daw, founder of Adonis Valley, a high-quality certified organic food producer. Like The Good Thymes’ focus on the heritage of zaatar, Adonis Valley is rooted in Lebanon’s agricultural traditions, sourcing ingredients directly from local farmers to produce organic, specialty foods. Eshmoon Holistics, named after the mythical hunter who represents healing in Canaanite lore, offers a wide variety of creative plays on chocolates, jams, and spreads. The common element in diverse agro-entrepreneurship businesses is how they seek to capitalize on providing consumers with unique yet homegrown products while also emphasizing their support of rural communities by partnering with local artisans and producers.

In the course of the conflict between Hezbollah and Israel which began in October 2023 and saw unilateral escalation by Israel in September 2024, The Good Thymes, Eshmoon, and Adonis Valley have each faced disruptions due to instability in their production areas. In Kfarhouna, a town in the Jezzine district of southern Lebanon where The Good Thymes previously operated, escalating violence forced Aziz to close his facility and relocate stock to safer locations, relying on friends’ facilities to continue production.

“We were forced to shut down our main facility in Kfarhouna when the conflict escalated. A missile struck near our farm, and we had no choice but to move everything” says Aziz. Daw of Adonis Valley notes that logistical interruptions have hindered his ability to source raw materials from farmers, affecting production continuity.

Moreover, these businesses started facing financial constraints—for many niche businesses, the cost of maintaining operations has soared. Aziz describes how The Good Thymes kept prices stable despite increased costs in a hope of retaining customer loyalty. According to Tutunji, import-related delays have strained finances at Eshmoon, with international suppliers hesitant to work with Lebanese businesses in times of towering uncertainty.

Putting the above experiences of war-induced financial constraint into sectoral perspective is Marc Bou Zeidan, executive director of Qoot Cluster, a Lebanese agri-food innovation cluster.  “The constant threat of disruption has put our agri-food producers in a position where proactive risk management is essential,” he tells the Executive. According to a survey of 70 Qoot members conducted at the beginning of November, 98 percent were affected directly or indirectly by the crisis. Indirect impacts reported by 68 percent of respondents included one or several factors, namely disruptions in cash flow, access to markets, and supply chains.

Bou Zeidan emphasizes the breadth of impacts that was shown by the survey of Qoot members as their business operations were interrupted due to safety concerns and due to impacts on production sites, storage facilities, and transportation. “Damage to power and water supply, as well as losses from data infrastructure, have hit 6 percent of businesses, though many more face infrastructure challenges”​, he adds.

Another common challenge for companies is the major impact on the workforce— businesses must contend with risks to employee safety, reduced employee productivity and low morale, and reduced ability to maintain financial obligations towards employees. All of the businesses interviewed had to make difficult staffing decisions, as many employees were displaced from their villages.

Daw shares that Adonis Valley had to make a focused shift to prioritize support for employees. “The instability disrupted our supply chain and left some of our employees displaced. Production has become unpredictable, and we’re constantly adapting to keep things running, even if it means lower margins and added costs.” Others, like Daw, are trying their best to maintain employee morale, working persistently on keeping them motivated, unwilling to let go of their loyal personnel,” In these times, we need to hold onto our team and keep them motivated as best as we can,” says Daw. QOOT mentions that infrastructure damage—ranging from production sites to power and water supply—has made employee safety and business continuity challenging.

I get by with a little help from my friends

Adaptation requires creativity and good connections, and luckily, Lebanese niche businesses face no short supply of either. In response to multi-faceted hurdles that prevent business-as-usual operations, Lebanon’s niche businesses are resorting to new sources and unorthodox ways to maintain their operations.

Among the companies Executive talked with, Aziz transformed The Good Thymes’ production approach by collaborating with friends who own facilities in safer areas, even transporting products informally to continue operations. “To keep going, we relocated our stock to safe storage and found friends willing to lend their facilities for production. We even started smuggling our stock in taxis just to make it work. It’s been all about improvisation and resilience.” Aziz furthermore maintains a focus on innovation, creating unique products like Zaatar-infused ice cream and jams to diversify his offerings.

Even though the production facilities of Eshmoun Holistics are not located in areas obstructed or targeted by air strikes, the company according to Tutunji must make adjustments to maintain production as usual—especially because of overseas suppliers’ distrust in Lebanese businesses making timely payments, and the obstacles this creates to imports. Eshmoon additionally shifted its focus to research and development (R&D) to create new revenue streams.

 Daw says that the situation has forced them to rethink their suppliers and ingredient sources—thinking about sustainability in the long run. Adopting strategies similar to his agro-entrepreneurial peers, Daw says he has been exploring ways to adapt, rethinking contingency plans to stabilize Adonis Valley’s supply chain and address fluctuating market demand.

Both Aziz and Daw urge the local community to be their support and their lifeboat in this dire economic storm. They ask the people to choose local products to “Keep Lebanon’s flavors alive” to allow them to keep their doors open and “Ensure that Lebanon’s unique spirit endures,” says Daw. While they make necessary pivots in order to survive — mainly online —, the most effective solution is, for them, the people’s support.

Qoot’s Bou Zeidan iterates this call for a “buy local” approach, emphasizing that community involvement is vital for these businesses’ survival. To mitigate the risks, Bou Zeidan emphasizes the importance of diversifying suppliers and investing in local resources where possible. He recommends that agri-food producers build relationships with alternative suppliers and create backup plans for critical aspects of production.

Role of government and international aid

With little to no support from the government or international organizations, niche businesses are forced to rely on their funds, resources, and wits. Aziz says, “Our businesses are a lifeline for local farmers and workers, but we’re left to face these challenges largely on our own,” implying that many businesses operate independent from outside help. Tutunji says that his company is constantly finding ways to keep their operations moving, not willing to wait for aid anymore.

Aziz considers expanding The Good Thymes outside of Lebanon, seeking ways to protect the venture from further loss and business complications by proactively appealing to the Lebanese diaspora market. “We’re considering expanding online to reach the Lebanese diaspora. There’s a strong community abroad that values our products and wants to support us, even if they can’t be here in person,” he says.

However, Bou Zeidan’s insights highlight the importance of government and international support for Lebanon’s agri-food sector at large. He notes that “both private and public sectors must work together to create a robust safety net for our producers,” and shares how Qoot has successfully lobbied for local products to be included in international food aid. This initiative allows Lebanese products to be part of food boxes distributed to displaced communities, giving local producers a stable revenue stream at no cost to the recipients, he explains.

Opportunities amid crisis

Amidst these challenges, some unexpected opportunities have emerged, such as The Good Thymes’ potential expansion to a diaspora market eager to support Lebanese businesses and enjoy products from their besieged homeland. As the crisis has made imports more costly and unpredictable, businesses are exploring new local sourcing options, which could lead to more sustainable and self-reliant operations. With a significant drop in in-person sales, The Good Thymes and Adonis Valley are looking into digital platforms to reach customers, offering a new way to engage with both local and international audiences. Bou Zeidan also suggests that the current crisis can prompt agri-food producers to turn to export markets more aggressively, particularly by targeting the Lebanese diaspora and Middle Eastern markets. With many niche businesses exploring digital transformation, the diaspora presents a promising audience that values Lebanese goods and offers a relatively stable customer base. “Lebanon’s agri-food products have a strong reputation abroad. Leveraging this to build an international presence can offer businesses a lifeline in difficult times,” says Bou Zeidan​.

 Eshmoon’s Tutunji is viewing the current moment with surprising optimism: “Crisis has always been part of our reality here, so we see it as both high risk and high opportunity. Crises force us to innovate. We switched focus to research and development, creating new products and exploring different ways to connect with our customers. This has led to new ideas that we might not have pursued otherwise.” Lebanese businesses’ unfettered resilience and their strong curbing of the urge to give up have become hallmarks of the country’s entrepreneurship.

Bou Zeidan and Qoot Cluster have been advocating for Lebanese products to be included in international aid boxes distributed to displaced communities. “We don’t want to see imported goods in these boxes; we want Lebanese products supporting our communities,” he says. This lobbying has led to a budget specifically for food boxes sourced entirely from Qoot Cluster members, strengthening the foothold of local businesses in community support.

Constant crisis mode?

From both an outsider and insider perspective, the Lebanese economy appears to be subject to repeated and increasingly catastrophic hits in the last five years. For both Lebanese individuals and companies that have not fled the country, the inclination to normalize shocks is a way to survive, albeit a costly one.

In early December 2023, International SOS (a health and security service firm) released a Risk Outlook Report for 2024 which stated that 80 percent of surveyed global risk professionals predicted that employee burnout would have a significant impact on businesses in 2024 due to a “global permacrisis”, but only 41 percent said that companies are equipped to deal with it. Given Lebanon’s tumultuous past five years, one could argue that Lebanese businesses are both some of the most heavily impacted by burnout and also the most well-equipped to deal with it. According to Tutunji, “Lebanon’s businesses are in constant crisis mode, but that’s given us a kind of resilience. We’re not asking to be seen as victims; instead, we want our community and customers to see the value in supporting local businesses that are working to sustain Lebanon’s heritage and economy.”

With or without the perception of victimhood, there is no denying that a continuously escalating war will create more and more victims, and if unstopped, may quite literally burn out even the most determined.