YOUR BUSINESS MAGAZINE

About the Magazine | Editor's Note | Business Opportunities | Subscribe

Editor's Note

There is growing recognition by large private and public corporations that the way to leverage-off the GCC’s dynamic economic growth is via a focus and support of the Small Medium Enterprise segment.

Bigger businesses have learned that there are limitations to their success in penetrating deep into an emerging market scenario, where smaller partners can provide a more nimble and cost effective approach to extend this reach. Rising liquidity levels in GCC economies due to sustained high oil prices is giving way to increased economic growth, mounting government surpluses and consequently increased investments in infrastructure. There is a dizzying trickle-down effect that is propelling investment confidence in the region. Dubai is the restless leader, and its neighbouring cousins in Bahrain, Qatar, Oman and KSA are copying its strategies in a bid to gain ground.

With the mood being optimistic, GCC nations are transitioning at a galloping pace and throwing up dramatic opportunities for company formation. Of course historically, the entrepreneurial nature of the region cannot be underestimated, but certainly in

its open, modern-day outlook, the variety and convergence of industrious and mercantile-minded types, is creating a hot–bed of matchless opportunities and innovation, presently unseen in any other part of the globe.

Dubai is the forerunner in incubating new enterprises with the government’s purse generously providing educational training and support to Start – Up businesses. This Public effort bolsters the Emiritisation programme that seeks to bridge an existing gap in HR and concomitantly nurture a future generation of young nationals, to take over the helm of the nation’s business and professional arenas.

Having acknowledged the vast potential in growth and spend from the insatiable SME business segment, every area of the private sector is also now having to ‘put its money where its mouth is’ to tap into the SME opportunity, in an increasingly competitive environment. Firms are realizing they need to offer sometimes lower-margin, yet high-turnover products and services as a solution to engage with smaller yet keener customers. The ‘small business solution’ has become an edict of most ‘big brands,’ that are now creating whole in-house departments in support of R&D for SME products and services, training, marketing and SME partner networking.

It’s a colossal nod that should encourage small business owners to assess their commercial desires. Local and international banks are opening up Business Banking Units to provide guidance and funds to infant businesses, offering solutions also based on the retail model, to fuel and expand their earnings.

Another positive for the growth of new small businesses is the growth in population which is giving rise to critical mass. Foreign investors are also swelling the ranks, benefiting from the easing of Start-Up prospects, due the UAE government streamlining its activities, Dubai’s tax free business incentives with up to 100% business ownership and residency options from ownership of land and property. For SME proprietors, these inducements must be the trade off that offsets risk and that will go a long way toward securing business confidence, sustainability and longevity.

Finally, ‘the business of the region’ is business, and the growth of the MICE trade (Meetings, Incentives and Events) is a strong gauge of industry interests. To this end, YourBusiness is a sponsor at the SME EXPO & Conference 2007 to be held in Dubai at DWTC from 23rd – 25th October. The tie-up reflects YourBusiness position to connect buyers with sellers and start-ups with investors.

It seems the vote towards extending resources to this mainstay sector is unanimous and the opportunity is upon us. YourBusiness aims to serve the informational needs of the SME community be they entrepreneurs or suppliers to the segment both in the public and private sector.

I hope YourBusiness will serve as a catalyst for analysis and discussion about SME challenges and fulfill in some part, the hand-holding exercise that is very often required to raise and steady every fledgling venture.

(Signature)
Zoya Malik