Entrepreneur Qatar December 2015 | Protecting Your Business by Entrepreneur Middle East

Business learning curves 13 points of reference that you can put to work for your enterprise

Protecting your business Seib Insurance & Reinsurance Company Deputy CEO and COO

The Recap

qatar Enterprise Agility Awards 2015 The second annual Qatar Enterprise Agility Awards, Entrepreneur of the Year

Elias Chedid

The role of insurance in developing Qatarâ&#x20AC;&#x2122;s economy- and why it pays for your SME to have a safety net

creating sustainable impact Qatari SMEs awarded contracts by QDB and Qatar Shell Amro Ahmed talks economic development

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december 2015 | www.entrepreneur.com/me | QAR15

december 2015

CONTENTS

Amro Ahmed, Qatar Local Content and SME Manager, Qatar Shell

innovator: The value of production in creating sustainable impact

Qatari SMEs awarded contracts by QDB and Qatar Shell Amro Ahmed talks economic development

Protecting your business

Seib Insurance & Reinsurance Company Deputy CEO and COO Elias Chedid The role of insurance in developing Qatar’s economyand why it pays for your SME to have a safety net

The Recap Enterprise Agility Achievers 2015 The second annual Qatar Enterprise Agility Awards, Entrepreneur of the Year staged in association with Doha Bank

‘TREPONOMICS: PRO

The Diderot effect Olympian and entrepreneur James Clear talks about the vicious cycle that ensues when you spend a bit, then spend a bit more, and then spend even more.

SKILLSET

Innovation happens outside of the classroom Three things entrepreneurs can teach MBAs, and guess what? It all involves hands-on experience in the market.

SKILLSET

Promoting SMEs as key drivers of innovation and engines for global trade and growth Marc Proksch analyzes some external and internal factors to consider for your company’s success.

22 Enterprise Agility Awards: Seib Insurance & Reinsurance accepting the Insurance Innovation award

december 2015 Entrepreneur

CONTENTS

december 2015

MONEY: ASK THE MONEY GUY

Critical points to note for continued access to capital Dr. Abdelhakim Hammach, the Managing Director of Riyadh Valley Company, discusses how to overcome fundraising challenges for your startup.

START IT UP: Q+A

Moving pretty darn quick 67 Startup Weekend Dubai runs a 54-hour educational experience for ‘treps

‘TREPONOMICS: ESQUIRE GUY

The compliment sandwich Ross McCammon lays down the law: you must soften a rejection with a positive message, and this is how you do it (right).

MARKETING

CamelShip co-founders Sari Issa and Fares Nimri came up with their idea after they noticed a gap they could bridge in what they describe as the “e-commerce space.”

START UP FINANCE

Capital injections for two Middle East startups The founders of Carpool Arabia and TaskSpotting share their tips on getting funded, and what they’ll be doing with their new found funds.

EDITOR’S NOTE By Fida Z. Chaaban

CULTURE: LIFE

Business book rundown Amal Chaaban reviews a few business books for you before you hit the bestseller aisle. It’s true that not all executive material is created equally.

The recipe for a viral marketing campaign

Bayt.com’s Lama Ataya explains how having a piece of content go viral is the closest thing to the Internet’s version of winning the lottery.

More money means more opportunity

Sarah Appleton’s startup, Mini Exchange, got funded in Dubai and now she is using those funds to scale the business.

Health conscious startup Raw ME

START UP FINANCE

LIFE

Startup founder Layla Al-Dorani wants you to feel better… and that starts with nutrition.

Enterprise Agility Forum 2015

Entrepreneur december 2015

CONTENTS

december 2015

TRAVEL

At your beck and call The St. Regis Abu Dhabi is always at the ready for your visit to UAE’s capital.

TECH SHINY

#TamTalksTech

50 Cities Store Dubai

CULTURE: TRAPPINGS

‘Trep gear The executive selection for the entrepreneur on your list that has everything. Okay, maybe for a little self-reward as well.

DESIGN

Business is booming A discourse on design with entrepreneur Hazem Aljesr. The Cities founder makes MENA’s creatives a priority with his enterprise.

Gadgets and doodads that you might’ve missed out on, sourced by a tech aficionado. Yes, it’s okay to want them all… and no, it’s not our fault.

WEBSITE TO WATCH

Finance goes digi Fintech companies are transforming the banking experience by driving the sector into the next generation of banking.

62 #TamTalksTech: The new iPad Pro

U.K.-based entrepreneur Roja Dove crafts haute fragrance for the MENA bespoke client

Entrepreneur december 2015

SUBSCRIBE EDITOR IN CHIEF Fida Z. Chaaban editor@bncpublishing.net MANAGING DIRECTOR Walid Zok walid@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net DIRECTOR Wissam Younane wissam@bncpublishing.net PUBLISHER Nehme Abouzeid MANAGING EDITOR Aby Sam Thomas CREATIVE LEAD Odette Kahwagi ONLINE LIAISON Kareem Chehayeb COLUMNIST Pamella de Leon COLUMNIST Tamara Clarke COLUMNIST Shoug Al Nafisi CONTRIBUTING WRITERS Sarah Appleton Lama Ataya Amal Chaaban James Clear Ross McCammon Dr. Abdelhakim Hammach Sean McKeon

Marc Proksch Soukaina Rachidi Alexander Rauser May Rostom Mark Sephton Erika Widen

Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock.

MIDDLE EAST

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PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Entrepreneur Middle East contact sales@bncpublishing.net All rights reserved © 2015. Opinions expressed are solely those of the contributors. Entrepreneur Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Entrepreneur Media Inc. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

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In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. Joining us online means getting relevant business and startup content in real-time, so you’re hearing about the latest developments as soon as we do. We’re looking forward to interacting with our readers on all of our social media and web platforms- like any thriving business, we’re looking to give and take. #TrepTalkME is already happening on all of our digi platforms, and all good conversations go both ways. See you on the web!

EntMagazineME @EntMagazineME | @Fida Entrepreneur-me EntrepreneurMiddleEast EntMagazineME EntMagazineME EntMagazineME

Entrepreneur december 2015

EDITOR’S NOTE

Ecosystem karma You get what you give

ately, probably due to the large number of events Entrepreneur Middle East participated in this year, I’ve been asked a lot about my moderating or speaking engagements. This fall alone, I took part (alongside many others from our hyperactive entrepreneurial ecosystem) in more events than I can list here, and they all had to do with entrepreneurship and leadership. On November 20, I had the great pleasure of moderating for one of MENA’s biggest ecosystem heroes, Ronaldo Mouchawar, the founder and CEO of souq.com at Endeavor Jordan’s DealMakers 2015. (As an aside, it was a terrific event and the premise is that it connects worthwhile Endeavor Jordan entrepreneurs with

potential investors for “speed dating” sessions- they pitch hard, and then they move onto the next table.) After the session, I was asked if I was “paid” to moderate. The question actually was posed thus: “So why do you do this, anyway? You’re always speaking… Are they paying you? Like, all the events you speak at, do they pay you to do this?” No, no one is paying me. (Full disclosure: there are non-monetary stipulations when I moderate or speak at an event- we ask that Entrepreneur Middle East is partnered in some official capacity, and that our logo is present.) So, the reason that both Aby Sam Thomas (our Managing Editor) and I speak or moderate at different events across the region is because we don’t see ourselves as a media outlet. We see ourselves as part and parcel of the entrepreneurial ecosystem in this region. During these types of conversations, I often remind people that we too stage events, and how can we expect the ecosystem’s pillars to come out and take time out of their sched-

Check out the full coverage of the 2015 Enterprise Agility Forum presented by du in this edition and on Twitter and Instagram by visiting the hashtag #AgilityForum

Entrepreneur december 2015

ules to speak to our entrepreneurs, if we aren’t doing that very same thing? Yes, it does take a tremendous amount of preparation, and yes, it means we often work long hours to make up for the time that we spend at events as speakers (especially when we have to travel for an event). But that is what it takes to work at this magazine, because we don’t see ourselves as just a magazine. If we did, we would not have, from day one, been actively engaged on the ground with entrepreneurs and the very significant people who facilitate entrepreneurship in this region- be it through programs, mentorship or funding. If we did see ourselves as just a magazine, we wouldn’t be tweeting with our startups night and day, and we wouldn’t be heavily engaged with entities like Endeavor. To work at this magazine, you have to believe in what we’re doing, and that means that you are committed to being more than just a magazine. You are committed to the ecosystem, all the way. I think that our Director, Wissam Younane, summed it up nicely during his address at our 2015 Enterprise Agility Awards in Dubai when he, inspired by H.H. Sheikh Mohammed bin Rashid Al Maktoum’s commentary on the Arab world, said: “Entrepreneurship isn’t just on our agenda, it is our agenda.” And like you, entrepreneurs, that means we have a single-minded focus on doing our part for the ecosystem, and keeping the collective give-and-get energy going. I’ll see you all at the next event!

Fida Z. Chaaban Editor in Chief @fida | @fidazchaaban editor@bncpublishing.net

innovator

Protecting your business

Seib Insurance & Reinsurance Company Deputy CEO and COO Elias Chedid The role of insurance in developing Qatar’s economy- and why it pays for your SME to have a safety net

By Aby Sam Thomas

t may have been established only in 2009, but Seib Insurance & Reinsurance Company has seen its Qatar-based business grow at a rapid rate in the last couple of years, with the insurance provider now being ranked among the top institutions of its kind in the country. When asked what was the formula that caused Seib to rise above its peers in the industry, the company’s Deputy CEO and COO, Elias Chedid, replies, “Nothing could have lifted Seib into its exceptional market presence more than superior customer service, a highly qualified team of insurance experts, and a determined focus to create a highly satisfied customer partnership.”

Chedid’s response is indicative of the reason why Seib won the Insurance Innovation award at Entrepreneur Middle East’s 2015 Qatar Enterprise Agility Awards presented by Doha Bank- Seib’s focus on working proactively with its customers to not just achieve their insurance objectives, but also to promote their long-term growth and profitability, is what has caused the

Entrepreneur december 2015

company to stand out in its sector. “We have a passion for excellence, and we endeavor to deliver the highest standards of service, value and integrity at all times,” Chedid says. “The joy of creating a customer experience and maintain that relationship over the years is a reflection of Seib values and culture that promotes innovation in every aspect of the sense. Innovation

is not only reflected through technology- it is also in underwriting processes, in insurance solutions to complex risks, in scheme designs, in building a motivated team. And most importantly, innovation is reflected in the art of customer communication.” With such a forward-thinking approach to doing business, Seib has been making a concerted effort to participat-

ing in the growth of Qatar and the realization of its National Vision 2030. Seib proudly declares itself to be a Qatari national insurance company- its very name is a reference to the role of the seib in the pearldiving heritage of the country, wherein the seib would hold on to the ropes supporting the divers as they scoured the depths of the sea for their wares. The seib was essentially thus the diver’s lifeline, and according to Chedid, that’s the same principle his company uses when dealing with its clients and their insurance requirements. “Our business is a cycle of value creation, and our name reflects that reality,” he explains. “Seib is a customer-centric organization. It leads its service offering through a team motivated by a passion for excellence, empowered by the entrepreneurial spirit that is a reflection of the organization’s senior leadership, mainly, our Chairman H.E. Sheikh Jabor Ben Youssef Jassim Al Thani, and our CEO Farid Chedid. Our team members are a source of motivation by themselves; they create it with every moment spent on creating achievements, and transforming obstacles to successes.” It’s important to note here that while Seib places a lot of importance on its bottom line, it is not the only thing that governs its progress and development in Qatar. “Our short-term and long-term goals coincide in continuing to service our clients at the highest service standards possible through transparency and integrity to maintain a profitable growth, while focusing on the Qatar National Vision for 2030 by being a proactive participant in the socio-economic growth of the country,” Chedid explains. “This requires creating success stories for the insurance industry, while being an active member in the >>>

Elias Chedid, CEO and COO, Seib Insurance & Reinsurance Company Deputy

december 2015 Entrepreneur

innovator development of local talent, either directly within Seib, or by being active in CSR, supporting initiatives through organizations such as Qatar Finance & Business Academy (QFBA), INJAZ Qatar and others. In addition to the support extended to Qatari individuals and institutions, Seib is also an active member in the expat communities’ social programs, thereby complementing the socio-economic cycle to include expat residents.” Seib’s efforts in improving its offerings and scaling up its business are particularly noteworthy when considering the current state of Qatar’s insurance market. According to an October 2015 report by global credit rating agency Moody’s, Qatar has the fastest growing insurance market in the GCC, with a compound annual growth rate of 20.7% between 2006 and 2014. Having said that, the country has a rather low insurance penetration rate at just 1% of its GDP- but even so, the report marked Qatar out to be the third largest insurance market in the GCC, with its premiums totaling approximately US$2.2 billion. This essentially means that there’s a lot of growth potential for this sector in Qatar, and companies like Seib are in a prime position to take advantage of this situation, and capitalize on it as well. “A growing economy, matched with a growing population, marked Qatar’s growth charts over the past few years,” Chedid says. “Such indicators promoted promising potential for the insurance industry. Accordingly, insurance penetration was initially a reflection of the premium growth generated from large and mega projects. As we progress into the coming years, a balance would be created by other segments, such as retail and SME. Those would generate the premium

Entrepreneur december 2015

volume needed to balance insurance penetration against large corporate elements. The driving factors for continuous growth are primarily driven by regulatory measures, represented by mandatory programs such as health insurance. If we consider health insurance alone, we estimate that it may have a positive impact of 40% on insurance penetration.” Chedid notes that the role of the insurance industry in an economy is dependent on several national factors, which differ from one country to the other, span across a number of sectors, and are also reciprocal to the local culture. “One of the measurement indicators on its impact on the local economy is insurance penetration to GDP, which at the beginning of the year did not cross 0.55% in Qatar compared to 1.4% for the MENA region,” Chedid explains. “However, on the other side, insurers do not operate in vacuum. We cannot undermine the fact that insurance is stimuli to other sectors and a facilitator to business transactions, whether retail or wholesale, in addition to its role in the cost of living proSeib Group

“Our short-term and long-term goals coincide in continuing to service our clients at the highest service standards possible through transparency and integrity to maintain a profitable growth, while focusing on the Qatar National Vision for 2030 by being a proactive participant in the socio-economic growth of the country.” tection it provides to individuals and families. In terms of risk reduction and mitigation, insurance acts as an extended reserve capital to businesses, regardless of size. As for development and optimization of insurance role in an economy, this is a dual role for governments and private sectors.” In terms of Qatar though, Chedid considers its current shift towards expanding the role of the private insurance sector in the country to be a positive one, with this being implemented through regulatory changes at both operating and risk management levels. “We see that the robust regulatory environment under the Qatar Financial Centre (QFC) is being capitalized upon to

expand the regulatory rules platform in Qatar, under the umbrella of Qatar Central Bank (QCB),” he says. “On the other hand, implementation of mandatory insurance programs through private insurers establishes for an important part of risk mitigation in sectors such as healthcare. Nevertheless, insurance is a contractual reinstatement or recovery guarantee to individuals, businesses and financiers, whether in their asset protection, transaction or contractual obligations. Accordingly, it goes without saying that capital protection for a startup’s or a small business’ needs may seek solutions though insurance programs. Seib has been active in this

Seib Insurance & Reinsurance accepting the Insurance Innovation award

segment, and will continue to do so.” Seib currently services clients from a variety of sectors, including construction, banking, transportation, healthcare, education, hospitality, sports and more. Chedid claims that the company has written major programs, “some of which are among the largest in the world.” Some of its major clients require global health insurance programs, which leads to Seib servicing them in remote parts of the globe, while other customers require large-scale directors and officers (D&O) and decennial liability programs, with the company underwriting such complex programs to protect

both Qatari and multinational institutions. But this is not to say that Seib has overlooked the SME sector- on the contrary, Chedid says the company has several offerings catered to this particular market. “Indeed, Seib has products to protect small as well as large company assets and liabilities; those solutions have been in the market by Seib for a few years, and we continue to update our offering based on market needs,” he says. “We have specific SME products, such as the office protection Maktabi scheme, small groups’ health insurance, tailor-made employee benefits schemes, and others. Some of those may be very similar in its aspects to

those of large corporates. The risk exposure in large organizations necessitates a different underwriting structure and solutions than SMEs. Large risks require larger capital capacity and allocation, yet both require the same underwriting discipline, from an insurers perspective.” But given the cash crunch that most startups and SMEs in this region often face, can one make a feasible argument for why they should invest in a good insurance scheme? Chedid rises up to the challenge, and is emphatic in stressing why insurance is a must for small businesses. “You want to be profitable, then you have got to be credible and visible,”

he says. “Do not eliminate that opportunity by petty savings on insurance premiums. The cost of risk reduction through insurance is far lower than the risk of financial loss without insurance. To entrepreneurs, I say, we understand the passion to thrive in what you do, because Seib has been there, has seen it and is still living it. Protect your jewel. Insure that you get the best chain to hold it. We understand the effort, time and sweat required to build an organization to make it stand out among the crowd and succeed. Our team at Seib has been assisting startups and SMEs to insure them and help them stay visible, credible and profitable.”

december 2015 Entrepreneur

The value of production in

creating sustainable impact

Qatari SMEs awarded contracts by QDB and Qatar Shell Amro Ahmed talks economic development

E By Erika Widen

arlier this year, more than 150 Qatari SMEs attended the third annual Qatari SME Business Opportunities Workshop, where more than 60 local SMEs showed their interest to participate and compete. As a result, more than 30 local SMEs were shortlisted to tender for seven specific business opportunities offered by Qatar Development Bank (QDB) and Qatar Shell– collectively worth an estimated aggregate value of more than QR15 million. Qatar Shell Pearl GTL, the largest GTL plant in the world

Entrepreneur december 2015

The successful SMEs will be awarded with contracts this month to become part of the supply chain for Pearl GTL, the world’s largest gas to liquids plant delivered by Qatar Petroleum and Qatar Shell. As part of a nationwide strategy to support Qatari SMEs, Qatar Shell partnered with QDB to promote and accelerate the development of the private sector in Qatar.

“Through its support of local SMEs, Qatar Shell aims to contribute significantly to the economic pillar of the Qatar National Vision 2030 (QNV), while helping SMEs raise their operating standards in order to fulfill global requirements,” says Amro Ahmed, Qatar Local Content and SME Manager of Qatar Shell. “We believe that by supporting local SMEs, we are actively contributing to the Qatar National Vision 2030. Localizing elements of the national supply chain is one of the most important and effective methods of achieving this, as the private sector is of invaluable significance to Qatar’s growing population and economy. Also, we are confident in the quality and capabilities of local suppliers currently in the market place and believe that providing them with opportunities makes good business sense and can add value to our operations.” Ahmed says that by working with and supporting local companies, Qatar Shell is ensuring its business continuity through the development of a robust supply chain, both strengthened and streamlined, while also reducing risks. For instance, the operation of the Pearl GTL plant remains steady with a minimum downtime due to the shorter delivery timings of locally manufactured goods and services that replace imported ones. Ahmed strongly believes SMEs are key to fostering a robust private sector that will reduce the burden on the public sector employment and help diversify Qatar’s economy. “In his foreword of the Qatar National Vision, His Highness the Emir Sheikh Tamim bin Hamad Al Thani, says Qatar must invest in world class infrastructure to create a dynamic and more diversified economy in which the private sector plays a prominent role. Therefore, making business opportunities >>>

qatar shell pearl image © www.shell.com.qa

innovator

Amro Ahmed, Qatar Local Content and SME Manager, Qatar Shell

december 2015 Entrepreneur

available to the local private sector is a strategic decision for Qatar Shell, and one that directly contributes to the economic pillar of the Qatar National Vision,” reiterates Ahmed. Specifically, the initiative is about localizing Qatar’s supply chain to help diversify the Qatari economy and reduce the reliance on international trade and employment. “We are proud to see a significant increase in the number of Qatari SMEs and entrepreneurs who are showing interest in joining Qatar Shell’s supply chain, largely due to the successful stories of the awarded SMEs, since the launch of the initiative in

Entrepreneur december 2015

“we have increased the number of the business opportunities to seven, again due to the significant increase in the number of Qatari SMEs and entrepreneurs demonstrating their interest.” 2013,” he adds. In addition to this, Qatar Shell and QDB provide Qatari SMEs with invaluable knowledge and expertise, resources, networking capabilities, associations, mentoring, support and access to national and regional markets. In other words, SMEs have the potential to grow beyond national success and repatri-

ate profits back into the Qatari economy. In 2013, Qatar Shell signed an agreement with QDB to provide Qatari SMEs access to business opportunities at the Pearl GTL. More than 100 local SMEs and entrepreneurs participated in the first workshop where attendees were also briefed on Qatar Shell’s tendering process, the challenges and opportunities in the SME sector, and the financial support made available to them by QDB. “Following the launch of the first Qatari SME Business Opportunities Workshop, three local SMEs were awarded with contracts; and in 2014 five new local companies were added to Qatar Shell’s

supply chain,” adds Ahmed. By way of example, Ahmed illustrates the following as a quick update of one of 2013 business opportunities. Qatar Industrial Equipment (QIE), winners of Personal Protective Equipment (PPE) business opportunity in 2013 received accreditation for their own safety standards by applying OHSAS 18001 standards, followed by international accreditation for product quality and design in 2015– after complying with Pearl GTL’s safety standards in 2014. As a result of these achievements, QIE started delivering to Pearl GTL and also raised their profile to a level that brought interest from prospective companies locally and regionally, allowing their expansion by way of a new factory in Sharjah, United Arab Emirates, and a sales office in Saudi Arabia. “Now in its third year, we have increased the number of the business opportunities to seven, again due to the significant increase in the number of Qatari SMEs and entrepreneurs demonstrating their interest,” says Ahmed. The successfully awarded local companies are given between 12 and 18 months, if needed, in which to build their capacity to handle the contracts. It’s also worth noting that this year Qatar Shell and QDB won the Social Development Center’s Reyada Outstanding Entrepreneurial Support Award for their role in developing Qatari entrepreneurs and SMEs. “This award is a clear demonstration of this successful partnership in developing Qatar’s economy and private sector, as well as delivering sustainable contributions to positively impact Qatar.” Qatar Shell is wholly committed to supporting the QNV 2030 in each of its four pillars, social, human, environmental and economic, by working with Qatari partners to create and deliver sustain-

www. shell.com.qa

innovator

able contributions to positively impact Qatari society. As the largest international investor in Qatar, Qatar Shell works in partnership with Qatar Petroleum to develop the country’s energy industry providing a significant contribution to the economic pillar of the QNV 2030. “Through our Corporate Social Responsibility (CSR) programs we seek to go beyond philanthropic donations, to contribute strategically with our partners to the QNV 2030 in ways that generate measurable social impact and link to our core business strengths. We therefore look for opportunities to distinctively contribute our innovation or other areas of expertise such as project management skills in addition to any financial support.” The company’s programs include The Qatar Shell Research Technology Centre, which provides research and innovative solutions to energy and environment challenges faced by Qatar. Addi-

tionally, through TAFAWOQ, Enterprise Challenge Qatar program, university partnerships and Road Safety initiative, Qatar Shell is contributing to the development of a knowledge-based society, thus positively influence the country. The social development pillar of the QNV203 emphasizes the importance of a good quality of life, social support and protection for all of Qatar’s citizens. Qatar Shell therefore supports this pillar through its Road Safety and KOORA TIME initiatives. “Finally, as a long-term investor, Qatar Shell seeks to create a positive legacy– a contribution to the Qatar National Vision 2030 that we and our partners can be proud of.” Qatar Shell and QDB invest a great deal of time, energy and effort into supporting the SME sector, which they have identified as personifying a crucial element in Qatar’s future success. “In addition to the advisory support and financial incentives provided by QDB, Qatar Shell provides >>>

Teaming up with SMEs!

Opportunities offered by Qatar Shell to SMEs in 2015

1. Manufacturing Safety boards and electrical labels

5. Onsite technical support Welding inspectors

Qatar Shell requires a local supplier to manufacture safety signs for onshore and offshore facilities for its Pearl GTL plant.

Qatar Shell is offering a business opportunity related to welding inspection services.

2. Services Cafeteria and catering for staff and events

Qatar Shell wishes to enhance its staff cafeteria and food services. The scope requires opening a cafeteria that will provide food and beverage for more than 700 employees based in the Doha Shell office. 3. Services Custody flow meter calibration

In order to ensure accuracy, Qatar Shell requires the maintenance of water, ultrasonic gas and ultrasonic liquid meters at the Pearl GTL plant.

6. Manufacturing and maintenance Fire extinguishers

Qatar Shell is offering a contract for the local manufacturing, inspection and maintenance of fire extinguishers of various sizes. 7. Social media management Social media contract

Qatar Shell launched its Twitter account in late October 2013, and its Instagram account in May 2015 and is offering a contract for management of its social media platforms.

4. Manufacturing Stud bolts

Qatar Shell requires an SME to manufacture stud bolts in Qatar for the Pearl GTL plant.

Lara Koujou, Social Investment Manager at Qatar Shell seen here as part of a panel discussion around the subject of Women & ICT: Skillbuilding, Training and Trends, and the Role of Social Media at the 7th Arab International Women’s Forum (AIWF) in Doha, Qatar.

december 2015 Entrepreneur

innovator the awarded local companies with a period of 18 months, if needed to build their capacity to handle the contract awarded to them.” In addition, Qatar Shell provides an on-going support and assessment to ensure the company will provide the required quality services. “Also, a large part of winning Shell’s business is the ability to adhere to our technical and Health, Safety, Security, and Environment (HSSE) standards. It is therefore of

the utmost importance that every one of our suppliers and contractors is as committed to safety as we are at Shell– ensuring that absolutely nobody comes to harm as a result of our business.” Ahmed further adds that to see the evolutionary process of SMBs flourishing with their help is extremely rewarding: “This initiative is more than just a question of financial gain and the value of tenders; it’s about the value of production and the sustainable impact it creates.”

Pearl GTL uses technology that is a culmination of

of R&D innovation | in pictures |

YEARS

Enterprise Challenge Qatar 2015

At the peak of construction,

52,000

workers were deployed Overall, it has taken the team

500million

man-hours to design and build PEARL GTL

To build this, a total of

750,000m³

That's enough to construct

2 Burj Khalifas*

of CONCRETE was poured

(the world’s tallest building)

With these resources, Shell partnered with Qatar Petroleum to build one of the world’s largest, most complex and challenging energy projects

In fact, it's the largest

Pearl GTL draws gas from Qatar’s North Field, estimated to hold

That’s an estimated

900 trillion cubic feet of gas

GTL PLANT in the world**

of the world’s total***

Built in story partnership Petroleum, Gas to Liquids (GTL) is “The of Pearlwith GTL Qatar is an inspiring onethe - notPearl just because of its pioneering thetechnology world’s largest GTL plant and and not onesimply of thebecause world’s largest, most complex and and innovation, of its sheer scale and complexity, challenging energy of projects ever commissioned. but also because the extraordinary diversity of talented men and women who came together to deliver and operate this remarkable project.”

WAEL SAWAN Director and Chairman of Qatar Shell Companies

Entrepreneur december 2015

Qatar Shell and Bedaya recently announced 22 university semifinalists for the 2015 Enterprise Challenge Qatar. It is an annual competition which encourages the entrepreneurial spirit among the youth in Qatar. The successful teams from each of the 13 participating universities will compete on an entrepreneurship computer simulation, which seeks to evaluate the teams’ performance on running their business in a competitive marketplace over a three-year period. In addition, the six top teams with the highest net profit scores will present their sustainable business pitches to a panel of judges to select three winning teams. The 2014 Enterprise Challenge Qatar received special praise and recognition during the U.K. Mentor of the Year Awards hosted by HRH The Prince of Wales at Sandringham Palace in the United Kingdom. Earlier this year, Qatar Shell and Bedaya also won Social Development Center’s Reyada ‘Outstanding Entrepreneurial Support’ Award for their role in supporting Qatari entrepreneurs and SMEs including through the Enterprise Challenge Qatar. The Enterprise Challenge program was originally created by Mosaic, a U.K.-based not-for-profit organization established by HRH The Prince of Wales in 2007, with a range of mentoring programs aimed at fostering opportunities for young people.

QATAR Enterprise Agility Awards 2015 in association with

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GOLD ALLY

Entrepreneur december 2015

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Wissam Younane addressing the assembly on behalf of BNC Publishing

n the occasion of the second annual Qatar Enterprise Agility Awards, Entrepreneur of the Year presented by du, BNC Publishing as part of the Entrepreneur MENA franchise, awarded businesses and individuals across multiple categories on November 8, 2015 at The Ritz-Carlton Doha in Qatar. The relevant Enterprise Agility Achievers have established themselves as clear industry innovators who have made significant contributions to both the Qatari and the Middle East business arena, and set the benchmark for corporations operating across the region. A total of 20 awards were presented, with all of the winners having set themselves apart from their peers in the region

by showcasing a commitment to excellence and thereby raising the bar of their respective industries. Speaking on behalf of Entrepreneur, Wissam Younane, Director, BNC Publishing, felicitated the winners by saying, “Being an Enterprise Agility Achiever means that your methods, your strategies and most of all, your execution sets a standard for all the other entities operating in your sector. You are the business trendsetters; you are the bar that companies strive to reach. It is our mission at Entrepreneur to highlight these exceptional achievements. Those who want to be a proactive part of the Qatari economy can strive to emulate your demonstrated abilities.”

Organized by Entrepreneur MENA, the 2015 Qatar Enterprise Agility Awards recognized and honored enterprise leaders and individuals who have distinguished themselves and shown sector significance and outstanding business conduct across a variety of industries that are key drivers of respective Middle East’s economies. On behalf of the Qatar Chamber of Commerce & Industry, Vice Chairman Muhammed Ahmed Bin Towar Al Kuwari presented the awards to the 2015 Enterprise Agility Achievers. “Some of the companies here with us are from the original Qatari entrepreneurial ecosystem, and some are the new pillars upon which tomorrow’s economic drive rests- these junior achievers, our Qatari startups here with us tonight, and the entities that make their steps forward possible,” Younane said. “Startups, we see you, and we recognize your work. In a few

years, your startup award may become an even larger distinction, and as part of the entrepreneurial ecosystem we will be waiting and watching, and yes, supporting your growth.” The Enterprise Agility Awards, Entrepreneur of the Year seeks to acknowledge agility across a variety of industries including retail, healthcare, construction, hospitality, aviation, education, banking, and energy, amongst other key drivers of the Middle East’s economy. “BNC Publishing, via our Entrepreneur of the Year awards, and with the support of the respected Qatar Chamber of Commerce, seeks to continue to celebrate you, the businesspeople who inject vibrancy and drive into this economy,” Younane added. “I extend my sincere appreciation to our partners for your ongoing support, and I salute tonight’s Enterprise Agility Achievers. Shukran Qatar.” >>>

The winners of the 2015 Qatar Enterprise Agility Awards

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Enterprise Agility Awards 2015 Contribution to Business Muhammed Ahmed Bin Towar Al Kuwari Retail Achievement Fifty One East Hospitality Innovation H.E. Sheikh Faisal Bin Qassim Al Thani Diversified Portfolio Jaidah Group SME Banking Innovation Qatar Development Bank Retail Banking Innovation Qatar Islamic Bank Investment Banking Innovation QInvest Islamic Banking Innovation Qatar International Islamic Bank Education Innovation HEC Paris in Qatar Media Innovation Dar Al-Sharq Insurance Innovation SEIB Insurance & Reinsurance Company Real Estate Innovation Alfardan Properties Energy Innovation Kahramaa Logistics Innovation Expeditors International Telecommunications Innovation Ooredoo Qatar Human Capital Development Bedaya Social Entrepreneurship Silatech Entrepreneurial Ecosystem Development Qatar Business Incubation Center Mobile App of the Year Evently Startup of the Year I Love Qatar Network

Dar Al Sharq accepting the Media Innovation award

Muhammed Bin Ahmed Bin Towar Al Kuwari, Vice Chairman, Qatar Chamber of Commerce and Industry, accepting the Contribution to Business award

Ooredoo Qatar accepting the Telecommunications Innovation award

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Stephen Marney, Master of Ceremonies, addressing the assembly

Alfardan Properties accepting the Real Estate Innovation award

Evently accepting the Mobile App of the Year award

Jaidah Group accepting the Diversified Portfolio award

Qatar International Islamic Bank (QIIB) accepting the Islamic Banking Innovation award

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Expeditors International accepting the Logistics Innovation award I Love Qatar accepting the Startup of the Year award

Fifty One East accepting the Retail Innovation award

Kahramaa accepting the Energy Innovation award

Seib Insurance & Reinsurance accepting the Insurance Innovation award Entrepreneur Qatar Editor-in-Chief Fida Chaaban

QInvest accepting the Investment Banking Innovation award

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Muhammed Bin Ahmed Bin Towar Al Kuwari, Vice Chairman, Qatar Chamber of Commerce and Industry, addressing the assembly

Qatar Business Incubation Center QBIC accepting the Entrepreneurial Ecosystem Development award

Silatech accepting the Social Entrepreneurship award

Qatar Islamic Bank (QIB) accepting the Retail Banking Innovation award Bedaya Center for Entrepreneurship and Career Development accepting the Human Capital Development award

Qatar Development Bank (QDB) accepting the SME Banking Innovation award H.E. Sheikh Faisal Bin Qassim Al Thani, Hospitality Innovation, accepted on his behalf

HEC Paris in Qatar accepting the Education Innovation award

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Startup of the Year I Love Qatar Founder and CEO Khalifa Saleh Al Haroon

he I Love Qatar network kind of just happened,” says Khalifa Saleh Al Haroon, as he remembers the origins of his company, which won the Startup of the Year title at the 2015 Qatar Enterprise Agility Awards. “There was no master plan in the beginning. However, as I saw the potential of what I had, it evolved into a great media channel. My sights grew to online, content creation, either building or acquiring websites within my network, or even expanding into video content and radio.” With the I Love Qatar network today encompassing websites like Qatar News, Qatar Events, Dine Out Doha, and YouTube shows like QTips, Mr. Q Visits and Karak Time, the charismatic Al Haroon –a digital influencer in his own right- today heads an online business that enjoys the status of being one of the country’s most popular homegrown brands. But starting up I Love Qatar was a much less glamorous affair- Al Haroon admits challenges were aplenty when he, at the time in his early 20s,

Entrepreneur december 2015

was setting up the enterprise in 2008. “I built the first version of ILoveQatar.net on my own, learning as I went along– in a tiny room behind my Dad’s home. Sadly, whether you are a traditional business or not, you still have the same requirements from the Ministry of Economy and Commerce, and the Ministry of Business and Trade.” The founder explains that he had to come up with QR200,000 of capital and get a physical office space, “even though I didn’t need it, and [I also had to] pay for licenses, which I wasn’t sure I needed either. However, doing that made my website one of the first legally operating websites in the country.” Al Haroon also recalls going to several banks and governmental institutions to inquire for support and funding. “Sadly, it was hard for them to wrap their head around a business that didn’t sell anything and just generated revenue off advertising.” However, Al Haroon underlines that with I Love Qatar, it was never his goal to just make money off the enterprise. “I knew that to generate revenue

off the site, I would need to come up with a plan for expansion and reach a critical mass; since growing a brand takes time, many investors didn’t want to wait,” he remembers. “I am glad that I didn’t take any investment now though, [because] some of the same institutions I asked years ago now ask me for support.” In light of a promising future for entrepreneurs, Al Haroon believes that SMEs are crucial for any sustainable economy, since, around the world, SMEs contribute to employment growth at a higher rate than even bigger organizations. “Globally SMEs contribute to anywhere between 50% to 80% of the workforce. Qatar is investing heavily in a knowledge-based economy; we want people to be independent and to reach for the stars. To do so, SMEs are most definitely needed.” He also adds how smaller businesses take risks, promote competition, and contribute to society at a micro-level. “There are loads of organizations that have been set up to educate and inspire young entrepreneurs, and we see special competitions that try to kick start projects in the country, so, the entrepreneurship energy is in the air.” But, he does acknowledge the difficulty of accessing commercial spaces in Qatar in addition to the high cost of rent. “Setting up a business can be costly and confusing, and honestly, doing business in Qatar isn’t very easy.” For instance, setting up a restaurant is difficult, such as find-

ing a good location and decent lease, adding to the difficulties to acquire high-quality ingredients and the difficulties faced to import goods. “Want to set up an online business? Payment gateways are expensive, many banks don’t allow customers to use debit cards online, leaving credit cards as the only option, and only a small percentage of the population have one.” Al Haroon agrees that these challenges can be met as long as smaller businesses demonstrate that there is a need for change, and then things will happen. “You can’t fight progress. Of course, this is just based on my opinion and observations.” The young entrepreneur strongly believes that the country’s National Vision 2030 is what helped enable his ventures to exist. “I believe my projects touch upon all the pillars of the 2030 vision; they are economic, social, environment and human development.” In addition, he highlights how when he invests in either projects or businesses, he always asks the person he will partner with to invest at least 10% of the overall profit to support charitable causes or the community. “I’m proud to give back to the country that’s given me so much,” he says. So what’s Al Haroon’s advice for those interested in getting into the world of startups? First, he says that focus is needed: pick a niche, select a demographic, and provide a solution or product that fills a need. Secondly, ensure one’s business is scalable. In other words, Qatari ‘treps should ask themselves: can your business grow outside of Doha, the Gulf region and the Middle East? But before doing so, decide if growing your business is something you want to do. “I know some people who set up a couple of restaurants and are happy with the income they generate,” Al Haroon says. “This brings me to the third point– do what makes you happy. We’re constantly told what to do, what to say and how to think from the moment we’re born to when we get our first job. Most entrepreneurs realize that they don’t have to do what they don’t want to do, and that thinking leads to some of the world’s best innovations.”

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ntrepreneurs and entrepreneurial ecosystem pillars came together at the Westin Mina Al Seyahi in Dubai, UAE on November 22, 2015 for the second annual Enterprise Agility Forum presented by du, which featured some of the region’s most prominent leaders sharing their insights with the 200 attendees of the half-day conference. The Enterprise Agility Forum, the fifth event staged under the Entrepreneur Industry Intel banner, began with opening remarks by Entrepreneur Middle East Editor-in-Chief Fida Chaaban, and was comoderated by her and Entrepreneur Middle East Managing Editor Aby Sam Thomas. 30

Entrepreneur december 2015

Chaaban addressed the assembly first by discussing the importance of pulling in the outliers of MENA’s entrepreneurial ecosystem, and encouraging the forum’s attendees to be as interactive as possible in the half-day knowledge-exchange, not just through networking, but also with realtime social media. Two fireside chat format conversations, the voices of entrepreneurship, were held to respectively deeper explore investments and business models. The first of these took place with Ramez Mohamed, CEO of Flat6Labs, who pointed out the importance of entrepreneurs really having an accurate idea of their local competition, and on

startups structuring business models that have the potential to scale across the region and beyond. The second fireside chat took place with Sonia Weymuller, co-founder of VentureSouq. Weymuller, who spoke on angel investing in the region, explained what entrepreneurs need to know when trying to capitalize on this particular funding opportunity. Both fireside chats were followed by question and answer segments with the audience. The first of the Talking Series brought forward ideas under the title of Size Doesn’t Matter: Your small enterprise can operate like a multinational, which had as its panelists Chris Bartlett, General

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Manager, Small, Midmarket Solutions and Partners, Middle East and Africa for the Microsoft Corporation, Talal ElKhalil, General Manager and Senior Vice President, PepsiCo MENA, Frida Kleimert Knibbs, Head of Channel and Commercial Sales for Cisco UAE, and Jose Valles, Vice President- Enterprise, Commerce, New Business and Innovation, du. The second discussion for the day brought forward tenets of CSR versus social entrepreneurship, and how even startups can undertake sustainable initiatives. Under the title of Seeing the Bigger Picture: CSR, social enterprise and your business, the panel

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was headlined by Lina Hourani, Director of Al Ahli Holding Group CSR division, Loulou Khazen Baz, founder and CEO of Nabbesh, Joshua Rajkumar, co-founder and Chief Operating Officer, The Sustainability Platform, and Soushiant Zanganehpour, founder and Director, Tribeca Impact Partners. The third and final panel of the event revolved around financial literary, funding and strategic steps toward seeking capital injections under the title of Calculating Trajectory: Capital injection routes to (viably) scale your enterprise with panelists Marwan Mohammed Al-Suwaidi, Director of Finance, Khalifa Fund for Enterprise

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Development, Sam Quawasmi, co-founder and Managing Director, Eureeca, and Essa Ali Bin Salem Al Zaabi, Senior Vice President of Support Services, Dubai Chamber of Commerce and Industry. The 2015 Enterprise Agility Forum presented by du was conducted with the support of the Dubai Chamber of Commerce and Industry and Tejar Dubai, together with Platinum Allies Egyptian Steel, EPG Hotels & Resorts, AxiTrader, Gold Allies Medeor Hospital and Skyline University College, Silver Ally Select Property Group, and Ecosystem Allies Wamda, MEC, and The Venture. >>> december 2015 Entrepreneur

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2. Don’t underestimate the power of your startup’s “personality”

Business learning curves

13 points of reference that you can put to work for your enterprise By Soukaina Rachidi

n the past, small companies used to try to emulate the business practices of corporate giants like Virgin, Google, and Apple. Nowadays, the tables have turned. More and more entrepreneurs are looking to one another for inspiration, and they’re not the only ones. According to many of the panelists at Entrepreneur Middle East’s 2015 Enterprise Agility Forum presented by du, an increasing number of multinational corporations are trying to learn how startups are driving innovation, promoting happier workplaces and integrating CSR efforts into their business models. Throughout the event, it was interesting to see how one question seemed to be posed over and over again. What is the question, you ask? What should a startup avoid when… Or in other words, what are multinationals doing wrong or inefficiently and how can startups do it faster and better? With that in mind, I have identified some things Fida Chaaban, Editor-in-Chief, Entrepreneur Middle East @fida

Entrepreneur december 2015

that startups need to avoid if you want your business to maintain an edge on big corporations, and a few other salient points gleaned from the speakers at the second annual edition of the Enterprise Agility Forum. 1. Don’t think that size and impact are directly proportionate

Can a startup be like a multinational? Absolutely. In fact, being a startup in the Conceptual Age is ideal, because they are agile in almost every respect. One of the biggest drawbacks of being a multinational is bureaucracy and endless red tape. Usually in a MNC, by the time a decision on anything has gone through the appropriate channels to be approved by the necessary people, it has already become irrelevant. However, in a startup, this isn’t the case. Not only does the lean structure of a startup allow entrepreneurs to be “closer” to their customers, it also allows them to be more aware and responsive to sudden changes in consumer behavior. This thus allows entrepreneurs to continuously engage in an ongoing cycle of idea adaption and implementation, which is key when it comes to promoting innovation, growth and customer satisfaction. The size of a startup is not the only thing that allows a startup to be “closer” to its customer. Internet, smartphones and other technologies have also al-

Christopher Bartlett, General Manager, Small, Midmarket Solutions and Partners, Middle East and Africa, Microsoft Corporation

lowed startups to scale globally and compete with established international brands in ways that were never possible before. In the age of the Internet, the size of a company no longer defines its impact; a fact that has got both startups and MNCs thinking about how they conduct business. And this is precisely why corporate executives like Talal El-Khalil, the General Manager and Senior Vice President of PepsiCo in the MENA region, are looking to operate their enterprises more like SMEs.

One of the greatest things about being an entrepreneur is the creative license that comes with the position. In fact, the unique narratives, presentation and customer service of startups are the very things that make them stand out in a crowded business ecosystem. In a digital world where consumers are constantly bombarded with information, a business’ personality often becomes the only determining factor when a consumer has to choose between two similar products or services, thereby making the preservation of a company’s persona and ethos a key part of its survival. So, what does a startup’s personality entail? It includes everything from why you started your business, to how you source your materials, to who your partners are, to how you bring value to your customers and the market. As the old saying goes, show me who your friends are and I’ll show you who you are. This goes for people and businesses. For Frida Kleimert-Knibbs, Head of Channel and Commercial Sales for Cisco in the UAE, choosing your partners and maintaining positive business relationships is vital when it comes to reaffirming your business’ personality and promoting your strategic growth. Ultimately, entrepreneurs should always

Ramez Mohamed, CEO, Flat6Labs

@ramezm

Talal El-Khalil, General Manager and Senior Vice President, PepsiCo MENA @talalelkhalil

strive to establish a startup with a strong personality and culture of sustainable and ethical business practices that can grow with the company. 3. Don’t underestimate the value of your team

In a world where customers are overwhelmed by choice, a startup’s personality is often the only thing that sets it apart from the rest. So, how can you create a startup personality that will attract customers to your product or service? Make sure you have a great team. According to Ramez Mohamed, the CEO of Flat6Labs, your team is the most important aspect of your startup. Why is that? Because consumers don’t want to deal with faceless conglomerates anymore. We live in an age where we are bombarded on a daily basis with information, which makes it difficult to create a meaningful connection with anyone, let alone a company. Subsequently, unless your startup and your team can leave a lasting impression on consumers, they simply won’t survive. In addition to bringing valuable skill sets to the table, team members also need to add value through their ethics and personality. After all, what’s the point of having a brilliant coder or accountant, if they can’t think creatively or they don’t value the importance of social responsibility? To survive in the current startup ecosystem, hiring a team of “generalists”

is way more important than hiring a team of specialists. You want to hire the engineer who is also a painter or the interior designer who is also a math professor, because they represent the versatility and the ingenuity that successful startups thrive on. While most people measure ROI in financial terms, I believe that, in the future, it will be measured by the “return” that the “right” people bring to your team. So, make sure you choose team members who will bring the best financial, ethical and creative “dividends” for your company.

rate executives are changing that perception. The founder and CEO of Nabbesh, Loulou Khazen Baz, recently launched Fursati with Qatar-based NGO Silatech. Fursati is a campaign to connect Palestinian youth with dedicated freelance opportunities online. Not only is Fursati allowing Khazen Baz to leverage her company’s marketplace, it’s also benefiting the disenfranchised Palestinian youth in Gaza and West Bank: a perfect example of the mutually beneficial relationships that businesses are capable of establishing, if they are willing to do so.

4. Don’t think you’re too small to make a difference

When most people think about CSR, they usually think about big companies, which makes sense because the C in CSR does stand for corporate. While this acronym has come to be the blanket term used by the business community to refer to all the goodwill exercises executed by companies, I believe that it needs to be amended. My biggest grievance with the C in CSR is that it doesn’t reflect the amazing social impact that countless SMEs are having across the globe. Once upon a time, unless you were a charity, NGO or MNC, implementing a social program didn’t seem financially feasible or necessary. However, a new generation of entrepreneurs and corpo-

Essa Ali Bin Salem Al Zaabi, Senior Vice President of Support Services, Dubai Chamber of Commerce and Industry @EssaAlzaabi

no matter what the size. Luckily for us, just like production and revenue, social responsibility is also scalable. With

Joshua Rajkumar, Chief Operating Officer, The Sustainability Platform @joshrajkumar

that in mind, I believe that it is our responsibility to start nurturing cultures of “scalable compassion” in our business ecosystems. 6. Don’t be afraid to introduce new cultures of thinking

Lina Hourani, Director of Al Ahli Holding Group CSR division @CSRalahligroup

5. Teaming up is beneficial for everyone- your business and their business

Many people believe that corporate success must come at the expense of communities or the environment, but this is simply not true. In fact, many corporate executives, like Lina Hourani, the Director of Al Ahli Holding Group’s CSR division, are trying to play an active role in counteracting this mentality. The Global Business Opportunities program, a program that helps Al Ahli Group identify business opportunities and develop entrepreneurs, is yet another great example of how the attitude towards social responsibility is changing in the corporate world. CSR (or Business Social Responsibility as I would like it be referred to henceforth) should be the modus operandi of every business,

If you were to ask an entrepreneur in the MENA region today what their two biggest fears were, they would probably say the inability to find funding, and the difficulty in getting people to adopt their service or product. Unfortunately, skepticism, as I have discussed before, is rampant in Arab culture. For some reason, Arab consumers have an inherent distrust of “homegrown” solutions to pressing regional problems. Consequently, Arab entrepreneurs with innovative ideas often struggle to survive in MENA markets. >>>

Sam Quawasmi, Managing Director and co-founder, Eureeca @eureecasam

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Marwan Mohammed Al Suwaidi, Director of Finance, Khalifa Fund for Enterprise Development

However, there’s an important element of idea and process innovation that entrepreneurs often overlook. You can’t introduce new ideas to consumers without creating a culture around them. Consumers have to understand why your idea is important and how it adds value to their lives. For instance, by consistently creating quality blog content and interacting with their audience, not only can entrepreneurs establish a “culture of need” around their product or service, they can also build a loyal following for it. But before we can start to chip away at the culture of skepticism that negatively impacts entrepreneurship in the Arab world, we also have to focus on nurturing more resilient entrepreneurs. According to Essa Ali Bin Salem Al Zaabi, Senior Vice

President of Support Services at the Dubai Chamber of Commerce and Industry, SMEs represent 95% of the Dubai Chamber’s members. However, do they make up 95% of the force that is driving Dubai’s economy? Probably not. If Arab countries, like the UAE, want to promote a culture that produces and accepts entrepreneurship, we have to start teaching our communities about the importance of the ecosystem. 7. Build an entrepreneurial culture into existing learning framework

If we want to nurture an entrepreneurial culture in a country, then Marwan Mohammed Al Suwaidi, the Director of Finance at the Khalifa Fund for Enterprise Development, believes that courses on entrepreneurship must be integrated into the UAE’s educational system. In order to promote meaningful and long-lasting change in the MENA region, both our citizens and entrepreneurs need to learn how to promote cultures of change to adapt to the ever-evolving demands of the Conceptual Age. 8. Be a trendsetter in the entrepreneurial ecosystem

While it is undeniable that the global startup ecosystem is

Aby Sam Thomas, Managing Editor, Entrepreneur Middle East

@thisisaby

becoming more and more competitive by the day, entrepreneurs should always resist the urge to jump on the “popularity bandwagon” to make a living. Regrettably, the business ecosystem in the Arab world is greatly affected by “entrepreneurial group think.” In other words, if somebody opened a gourmet hot dog shop today that took off, five or six similar shops are soon seen to surface in the following months. Another example of a “sexy” entrepreneurial trend that’s taken off recently is “social enterprise.” Soushiant Zanganehpour, founder and Director of Tribeca Impact Partners, dislikes the term, because he feels that it is often misused or overused by many startups. Think about it, why

Sonia Weymuller, co-founder, VentureSouq @VentureSouq

does this category even exist? Although it means well, it does unintentionally perpetuate the idea that only a certain kind of business can have a positive impact on society. At the end of the day, a social enterprise is a business just like any other. Perhaps it is time for us to retire this category from our “entrepreneurial lexicon” and make BSR, leadership and responsible governance the ethos of all businesses. By replacing the label of “social enterprise” with “impact-driven,” we can encourage more startups and corporations in

the MENA region to engage in business and social activities that benefit local and global communities and work forces.

Jose Valles, Vice President Enterprise, Commerce. New Business and @josevalles49 Innovation, du

9. Don’t expand for the sake of expanding

Almost every entrepreneur starts a business with the goal of growing. That being said, a startup’s growth should never be haphazard or without cause. According to Joshua Rajkumar, co-founder and Chief Operating Officer of The Sustainability Platform, it is important for a business to manage its growth and to make sure that it is not expanding for the sake of expanding. It is also vital for a startup to understand their product or service and their existing and desired customer base, so they can define what growth means for them. For some startups, growth might take on a more local character. For others, it might be more international. Regardless of how or where a startup grows, it is crucial for an entrepreneur to set the scope and their long-term objectives, so they can plan their budget and future fundraising rounds accordingly. 10. You can leverage technology to take your business regional (or global)

Chris Bartlett, the General Manager of Small, Midmarket Solutions and Partners of the Microsoft Corporation in the MENA region, strongly >>>

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Loulou Khazen Baz, founder and CEO, Nabbesh @loulsk

believes that technology has played a key role in allowing business to scale and operate in new markets. So now, startups no longer need to have the resources of a MNC to operate like one. Having said that, it is necessary for a startup to manage all aspects of their company’s growth as they scale. Not only do entrepreneurs have to be able to scale their business activity, they also have to be able to scale all of the talent, communications and resources needed to keep their operations running smoothly. 11. Capitalize on your small size as it is correlated with agility

Drawing on his experience as long-term executive in the product and development business, Jose Valles,

Entrepreneur december 2015

Vice President- Enterprise, Commerce, New Business and Innovation at du, believes that one of the greatest advantages that a startup has over a larger corporation is its ability to take and implement decisions quickly. So, if you’re a startup and you’re considering expansion, make sure you keep two things in mind. Firstly, you shouldn’t expand just because you think you should- expand when the right opportunity presents itself. Secondly, whether you’re expanding into another neighborhood, district, city or country, make sure that you can effectively scale your decisionmaking process, so you can maintain the quality and agility of your business.

and more young entrepreneurs are seeking investments from family members and friends. Some are even turning to online crowdfunding platforms to campaign for money. Personally, I think that crowdfunding is a very interesting way to raise money because such platforms encourage entrepreneurs to do several things. Firstly, the campaign profiles and videos introduce entrepreneurs to the pitching process and allows them to hone their skills in that. Secondly, giving perks to campaign investors allows entrepreneurs to build a community of loyal brand ambassadors and get valuable feedback on their product or service. Last but not least, crowdfunding allows first-time entrepreneurs to build credibility, by

12. Don’t put all your financial eggs in one basket

Once upon a time, there was only one way that people financed an entrepreneurial venture: a bank loan. Nowadays, young entrepreneurs are looking for new ways to fund their startups, and one reason is that many founders already have student loans, car loans and more, and they just can’t bear the thought of taking on one more loan. Consequently, more

Soushiant Zanganehpour, founder and Director, Tribeca Impact Partners @soushiant

Frida Kleimert Knibbs, Head of Channel and Commercial Sales, Cisco UAE @FridaKleimert

allowing them to show future investors how they have raised, handled, and spent money in the past. According to Sam Quwasmi, Managing Director and co-founder of Dubai-based crowdinvesting platform Eureeca, equity crowdfunding is commonly misunderstood by many entrepreneurs, but it can be a very valuable way to raise funds for a startup. If you’re confident in your startup idea, you know how much equity you’re willing to give up and you’re looking to build a community of truly “invested” brand ambassadors, equity crowdfunding might just be the thing for you. 13. Remember, potential investors are looking for a few key markers

Regardless of who you’re pitching or what fundraising stage you’re in, there are three things you need to show any potential investor, says Sonia Weymuller, co-founder of VentureSouq. You must be able to show them your past spending, a complete understanding of your future expenditures, and a thorough understanding of your current competition. If you can do that, the last thing you have to do is to make sure that your startup’s valuation isn’t unreasonably high. High valuations can scare away potential investors, thus jeopardizing future funding prospects, and that’s a definite no-no for any venture looking to scale up.

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environment. It’s important to remember that not every culture is innovation-minded. 2. Where is your country’s competitive advantage?

Promoting SMEs as key drivers of innovation and engines for global trade and growth

Some external and internal factors to consider for your company’s success By Marc Proksch

nnovation has a wide range of meanings, and it is not necessarily linked to high technology. In the case of SMEs, innovation may require changes in organizational structure and culture and refer to changes in process and management and the kind of services rendered rather than to new products. It also relates to improving efficiencies in supply chains, marketing and advertising, and business operation models. Innovation, as a concept, also applies to social entrepreneurship and responsible business practices. Innovations for existing SMEs are usually incremental rather than radical. Radical innovations are pushed by new startups commercializing new ideas. It’s important to remember that innovation rarely occurs in isolation; it’s a highly interactive process of collaboration across a growing and

Entrepreneur december 2015

diverse network of stakeholders, institutions, and users. Why is a strategy for innovation needed? Simply because it allows SMEs to optimize strengths and minimize weaknesses relative to competitors. A single set of recommendations is not appropriate for all SMEs, as anyone will attest, because their attributes and environments vary considerably but there is a wide range of innovation options that can serve different purposes at different times. While no one option is right for all SMEs, innovation in products, processes, or services of varying type and degree can be appropriate for different SMEs in different industry sectors or product lifecycle stages. An important set of innovations relates to services SMEs can provide in addition to the product they deliver (e.g. maintenance and provision of spare parts).

Six questions that help to address the SME innovation conundrum 1. What type of climate is needed for innovation to happen?

There’s a tremendous need for an entrepreneurial spirit and mentality based on risk-taking, coupled with an enabling

Countries need to determine where they have competitive advantages. Innovation needs to be focused in certain sectors, including services. The main drivers are spread of private sector driven global value chains (GVCs) and government-driven foreign trade agreements, such as TransPacific Partnership (TPP). Supplier SMEs may need to undertake innovation as their customer Transportation network companies (TNCs) innovate and adopt new standards and product specifications. 3. What constitutes an enabling environment?

One that has a high ranking on ease of doing business, high level of education and skills development, available finance in the form of venture capital, government policies that support innovation and entrepreneurship and champion the free flow of information and ideas, etc. Also, a market economy environment characterized by a high level of competition/ rivalry. A proper competition policy must be in place for SMEs to thrive. >>>

Marc Proksch (third from right) speaking on an SME innovation panel at Global Trade Development Week in Dubai, UAE

TREPONOMICS 4. What types of frameworks and schemas should be in place?

Countries need to possess the necessary infrastructure to promote innovation-based SMEs. Provision of business services is also important. Business development services help effective access to laws (national and FTAs), accounting, taxation, regulations, market intelligence, training, business development, financial sources etc. 5. Is your country’s established policy set up to foster SME growth?

Possible policy options include establishment of high technology zones and incubator programs, strengthening of national and subnational innovation systems, investment promotion agencies’ strategies towards attracting high technology foreign direct investment (FDI); strengthening legal and regulatory framework, including intellectual property regulations and competition/ anti-monopoly laws. Sectors where barriers to entry are low are more competitive, and therefore more innovative. 6. Is the establishment synergistic?

National Innovation System (NIS) refers to the complex and interactive web of knowledge flows and relationships among industry, government and academia and making them work systematically to sustain innovation and science and technology development efforts. The innovative performance of a country depends to a large extent on how these NIS actors relate to each other as elements of a collective system of knowledge and technology creation and use. Is your SME committed in the right way? Innovative SMEs are aware of the capacities of the competition, and they have a good understanding of

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market needs. However, this requires investment of scarce resources, and this also refers to investment in employee skills and training. SMEs are flexible, so the capacity for innovation rests with product customization, customer intimacy, and exploiting market niches. They do not depend on scale. Linking SMEs to high technology FDI is next step. This requires strengthening SME capacity in terms operations, management, financing and meeting standards through accessing, adopting and adapting suitable technologies. Technology refers both to hardware (physical assets) and software (knowledge and skills). SMEs that engage in R&D have higher chance to be innovative. Qatar Science and Technology Park

Creative adaptation of technologies for new uses

The creation of dedicated areas, like Science and Technology Industrial Parks (STIPs) is an indicator of an enabling environment for business growth and inception. Good examples from Asia are China’s SPARK and TORCH programs. The TORCH Program created Innovation Clusters by creating national STIPs, Software Parks, and Productivity Promotion Centers. In this region, the Qatar Science and Technology Park is a good example. Another key part of China’s cluster strategy was collaboration between research and business, as well as between large enterprises and tech-

based small and medium enterprises. It did so by building a national network of a 1,000+ Productivity Promotion Centers. They provide consulting, promotion, product testing, hiring, training and incubation services to startups. While the Innovation Clusters designated specific areas of the countries where high tech was to occur, it’s the Technology Business Incubators (TBIs) located inside these clusters where the startup companies physically reside. Much like incubators worldwide, they provide startups with office space, free rent, access to university technology transfer, etc. By 2011, there were a total of 1034 Technology Business Incubators across China, including 336 as

‘Treps choice Nissan’s 2016 eighth gen Maxima

Huawei headquarters

National Incubators, hosting nearly 60,000 companies. (20% of the National Incubators were privately-run and their percentage is steadily increasing.) In recent years, Business Incubators have developed into diverse models. For example, the Ministry of Education and the Ministry of Science and Technology teamed up to put 45 incubators in universities. There are close to 100 specialized incubators for companies founded by returned overseas Chinese scientists and engineers. There are a dozen sector-specific incubators (a Biomedicine Incubator in Shanghai, An Advanced Material Incubator in Beijing, a Marine Technology Incubator in Tianjin, etc.) These incubators are mostly clustered in the eastern coastal regions, and disproportionately target TMT (Technology Media and Telecom) and Biotech. Some of the startups coming out of these incubators have become large international companies including Lenovo, Huawei, and Suntech Power. A few focus areas for SMEs to be innovative

There is a need for supply chain management, access to technology, investment in R&D, and financial management, including working capital requirements. Execute analysis of your SME market potential and

the existing competitors. SMEs should also consider branding, as it’s very important. Adoption of RBC is also a priority. Clustering may help overcome R&D, marketing, information and financial bottlenecks by pooling resources and access to business development services. The weakest link in an SME’s chain is often access to finance. It often starts with SME capacity to prepare solid business plans, but here, online opportunities for funding exist, such as crowding and equity crowdfunding. Support can also be gained through seed funding (such as InnoFund) and venture guide funds to assist and guide VC firms.

For those who are seeking both an interesting and a high performance road experience, you’ll probably want to pay close attention to the eighth generation Nissan Maxima. The 2016 edition, amped up and sportier than ever, looks good, feels good, and yes, is even a pretty peaceful ride for your traffic-heavy commutes to and from the office. How can sitting in traffic be made peaceful? The Active Noise Cancellation System keeps the cabin comfortably insulated from the road rush, and setting a positive mood is made easier when you choose the vehicle’s ambient lighting option, paired with upgraded premium leather seating with diamond-quilted inserts. You’re sitting pretty, feeling good, and now it’s time to put that 2016 Maxima’s 300 horsepower to work- that’s 85.7 horsepower/liter, to be precise. Get the most bang for your buck with its 3.5-liter VQ-series V6 engine, and performance-oriented Xtronic transmission that’s all about stronger acceleration. For those who like to feel in control, you’ll appreciate the brand new D-Step shifting logic. Start your engines, ‘treps! www.nissan-me.com

Marc Proksch has Master’s Degrees from the Free University of Amsterdam in political science, international relations and from the London School of Economics in international political economy. After working in the private sector in the U.K. as a research analyst at a management consultancy, he joined the United Nations in 1990 in the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok. From 2000 until 2010, Proksch worked in ESCAP’s Trade Policy Section of the Trade and Investment Division. Proksch is currently Chief of the Business and Development Section in the Trade and Investment Division and manages the work of the Section in the areas of development of SMEs, promotion and facilitation of investment for development, and the promotion of responsible business practices.

december 2015 Entrepreneur

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Spreading the news

The recipe for a viral marketing campaign By Lama Ataya

he Internet is a giant blank marketing canvas for brands savvy enough to cut through the noise and find new ways to get consumers to listen up and join the conversation. And while coveted by all, viral content is no easy feat. In fact, while highly sharable content can give your business a lift, creating a viral video, on the other hand, is far from easy. Having a piece of content go viral is the closest description to some sort of Internet version of the lottery; it’s extremely difficult to achieve and very hard to replicate. What makes content go viral? Of all the millions of videos posted online every day, how do some videos or other pieces of content rise above the fray? In other words, what makes a video or ad or any type of content go viral? Look at every successful campaign and you will find that there are four important characteristics associated with viral content. The new frontier of marketing is in creating branded content that isn’t designed to be overtly promotional, but instead can stand on its own merits. A successful branding campaign needs to carry and communicate the brand’s core values and, as such, has exponential marketing impact. When creating content, it’s vital to always keep your brand purpose and consumer needs top-ofmind. Social listening helps to inform the future, but is less useful as a way to measure an existing program.

emotional investment. A great way to get the viral edge you want is to look for stories that can inspire your readership. Audiences love an inspirational story, and the more inspirational it is, the more your audience will want to share it with others. 2. Opt for quantity vs. quality

Yes, they both matter, but quality content doesn’t necessarily imply expensive production. So it’s OK if you don’t allocate a huge budget to

produce your content- some of the most popular videos online were filmed with a personal camera at home. What distinguishes many of the most successful channels on YouTube, for instance, is that they upload new videos regularly, which keeps their audience interested and engaged. Think of it like a friendship- you’ll be much more engaged if you’re talking every day, not just once every six months. 3. Make your content timely

If you want your content to make the jump to virality, it might be time to brush up on your current events. By hooking into an existing Internet theme or popular topic, you increase the odds your content will be viewed and shared by those already interested in the topic. This can be anything from a current world event, to a pop culture topic dominating the news. If you speak the same language as your audience and present interest in the same topics, they’ll be more likely to share your content. 4. Make your content engaging

One of the keys to virality is engagement. Engaging with an audience leads to interest, repeated visits and ultimately, conversions. Adding an engagement portion to your videos, like answering viewer questions, can give your content a boost and make it more sharable. After all, everyone likes to be heard! How we went viral with our #WhatsYourStory campaign To celebrate our many successes and the successes of people we supported,

People are always searching for new information and better ways to do things. If your content is interesting and informative enough, it is also highly sharable; and if you want to get people’s attention, contribute something worthy of their time and

Entrepreneur december 2015

image stills © youtube

1. Choose informative and inspiring content

Bayt.com decided to highlight inspiring and successful stories of various professionals from across the Middle East. We wanted to spread the positive message of how dedication and hard work go a long way. This idea of sharing a message of passion, dedication and hard work culminated in two videos that went viral straight away. One of the videos was by Jordanian band Tarab 3al 7atab, and the other by Kuwaiti rappers Sons of Yusuf. Create a content plan that outlines every tweet, Facebook update, and Instagram post. Make sure you know what you’re launching, and when. Create reply templates for all your community managers so they know how to engage before the campaign is launched. Create a publishing schedule so you can see what content is going live, and when. The key is to plan your marketing according to your content and KPIs.

Entitled What’s Your Story?, the campaign was simple: as a career site, we knew that having a successful career was all about hard work, passion and creativity. We knew we were going to invest in a project that was the first of its kind in the region, and we would settle for nothing less than virality. So the question was: how should we share this idea and make a difference while engaging audiences across the Arab world? We decided very early on in the campaign process that we cared more about acting as a publisher to build a strong affinity message aligned with Bayt.com’s core values of being a Middle Eastern company focused on empowering people to lead better lives. We focused on creating content consistent with our brand story, while ensuring that the content is also entertaining and inspiring in its own right in order to enhance brand status without ever mentioning any of our products. The #WhatsYourStory campaign was created in-house and utilized a wide array of channels to reach the audiences we were targeting. 1. Print advertising

We highlighted success stories from people around the region, with different ideas used depending on the target audience of the publication, highlighting the nature of personal success. >>>

Three lessons from the #WhatsYourStory campaign Lesson one Tie your brand to an emotional message

If strong emotional activation is the key to viral success, how can brands best craft highly emotional messages with their content? First, think carefully about how your company, product or service is related to a topic or topics that taps into deep-seated human emotions within your target audience. The goal is to find the link to an issue that plagues your consumers and relates directly to your brand or product. At the same time, you must make sure that the topic you choose also positively reflects the position of your brand. Using the example of #WhatsYourStory campaign, it is clear that its viral success was the result of its ability to tap into an emotional connection to work and self-actualization. We created a positive emotional reaction by inspiring success through their campaign. Their content delivered the message: “Each one of us has a story to share and all

stories are worth sharing and telling- let us help you share your story.”

Lesson three Target the people who will share your content

Lesson two Take into account the public good

Companies are already placing ads on the pages of Facebook users and are reaching out to Twitter and Instagram users who have a large following base. Brands have to recognize that the ability to find these archetypal sharers online is just as important as the ability to traditionally reach certain demographic groups. Before and during the #WhatsYourStory campaign, Bayt.com reached out to dozens of online influencers and shared their stories. TV personalities, social media gurus, YouTube celebrities, etc. were all contacted to help the brand spread its message throughout the campaign.

Consider that one of the best ways to create an emotionally compelling piece of viral content that also works well with your brand is to tie your brand to a message for the public good. Brainstorm how your brand might be able to create content that does a public good or that creates awareness, but at the same time activates strong emotional drivers. In our campaign, Bayt com not only made sure to share stories of successful people who were able to realize their dreams, but also encouraged everyone else to dream and work and find their passion.

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What’s Your Story? Here’s Ours.

The Story of Bayt.com The Story of Bayt.com What’s Your Story? Here’s Ours.

What’s Your Story? Here’s Ours. (Mona)

(Dany)

The Story of Bayt.com EUREKA!

(Rabea)

(Mona)

(Akram)

EUREKA!

(Rabea)

(Dany) (Akram)

January, 2000

A young entrepreneur in a warehouse can’t find the right people

He realizes that millions of people can’t find a job

Decides to create Bayt.com so employers and job seekers can connect

Convinces his sister and his friend to head sales and marketing

Find Your Job Online

First check! (From co-founder’s father, but still a check)

Bayt.com has first 15,000 members

January, 2000

A young entrepreneur in a warehouse can’t find the right people 2000-2002 Bayt.com opens 9 offices in the Middle East

December 2000 Bayt.com has first 15,000 members ‫ﻣﺮﺣﺒ ًﺎ‬

Decides to create Bayt.com Convinces his sister and so employers and job his friend to head sales October, 2000 Raises $1.5 million seekers can connect and marketing Bayt.com

The Middle East isn’t online yet... Bayt.com launches TV ad campaign

Bayt.com goes live for all!

He realizes that millions of people can’t find a job

Convinces his sister and his friend to head sales and marketing

Decides to create Bayt.com so employers and job seekers can connect

December 2002 Bayt.com accepts award for the "Best Recruitment Site in the Arab World"

First check! (From co-founder’s father, but still a check) First check!

December 2000

Finds a tech guru and gets website started

from a friend’s father

Find Your Job Online

June 2002 Hello, profitability! More than $100,000 a month in revenue

(Dany) (Akram)

He realizes that millions of people can’t find a job

A young entrepreneur in a warehouse can’t find December 2000 the right people

(Mona)

EUREKA!

(Rabea)

January, 2000

Finds a tech guru and gets website started

Bayt.com

November 2005 Bayt.com has 1 million members Find Your Job Online

The Middle East isn’t online yet... Bayt.com launches TV ad campaign The Middle East isn’t

Bayt.com October, 2000 Bayt.com goes live for all!

October 2010 May 2008 January 2011 March 2012 Bayt.com has first online yet... Bayt.com Launch of first ever Middle Bayt.com relaunches Bayt.com crowned as one(From co-founder’s Launch of Talentera, a Job Fair, attracting recruitment launchesEast with whole new design of top 10 companies father, to 15,000 members but corporate still a check) TVVirtual ad campaign work for in MENA solution 31,000 visitors

October, 2000 Bayt.com goes live for all!

Raises $1.5 million from a friend’s father Raises $1.5 million from a friend’s father

22m

TOP 28 April 2012 Bayt.com goes social with Bayt.com People

October 2014 Listed in top 28 Global Growth companies by World Economic forum

2000-2002 Bayt.com opens 9 offices 2000-2002 in the Middle East Bayt.com opens 9 offices

2 December 2014 Creation of the Bayt.com mobile app, entering into the wireless2002 era June

June 2002 Hello, profitability! More than $100,000 a month Hello, profitability! More in revenue in the Middle East than $100,000 a month What’s your story? Start now by building your profile on Bayt.com: in revenue

October 2015 22 million members and growing strong... #1 career site in the Middle East December 2002

December 2002 Bayt.com accepts award for the "Best Recruitment Site Bayt.com accepts award for theRecruitment Arab World" thein "Best Site in the Arab World"

November 2005 Bayt.com has

November 2005 1 million members Bayt.com has 1 million members

Bayt.com/WhatsYourStory ‫ﻣﺮﺣﺒ ًﺎ‬

‫ﻣﺮﺣﺒ ًﺎ‬

#WhatsYourStory

March 2012 January March 2012 January 20112011 Bayt.com relaunches Bayt.com Bayt.com crowned as one Bayt.com relaunches crowned as one of top 10 companies to with whole new design with whole new design of top 10work companies to for in MENA work for in MENA

October 2010 October 2010 Launch of a a Launch ofTalentera, Talentera, corporate recruitment corporate recruitment solution solution

May 2008 May 2008 Launch of first of ever Middle Launch first ever Middle East Virtual Job Fair, attracting East Virtual Job Fair, attracting 31,000 visitors

31,000 visitors 22m

22m

TOP 28

April 2012 Bayt.com goes social Bayt.com People April with 2012

Bayt.com goes social with Bayt.com People

TOP 28

October 2014 Listed in top 28 Global Growth companies October 2014 by Economic forum ListedWorld in top 28 Global

Growth companies by World Economic forum

2 December 2014 Creation of the Bayt.com mobile app, December 2014 entering intoofthe Creation the wireless era

Bayt.com mobile app, entering into the wireless era

What’s your story? Start now by building your profile on Bayt.com:

3 October2 2015 22 million members and growingOctober strong... 2015 #1 career site inmembers the 22 million and Middle East

growing strong... #1 career site in the Middle East

#WhatsYourStory Bayt.com/WhatsYourStory

#WhatsYourStory 44

Entrepreneur december 2015

infographic © bayt.com

Bayt.com/WhatsYourStory

What’s your story? Start now by building your profile on Bayt.com:

successful and to quickly change and tweak to make things even better. This will help you both during the campaign, as well as after the campaign is over. Entitled What’s Your Story?, the campaign was simple: as a career site, we knew that having a successful career was all about hard work, passion and creativity. We knew we were going to invest in a project that was the first of its kind in the region, and we would settle for nothing less than virality.

2. Music videos

Two songs, one by Jordanian band and Arabs Got Talent semi-finalists Tarab 3al 7atab, and the other by Kuwaiti rappers Sons of Yusuf, were created for this campaign. Both songs highlighted the personal stories of the singers and their own feelings towards work and “writing their own story.” 3. Social media

We engaged with many successful people to get their stories and share them on our social media accounts. We also hosted a very successful tweet-up with Tarab 3al 7atab, which resulted in two trending hashtags relating to the campaign. The campaign ran from September 2015 to December 2015 and resulted in over four million video impressions across all channels and two trending hashtags (#WhatsYourStory / ). Six tips for companies who want to create viral content 1. Think “Branded Entertainment”

Going viral is not about being promotional; it’s about creating a campaign that stands on its own and that people would like, share and enjoy, regardless of the brand.

image stills © youtube

2. Establish your brand characteristics

Is your brand funny? Cool? Serious? Helpful? You need to establish your brand values and characteristics in

order to create winning content that still resonates well with your brand and audience. 3. Determine your content marketing goals and KPIs

Never create content for the sake of creating content. You must understand what you want your content to solve. Your content must have measurable key performance indicators (KPIs) that you can use to track your success. KPIs can include traffic, sales leads, convert leads into customers, etc. 4. Involve your community in your content

Interact with your community by featuring their content and featuring them in your content. Get success stories from them and highlight them. The secret is to treat them as partners, as opposed to fans or users. 5. Plan it all out during the entire campaign

Create a content plan that outlines every tweet, Facebook update, and Instagram post. Make sure you know what you’re launching, and when. Create reply templates for all your community managers so they know how to engage before the campaign is launched. Create a publishing schedule so you can see what content is going live, and when. The key is to plan your marketing according to your content and KPIs. 6. Measure and tweak

Measure your efforts to see what was

The new frontier of marketing is in creating branded content that isn’t designed to be overtly promotional, but instead can stand on its own merits. A successful branding campaign needs to carry and communicate the brand’s core values and, as such, has exponential marketing impact. When creating content, it’s vital to always keep your brand purpose and consumer needs top-of-mind. Social listening helps to inform the future, but is less useful as a way to measure an existing program. In our campaign, we went ahead with this very-new form of marketing because we know that branded content is exploding– fueled by technology, an ever-increasing number of channels in the media landscape, and some fundamental changes in consumer behavior. And as brands are entering a new era of marketing that is much more ambiguous, subtle, and not nearly as intrusive as it has been in the past, there is ample opportunity for those who understand that viral content is a byproduct of engaging with the audience, touching their hearts, and contributing tangibly to their world.

Lama Ataya heads the Marketing department at Bayt.com and within that role is also responsible for communications, content, community experience, and corporate social responsibility.

december 2015 Entrepreneur

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Health conscious startup Raw ME Founder Layla Al-Dorani wants you to feel better and that starts with nutrition

By Erika Widen

iving in Qatar for the past eight years, I discovered the lifestyle and eating habits in our community were unhealthy. I also recognized the gap in the market when it came to readymade healthy products and that is how the concept of Raw Middle East (ME) was born,” says Layla AlDorani, Founder and CEO of Raw ME. Raw ME is 100% Qatariowned, and it was registered in 2010 but began operations in 2012. The company was financed through personal investment and revenue generated from the business. “We grew organically, from starting in our small shop in Barwa Village

Entrepreneur december 2015

of 80 sq. m. to designing and building a state of the art production kitchen in an industrial area of 550 sq. m. The team began with two people, including myself, who was producing, packaging and delivering. Jump to today, and we are now 12 and continue to grow.”

Al-Dorani says that while cold pressed juices are a growing trend concept, it’s still relatively new for Qatar. The production and procedure of cold pressing is the slow process of extracting nutrient dense juice from fresh produce using extreme pressure exerted through a hydraulic press. As a result, “cold” is used to describe the hydraulic press Layla Al-Dorani technology that minimizes oxygen and heat so little oxidation occurs during extraction. “This method produces the longest, lasting, highest quality unpasteurized juice, rich in color, flavor and nutrients. It’s as close as you’ll get to what Mother Nature intended.” Raw ME is a plant-based food and beverage organization, which offers Qatar’s first premium cold-pressed juices, nutritional detox cleanses, corporate fruit baskets, and bulk juice services to hotels and customized services for events. “We handcraft and deliver high quality fresh products made naturally from only fruits, vegetables, nuts, and seeds. Eating clean is a life-changing event that will not only make you feel better in the short-term, but over time will have a drastic impact on your overall health.” Al-Dorani also underlines the importance of Raw ME’s cold unpasteurized process in which their products are created. “We make sure temperatures stay below 46°C to

preserve the integrity of the fruits and veggies, and maintain the vitamins, minerals and enzymes they have to offer. [Our products] are free from additives, chemicals, added sugar, artificial flavors or colors.” Since Raw ME was launched, Al-Dorani adds that their vision is to create honest products in which their customers can trust and be a positive value to their clients’ lives. At present, their health conscious clients are 40% Qataris to 60% expats. “As people strive to improve their lifestyle through exercise and diet, there will always be a need for healthy, convenient and accessible products. Raw ME offers just that. We are the only company in Qatar that produces bottled cold pressed juices and vegetable blends.” And, like most startups in Qatar and elsewhere, Raw ME has also encountered some challenges. “We suffered from the same challenges that most people

“there will always be a need for healthy, convenient and accessible products. RAW ME offers just that. We are the only company in Qatar that produces bottled cold pressed juices and vegetable blends.” face in Qatar when it came to launching our company,” adds Al-Dorani. For instance, sourcing equipment, finding quality staff members, renting affordable commercial space, raising capital, but most importantly introducing a new concept that was foreign to government regulators in the country. However, those challenges were overcome through creative solutions. “If a client asks for something, we do our best to meet their specific needs. Regardless of the struggles, Raw ME has to endure to make sure the delivery happens.” On a positive note, Qatar has a lot of business opportunities, despite the fact that is it a tough market to enter. “The government laws are

Raw ME’s Gabe Glennon

complex and rigid, and the country’s environment offers limited resources. Examples of barriers include online sales, municipality understanding innovative business models, deliveries and mailing system, payments online, available retail space, inflated prices, and staff hire.” For this reason, Al-Dorani advises young Qataris who are eager to become entrepreneurs to understand thoroughly all the requirements and limitations from the government. “A great idea takes much understanding of the government regulations on what is and isn’t permitted, because you will run into many roadblocks that could directly affect the success of your young business. These obstacles, many times, will have nothing to do directly with your business, but must be addressed in order to proceed with your daily operations.” Al-Dorani adds how today they are proud to be Qatar’s leading healthy brand, and supporting the country’s

National Vision 2030 for a brighter and healthier future, and “also, becoming a leader in a sector other than energy.” As a result of Raw ME success including winning local entrepreneurship awards, they have received several inquiries to expand

outside of Qatar. In addition, the organization has also developed five flavored raw healthy meals and snacks, which will be unveiled soon. “As we succeed covering the local market, we look into franchising our brand in the near future.”

RAW ME GETS RECOGNIZED! 2011 Second place Al Fikra Professional Business Plan Competition 2012 Best Qatar Entrepreneurship Business Plan award at the Bedaya and Silatech Launch 2013 Top 50 startups and semifinalists in MIT MENA Business Plan Competition

and the only country representative 2014 Bedaya Recognition Award 2014 of successfully completing the Al Ta3amel program 2015 First place Entrepreneur Achiever Award Reyada Competition Social Development Center

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Rewire that engine! Four productivity hacks to power through Q4 By Shoug Al Nafisi

alling on a higher power to make it through until the end of the year? ‘Treps, these four hacks will make this leg of the all-important last quarter a breeze. Get cracking! 1. Set the scene Ever wonder how people read at cafés? Knowing that it’s become quite difficult to focus at will, cafés continue to be the default spot for quick meetings or even weekend reads. Other than good coffee, they house an ambience that allows you to focus in whichever way you like. Ambient sound (or white noise) is an effective tool for cultivating creativity, and might also just be your key to getting things done, double-time! I like making my own sound with Noisli. 2. Go outside-in The multisensory experience of the outdoors is considered quite impactful when it comes to

Entrepreneur december 2015

creativity, productivity, and happiness. If you can’t spend much time outdoors, working from areas with natural light and windows facing natural elements can actually go a long way. It’s proven that introducing greenery into your work environment can also improve your mood, and your output. 3. Take down the competition Simply put, distractions kill your vibe. You can get more done in less time and with less effort put into trying to refocus. One proven way is to create a routine of turning off alerts as soon as you get to your office, and until you get done what you’ve come to do

(emergencies are just that– don’t count on unlikely circumstances). Other hacks include scheduling time to check emails, and decluttering your virtual and physical workspace. 4. Put the pedal to the metal High performance requires training mentally, physically and emotionally.

TREP TALK ME THE BUSINESS Vaniday UAE THE ‘TREP Co-founder Vera Futorjanski Q What makes Vaniday stand out among its regional and local competition? A “The market of online beauty and/or wellness is very fragmented, and we can now see a few small players entering the market, which demonstrates the potential growth of the sector. However, there are no major global players offering the vast choice of beauty and wellness services that Vaniday offers. We are not limited

Other than relaxation and destressing, meditation teaches the discipline to focus attention and energy where it’s needed. Physical exercise will enhance that ability and take it even further. Find the right exercise routine to commit to, and hit some milestones. You’ll want to keep fueling the fire!

to a country, a continent or a particular service, but depending on the needs of each market, we offer a wide choice of specialized services in this sector and aim to reach customers all around the world, forging a reputation as the go-to online platform for the beauty sector.” www.vaniday.ae

Just add your touch New milk froth button to personalise your recipe.

Discover how easy it is to create your personal coffee specialties at the touch of a button on www.nespresso.com

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Cities Store, Dubai

Business is booming

A discourse on design with entrepreneur Hazem Aljesr Cities founder makes MENA’s creatives a priority By Aby Sam Thomas

or an entrepreneur, being able to follow one’s passion is an exciting proposition by itself, but what makes the experience feel a lot more exhilarating is when one is able to capitalize on that interest by filling a gap in the market. That’s why Hazem Aljesr considers himself to be lucky with the enterprise he set up in 2008, the Cities Design, Art & Lifestyle Store. Born in Lebanon and then raised in Saudi Arabia, Aljesr went to the U.S. and then the

Entrepreneur december 2015

U.K. for his higher education, and on his return to the Kingdom in 2006, he, along with two other co-founders, set up a graphic design company called Zoom Creative. Following that company’s success, he then launched Cities with its first location in Riyadh- according to Aljesr, the store was set up to address a very particular need he saw in the market. “When I returned to Riyadh, I saw that there wasn’t a lot of variety available in terms of design and interior décor; it was very centered

on traditional and classic styles,” Aljesr remembers. “So I created a store that I would want to shop at. We took the name Cities, because we want people to feel that they can shop [from] all the cities of the world from one place. As such, Cities focuses on encouraging a new approach to design and interior décor; it’s a fusion of styles, quite eclectic and unique.”

Aljesr’s first store for Cities in Riyadh attracted a lot of attention, following which he moved on to a dedicated space at Harvey Nichols in the city, and now, he’s back to his standalone roots with a larger, freestanding store in the Saudi capital. “It’s in a very popular shopping location, and I think that the location and our existing reputation will help us to succeed and continue to ex-

Cities Store, Dubai

“We look for items that are unique, well-crafted, and fit with our concept. When we find a designer that we like whose work does well, we want to build on that, especially if it’s a designer who does bring new items with some regularity. We make contact with individuals, design firms, art galleries, and small independent artists.”

pand,” he says. “We also have a strong presence on social media, and we are always involving the Cities name in new ideas and initiatives to further extend our influence and gain more interest. We have moved slowly and steadily upwards, and I feel that we are aimed at continuing along that path. Hopefully, we will be able to open up additional Cities locations in the near future.” Aljesr has already made some headway on his expansion plans for Cities- it opened its first Dubai outlet in 2014, and Aljesr reveals that the company is set to open a new store in the Emirate at Dubai Mall in February 2016. Abu Dhabi is also on the cards, as is the rest of the Middle East- but for now, Aljesr wants to focus his efforts on Cities’ existing outlets. “If we have a few Cities’ locations in the region that are doing very well, we can continue to build our name and brand, and have a solid foundation to branch out from,” he explains. “We’ve looked at other locations in the Middle East, but so much is dependent on the response to the growing design sector in the region. We want to encourage that, but the result must be financially viable for us as well. With time, as things continue to change, more areas may become possible for regional expansion, but right now, it’s really a game of wait and see.” But given that the design sector in the region is –arguablya rather crowded space, how has Cities managed to break through and make its pres-

ence felt? “Well, I think the Cities concept sets us apart in a number of respects, but what really seems to make an impact is our store display,” Aljesr replies. “We work really hard to create a store display that makes an impression and also offers inspiration, and we focus on combining diverse items to show our customers how these pieces can be used in their own space. So, even though they might be unfamiliar with some of the brands and designers, the dynamic displays draw them in. We also change the store display quite regularly, usually about once a month, so with every visit, customers feel like it’s a new store.” As the owner and Managing Director of Cities, Aljesr has made his passion for design an integral part of how the store involves itself with the creative space of the region. Besides participating in several fairs and exhibitions to showcase its extensive inventory, Cities has also sponsored many artand design-related events in the region. At the same time, Aljesr claims that Cities’ instore presentations also act as a source of inspiration and a resource for people interested in this sector, while also providing a platform for up-andcoming artists and designers to share their creations. “We have undertaken all of these initiatives not just because we want to stand out, but also because our goal is to encourage all forms of creativity in the region,” Aljesr says. “We want art and design in the region to succeed and grow, [and] so >>> “In some areas, it’s developing very well; while in other areas, there is still a lot of progress to be made. There are also many barriers to be surmounted. For example, in Lebanon, many designers complain about having to alter their manufacturing process or material selection, because the technology and resources cannot be gotten to help them create the designs they have envisioned. In other areas, it’s a matter of educating the public and helping them understand why design matters.”

Hazem Aljesr, Owner and Managing Director, Cities

Tips for ‘treps Hazem Aljesr’s five points of advice for an enterprise that stays the course 1. Do your research “Having a good idea isn’t enough, you have to make sure that there is room for it in the market, that it is viable, that you can create it from a financial standpoint, and it has a reasonable chance of success.” 2. Focus on human capital “Surround yourself with a strong team that you can depend on and then delegate. Don’t get bogged down trying to micromanage all the tiny details by yourself, and don’t be afraid to ask for help.” 3. Remain steadfast in the face of adversity “When things get tough, trust yourself and believe in yourself. Don’t listen solely to the negative critics, but don’t surround yourself with sycophants either. Be realistic and take logical risks.”

4. The more you know, the more likely you are to succeed “Never stop learning, researching, exploring, innovating and expanding. The world is changing so quickly; your business has to change along with it. Be adaptable and keep an open mind to changes.” 5. Don’t forget your supporters “Show your team and your customers that you value them. Your business won’t succeed without hard-working employees who feel invested in their jobs, and it won’t succeed if you don’t show your customers that you appreciate them. Listen to your employees and listen to your customers. Address their concerns, and use their input to keep improving.”

december 2015 Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Cities Store, Dubai

many of our efforts are aimed at encouraging individuals and enterprises in order to help them succeed.” Aljesr’s work to encourage and scale up this domain is particularly noteworthy given the disjointed nature of the sector here. “The design scene in MENA is quite variable,” he explains. “In some areas, it’s developing very well; while in other areas, there is still a lot of progress to be made. There are also many barriers to be surmounted. For example, in Lebanon, many designers complain about having to alter their manufacturing process or material selection, because the technology and resources cannot be gotten to help them create the designs they have envisioned. In other areas, it’s a matter of educating the public and helping them understand why design matters.” “We also have a strong presence on social media, and we are always involving the Cities name in new ideas and initiatives to further extend our influence and gain more interest. We have moved slowly and steadily upwards, and I feel that we are aimed at continuing along that path. Hopefully, we will be able to open up additional Cities locations in the near future.”

Entrepreneur december 2015

But that’s not to say that Aljesr’s outlook for this sector is all dry and dreary. “What is really wonderful is that I’ve noticed is the deep level of support that exists in so many areas in the region,” he says. “There is a lot of camaraderie, and designers are very supportive and encouraging of one another, and many cities

throughout the region are becoming more focused on design and taking steps to bring it to the forefront. We’ve seen a huge increase in involvement and in the number of initiatives and events that are being created to encourage design, especially for the younger generations. That is very reassuring, and we’re glad to be a part of all of this at such an exciting time.” Aljesr points out that Cities also features a lot of Middle East names as part of its repertoire. “A number of the designers whose works are on display [at Cities] are from the region,” he notes. “We carry a large selection of items from Orient 499, a Lebanese-based atelier, and of course from Nada Debs. We are also very excited to carry the Wisada floor cushions created by Saudi designer Ayah Al Bitar. We also carry items from Lebanese designer Georges Amatoury, both from his design collection and from his Ardeco Gallery, Corinne Martin, who creates paintings that are influenced by Middle East popular culture items from the past done in a pop art style, and of course,

“We work really hard to create a store display that makes an impression and also offers inspiration, and we focus on combining diverse items to show our customers how these pieces can be used in their own space. So, even though they might be unfamiliar with some of the brands and designers, the dynamic displays draw them in. We also change the store display quite regularly, usually about once a month, so with every visit, customers feel like it’s a new store.”

Khaled El Mays, Nayef Francis, and Hawini. We recently held an installation of works by Nayef Francis at our Dubai location, and Khaled El Mays and Hawini designs are available at Cities and have also been featured in our exhibits for Design Days Dubai 2014 and at the Beirut Art Fair in September of this year.” But this is not to say that it’s an easy task picking the designers whose works are featured at Cities- Aljesr makes it clear that there’s a lot of research happening in the background to find the creations of such talents. “It takes a lot of work to stay abreast of everything that is going on, because there are so many designers creating, and they have a lot of pressure to produce new pieces to remain

“Undo, Move, Construct, Repeat” by Nayef Francis at Cities Dubai

Starting up in Saudi Arabia According to Hazem Aljesr, the challenges of setting up shop in the Kingdom prep you for the rest of the GCC

Cities Store, Dubai

relevant in the market,” he explains. “We look for items that are unique, well-crafted, and fit with our concept. When we find a designer that we like whose work does well, we want to build on that, especially if it’s a designer who does bring new items with some regularity. We make contact with individuals, design firms, art galleries, and small independent artists. We also rely on design companies which offer pieces from a number of different designers all under one company name; they may have dedicated designers or collaborate on specific items with designers who aren’t affiliated with any specific company. This affords us a varied base to draw upon, but we are always on the lookout for new names and new creations. Some of our most successful pieces were discovered by chance, so we try to keep our eyes and minds open to many different sources.” And this is the approach Aljesr wants to continue using as Cities compounds its presence and plans for further growth in this sector. “It’s not an easy area to maintain a presence in; it requires extensive investment, and it’s a slow path to turn it all around,” he says. “Building a brand and a concept takes time; you have to grow your customer base, and maintain it by constantly sharing something new. It often feels like two steps forward, one step back. Right

now, the progress is incremental, but we are already seeing signs that we will continue to benefit from our vision.” Aljesr also has hopes to expand Cities beyond the Middle East region. “My desire is to bring Cities to the people,” he says. “I think that we have a unique concept, and we are evolving and growing. Cities’ concept and its focus on encouraging self-expression and variety in design and décor are very relevant, and it’s also an approach that holds appeal on a global level as well.” Aljesr admits that he has his eyes on entering the European market, but adds that he is in no hurry to do so either. “I think that the Cities concept would fit well with the European lifestyle, but first, we have a lot of work to do to strengthen the name and better define ourselves. Right now, Cities speaks to a customer base that either identifies with our mindset and philosophy or is inspired by it. So, I think the appeal is great. However, the European market is vast, so we would need to find some niche to fill in order to succeed there. Hopefully, the way will become clearer as we continue to grow and progress.”

“It’s definitely not a job for one person! Making the initial decision and investing was the easy part. It was really the little things that caused the greatest difficulties. The paperwork, the waiting for approval for things, the lack of set deadlines for things to occur to move the process forward; those things were frustrating, because there was a lot of uncertainty, and it made the planning process difficult to adhere to because there were so many factors that were reliant on other entities. We succeeded with patience and perseverance. Some things that surprised me were the cultural issues that caused a bit of frustration. Even though I’m Saudi, I’ve spent a lot of time abroad, and I found it somewhat problematic at first dealing with the approach to business. The Americans and the Brits are all about taking initiative; they don’t wait for you to map out the steps of how you want something done. You say, ‘Do this,’ and they figure out the best way to do it, and get it done. But here, there is a lot of deference given. It’s nice, but you have to be very explicit

in how you want things done, and I found that difference in attitude to be a bit of an adjustment for me. I think that starting with the Saudi market has made things easier for me now. I learned a lot from the experience, and I got a good solid team in place, and together we figured out how to surmount the difficulties. So, starting in Dubai, there weren’t really any surprises. I’ve learned how the process works, and now I think we are ready for just about anything. The differences [between the two markets are] in some ways are vast, in others, minimal. In the Riyadh market, they know us now so they know what to expect. Our job is to meet that standard, but also we have a lot of pressure to continually have something new to share. There is a deeper desire for novelty; what’s new that can’t be found anywhere else. In comparison, in Dubai, there has been more exposure to the design sector, so the tastes are sometimes a bit more daring; people are more drawn to truly unusual and innovative items. They are also just learning about Cities, so we are trying to make a strong impression.” Cities Store, Riyadh

“We’ve looked at other locations in the Middle East, but so much is dependent on the response to the growing design sector in the region. We want to encourage that, but the result must be financially viable for us as well. With time, as things continue to change, more areas may become possible for regional expansion, but right now, it’s really a game of wait and see.”

december 2015 Entrepreneur

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

With this in mind, here are three things entrepreneurs can teach MBAs:

Mark Zuckerberg

1. Innovation happens outside of the classroom

Three things entrepreneurs can teach MBAs

By Sean McKeon

cross the Middle East and beyond, today’s young entrepreneurs are opting out of expensive business school degrees and choosing careers in startups. For many considering the two options, the advantages of a traditional MBA are clear: the brand of a university, higher average salaries, and access to a network of future corporate leaders. You might ask then, where’s the problem? In my opinion, the benefits of business school are not immediately useful to an entrepreneur working to get his or her business off the ground. Instead of molding startups to fit corporate jargon, entrepreneurs must be flexible, resourceful, and decisive each and every day.

Entrepreneur december 2015

2. Formulas and frameworks do not apply to startups

The corporate world is full of pre-determined hierarchies, often created to manage the sheer size of many companies. Roles are clearly defined and newly-minted MBAs are thrown into jobs that perfectly match business school formulas and frameworks. For startup founders and employees, daily challenges are less predictable and not as easily delegated. Instead, >>>

mark zuckerberg image © bangkok happiness / shutterstock

Innovation happens outside of the classroom

Startup ecosystems, both inside and outside of the Middle East, are formed by creative entrepreneurs, investors and innovators. For startups, meetings and idea exchanges often happen spontaneously through personal connections and shared interests. Course curriculums and reading lists may be valuable for academics, but these resources do little to attract customers and grow revenues. Bill Gates and Mark Zuckerberg famously went so far as to drop out university and pursue their ideas full time, but we should not forget that Microsoft and Facebook are exceptions. Universities play a role in creating successful startup hubs- look no further than San Francisco where Stanford and Berkeley provide extensive support for rising entrepreneurs. But college campuses are merely one part in the larger ecosystem that brings together innovators from all backgrounds. We must remember that disruptive products and services are created far from the formalities of university lecture halls.

entrepreneurs are forced to be Jacks and Jills of all trades. This growing reality is even changing the way many business schools teach future graduates. As one example, the University of Oxford has incorporated a mandatory Entrepreneurship Project into its MBA course, giving students a brief taste of startup life. Oxford, like many business schools, is recognizing the need for new graduates who can walk the entrepreneur walk instead of just talking the corporate talk. As larger numbers of MBA graduates choose startups and technology careers after business school, an entrepreneurial mindset is quickly becoming an essential factor for success. 3. Resiliency is the key to success

Research from Wamda shows MENA entrepreneurs often lack necessary skills for strategic planning, financial literacy, and busi-

Bill Gates

Entrepreneur december 2015

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

ness development. This gap in fundamentals is typically filled through trusted relationships with investors and advisors in the local ecosystem- but even this mentorship is not enough to create a successful business. Many startups fail despite relationships with successful VCs or angel investors, often leaving founders to ask: why? To answer this question, Angela Lee Duckworth, in her popular TED Talk, identified the importance of grit. At a basic level, she defines grit as the ability to sustain interest and effort toward very long-term goals. For entrepreneurs this concept isn’t anything newone’s daily life as a founder requires immediate sacrifice with the hope of future success. Fortunately for many MBAs, the corporate world provides a protective barrier from the all-too-real fear of failure faced by startups. However, this same protection creates a challenge for business graduates

who become first-time founders. Business school degree or not, entrepreneurs who possess high levels of determination will succeed despite the daily challenges of startup life. This is not to say that business school can’t provide a valuable foundation for would-be entrepreneurs. Several startup unicorns, including Warby Parker and Cloudfare, have MBA founders calling the shots. It’s no secret that graduates of top business schools often find investors and advisors in their school’s alumni base. But a deeper look at successful startups proves that true learning comes through doing and persisting despite unexpected challenges. Business school can’t teach you about the struggles of bootstrapping a business; it can’t prepare you for the sleepless nights and the pressure to be successful. For examples of resilience in practice, look no further

than Cairo, Amman, and Dubai, where entrepreneurs overcome extreme challenges each day. In the future, MBA graduates will be looking more and more towards entrepreneurs in these cities for an education in starting a successful business. Sean McKeon is a recent MBA graduate from the University of Oxford and a passionate supporter of entrepreneurship in emerging markets. Talk to him on Twitter @fseanmckeon.

Jim Will Fix It co-founders Colin Thomas and Daniel Garner

TREP TALK ME THE BUSINESS Jim Will Fix It THE ‘TREP Co-founder Colin Thomas Q What were the biggest lessons from your endeavors? A “Don’t activate until your research is as solid as it can be- we spent six months in daily research to prove our business model would work. If you are underfunded, rework your idea (and not your sales projections) to sit comfortably within your budget with double the contingency you thought you needed. Employ an accountant from day one. This is advice we were given before we set up, and we ignored it as we thought our money was better spent elsewhere. As a result, we had more sleepless nights than were necessary and lacked a clear picture of our financial position. We soon rectified our mistake.” www.jimwillfixit.ae

bill gates image © frederic legrand / shutterstock

TREPONOMICS

THIS RED SEASON

WIN

2 ALFA ROMEO MITOs

Red Season is here and this time you get a chance to WIN 2 Alfa Romeo MiTo cars for every AED 500 you shop for at any Paris Gallery or Watch Gallery store*. December 1 - 31, 2015

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CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

The St. Regis Abu Dhabi

The St. Regis Bar - Library

The Al Hosen Suite Bedroom

At your beck and call

The St. Regis Abu Dhabi is always at the ready for your visit to UAE’s capital

“

hatever the business traveller wants, they get. There is no standard business traveller, so equally, there should be no standard amenities,” says the General Manager of one of the UAE’s finest hotels, The St. Regis Abu Dhabi. Moustafa Sakr adds that the property’s “percentage of business [clientele] does fluctuate depending on the

Entrepreneur december 2015

season and what’s going on in town, however, year-round they make up 40-50% of our guests,” giving the hotel ample experience in a variety of business visitor needs, and catering to what are often specialized accommodation desires. “The success of the St. Regis brand is a result of our commitment to delivering an unrivalled setting and bespoke service to each and every guest, from arrival to departure. We need to be true

to the St. Regis legacy and to history and shared brand our core values that provide rituals, and you’ll see that the the framework for everything language we use is similar,” we do. Most importantly, we he explains. In terms of how need to understand luxury. the brand’s resort culture Luxury should never be inhas translated, Sakr says that timidating– it should be the St. Regis Saadiyat Island welcoming, warm, discreet, really upholds the company’s and timeless.” ethos in that regard as well, In addition to putting into adding that outside of MENA, place the art of anticipating The St. Regis Bali is a haven guest requests and adapting of tranquillity. It just might to specific requirements, Sakr be time to check in! says that at The St. Regis Abu Dhabi the GM Moustafa top-of-mind constant Sakr question is always, “What does the customer want?” And if you’re the customer who is already a global St. Regis patron, then you’ll find those hallmark hospitality values in place here, too. “If I compare The St. Regis Abu Dhabi to the original St. Regis New York, we share a lot through the St. Regis legacy. Our service culture, which is at the heart of the St. Regis brand, and core values are the same. We have a shared

images courtesy St. Regis abu dhabi

RECOMMENDED BY THE GM EXEC STAY “As a luxury city property we have the high-speed Wi-Fi and technology facilities that one would expect, but our approach is to adapt to the needs of the individual business traveller. Empowering our butlers to be one step ahead, and to be able to anticipate and exceed an individual’s expectations is central to our approach. All [of] our guests receive personalized butler service– so their butler is their personal concierge. Beyond our butler team, every one of our staff -including me- is responsible for personalizing a guest’s experience.”

in-house IT specialists and A/V technicians to ensure everything runs smoothly. In addition, we partner with an A/V specialist company as required. We also have five more boardrooms of various sizes, and we have two library spaces that are regularly used as a Majlis. I believe the key to success in the Middle East is privacy, and often a Majlis cannot be enforced by the hotel operator as it’s where our guests feel comfortable. With this in mind, we will create a Majlis wherever the guest needs it- and often this means creating a Majlis in one of our top suites.”

CONFERENCE CAPABILITIES “Meetings and conferences are an important part of our business operation. As a new hotel, we have great technology available to ensure each is a seamless event. The hotel features a grand ballroom, Al Muhaif, which, depending on the meeting style, can accommodate up to 1,000 people. We have quite a big number of large conferences, and we have a team of dedicated event specialists to handle every imaginable detail. We also employ

CONNECTIVITY “The other thing that have proven to really appeal to our business travelers is our Starwood WhatsApp service: ‘Let’s Chat.’ It allows our guests to message their butler via WhatsApp, and our policy is to respond within 60 seconds. It’s great seeing the different ways guests make use of this service; the other day I saw one of our butlers in the gym taking an in-room dining order from a guest training. They had sent for the butler to take the

The Al Manhal Suite Entrance Hall

order via WhatsApp so their meal would be ready when they finished working out- that’s what we’re there for.” MUNCH “As the General Manager of a St. Regis, I guess most people would expect me to select a fine dining option, but my personal favourite is Cabana Beach Bar & Grill. It’s located right on the beach at our Nation Riviera Beach Club. They do a fantastic quinoa salad with seared salmon, plenty of avocado, fennel and roasted peppers.” DOWNTIME “Being [situated] on the Corniche, we have a great city location but we also provide

The Crystal Lounge

lots of options when it’s time to relax– we have our fabulous Nation Riviera Beach Club, great restaurants and bars, and our 3,200 sq. m. multi-award winning Remede Spa.”

The Club Lounge

december 2015 Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Roja Dove in Dubai, UAE during his Middle East fall tour

The legacy of Roja Dove U.K.-based entrepreneur crafts haute fragrance for the MENA bespoke client By Fida Chaaban

efore you sit down with the elegant and wellspoken Roja Dove, think about where you might have seen his highly sought after creations. Just prior to his recent Middle East tour, I had the pleasure of experiencing a fine Roja Dove scent at one of the best hotels in the GCC during my stay there for a conference: the Rosewood Abu Dhabi’s executive suite was fitted out with ancillaries Tom Ford

Entrepreneur december 2015

like the Roja Dove Vetiver Shower Gel, the Body Milk, and the Bar Soap. I’d also seen Dove’s collected works at Paris Gallery, as part of an ornate instillation. This month, just in time for holiday shopping, saw the House launch a dedicated Roja Dove boutique at No. 51 Burlington Arcade in London, England, while here in the Middle East, his products are available at the best retailers region-wide. What you can count on during a conversation with this entrepreneur

is an interesting analysis of the luxury consumer and the luxury industry as a whole. Over the course of his career and the now-global growth of his eponymous venture, Dove has worked with the best and brightest of luxury and then taken that considerable sector expertise and put it to very

good use- for his own legacy brand. “Whether I’m in Dubai or Paris or New York, the selection of fragrance was more or less the same, and there was no choice. I think at this moment in time, there’s a huge backlash in the industry. I think many of the big brands are suddenly starting to be seen as very ordinary because they are so readily available, and I think that the Internet has altered retail globally and those products are sold [online] very much based on price. We have a new wave occurring in perfumery and now, without question, we’re starting to see creativity [injected] back into the equation, so you have a lot of smaller brands -and that doesn’t mean they are good- but it does mean there is choice. When I made the decision to launch commercial perfumery, in addition to my bespoke, it was due to seeing the plethora of clients who demanded something different.” Echoing the opinion of many luxury sector professionals, Dove agrees that being everywhere and catering to everyone isn’t a luxury sentiment. So those seeking a personal expression of taste gravitate to Dove’s work, and they’re willing to spend to convey their preferences, be it through a bespoke fragrance, a good tailored suit or the latest high-end vehicle made to client specifications. “I have two distinct client types; they aren’t mutually

Warming it up right MISSONI AW15 Gents, you can pull off prints… but only when and if they are executed properly. Better fashion Houses like Missoni are ready to get you (well) dressed and ready for winter in the Middle East. It’s chilly in the evenings, and the AW15 collection can be the solution you’ve been looking for when running from the office straight to the office holiday bash. Wardrobe investments are just that, you want to be sure that your pieces aren’t the one-off wear: this collection, an interesting deviation from Missoni’s famed zigzags, can carry you right into next spring.

exclusive but primarily it is two demographic segments: first, an ultrarich consumer who understands what quality is and who really is looking for something very unusual and driven by legitimacy and authenticity. My second client segment, who I absolutely adore, isn’t necessarily very wealthy, and maybe just love what I make, and have to bust the bank a bit to buy my perfumes.” Part of this entrepreneur’s strategy is the taste education of clients via direct training of his sales staff- and that in itself is quite rare. Master perfumers generally don’t travel country to country explaining the motivations behind note selection or compositioninstead, a rather impersonal product knowledge kit is sent out to those consumer-facing brand representatives. If you think about companies across sectors, whenever the founder is directly engaged in the training and promotion of respective products and services, it is often one of the most effective methods of market penetration. And perhaps, Roja Dove’s hands-on approach to his conveying the deep sentiment behind his business, and the exacting developmental process behind his collections, is something most entrepreneurs need to put to work, regardless of what type of client you are aiming to onboard. www.rojadove.com

Missoni AW15

Editor’s pick Holiday gifting by Roja Dove

Roja Dove’s sublime selection comes outfitted for the luxury fan. The bottles, crystal presented with etched typography in an original font developed for the brand, are embellished with gold screen-printed accents (a delicate process that takes three days to complete). Once you get past the collection’s pristine packing, you’ll be captivated by the arresting fragrance. FOR HIM Roja Dove Danger Pour Homme with notes of lavender, vetiver, and musk FOR HER Roja Dove Innuendo with notes of jasmine, sandalwood, and rose

Missoni AW15

www.boutiqueone.com/Missoni

december 2015 Entrepreneur

TECH

#TAMTALKSTECH Techies come with different interests and the gifts you choose for them should be just as varied. As the festive season approaches, we’ve curated a list of must-have items for the geek in your life.

Samsung Gear S2 Sport

For the power player Samsung Gear S2

Samsung rounded out its smartwatch with a new circular design and rotating bezel featuring Home and Back buttonsfeatures that make the Gear S2 stand out from the pack. Apps are optimized for the 1.2 inch circular screen, and can be viewed in stunning clarity as the device boasts 360 x 360 resolution. Gear S2 allows you to stay connected at a glance with calendar, email, news and text notifications, all delivered

directly to your wrist. It’s outfitted for fitness monitoring too, and comes with NFC technology enabling mobile payments (so you can head out sans wallet). Gear S2 comes in two goodlooking formats: the Sport and the Classic, which includes a leather band. So, whatever your power player’s style, there’s a watch face and band to suit their tastes. Don’t worry about wrapping this one up- it comes attractively packaged.

Samsung Gear S2 Sport

image credit samsung

Samsung Gear S2 Classic

Entrepreneur december 2015

iPad Pro

For the nature lover Parrot Flower Power

Whether you’ve got a green thumb or not, Parrot makes it easy to care for your house plants with Flower Power. (Yep, there’s actually an app for that.) Flower Power consists of a sensor that measures the four crucial elements of plant growth. Through the app you can stay up-to-date regarding soil moisture, fertilizer, ambient temperature, and even light intensity. The app will even send notifications to your phone or tablet letting you know exactly what the plant needs. Do you know someone in need of a smart gardening assistant? Parrot Flower Power could be it.

The new 12.9 inch retina display iPad Pro

image credit apple, parrot

For the gadget aficionado iPad Pro

iPad Pro is the largest, most powerful iPad made to date- and this alone makes it an ideal gift for the gadgetlover in your life. It has a whopping 12.9 inch retina display with 5.6 million pixels and runs the new 64 bit A9X chip (rivaling the performance of most PCs). It’s thin, light-weight, and offers up to 10 hours of battery life. The iPad Pro enables creativity by supporting

Apple’s new Smart Keyboard and Apple Pencil, the accessory that makes drawing and sketching by hand possible on the device, and it also features a built-in lightning connector for easy pairing and charging. Available in 32GB with Wi-Fi and a Wi-Fi + Cellular 128GB version, the iPad Pro is currently on the market in three handsome metallic finishes: Silver, Gold, and Space Gray.

Parrot Flower Power

december 2015 Entrepreneur

TECH

Stealth B-52 electric bike

For the shutterbug FUJIFILM X-T10

The shutterbug in your life can shoot like a pro with the new FUJIFILM X-T10. It has a compact, light body with a retro feel that makes it easy to handle. X-T10 can be outfitted with any of the 18 FUJINON interchangeable lenses for X series cameras. It features a 16 MP sensor and built-in Wi-Fi allowing for immediate photo sharing. X-T10 is also equipped with a new AF system that offers

both the conventional 49-point Single Point mode plus Zone and Wide modes that track subject movement across a wider area, greatly improving your ability to capture moving subjects. Not up for manual shooting? No worries. X-T10 has Advanced SR Auto mode which automatically selects the optimal shooting settings from 58 presets. This could very well be the smartest gift you’ve ever given.

FUJIFILM X-T10 50 mm

#TAMTALKSTECH Tamara Clarke, a former software development professional, is the tech and lifestyle enthusiast behind The Global Gazette, one of the most active blogs in the Middle East. The Global Gazette has been welcomed and lauded by some of the most influential tech brands in the region. Clarke’s goal is to inform about technology and how it supports our lifestyles. See her work both in print regional publications and online on her blog where she discusses everything from how a new gadget improves day-to-day life to how to coordinate your smartphone accessories. Visit www.theglobalgazette.com and talk to her on Twitter @GlobalGazette.

Entrepreneur december 2015

EBikes UAE, the region’s first electric bike specialist, is offering a new ecofriendly, fun and totally tech-ed out mode of transportation. The company has joined the ranks of other IoT pioneers by offering bicycles with a digital component. Impress the fitness fan on your list with a Stealth B-52 electric bike. It’s a hybrid vehicle that blends traditional pedal power with 5.2KW of pure electric thrust thanks to an advanced lithium rechargeable battery that requires only two hours to recharge using

a standard output. It also has a Brushless DC motor, an advanced nine-speed sequential gearbox and Magura hydraulic disc brakes. Perhaps its most notable feature is the DC-1 Stealth Monitoring System and display: it’s multilingual and provides you with everything from ongoing range calculations based on real-time data to low battery alerts. With the push of a button, riders have a choice of throttle maps and a plethora of other details to ensure a smooth techenabled ride.

image credit fujifilm, ebikes

For the fitness fanatic Ebikes Stealth B-52

in pictures First place winner MyCars

Second place winner Fitness Buddies Third place winner Wa9faat.com

Aya Sadder, Lead Organizer, Startup Weekend Dubai

Ready, set, go! Startup Weekend Dubai runs a 54-hour educational experience for ‘treps

Images by Backer Jamous

tartup Weekend Dubai 2015, a 54-hour annual event, was staged at AstroLabs headquarters in Jumeirah Lake Towers from November 19-21. Organized in over 150 countries, more than 250 cities ran the Startup Weekend Global Startup Battle simultaneously last month. In the UAE alone, 103 entrants took part and 44 of those entrepreneurs even rose to the challenge of a 60-second warm up pitch on day one. Supported by Platinum partner SOTI, Gold partners AstroLabs, Bird & Bird, SnappCard and Uber, and Silver partners

Carpool Arabia, Flat6Labs, DotShabaka, Stationary Inc., The Sustainability Platform, Vaniday, VentureFin, and WOMENA, the event’s “overall objective is to teach entrepreneurs the basics of how to get their business off of the ground through a structured process. It exposes them to mentors and facilitators who volunteer their time throughout the weekend to help the startups achieve the best possible results in an educational environment,” explains Aya Sadder, Lead Organizer, Startup Weekend Dubai. The first place winner, MyCars, is a model that allows users to

find cars to rent in different cities and included team members Ben Pullen, Benjamin de Terssac, Finney Thomas, Heloise Andrade, and Zahed Mirza. Second place winner Fitness Buddies, a model based on matching users with other users for workouts, was made up of team members Amit Vaghasiya, Darreen Alhiyari, Hina Gulzar, Jiahao Liu, Richard Humberstone, and Andrew Broekelmann. Third place winner Wa9faat.com, created by Ahmed AbuSaad and Abdulhadi Hafez, facilitates access to Arabic recipes via referral. The B2B prizewinner of the event, VVIP, was made of up team members Andrey Simeonov, Danni Lu, Saber Ghaith, and Sajad Ahmed.

MEET THE JUDGES Joshua Rajkumar Co-founder, The Sustainability Platform Chantalle Dumonceaux Co-founder, WOMENA Muhammed Mekki Founding Partner, AstroLabs Hervé Collignon Founder, HOOKS Strategy & Innovation Emad Ghanem Regional Manager Middle East and Gulf Region, SOTI Inc.

StartupWeekendDubai december 2015 Entrepreneur

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business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

READ BETWEEN THE LINES BUSINESS BOOK RUNDOWN By Amal Chaaban

ust because an author demonstrates great sales doesnâ&#x20AC;&#x2122;t mean their business advice is applicable in the boardroom or even good for practical application otherwise. Our reviewer takes a look at some of the titles getting hype recently and gives you the executive summary. Before you hit the business bestseller aisle, read these reviews to see which of these known books are actually worth your while.

How to Stand Out Dr. Rob Yeung

In a world where people strive to be more than ordinary in everything they do, how do you stand out? How do you make yourself the most memorable person with the most salient pitch out there? What tools do you use that you already have, and what tools can you develop further? Dr. Yeung has executed a study of how people stand out, then written a book that can assist even the shyest wallflower in getting noticed. There are tasks and ideas that

The Daily Edge David Horsager

Imagine a typical day in your office or one of the multitude of offices around you. Examine that day. Are you efficient? Are you getting the things done you need to do to make an impact? If your answer is sometimes, no or maybe, then you need this book. David Horsager has written a how-to guide on streamlining your efficiency in the office, and to aid you in achieving things daily that actually do have an impact on your overall position. At

Entrepreneur december 2015

its most basic, The Daily Edge is about workflow and productivity but if you take the time to go deeper and really implement the truly practical hints on a regular basis, you will see a change. Horsager even provides the web addresses for various YouTube videos to help you implement his concepts. Use this book when you need a reworking of your time management to increase efficiency and get things done (despite distractions).

push you out of your comfort zone, which include not telling people who are anxious to calm down. Using separate chapters, How to Stand Out breaks down different methods that can be applied depending on your persona. This is an excellent book for entrepreneurs trying to shed light on a new venture, people in consumer-facing positions like sales, and pretty much anyone who is looking for a confidence boost to get to the next goal level.

The Negotiation Book: Your Definitive Guide to Successful Negotiating Steve Gates

There is perhaps no more important skill in business than the art of negotiation. A good negotiator can sculpt favourable deals, advantageous employment contracts, or even diffuse difficult situations using finely-honed skills. Steve Gates has released a second edition of his book, updated for a world that has changed in expectations but still wants the best bottom line for their dollar. He does this by explaining how negotiation is both an art and a science that when practiced

correctly, can get the most out of a situation be it for a finite contract or an ongoing long-term partnership. Your Definitive Guide to Successful Negotiating uses the term “Complete Skilled Negotiator” instead of just “Successful Negotiator” in referring to someone who has both the abilities and the approach. Everyone can pick this book up as it will prove useful in both professional and personal situations- after all, we will all have to wrangle terms at some point.

5 Gears: How to Be Present and Productive When There is Never Enough Time Jeremie Kubicek & Steve Cockram

In a world full of constant distractions and time-consuming tasks, the authors believe we are experiencing not only technological advances but cultural upheaval. They have taken the view that as humankind grow busier, our abilities to have meaningful relationships (business and personal) have broken down somewhat. 5 Gears asks the reader to do some very difficult self-examination on many critical

Oman’s Sharakah Forum to focus on the role of media in supporting SMEs SMEs are once again the focal point at another upcoming MENA event, and for good reason. The Sharakah Forum in Muscat, Oman will take place from December 14-15 at the Al Bandar Hotel, Shangri La Barr Al Jissah Resort and Spa. Sharakah, incorporated back in 1998 by a royal decree to support SMEs, have chosen to title this year’s forum as The Role of Media in Supporting

levels based on the premise that having hard skills and a good IQ are no longer enough to be successful. On some levels they are correct, however the reader will only get the absolute most out of this book if they are as honest as possible in the self-assessments. This is an excellent resource if you feel like you are not able to be both present and productive, due to the feeling of overwhelming busyness.

Muscat, Oman

SME Development. From broadcast to digital, the program will host an array of media-related discussions. Some of the panelists include CNN Emerging Markets Producer, Vicky Brown, LinkedIn Head of MENA Growth Markets, Ghassan Talhouk, and Entrepreneur Middle East Managing Editor, Aby Sam Thomas. Registration is now open. forum.sharakah.om

december 2015 Entrepreneur

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The compliment sandwich The Esquire Guy on softening a rejection with a positive message By Ross McCammon

straight no makes you callous. Saying a lot of things that aren’t no but add up to no makes you squirrelly. Saying yes when you’re thinking no makes you a liar. Any of those is a bad idea. The right way to say no is to combine all three approaches into a kind of super no- a negative accompanied by a whole bunch of positives. FIRST, A LITTLE EMPATHY A no means more than just a rejection of a request; it means a rejection of the requester. It means a rejection of the requester’s belief in the rightness of his or her cause. (And disagreements over belief always get dicey.) Take one of the most common yes/ no questions in business: the request for a raise. On the face of it, what that moment represents for you, the employer, is an awkward conversation in your office. But what that question represents for the employee is days and days of thought and anxiety and practicing the question with a mirror and maybe a couple of Xanax. The question is just the last step in a very long process. A quick no way belittles that process. Which is why the no should be a minor part of the answer. Your response should

be commensurate with the effort it took to ask the question. Your response should be empathetic. “You want to make a connection, then say something positive that values the person making the request, then say something empathic, then say no,” says Dr. Linda D. Tillman, an Atlanta-based clinical psychologist. Tillman calls it ‘empathic assertion.’ Here’s how Tillman tells us she would reject a request for a raise: “Sam, your work on the McDonald project was outstanding [POSITIVITY]. I can certainly understand that you would like more money at this point in your work with us [EMPATHY]. However, we won’t be able to consider raises for anyone until after the fiscal year is over [DENIAL].” A slightly more efficient approach: “Sam, two words: McDonald project [POSITIVITY]. I feel you on this [EMPATHY]. But until next year, I got nothing to give [DENIAL]. Share a Twix? [CANDY].” HOW TO Make a no seem LIKE A YES It helps to look at requests -for a raise or otherwise- as an alternate vision for your business. You might (or might not) like the look of that vision. But it’s a vision that

needs to be accepted or rejected. If you establish that kind of context, saying no doesn’t seem obstinate; it seems honest, thoughtful and responsible. You’re establishing that you’re both trying to do what’s right for the company. You’re establishing a principle. And principles are helpful- not in an abstract way, but

KEY TECHNICAL MATTERS No always means more than no. When you reject a request, you’re also rejecting the requester. Triangulate. Take the pressure off you and your employee and place your rejection in the context of what’s right for the company.

Entrepreneur december 2015

Every rejection should be accompanied by “empathic assertion.” Establish a connection, then say no. For example … Do this: “Melinda! It sounds like you’ve thought a lot about this. Your points are valid, but I just can’t see

your vision right now. So I’m afraid the answer is no.” Not this: “Melinda! No.” “Nah” is a little flip. “No way” is a little casual. “Negative!” is a little much. “I Can’t Go For That (No Can Do)” is a Hall and Oates song.

Saying no is most effective when you offer up an alternative way forward. Saying no is least effective when you preface it with, “Are you kidding?” Saying no is really confusing when you nod your head.

in a practical way. They help you triangulate a little. Advocating for the company takes the pressure off both you and the person making the request, and places the pressure on the larger enterprise. You’re saying, “You might be right, and I might be making a mistake, but I don’t see how this is going to work for the company.” “If the employee is making a case for more money, it’s the employee’s job to create a new vision for the employer,” says Jim Camp, CEO of the Camp Negotiation Institute and author of No: The Only Negotiating System You Need for Work and Home. “But if the employer doesn’t see it, it’s a very easy thing to say, ‘I just don’t see what you see, and I can’t go in that direction.’” Because: the company.

Take one of the most common yes/no questions in business: the request for a raise. On the face of it, what that moment represents for you, the employer, is an awkward conversation in your office. But what that question represents for the employee is days and days of thought and anxiety and practicing the question with a mirror and maybe a couple of Xanax. The question is just the last step in a very long process.

WHY PEOPLE DON’T NECESSARILY WANT TO HEAR YES When investors ask you for something, they’re not asking you to accede, necessarily. They’ve chosen a path, but if you have a better one, then they want to hear it. “No investor should want you to say, ‘Oh sure, we’ll do whatever you want,’” says Jared Klett, co-founder of Blip, which hosts and distributes web-based TV shows. “If you say, ‘I hear you, but I really believe this is the right way,’ nine times out of 10 the investor will respect that, and they’ll want to invest more. If they don’t, then you probably don’t want them as an investor.” With an investor, no is just part of a negotiation. It’s their job to test you. It’s your job to push back. No

one worthy of your partnership -not an investor, not an employee, not a co-founder- necessarily wants you to say yes. They want you to make things better. OR YOU COULD JUST GO WITH NO Everything so far has assumed that you value the person making the request, that all the mitigation and explanation and empathic assertion is worthwhile because you have reason to invest in the relationship. But what if you don’t? Says Klett: “Everyone -even subordinates- should be put on a level playing field. But if they really push you, then you play the ‘this is how it is’ card.” That card, of course, is simply no. And it’s a powerful card. It’s bleak. And sometimes it’s necessary. No is an opportunity here, too. It’s an opportunity to end things -maybe even the relationship- but still, it’s an opportunity. However it’s delivered, no indicates where you stand and where the person making the request stands with you. When you say no, you equip the other person with your appraisal. Which is a lot. Instead of getting what they asked for, they got something arguably more valuable: enough information to know if they should cut out or stay in. You’re giving them power, really. Which is all anyone wants. They might be disappointed by your answer, but they’re better off than they were before. No can be a generous thing. See this article in its entirety at Entrepreneur.com

NO: A RECENT HISTORY 2001 “I never allowed one advertisement on the air that I didn’t like… Image mattered. I was convinced it was my job.” - Jack Welch 2004 “When an issue comes up, we don’t say we’re going to study it for two and a half years. We just say, ‘Southwest Airlines doesn’t do that. Maybe somebody else does, but

we don’t.’ It greatly facilitates the operation of the company.” - Herb Kelleher 2006 “No.” Mark Zuckerberg to Viacom’s offer to buy Facebook. 2012 “I don’t know how many times I have to state to you, Mr. Jay, that I never let commercial considerations get

in the way.” Rupert Murdoch testifying before a British parliamentary panel on phone hacking, after initially refusing to testify. 2012 “Celebrities who ring up and say, ‘Could we have a freebie? Could we have an upgrade?’… will pay the same as everybody else.” - Sir Richard Branson

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French philosopher Denis Diderot

When Catherine the Great, the emperor of Russia, heard of Diderot’s financial troubles she offered to buy his library from him for £1000 GBP, which is approximately US$50,000 in 2015 dollars. Suddenly, Diderot had money to spare. Shortly after this lucky sale, Diderot acquired a new scarlet robe. That’s when everything went wrong. THE DIDEROT EFFECT Diderot’s scarlet robe was beautiful. So beautiful, in fact, that he immediately noticed how out of place it seemed when surrounded by the rest of his common possessions. In his words, there was “no more coordination, no more unity, no more beauty” between his robe and the rest of his items. The philosopher soon felt the urge to buy some new things to match the beauty of his robe. He replaced his old rug with a new one from Damascus. He decorated his home with beautiful sculptures and a better kitchen table. He bought a new mirror to place above the mantle and his “straw chair was relegated to the antechamber by a leather chair.”

Why we want the things we don’t need- and what to do about it By James Clear

he famous French philosopher Denis Diderot lived nearly his entire life in poverty, but that all changed in 1765. Diderot was 52 years old and his daughter was about to be married, but he could not afford to provide a dowry. Despite his lack of wealth, Diderot’s name was well-known because he was the co-founder and writer of Encyclopédie, one of the most comprehensive encyclopedias of the time.

Entrepreneur december 2015

These reactive purchases have become known as the Diderot Effect. The Diderot Effect states that obtaining a new possession often creates a spiral of consumption which leads you to acquire more new things. As a result, we end up buying things that our previous selves never needed to feel happy or fulfilled.

denis diderot image creative commons

The Diderot effect

Like many others, I have fallen victim to the Diderot Effect. I recently bought a new car and I ended up purchasing all sorts of additional things to go inside it. I bought a tire pressure gauge, a car charger for my cell phone, an extra umbrella, a first aid kit, a pocket knife, a flashlight, emergency blankets, and even a seatbelt cutting tool. Allow me to point out that I owned my previous car for nearly 10 years and at no point did I feel that any of the previously mentioned items were worth purchasing. And yet, after getting my shiny new car, I found myself falling into the same consumption spiral as Diderot.

WHY WE WANT THINGS WE DON’T NEED Like many others, I have fallen victim to the Diderot Effect. I recently bought a new car and I ended up purchasing all sorts of additional things to go inside it. I bought a tire pressure gauge, a car charger for my cell phone, an extra umbrella, a first aid kit, a pocket knife, a flashlight, emergency blankets, and even a seatbelt cutting tool. Life has a natural tendency to become filled with more. We are rarely looking to downgrade, to simplify, to eliminate, to reduce. Our natural inclination is always to accumulate, to add, to upgrade, and to build upon. In the words of sociology professor Juliet Schor, “the pressure to upgrade our stock of stuff is relentlessly unidirectional, always ascending.”

Allow me to point out that I owned my previous car for nearly 10 years and at no point did I feel that any of the previously mentioned items were worth purchasing. And yet, after getting my shiny new car, I found myself falling into the same consumption spiral as Diderot. You can spot similar behaviors in many other areas of life: • You buy a new dress and now you have to get shoes and earrings to match. • You buy a CrossFit membership and soon you’re paying for foam rollers, knee sleeves, wrist wraps, and paleo meal plans. • You buy your kid a new doll and find yourself purchasing more accessories than you ever knew existed for dolls. • You buy a new couch and suddenly you’re questioning the layout of your entire living room. Those chairs? That coffee table? That rug? They all gotta go. Life has a natural tendency to become filled with more. We are rarely looking to downgrade, to simplify, to eliminate, to reduce. Our natural inclination is always to accumulate, to add, to upgrade, and to build upon. In

Entrepreneur december 2015

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the words of sociology professor Juliet Schor, “the pressure to upgrade our stock of stuff is relentlessly unidirectional, always ascending.” MASTERING THE DIDEROT EFFECT The Diderot Effect tells us that your life is only going to have more things fighting to get in it, so you need to understand how to curate, eliminate, and focus on the things that matter. REDUCE EXPOSURE Nearly every habit is initiated by a trigger or cue. One of the quickest ways to reduce the power of the Diderot Effect is to avoid the habit triggers that cause it in the first place. Unsubscribe from commercial emails. Meet friends at the park rather than the mall. BUY ITEMS THAT FIT YOUR CURRENT SYSTEM You don’t have to start from scratch each time you buy something new. When you purchase new clothes, look for items that work well with your current wardrobe. When you upgrade to new electronics, get things that play nicely with your current pieces so you can avoid buying new chargers, adapters, or cables. SET SELF-IMPOSED LIMITS Live a carefully constrained life by creating limitations for you to operate within. Juliet Schor provides a great example with this quote:

“Imagine the following. A community group in your town organizes parents to sign a pledge agreeing to spend no more than $50 on athletic shoes for their children. The staff at your child’s day-care center requests a $75 limit on spending for birthday parties. The local school board rallies community support behind a switch to school uniforms. The PTA gets 80% of parents to agree to

limit their children’s television watching to no more than one hour per day. Do you wish someone in your community or at your children’s school would take the lead in these or similar efforts? I think millions of American parents do. Television, shoes, clothes, birthday parties, athletic uniforms-these are areas where many parents feel pressured into allowing their children to consume at a level beyond what they think is best, want to spend, or can comfortably afford.” Juliet Schor, The Overspent American

BUY ONE, GIVE ONE Each time you make a new purchase, give something away. Get a new TV? Give your old one away rather than moving it to another room. The idea is to prevent your number of items from growing. Always be curating your life to include only the things that bring you joy and happiness. GO ONE MONTH WITHOUT BUYING SOMETHING NEW Don’t allow yourself to buy any new items for one month. Instead of buying a new lawn mower, rent one from a neighbor. Get your new shirt from the thrift store rather than the department store. The more we restrict ourselves, the more resourceful we become.

Diderot’s scarlet robe was beautiful. So beautiful, in fact, that he immediately noticed how out of place it seemed when surrounded by the rest of his common possessions. In his words, there was “no more coordination, no more unity, no more beauty” between his robe and the rest of his items. The philosopher soon felt the urge to buy some new things to match the beauty of his robe.

LET GO OF WANTING THINGS There will never be a level where you will be done wanting things. There is always something to upgrade to. Get a new Honda? You can upgrade to a Mercedes. Get a new Mercedes? You can upgrade to a Bentley. Get a new Bentley? Have you thought about buying a private plane? Realize that wanting is just an option your mind provides, not an order you have to follow. HOW TO OVERCOME THE CONSUMPTION TENDENCY Our natural tendency is to consume more, not less. Given this tendency, I believe that taking active steps to reduce the flow of unquestioned consumption makes our lives better. Personally, my goal is not to reduce life to the fewest amount of things, but to fill it with the optimal amount of things. I hope this article will help you consider how to do the same. In Diderot’s words, “Let my example teach you a lesson. Poverty has its freedoms; opulence has its obstacles.”

James Clear writes at JamesClear.com, where he uses behavior science to share ideas for mastering your habits, improving your health, and increasing your creativity. To get useful ideas on improving your mental and physical performance, join his free newsletter JamesClear.com/newsletter. To have James speak at your entrepreneurial event contact him jamesclear.com/contact.

Image Credit: The Overspent American cover Amazon.com

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Moving pretty darn quick Startup CamelShip gets your packages delivered (affordably) By Kareem Chehayeb

hipping and courier services in the MENA region have been on the up and up for quite some time now. Gone are the days when your parcels are in courier purgatory, where you’re unsure whether whatever you’re sending will make it in the next week (or month). That said, there’s still a hurdle for the industry: e-commerce. While the region’s e-commerce industry is growing, it could always use an extra push here and there. For courier businesses trying to maximize their customer base in the UAE, this is where CamelShip comes in. Former MiddleEat cofounder, Sari Issa, and former member of Aramex’s Ammanbased GSO operations team, Fares Nimri, built CamelShip after they noticed a gap they could “bridge” in what they describe as the “e-commerce space.” Their solution? An online platform that makes “shipping cheaper and easier.” The duo come from different educational backgrounds that equipped each of them with unique skillsets: CamelShip CEO Issa holds a BA in Digital

Entrepreneur december 2015

Branding from the University of the Creative Arts in the U.K., and COO Nimri holds an MBA from Carnegie Mellon. So how does CamelShip work? It’s quite simple. Whether you’re shipping from Dubai, Abu Dhabi, or Sharjah, you select the city where you want to send your package, select the dimensions, and then you can access advantageous rates from CamelShip’s three partners. At the moment they’re partnered up with Aramex, SkyNet, and the UAE’s Parzel Express. Issa and Nimri describe them as “topperforming couriers in the ecommerce sector.” Choose the courier of your preference, and you no longer suffer the “pain of booking low-cost express delivery.” They also offer daily discounts for packages heading out to Europe, India, and Pakistan. (Speaking of discounts, if you live in the UAE, take note of this offer: you receive 25% off your first shipment by typing in “ENT25” as a discount code.) The co-founders say that CamelShip always kept customers involved during product development, even at its earliest stages. They used their target audience’s feedback to “optimize the user experience.” Smart move. Despite not having any angel investors, Nimri and Issa applied what they learned from the Lean Launchpad course, which they claim “has tremendously cut down costs.” Other than limited capital, they faced some technical challenges, namely connecting and integrating the different APIs of the partnered courier businesses into their system. They gave credit to their development team, calling them extremely hard-working, who were able to work around that obstacle and rise to the

challenge. And how many people are on staff in total? CamelShip currently has a small team of five individuals who are currently covering all of the bases. We can’t have a conversation about an e-commerce startup without discussing payments. The duo confirm that users can pay with both cash and credit cards, and also mention that they will be launching PayPal as a third payment option very soon. Given that they’re based in the UAE, and that 75% of their customers are expats living in Dubai, I was curious to know about the most popular payment method. Unfortunately, Nimri and Issa said that they haven’t “noticed any deviations from the norm of paying with cash.” I guess even in the MENA region’s e-commerce hub, cash is still king for now. When it comes to marketing, CamelShip focuses on “pay-per-click marketing using search engine marketing.” They also focus heavily on SEO (search engine optimization) and social media. Facebook is their favorite social media platform because “of the higher click-through rate (CTR)” and because it also “serves as a customer service platform.” Going forward, CamelShip hopes to expand to new markets in the MENA region, something that the duo is quite excited about. Considering that 75% of their users are Dubai-based expats, with the remaining 25% comprising of

mostly expats in Abu Dhabi and Sharjah, I think it’s safe to say they could be looking into another GCC country with a multinational population. What about mobile and tablet apps? Negative, but that’s okay because the duo take into consideration that 80% of their customers are using CamelShip from mobile devices. The cofounders explain, “We strictly design [our website] responsively for mobile first.” CamelShip is a full-time priority for Fares Nimri and Sari Issa. So even though they won’t be active in other endeavors anytime soon, you’ll be sure to find them at startup events in the MENA region. Both credit ArabNet, STEP, and other conferences as contributors to their “vision and networking” in the region. See why it pays to participate in the entrepreneurial ecosystem? It’s exposure for your business both to other entrepreneurs, and potentially, a place to meet startup-friendly press.

IN BRIEF CamelShip co-founders Sari Issa and Fares Nimri Which city in the MENA region harbors the best entrepreneurial ecosystem? “Undoubtedly Dubai. We were delighted by the talent and infrastructure of the UAE. We are thankful for Dubai Silicon Oasis and DTEC for supporting startups like CamelShip.” What advice would you give to a young and aspiring entrepreneur hoping to make it big in the region? “Find a gap in the market, and be the first mover in that market. Make products that customers want to use. You should have passion for the product you’re about to create.”

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Mini Exchange founder Sarah Appleton receiving the E-commerce Agility Achiever Award from the “Green Sheikh” H.H. Abdul Aziz bin Ali Al Nuaimi at the 2014 Enterprise Agility Awards presented by du

More money means more opportunity My startup got funded in Dubai, and now I’m scaling the business

By Sarah Appleton

ike most entrepreneurs, thoughts of how I could scale my venture was constantly on my mind. How could I grow Mini Exchange into a business that could expand to other markets in an innovative way? At the beginning, it was just me and my agency in London. I would work round the clock I still do actually- by signing brands to the site, and working off of my dining room table. We then got picked up by ArabNet, and were fortunate enough to be chosen as one of the winners in Beirut just five months after we launched. The team was getting bigger; we brought customer service in-house and data analysts for uploading products, social media, and digital marketing. We launched 18 months ago with just 500 products, and now have over 30,000 products across 120 product categories. We have also just completed our seed round

Entrepreneur december 2015

of funding of US$1.1 million, which has definitely been my biggest achievement to date. This raise will allow us to achieve our next stage of growth.

The path Digital marketing was key for us. I knew that I wasn’t very familiar with it, but that meant I had to learn fast and also find a team

that wasn’t just an agency taking a proportion of my spend. I identified Mini Exchange’s priorities: I needed a team that was driven by data, that was driven by analyzing the trends and the results we were getting, and acting on these metrics and then going at it again, day-on-day, week-on-week. I found this in an amazing team with whom I’ve been working with over the past 12 months, Daphne Digital. They are solely driven by numbers, and we have all of the latest e-commerce tracking codes in the site and track every data point. I highly recommend this to every startup out there. Get as much data as you can from very early on, as it will prove to be very helpful in the long run. The funds A year into business, we knew that we needed to raise money to allow us to jump to the next stage. We were outgrowing the dining room table (quite literally!), and I needed to bring tech inhouse and hire some other team members. Fundraising is not easy, it’s not fun, and it doesn’t happen overnight! Here are my tips on fundraising that I gleaned from my raise: 1. Start fundraising early

Fundraising takes longer than you think, and you don’t want to get to a stage where you’re desperate for cash. Prepare early, take your time, and don’t panic if it doesn’t happen in the first two months. 2. Keep at it

Fundraising is not easy, and it takes time to prepare for it in many ways. It takes time meet potential investors, and to build good relationships with potential investors. >>>

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There are lots of ups and downs, lots of positive conversations, and there are also people that will turn you down. Don’t get disheartened, and keep going. If you have a good product, you will find the right people to invest in your business. 3. Get a great pitch deck together

The way you present your company is key. Investors want to see that you’ve taken time to prepare your pitch deck. Don’t underestimate the power of first impressions. For the same reason good design matters for your product, it matters for your presentation. Investors are just as impressionable as your average consumer. Properly designed slides send a signal that you know how to build and present a good product.

your fundraising process. As tempting as it is to turn your back on an investor that rejects you, you have a lot more to gain by being gracious. Because this is almost certainly not the last round of funding you’re going to raise, or the last startup you’re going to launch. Fundraising takes longer than you think, and you don’t want to get to a stage where you’re desperate for cash. Prepare early, take your time, and don’t panic if it doesn’t happen in the first two months.

The future Mini Exchange aims to become MENA’s number one online destination for buying and selling mum and children focused brands. We’re already well on the way to achieving this and

have a very clear direction ahead. We are aiming to more than double the number of products on the site in the next 12 months, sign over 100 sellers to the site, launch our mobile app and an Arabic version of the site, and expand our marketing efforts even further afield. We have a long and exciting road ahead- as far as I’m concerned this is just the beginning. I love my day job, I love Mini Exchange and all that we’re trying to create, and I love being part of the startup ecosystem in Dubai. The life of a startup is a fun and exhilarating one, full of good moments and challenging ones as well. Launching my business was the best decision I ever made, and one I doubt I’ll ever regret.

Sarah Appleton founded Mini Exchange at the start of 2014. Previously, she had a successful career in finance, spending four years at Deloitte in Mergers & Acquisitions advisory, first in London and then in Dubai. After two years in the Gulf, Appleton left the finance world, recognizing the potential of the early-stage e-commerce market and the Mini Exchange business model. Appleton and Mini Exchange have been recipients of many awards in the last year, including ArabNet’s Start-Up Demo Award, a listing as one of the 50 Most Influential Brits in the UAE, Small Business CEO of the Year Award in the Middle East CEO Awards, and also as finalists in three of the categories in the Gulf Capital SME Awards.

4. Find the right investors

There is a lot of money out there, but in my opinion, it’s key to find the right money. By the right money, I’m referring to the people that will back your business, and that will support you. As one of my lead investors said to me once, “It’s lonely at the top; we’re here to help you.” You need people that recognize that it’s not all smooth sailing, and that there will be bumps in the road. Get the right backers from day one that will support you, add value, and understand your challenges as an entrepreneur.

It can be frustrating to hear someone say no to your business- after all you’ve put everything into making this venture happen. You’ll probably hear no more often than you’ll hear yes throughout

Entrepreneur december 2015

www.miniexchange.com

5. Be gracious when someone says “no”

start it up

ecosystem | who’s got VC | Q&A | STARTUP FINANCE

Capital injections for two Middle East startups Carpool Arabia and TaskSpotting share their tips on getting funded

espite the dry and dreary outlook often attributed to funding startups in the MENA startup ecosystem, two regional enterprises –Carpool Arabia and TaskSpotting- made headlines recently when they each secured substantial investments into growing their businesses. We talked to both startups to figure out how they went about winning this latest round of funding, and what one can expect from them in the future.

Carpool Arabia www.carpoolarabia.com

This Dubai-based ridesharing company announced in late September that it had raised US$350,000 in its seed-round investment, which follows the initial $70,000 co-founders Benjamin de Terssac and Guillaume Arnaud had put in to get the startup off the ground in February. French venture capital firm Kima

Ventures and Dubai-based media company Mediaquest have led this new round of investment, with both companies claiming to be impressed by Carpool Arabia’s business potential, with the startup having seen number of users increase by 21% month-on-month since its launch. THE PROCESS

When asked about Carpool Arabia’s methodology when

Carpool Arabia co-founders Benjamin de Terssac (left) and Guillaume Arnaud

choosing its investors, de Terssac candidly admits that it wasn’t a walk in the park, saying, “Choosing is maybe a luxury you have in Silicon Valley, but here, it’s more about who is crazy enough to invest in an early stage tech venture, rather than buying another apartment in Dubai Marina.” According to de Terssac, the timeline for the entire process started with a wait of three days to get the offer, a month to sign the term sheet, and then four more months to get all of the paperwork in place.

Tips for MENA startups when pitching to investors

WHAT HAPPENS NEXT

3. Keep a realistic vision. “If you plan to do crowdfunding, don’t over-estimate the appetite your friends and family have toward investing in your startup.”

With the funding they have secured from Mediaquest and Kima Ventures, de Terssac says that the stake will be used to launch the Carpool Arabia app before the end of the year, and also to roll out a marketing campaign that will advertise the startup’s services across Dubai.

Entrepreneur december 2015

Carpool Arabia co-founder and Chief Driver Benjamin de Terssac

1. Don’t be bogged down by the naysayers. “Never take a negative answer personally.” 2. Know your investors. “Don’t waste your time with people who have no interest in investing in your startup. Just move on to the next investor.”

4. Online pitches can work. “Don’t listen to people who tell you never to apply online to a VC- it actually works sometimes.”

TaskSpotting www.taskspottingapp.com

This MENA app which crowdsources market research announced in early October that it had closed its Series A funding round with an investment of US$1.2 million led by MENA Venture Investments (MVI) and a Saudi corporate that hasn’t been named. Co-founder Karim Aly, who had bootstrapped the company to its launch at ArabNet’s Digital Summit in 2014, claims to have a well-aligned, mutually beneficial relationship with MVI, with the focus being on more than just the money. “As a startup, there’s no denying that the money is very valuable, but if your story is compelling enough, you’ll find that there are a lot of people out there willing to write a check,” he

says. “The thing is, there’s so much more that a startup needs in terms of adding value beyond money. We were particular about finding a group of investors that ticked all the conventional boxes, but that we also had great chemistry with. We wanted to find partners who genuinely shared our vision and were committed to helping us build a great company- and we were fortunate to find them.” THE PROCESS

“The whole process was unusually fast by regional standards- it took us about three months from initial discussions to closing,” Aly says. “What really helped close this quickly was that we had got to know our investors ahead of any fundraising efforts. This meant that we had already

TaskSpotting founders left to right Head of Operations Walid Sherif, CEO Karim Aly, Head of Business Development Dirk Stevens

built the trust and rapport with one another to allow the formalities of closing the transaction to be very streamlined.”

Tips for MENA startups when pitching to investors TaskSpotting co-founder and CEO Karim Aly

WHAT HAPPENS NEXT

At the moment, Aly says that TaskSpotting is focused on growing the business, and delivering on the plans they have put in place for the same. “Right now, it’s all about scale for us,” he says. “We are building out the team, and expanding into new markets. Naturally, with rapid scale also comes a need to manage it with more efficient and robust infrastructure, so technology is another major area we will be investing in.”

1. Tell a story. “People (even investors) are hardwired to listen to stories. They can powerfully grab and hold someone’s attention far better than any other delivery. Use it to your advantage.” 2. Keep it incredibly simple. “Until a six-year-old (literally) can comprehend the fundamentals of your business model, then you’re not ready to share it with anyone outside your team yet.” 3. Slides are the prop, not the narrative. “A slide should have less than 10 words on it, use big fonts and include great visuals. Don’t rely on the slides to tell the story, otherwise there’s no point for you to be in the room!” 4. Build trust. “Stress your strengths, acknowledge your gaps and tell them how you plan to fill them before they ask you. This will take you much further than pretending that they don’t exist or waiting for someone else to bring them up.”

december 2015 Entrepreneur

money

ask the money guy | vc viewpoint | your money | ECON

Critical points to note for continued access to capital How to overcome fundraising challenges for your startup By Dr. Abdelhakim Hammach

y nature, entrepreneurs are very enthusiastic, optimistic, and risk-taking individuals. However, these same positive attributes can sometimes lead them blindly to failure, as many get so captivated by their business model, products, or services that they fail to see potential risks or limitations to their potential targeted market.

Entrepreneur december 2015

The key factors that lead to the collapse of knowledgebased startups include: > Inexperience and a weak management team > Failure to plan > Failure to evolve > Inability to raise funding These factors are interlinked and operate in a manner that generates a vicious cycle, which ultimately leads to the failure of the startup. This article provides a brief description of the challenges associated with the last factor, i.e. fundraising, with an aim to inform potential entrepreneurs and raise their awareness of such challenges, and help equip them with key insight to help them plan for success. Some entrepreneurs succeed in attracting the VCs to invest in their venture; however they fail to close the deal during the negotiations. Many entrepreneurs take on an adversary attitude during the negotiations, because they believe that VCs are out to take advantage of them.

Most venture capitalists have certain investment criteria and investment strategy that determine which companies they will include in their portfolio. These criteria may be based on the nature of industry, the company’s products and services, geographic location, internal rates of return (IRR), stage of development or amount of capital required. While the average venture capital firm will see thousands of business plans per year, it will only consider a few dozen candidates and may actually close only six deals or less per year. However, most entrepreneurs blindly target any VC firms, without any consideration to the strategic focus of such firms. This results in unproductive use

of time, resources, and not to mention the anxiety and stress that comes along with the numerous rejections. Therefore, to improve your chances of funding, you must target the right investors. For, your company’s stage of development will determine the kind of venture capital investor you’ll approach, and the structure of the financing you’ll receive. Accordingly, before starting the search for capital, it’s important to: 1. Identify which stage of

business development and what type of financing you require.

2. Take the time to research

the venture capital industry to match the characteristics of the proposed investment with the investment strategy and criteria of the VC firm.

3. Be prepared before communications or interactions with any potential investors, since you will never get a second chance to make the first impression. There are several factors that can help entrepreneurs overcome the tough challenges typically associated with launching and growing a successful business. The most important of these are also critical for continuous

access to capital, particularity during the early stages of the firm when it is most vulnerable to expenses and lack of funding. For this reason, entrepreneurs must prepare a solid business case and a strong team before meeting with potential investors. Investors will use every opportunity of communication and interaction with you >>> Most venture capitalists have certain investment criteria and investment strategy that determine which companies they will include in their portfolio. These criteria may be based on the nature of industry, the company’s products and services, geographic location, internal rates of return (IRR), stage of development or amount of capital required.

december 2015 Entrepreneur

money

ask the money guy | vc viewpoint | your money | ECON

There are several factors that can help entrepreneurs overcome the tough challenges typically associated with launching and growing a successful business. The most important of these are also critical for continuous access to capital, particularity during the early stages of the firm when it is most vulnerable to expenses and lack of funding.

to evaluate you, your capabilities, and your motivation. Therefore, if you come across as unprepared or unaware of potential risks and challenges of your venture, investors will dismiss you. Keep in mind that angel investors or venture capitalist are considering the following criteria when you are presenting your business plan to or discussing it with them: > Management and its credibility (leadership, intellectual honesty, vision, motivation, historical success and failures, etc.)

Entrepreneur december 2015

> A validated market need > Compelling strategy (and

preferably with unfair competitive advantage), reasonable deals details (funds deployed thus far, use of funds, valuation, etc.) The key to your success in the fundraising process will hinge on the aforementioned criteria and how confident you engage the VCs. You must balance your confidence with a healthy dose of realism so as not to appear as unaware of potential risks to your new venture. While passion and dedication will help you, overselling your Find a competent attorney and try to negotiate a winning deal for both parties. If you are in the fortunate position of having more than one VC firm interested in funding you, you will probably get a better valuation than if you were to have only one investor.

idea by dismissing any challenging questions will hurt your efforts. If your VCs are interested in your business plan, expect some tough questions from them. If they lose interest in you, they will go easy on you, and there won’t be a second meeting. Similarly, if you try to hide any information or downplay past business failures, your potential investors will learn about these during the due diligence phase, and they will not fund you. Past business failure is not necessarily a deal killer so long as you are able to demonstrate that you have learned from it, and you now know how to avoid such failure in the future. Some entrepreneurs succeed in attracting the VCs to invest in their venture; however they fail to close the deal during the negotiations. Many entrepreneurs take on an adversary attitude during the negotiations, because they believe that VCs are out

to take advantage of them. If you find an investor willing to invest in you, don’t waste this unique opportunity, and understand that VCs are also required to protect their interest. Find a competent attorney and try to negotiate a winning deal for both parties. If you are in the fortunate position of having more than one VC firm interested in funding you, you will probably get a better valuation than if you were to have only one investor. Use this to develop a better term sheet from both by using the BATNA (Better Alternative To a Non-negotiated Deal) framework. However, don’t overplay this to the point where both firms would walk away from you. The key to your success in the fundraising process will hinge on the aforementioned criteria and how confident you engage the VCs. You must balance your confidence with a healthy dose of realism so as not to appear as unaware of potential risks to your new venture.

Dr. Abdelhakim Hammach is the Managing Director of Riyadh Valley Company (RVC). Dr. Hammach is a senior executive with over 20 years of leadership and management experience in R&D, venture capital investing, and strategy consulting for global organizations in USA, Europe and the MENA region. Before his current role at RVC, he was a senior strategy consultant with Accenture, where he advised leading global organizations in the U.S. and Europe on issues of growth strategy. Before joining Accenture, Dr. Hammach was a Venture Capital Investment Consultant with Aurora Funds in the North Carolina’s Research Triangle Park, USA. Prior to this, Dr. Hammach was a Principal Scientist with Boehringer Ingelheim Pharmaceuticals (BIPI) in Connecticut, USA. Dr. Hammach has served as a judge to the Duke Startup Challenge on many occasions, and he has also been actively involved in mentoring entrepreneurs both in the U.S. and in the MENA region. Dr. Hammach served as a Postdoctoral fellow at the chemistry department of the University of Pennsylvania after having earned a Ph.D. in Chemistry from the University of Vermont. He also holds a MBA from Duke University, and a B.S. in Chemistry from the University Moulay Ismail of Meknes Morocco. He is an inventor with 18 U.S. patents and has coauthored numerous articles in leading international journals.

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start it up

ecosystem | who’s got VC | Q&A | STARTUP FINANCE

Let’s go for a ride!

Qatar-centric Q-Cab hopes to quell transport inconveniences By Kareem Chehayeb

-Cab’s three founders, Tariq A. Awadallah, Nasser A. Hatbeen Al-Yafei, and Ali S. Muthanna Al Yafei, have all felt the heat in Doha… no pun intended. It’s certainly a pain to wait outside in the heat for a cab, and it’s very annoying for cab drivers to do the same. The trio was able to get their startup funded and supported by Qatar Business Incubation Center (QBIC). After receiving a generous QR100,000 to push their startup forward, “we went through a lot of market research,” says Awadallah, who explained how the team went through app alternatives to make sure that they include features that would benefit their target audience the most. It’s like Uber in a way, where Q-Cab takes “20% off each trip recorded in our platform.”

A BETA version of the app was officially released in late October, “to check the functionality of the app and to have the customers’ feedback.” That was a smart move by the co-founders, as they were able to “fix some bugs and improve the app’s performance,” and even tweaked some of the features based on customer feedback.

Q-Cab co-founder Tariq Awadallah

Entrepreneur december 2015

Awadallah mentions that they changed menu options and added a feature for saving favorite locations. Have the customers been satisfied thus far? So far so good, with the startup taking constructive criticism into consideration. The trio has also been talking with drivers to see how the experience has been on their end. Smart. Unfortunately for Q-Cab, in a world where the market can be reluctant to change, they still have a few obstacles they need to overcome. Having initially designed the app for taxis, they struggled to convince taxi companies to get on board. While Awadallah struggled with the inefficiency of the existing companies and having to talk to various management levels, the biggest problem was that “they obviously had a lack of awareness about the benefits of the app.” He also mentions that “the

local market still is considerably small and young comparing to other markets,” contrasting it to Qatar’s GCC neighbor, the UAE, which he thinks harbors the best entrepreneurial ecosystem in the MENA region. That said, they’ve partnered up with limousine companies for the time being. At the moment, they’re currently teaming up with the Al-Mahdani Group’s transportation department. That said, those in Qatar who want to make their taxi experience a burden-free, fear not; Q-Cab still want to partner up with taxi companies, it’ll just take some time. The Q-Cab team is also working hard on the marketing front as well, focusing on their main demographic, “tourists, visitors and new arrivals to Qatar.” Makes sense, as more people are moving to Qatar with their families, they could certainly use their services. “Currently we are focusing on marketing through social media,” says Awadallah, who also announced that Q-Cab will have a competition for users to win a free ride voucher worth QR50. Also, expect them networking at your nearest startup event. You’ll find them most active on Facebook and Twitter where “most of their followers are active.” He also sees

both social media platforms as solid tools to create high levels of user engagement. You might also see Q-Cab as a startup event transportation sponsor, so be sure to give them a shot. What’s next for Q-Cab? The app is currently available only on Android platforms, but Awadallah assures us that he wants to bring iPhone users into the mix too. Any talks about expansion? “At this stage we are focusing on local market until we have a sufficient market share that allows to expand in the GCC and MENA regions.” Despite the limitations for their service in Qatar’s budding entrepreneurial ecosys-

IN BRIEF What are some of the biggest misconceptions about platforms like Q-Cab?

“The lack of awareness of the latest technologies and market trends among the residents in Qatar is our biggest challenge, where we need to change their mentality. Also, the local market still is considerably small and young comparing to other markets such as the U.S., Europe, and UAE.” What advice do you have for a young and aspiring entrepreneur?

“I advise them not to let the discouraging environment and people around to stop them following their dreams or to let it go.” GET ON BOARD WITH QBIC It took about 10 weeks for Q-Cab to develop a well-established business plan, which is the duration of the Lean Startup Program- a training and coaching workshop provided QBIC for entrepreneurs. One of QBIC’s programs includes the Lean Startup Program, which provides real-world, hands-on learning experience on how to successfully start a company. Awadallah mentions that during the Lean Startup Program he was coached on how to develop and present an attractive business idea to QBIC board members and investors. His overall goal was to grab their attention and persuade them to incubate and invest in Q-Cab as a startup. “My idea was selected among 15 other business ideas presented to QBIC. My business requires the fund, administration office, support and communication with local authorities and related parties. The same finance policy is applied to all incubated startup businesses, where it starts with a QR100,000 for the first three months for each business team, and then the incubatees can apply for and additional QR200,000 for each business team, which are interest-free loans and must be returned within a two-year incubation contract.” The main challenge, according to the entrepreneur, was to have solid customer validation paired with valuable feedback from taxi users and to search for what customers really require. Based on his experience, he advises entrepreneurs to come up with ideas which can solve real customer needs, in addition to providing exactly what the QBIC headquarters customer really wants. “It is important because the entrepreneurs are the movers of the economy who can create new businesses, opportunities and jobs.” www.qbic.qa

tem, Awadallah is positive about it. “I have joined QBIC in the first wave, where I have learned about entrepreneurship for the first time,” says the co-founder. “Since then, incubation and entrepreneurship have expanded dramatically,” citing that QBIC is on its fourth wave of supporting startups. Even though he is excited about Qatar’s prospects, he’s focusing on Q-Cab for the time being, but hasn’t ruled out new entrepreneurial endeavors in the future. With all the challenges Q-Cab is currently facing, Awadallah offers advice of persistence and perseverance for aspiring entrepreneurs: “I advise them not to let the discouraging environment and people around to stop them following their dreams or to let it go.” There are clearly a few obstacles that the trio and their three other team members will face, but they seem more determined than ever to overcome them.

Which Middle Eastern city do you think harbors the best entrepreneurial ecosystem?

“I think Dubai has the best ecosystem, where it has an open market, lots of companies and investors, and the most important [aspect] is the helpful environment which encourages entrepreneurs to go forward.”

december 2015 Entrepreneur

TECH

Finance goes digi Five fintech startups to watch

By Alexander Rauser

raditional financial institutions, out of date systems and lots of money are at stake with the revolution in financial tech. Fintech companies are transforming the banking experience by offering easy payment processes, opportunities to save consumers’ money, ways to promote financial services such as investments and planning, and ultimately by driving the industry into the next generation of banking. The financial industry has been so limited by process and tradition that it has fallen behind in terms of innovation and digital development, leaving opportunities for less-established fintech startup businesses to seize opportunities in the marketplace. As a result, huge financial institutions are being left behind, while startups that provide helpful, personalized services are driving more and more users to their apps and/or websites everyday. Let’s look at some of the top fintech startups to watch in 2015 and the services each company offers:

1. BillGuard BillGuard started its journey as a service to help users identify hidden fees charged from their banks. It has since then grown into a fraud monitor and spend tracker where users are pushed warnings to their devices when suspicious activity occurs. So far, BillGuard has flagged over US$50 million in suspicious transactions for its users. www.billguard.com 90

Entrepreneur december 2015

2. Wealthfront Wealthfront is one of the larger influencers in the automated financial advisory space and has $1 billion under the management of its proprietary algorithms. Wealthfront’s competition is Betterment, Personal Capital and Intelligent Portfolios from Charles Schwab. Its success is attributed to the fact that the company attracts millennial investors who don’t buy into some of the more traditional opinions. Wealthfront just raised an additional $64 million in their latest round of funding. www.wealthfront.com

4. Square Square basically did what every fintech company dreams of. Square removed the hassle and expense of processing credit card payments for businesses by creating a simple, tech-driven answer. Square will send you a free credit card reader. All business owners have to do is download the app and start using it for payments. How do they make their money? Through higher transaction fees, but these don’t seem to turn users away, as they are more interested in flexibility and freedom. Square is valued at $6 billion. www.squareup.com

5. Venmo Venmo has revolutionized the digital wallet world by developing a method of paying your friends back with an easy-to-use social app that is free from transaction fees. The company began as a startup, but was acquired by online financial king PayPal in 2013. The company reports zero revenue, however, it is helping promote the name of its bigger partner PayPal, now bringing in $7.9 billion a year. www.venmo.com 3. Currency Cloud This fintech startup is gaining market share in the international payments space, an area that is currently 85% controlled by banks. The London-based company is popular amongst smaller businesses due to the agile nature of the platform: the features are added and adapted quickly, a feat that traditional banks are failing to achieve. Currency Cloud has just received $10 million in the latest round of funding and almost acquires half a billion in payments per month. www.currencycloud.com

Alexander Rauser has over 15 years of experience in the digital media industry with both a creative and a technical background. He studied media engineering in Germany with a double major in online and offline media. After heading the digital division of a Dubaibased agency for five years, he fulfilled his long ambition to found Prototype Interactive in 2010, an interactive agency specializing in digital solutions for web, mobile and social media. The company is now considered as one of the top digital agencies in the country working with international and regional brands. Talk to him on Twitter at @ARauser.

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