P.O. Box: 921, P.C.: Ruwi 112, Sultanate of Oman, Tel : (00968) 24497770 & Fax: (00968) 24498660 E-mail: alamur@alamurqa.com, Web: www.alamurqs.com
FROM THE EDITORIAL DESK
NEW OPPORTUNITIES, NEW CHALLENGES
CONCEPT Akshay Bhatnagar
MARKETING Chandni Maniar
CONTENT Khalfan Al Rahbi
be the most eventful year for small-and-medium enterprises (SMEs) in
CORPORATE Chief Executive Sandeep Sehgal
DESIGN
the Sultanate. On a positive note, most of the banks have started talking
Art Directors Sandesh S. Rangnekar
Executive Vice President Alpana Roy
about giving more support to the SMEs. Many corporates are talking of
Designers Khoula Rashid Al Wahaibi
If we go by the developments during 2011, the year gone by seems to
increased stress on promoting sub-contractors and calling them ‘Partners in Progress’. Another notable development has been that the path of introduction of Islamic Banking has been laid out. There have been plans to launch a $100 million corpus for the SMEs. Not to be missed is the increase in financial support limit by Sanad. There have been many other
Aliya Saif Al Wahaibi Senior Photographer Rajesh Burman Production Manager Govindaraj Ramesh
Vice President Ravi Raman Senior Business Support Executive Radha Kumar Business Support Executive Zuwaina Said Al-Rashdi
significant announcements as well which must bring smile on the face of an entrepreneur in the new year. However, the new year will also witness how much of these promises are fulfilled with a serious intent and do they percolate down to the grass root entrepreneurs! On the flip side, we don’t expect 2012 to be an year of complete turnaround for SMEs. In some of the sections of the sector, the mood is not upbeat. In recently held Oman Debate 2011, a prominent medium-scale manufacturing entrepreneur had pointed out that the changes in labour laws are going to affect the SMEs so hard that in the coming years many of them may go out of business. He said that he may also be forced to shut shop as he is finding it difficult to remain in business. Ruwad welcomes the initiatives taken during 2011 to support SMEs and will
Distribution United Media Services LLC Published by United Press & Publishing LLC PO Box 3305, Ruwi, Postal Code - 112 Muscat, Sultanate of Oman Tel: (968) 24700896, Fax: (968) 24707939 Email: akshay@umsoman.com All rights reserved. No part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for any loss occasioned to any person or organisation acting or refraining as a result of material in this publication. Alam al-Iktisaad Wal A’mal accepts no responsibility for advertising content. Copyright © 2012 United Press & Publishing LLC Printed by Oman Printers Correspondence should be sent to: Ruwad, United Media Services PO Box 3305, Ruwi 112, Sultanate of Oman. Fax: (968)24707939
keep a tab on the how much of these undertakings are converted into action in 2012. Wish you a very Happy New Year!
An Alam al-Iktisaad Wal A’mal Presentation
CONTENTS COLUMNS BY ABDULLAH AL JUFAILI, SHARAKAH . . . . . . . . . . . . . . . . . . . . . 4
INDUSTRY SCAN . . . . . . . . . . . . . . . . . 6 AQUACULTURE – SET TO TAKE-OFF IN SULTANATE OF OMAN
BY WILLIAM CREW, GROFIN . . . . 16
ASK THE EXPERT . . . . . . . . . . . . . . . . . 20 BUSINESS SOLUTIONS FROM ERNST & YOUNG EXPERTS
START-UP . . . . . . . . . . . . . . . . . . . . . . . 5 ALAMUR ENGINEERING CONSULTANT (AEC)
VIEW POINT . . . . . . . . . . . . . . . . . . . . 22 BY KAKUL AGHA, MECIT
JAN-MAR 2012
1
18 SUCCESSFUL ENTREPRENEUR AL SAYYID MOHAMMED ALI AL SAID, MD, VALUE ENGINEERING CENTRE LLC
$100 MN
NEWS IN BRIEF
The Ministry of Commerce & Industry is working on an offset programme which may exceed $100 million to meet the funding needs of SMEs.
UPCOMING EVENTS International Textile & Clothing Show 14-20 January, 2012. Muscat Furniture Expo 29-31 January, 2012. Muscat Toys & Games 29-31 January, 2012. Muscat Oman Customer Care Conference 6-7 February, 2012.
SHELL FOUNDATION’S CSR WORKSHOP IN SUR
SME Exhibition & Conference 13-15 February, 2012. Muscat
The Shell Foundation recently led a Corporate and Social Responsibility (CSR)
Gulf Eco 19-21 February, 2012. Muscat
workshop at the Sur Beach Hotel in Sur. The workshop was hosted by the Oman India Fertiliser Company (OMIFCO). The workshop brought together CSR practitioners from OMIFCO and several other Oman Oil Company subsidiaries.
Garden & Flora Exhibition 19-22 February, 2012. Muscat
Clare Woodcraft, Deputy Director of the Shell Foundation, based in London, briefed
Safety & Security Exhibition 20-22 February 2012. Muscat
the OMIFCO personnel and related parties the day before presenting “Best Practices in CSR Management” to the entire group.
Oman Industrial Investment & Promotion Forum 27-28 February, 2012
The one day workshop gave the practitioners hands on skills which they could then implement upon their return to their respective companies. In particular, it was
International Plastic & Rubber Industry Exhibition 13-15 March, 2012. Muscat
emphasized that measuring the impact of the funds spent was the top priority. In addition to determining the impact, it is vital to identify and align community goals with the business’ commercial stratergy. In another presentation, William Crew, GM of GroFin/Intilaaqah discussed the CSR implications and needs when SME/Entrepreneur development is a key element of the CSR policy. Crew also visited local SME service providers while in Sur.
The Big Show 19-21 March, 2012. Muscat Hardware, Tools & Machinery Expo 10-12 April, 2012. Muscat Fisheries & Aquaculture 23-24 April, 2012.
SME EXHIBITION IN FEB. Trifoil Expo is organizing the fourth edition of SME Exhibition & Conference during 13-15 February in 2012. Leading SMEs and stakeholders would exhibit their products and services in the event which will be visited by all the major players from the industry, including buyers, service providers, government officials and policy makers. In addition, the seminar and conference would provide opportunities to highlight the burning issues of the industry. Policymakers and experts would share their thoughts on how these issues could be addressed. The event would take place at Oman International Exhibition Centre. For more information, visit www.sme-oman.net.
Oil & Gas West Asia 16-18 April 2012. Muscat Comex 30 April-4 May, 2012. Muscat Weddex 2012 22-25 May, 2012. Muscat Consumer Fair 12-7 June, 2012. Muscat
FOR THE NEXT GENERATION OF BUSINESS LEADERS
2
RO125,000
is the maximum loan gurantee that will be provided under ‘Bank Loan Gurantee Scheme’.
E&Y ENTREPRENEUR OF THE YEAR 2012 AWARDS Ernst & Young has launched the Entrepreneur of the Year 2012 Awards in Oman. The programme celebrates individuals who build and lead successful, growing and dynamic businesses. The event has been running globally for 23 years and is held in 135 cities across 50 countries worldwide. Rajeev Singh, Partner and Entrepreneur of the Year Leader
Other ‘special’ awards may be deliberated and awarded
at Ernst & Young, Muscat said, “I’m delighted that this year
by the independent panel of judges. In this first event, an
the Entrepreneur of the Year programme will be running as a
‘Eminent Entrepreneur’ accolade is expected to be presented.
country programme in Oman for the first time. Globally, every
Self-nominations are encouraged and there is no fee to
year the Ernst & Young Entrepreneur of the Year award gives
enter. Application forms can be collected from Ernst & Young
entrepreneurs the recognition they deserve. Even in the most
office in Muscat. Alternatively applicants may contact Ernst &
challenging times, these business pioneers are looking for
Young office on 24559559 Extension 9506.
opportunity and continue to proactively take calculated risks to grow. This is a trait that we celebrate and a value that we
GUARANTEED LOAN PROGRAMME FOR SMES
espouse. The programme also demonstrates Ernst & Young’s commitment to fostering the spirit of entrepreneurship which in fact drives the engines of economic growth, especially in
BankMuscat has joined hands with the Ministry of Commerce
these unusual times.”
and Industry and Oman Development Bank (ODB) to launch a guaranteed loan programme for small and medium enterprises
To be eligible for consideration to enter the programme,
(SME). The self-sustainable initiative marks a major step
nominees must be and have been for at least three years,
to provide the required fillip to the SME sector. Ilham Al
the owner/executive director of a business (not subsidiary
Hamaid, Head - SME Credit and Marketing, BankMuscat said:
or division); be primarily responsible for the success of the
“BankMuscat is proud to join hands with the Ministry of
business; must have a significant equity shareholding in the
Commerce and Industry and Oman Development Bank to create
business; and must have its chief operations based in Oman.
the loan guarantee programme. The Bank encourages creativity
Awards are given to entrepreneurs who have demonstrated
and innovation among people, thereby contributing to national
excellence and extraordinary success in areas such as
initiatives and economic development. BankMuscat is a strong
innovation, financial performance and personal commitment
supporter of the government policy to encourage individual
to their businesses and communities. In this inaugural event, in
initiatives aimed at self-employment.”
Oman, expected awards to be presented are: BankMuscat not only provides funding but also training, The Entrepreneur of the Year, Oman, the recipient of which
counseling and sponsorship to SMEs. The SME Credit and
will go on to represent the country at the World Entrepreneur
Marketing Department branded as ‘Al Wathbah’ offers six
of the Year event in Monte Carlo in June.
product categories for small businesses, including - Working Capital Finance, Equipment Finance, Receivables Finance,
Emerging Entrepreneur of the Year (for those companies that
Import Finance, Contract Finance and Credit Card Receivables
have been operating for two years and are able to demonstrate
Finance. ‘Al Wathbah’ also provides customised financing for
that their business is starting to make a real impact).
medium sized businesses.
JAN-MAR 2012
3
You have to remember that risks are not only
associated with natural disasters but may also include the changes that might affect the investment environment or the public laws such as a Labour Law.
COLUMN
Abdullah al Jufaili, General Manager, Fund for Development of Youth Projects (Sharakah)
L
et’s continue our talk about the questions that should be answered while preparing a work plan.
11- What is the suitable pricing for the product or service offered by you? First you have to know the cost of production or service; then you need to decide the profit margin from selling such product or service. You have to compare your price with the price of similar products and services in the market. You may set higher price in case you offer your customers an added value with your product or service. You may also fix a lower price if you are sure of the production costs.
12 – What are your sales forecasts? How may items you are going to sell per day, week or month or year? Take restaurants, for example. How many chairs at each table? What will be the average number of visitors per hour? How many hours the restaurant will work a day / week? What is the average price for the meals at the restaurant?
20 QUESTIONS YOU MUST ANSWER IN YOUR BUSINESS PLAN communication and marketing costs? What about the administrative costs such as CR certificate, OCCI certifications and others? You should also consider the transportations and insurance costs.
14- What is going to be the number of employees you may require? Would you like to work for the project or will you remain as an investor only? Will you manage the project on a daily basis? What is the organisational structure for the employees? Do you need certain expertise? Will you need expatriates? What is the Omanisaiton rate? How much you have to spend for the salary or wage of the employees? Have you considered the costs incurred for visas, medical insurance, and airfares for expatriates when you calculated the expenses?
17- What is your future expansion plans? Do you have plans to expand the project through branching out, increasing production or expanding the customer base? Will you improve the performance through getting the ISO or efficiency certificates? Do you have plans for diversifying the activities, products or services?
18- What are the risks involved in the project and how you will face them? You have to remember that risks are not only associated with natural disasters but may also include the changes that might affect the investment environment or the public laws such as a Labour Law. Risks may also include new competitors in the market. Therefore, you should have your own plans to handle such risks and mitigate their impacts on your business.
15- What are the cash flow forecasts? 19-Have you registered the intellectual property of the product or service? Although this question
When you calculate the cost of the project and the pricing of the products or services, it will be easy for you to calculate the cash flow and know the break-even point. You will also be able to know the monthly and yearly revenues of the project.
might not apply to all projects, it will be necessary for certain industrial or service projects to have their IP protected.
13- What is the basic cost of the project? Do you need to set up an office?
16- What is the required capital at the beginning of the project? Will the
20- What is the time plan for the project? Have you specified certain
What will be the monthly rent for this facility? What is the cost of utilities such as electricity and water? What about the
money you have be sufficient or do you want financial assistance? How will you get the required funds?
targets you intend to achieve within 3-6 months this year? How you will evaluate the projects? FOR THE NEXT GENERATION OF BUSINESS LEADERS
4
The remarkable growth has given AEC the confidence to position itself as a true professional in the construction industry and rapidly carve a niche for itself as an engineering consultant.
START-UP
PARTNERS FOR A BETTER VALUE ALAMUR ENGINEERING CONSULTANT (AEC) HAS CARVED A NICHE FOR ITSELF IN A SHORT SPAN OF FIVE YEARS
O
ne of the shining examples among the small and medium enterprises (SMEs) in Oman is Alamur Engineering Consultant (formerly known as Alamur Quantity Surveying Consultant). The company under the chairmanship of Amur Albakhit AlAmry has grown at a rapid pace since inception in 2006. Alamur Engineering Consultant is all about cost management of construction. The company primarily assesses the capital expenditure of a facility after evaluating the feasibility, design and construction costs. Due to the quality of service AEC has provided, it has worked on several projects valued in hundreds of millions of Omani Rials consistently for the last few years. The remarkable growth has given AEC the confidence to position itself as a true professional in the construction industry and rapidly carve a niche for itself as an engineering consultant. “We focus on satisfying the clients’ needs in efficient project management with special emphasis on project development appraisals, contract claims, life cycle costing, procurement planning, construction management and value engineering,” the chairman said. With its steadfast attention to
fulfilling even the minutest details in its clients’ classifications, AEC has contributed immensely to the development of the national economy and assisted in creation of numerous employment opportunities for the Omani youth in the challenging field of engineering consultancy.
industrial & process engineering, urban regeneration, power & energy, retail, offices and/or residential (mixed use), hotels, transportation (roads, highways, ports, marine terminals), heritage, environment, healthcare, education, distribution & logistics, aviation & defense and arts, leisure & sports, etc.
The company is driven by a highly qualified and experienced engineering consultants as well as efficient hands-on administrative staff. AEC has successfully delivered a number of projects in various commercial and industrial sectors. The company provides its array of services to a cross-section of industries including
Some of its key projects include Tilal Complex, Shaden Al Hail, National Museum, Sultan Qaboos Mosques in Jalan Bani Bu Ali and Bani Bu Hassan, Salalah Flour Mill, multistory car parking in Muscat, Qurum Natural Park, etc.
JAN-MAR 2012
5
For more information on the company, visit www.alamurqs.com.
17-18 KG
INDUSTRY SCAN
is the average per capita global fish consumption.
AQUACULTURE –
SET TO TAKE-OFF IN OMAN WITH INVESTOR-FRIENDLY REGULATORY MECHANISM IN PLACE AND SERIOUS EFFORTS FROM THE GOVERNMENT, OMAN IS GEARING UP TO PROMOTE AQUACULTURE BUSINESS AMONG THE ENTERPRISING YOUTH, LARGE BUSINESS HOUSES AND INTERNATIONAL INVESTORS. AKSHAY BHATNAGAR DOES THE SWOT ANALYSIS OF AQUACULTURE SECTOR IN OMAN
FOR THE NEXT GENERATION OF BUSINESS LEADERS
6
15.8 MN
is the global production of plants under aquaculture.
W
hat is the best business to be in? A typical answer will be ‘a product/ service segment which is growing rapidly and there is a shortage of supply compared to the demand apart from other factors which could lead to a successful business’. How about venturing into the most traded agricultural commodity in the developing world? Fish.
Global Market “Globally, the average fish consumption is 17-18 kg per person annually. The demand for fish far outstrips the supply. If the same trend continues, there will be a global shortage of 40-50 million tons by 2050. “The current gap between the supply and demand is met by aquaculture which produces 68.3 million tons (including 15.8 million tons of aqua plants) and contributes close to half of the global fish production. Rest comes from the captured or wild fish,” informed Dr.Sena S. De Silva, School of Life and Environmental Sciences, Deakin University, Australia while talking to Ruwad on the subject in his trip to Oman recently.
Dr.Sena S. De Silva, School of Life and Environmental Sciences, Deakin University, Australia
He added, “The global aquaculture industry was valued at $106 billion in 2008. And it has been growing at an annual rate of 8 per cent since 1970. The mismatch between the supply and demand can only be bridged by expanding aquaculture in existing producing markets apart from developing new markets such as Oman where there is a good potential for it.” Dr. De Silva further said, “Over 91 per cent of the aquaculture production comes from Asia Pacific region. China contributes almost 70 per cent of it. The
WHAT IS AQUACULTURE ?
Aquaculture, also known as aquafarming, is the farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants. Aquaculture involves cultivating freshwater and saltwater populations under controlled conditions, and can be contrasted with commercial fishing, which is the harvesting of wild fish.
JAN-MAR 2012
7
aquaculture business in Asia Pacific is predominantly small scale. For example, the average size of a fresh water pond in Indonesia is 0.14 hectares. A coastal pond in Thailand has an average size of 0.8 hectares. Most of the farms are owned, managed and operated by farmers. The aquaculture in Asia Pacific is expected to remain small scale in the future.”
Aquaculture in Oman Though fishing has been one of the oldest traditional business activities in Oman but aquaculture had not been a focus area till recently. Very few business groups, international companies and SMEs have actively pursued in this sector. And most of those who took the plunge have exited the business due to various constraints. According to a December 2011 report published by the Aquaculture Center, Ministry of Agriculture and Fisheries Wealth (MAFW): ‘Aquaculture in Oman is in its early stages. At present, only shrimp is farmed and production (127 tons
514 TONS
INDUSTRY SCAN
Oman’s aquaculture production in 2004.
in 2010) is relatively modest.’ Talking to Ruwad, Dr.Fahad Saleh Ibrahim, Director-Aquaculture Center, Ministry of Agriculture & Fisheries Wealth, said: “To the best of my knowledge, there is just one company engaged in aquaculture in Oman. It is based in Al Wusta region. There was another one in Quriyat but they have closed down.” Interestingly, aquaculture production reached its peak in 2004 when it was pegged at 514 tons. From thereon, it has been a downhill journey. “How can we expect people to start a business in aquaculture when there were no regulations in place! Now we have established the regulatory framework. From 2012, we expect the industry to move forward,” commented Dr.Fahad. Based on the learnings from the past, the Government has taken serious farreaching measures in the last five years to establish the sustainable foundation for aquaculture’s growth in Oman. The MAFW commissioned the United Nation’s Food and Agriculture Organisation (FAO) to draft a national strategic plan for the development of aquaculture sector in the Sultanate. Following the recommendations of the FAO, MAFW has established a modern aquaculture framework in alignment with best international practices. To promote the sector, a dedicated Aquaculture Centre has been set-up. To disseminate information among the serious investors, locally and abroad, ‘Atlas of Suitable Sites for aquaculture projects in the Sultanate of Oman’ has been prepared. The Atlas has been developed in collaboration with internationally renowned aquaculture
Dr.Fahad Saleh Ibrahim, Director-Aquaculture Center, Ministry of Agriculture & Fisheries Wealth
consultants, based on extensive oceanographic, environmental and geological studies conducted to identify the sites, fish and other aquatic species and production methods best suited for successful aquaculture development in the country. Overall, the sector is expected to generate upto 4,000 new direct jobs in the market. An additional number of indirect employment in areas such as fish processing, feed supply, technical support services (veterinary, system support, specialist trades, logistics, etc.) would also expand the job market. The MAFW is hopeful that Oman could race from an aquaculture production
of 127 tons in 2010 to 220,000 tons by 2030-2040 with an estimated market value of $900 million. Projections indicate that the overall sector would contribute $2 billion to the gross domestic product (GDP) providing employment to 11,000 people by 2030-2040. “Vietnam is the third largest aquaculture producer globally after China and India,” informed Alessandro Lovatelli, FAO, Italy. If a small country like Vietnam can do, Oman could also do it. The meteoric growth seems very difficult but not impossible provided there is a serious political will backed up by entrepreneurship zeal.
AQUACULTURE PRODUCTION (2010) GLOBAL
OMAN
68.3 Million Tons
127 Tons
FOR THE NEXT GENERATION OF BUSINESS LEADERS
8
ᣰSƒàª`dG h IÒ¨°üdG äÉ°ù°SDƒª`dG ᫪æJ
Developing Small & Medium Enterprises
We Offer
Customized financial solutions to suit your business needs and we have three different schemes:
Loan Scheme
Bill Discounting Scheme
Loan up to RO200,000 Up to RO250,000 Interest 5% 90 day credit period Risk rate 0-2% Upto 6 years
Equity Scheme Investment up to RO200,000 Shareholding between 25-49% Exit within 6 years
“Sharakah”, Fund for Development of Youth Projects SAOC was established by the Royal Decree 76/98 as a Closed Joint Stock Company dedicated to support Omani Entrepreneurs and local Small and Medium Enterprises (SMEs) by providing financial support, mentoring and guidance services For more information visit
www.sharakah.om
127 TONS
INDUSTRY SCAN
Oman’s aquaculture production in 2010.
Case for Aquaculture in Oman “The Sultanate of Oman is uniquely well positioned to take advantage of the opportunities presented by the aquaculture sector. Situated on the southeastern Arabian Peninsula along 3,165 kms of pristine, unpolluted coastline featuring a deep drop-off ocean shelf and nutrient-rich upwelling, Oman has centuries of fisheries tradition and is ideally suited for farming a variety of key fish and other aquatic species, using a range of aquaculture methods,” said Dr.Hamed Said Al-Oufi, Undersecretary-Fisheries Wealth, MAFW. The Undersecretary has briefly but aptly captured the strengths of Oman to build a strong case for aquaculture. Due to a favourable environment, a broad variety of fish population flourishes including a wide assortment of staple and financially rewarding species as well as rare and valuable delicacies such as kingfish, lobster and abalone. According to estimates, total fish landings in 2010 was 163,926 tons and traditional captured fisheries is providing employment to over 36,000 Omanis. It shows the rich marine life along the coast and vast potential of growth for aquaculture. Oman’s domestic market consumption of fish was 88,971 tons in 2010. So there is a huge appetite for fish and related species in the market. Muscat alone is a good lucrative market for fresh aquaculture products such as fish and shrimps.
Opportunities for Growth Anyone who wants to start fresh in aquaculture must be delighted to know that most of the basic research work such as best and available sites,
Cage Farming
lucrative species and suitable culture systems have already been identified by MAFW with the help of local and international experts. So it saves the entrepreneur from the botheration of undertaking the basic market study. However, he/she has to study the exhaustive reports already prepared to identify the best possible options for the business. There are different types of aquaculture that are suitable for Oman. These include cage farming, land based aquaculture and restocking. CAGE FARMING: The increasing consumption of finfish and some declining wild fish stocks have produced a strong interest in finfish production in sea cages. Successful aquaculture industries such as salmon, sea bass and sea bream widely rely on sea cage farming in protected coastal waters. A large range of marine fish species can be reared using cages in intensive systems. In the context of Sea of Oman, cages can be envisaged for the intensive farming of sea bream and sea bass on a site-by-site basis. In general, sea bass do not perform well at temperatures above 28-29 °C and is therefore not highly recommended
for cage farming. Cobia and barramundi should not be targeted in the first instance for industrial production due to the absence of a consistent fingerling supply. Species such as tuna and groupers can be considered for capturebased aquaculture although this may be restricted by legislation. Sea cage farming can be carried out in coastal waters or offshore. Coastal farming relies on traditional techniques using surface cages. Offshore systems employ immersed cages to lower the action of the swell and waves on the structure and the fish stock while not affecting boating activity. This technique has an interesting potential in the context of Oman as it would keep the fish stock away from potential harmful algal bloom (HAB) events. Another alternative to the problem caused by algal blooms consists of supplementing air or oxygen to surface cages. This technique has already been implemented elsewhere with sea cages to maintain a sufficient dissolved oxygen level for stocked fish. Since fish are held in the sea cages at high densities, their environmental impact must be assessed and monitored. FOR THE NEXT GENERATION OF BUSINESS LEADERS
10
11,000
INDUSTRY SCAN
people could get employment in Oman’s aquaculture industry according to MAFW projections.
Sea cage farming can be more economical compared to land based farming with lower initial investment. Cage materials and anchorage can be purchased at reasonable prices. Cage aquaculture provides simplified cultural practices such as direct observation of fish behaviour and ease of sampling and harvesting.
Land based aquaculture
Raceway Culture System
Tilapia Farm
Sea cage farming is practiced in public waters, so the regulatory concerns and interactions with other user groups are important considerations. Site selection must be evaluated prior to implementing production structures. Protected bays would be preferred for traditional sea cages, being less-exposed to waves and winds. Traditional cage farming requires a relatively low initial investment but the recommended production capacity of the culture system should reach at least 100 tons per year. Some modern equipment and technology can represent a substantial investment. Traditional cage systems consist of nursery culture in small cages and growout culture in large cages. The cages are circular, square, or rectangular in shape. The most suitable species for sea cage farming in the coastal area of Oman is considered to be the sea bream (S. aurata). Culture system management for this species is well established and the species have been successfully cultured in Oman at an industrial scale. The main problem encountered is related to the occurrence of HABs. Also the sea bass is relatively attractive for sea cage farming due to its straightforward hatchery production cycle. However, the principal apprehension associated with sea bass farming in sea cages is its upperthermal-tolerance limit. FOR THE NEXT GENERATION OF BUSINESS LEADERS
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$2 BILLION On the other hand cobia, which is an endemic species, may be considered for offshore sea cage farming. This species present characteristics of a good aquaculture candidate with fast growth and high survival rate in sea cages. But cobia hatcheries are still facing some production problems. Optional, although perhaps not recommended species for aquaculture production in Oman include the barramundi (Lates calcarifer), the endemic rabbitfish (Siganus canaliculatus), grouper (Epinephelus coioides) and local sea bream, Sobaiti (Acanthopagrus cuvieri) and Acanthopagrus latus. LAND BASED AQUACULTURE: Landbased culture systems allow for the culture of freshwater species as well as brackish and seawater species. Shrimp, tilapia, sea bream, sea bass and Barramundi are some of the species that are recommended for land based aquaculture. Land-based culture systems offer advantage over HAB risk associated with sea-based farming. These units provide a means for the intensification of the culture system using RAS, a technology recommended for developing land-based aquaculture in Oman. The pumping system is a fundamental element in the operation of a land-based aquaculture farm. Water can be collected either as surface seawater or at lower depths. It can also be pumped from underground springs or aquifers. In land based aquaculture, different kinds of earthen ponds are used. Shrimp aquaculture is commonly operated as semi-intensive or intensive systems in ponds. Another popular system of
land based aquaculture is raceways. Raceways consist of long and relatively narrow tanks in which water flows through continuously around the fish. The culture units are usually made of concrete. Large volumes of high-quality water are necessary for the system to operate. Raceway culture systems can yield large quantities depending on parameters such as water flow, aeration and water temperature. They are suitable for species such as Tilapia, sea bream, sea bass, Barramundi and mullet. The recirculating aquaculture system (RAS) appears to be the most appropriate land-based culture system for Oman. RAS provide a solution to overcome environmental constraints occurring such as HAB and high temperatures. Many potential sites along the coast would be suitable for aquaculture production using RAS.
could be the contribution of aquaculture to Oman’s GDP.
maintaining water quality parameters at steady levels. RAS water has virtually constant quality which is appropriate for the fish under culture with high growth and survival rates. Because most water in a RAS is recycled, only a relatively small addition of new water is required under operating conditions. RAS have shown interesting results in terms of water requirements, survival rates, productivity and energy consumption. Another option under land based aquaculture is restocking. Many attempts have been made to use aquaculture techniques for the management and enhancement of fisheries stocks. Restocking programmes are limited to species which can be bred captively. The abalone (Haliotis spp.) and sea cucumber (Holothuria spp.) possess attributes for being selected as possible candidates for restocking programmes due to the existence of effective hatchery and nursery culture techniques.
RAS operations are mostly undertaken indoors and provide aquatic species with the most appropriate environment to promote their growth by controlling and
The principle of restocking consists of producing seed stock at a land-based hatchery and nursery and sowing the
MOST SUITABLE PRODUCTION SYSTEMS & PRINCIPLE SPECIES FOR AQUACULTURE IN OMAN TYPE OF PRODUCTION SYSTEM AND PRINCIPLE SPECIES
ESTIMATED ANNUAL TONNAGE OUTPUT*
TURNOVER IN RO MILLIONS*
Marine RAS** (breams)
5,000
9.6
Shrimp Ponds (P. indicus)
19,000
41.9
Fresh water RAS
5,000
2.2
Marine RAS and restocking (abalone)
100
1.4
Sea Cages (Breams)
2,300
4.5
Sea Cages (Cobia)
2,000
9.9
Marine ponds and raceways restocking (Sea cucumbers)
300
2.0
TOTAL
33,700
71.5
*Projections **Recirculating Aquaculture System
JAN-MAR 2012
13
To venture into aquaculture, the
investor has to obtain a license from the Ministry of Agriculture & Fisheries Wealth.
INDUSTRY SCAN
to be profitable. Indeed the operating costs and capital investments are significantly higher for RAS compared to other culture systems. Therefore, production levels should allow for achieving some economy of scale which can be envisaged with a minimum production capacity of 500 tons per year. Total production may attain 5,000 tons after an industrialization phase with an estimated investment of RO 13.8 millions. Turnover could reach RO 9.6 millions per annum assuming that the farm gate price would be RO 1.9 per kg.
SUITABLE LOCATIONS FOR AQUACULTURE IN OMAN
seeds in some areas at sea in order to increase the stock and improve catches. Juveniles are released in delimited areas for on-growing. The areas are subsequently banned from fishing activities in order to allow for the stock to reach commercial size. Both hatchery and nursery must be located nearby to the release area. The development of a restocking programme may take up to 3-4 years.
Best Returns Looking at the prospects for the sector factoring in the local environment and market potential, seven production systems and principle species have been identified that could give the best viable business proposition to an investor. The best option is Shrimp ponds (P.indicus). It has the potential to reach an estimated output of 19,000 tonnes annually valued at RO41.9 million. It is followed by sea cages (Cobia), marine recirculating
aquaculture system (RAS)(Breams), sea cages (Breams), fresh water RAS, marine RAS and restocking abalone, marine ponds and raceways restocking (sea cucumbers). With practically starting from scratch, Oman provides immense opportunity for large scale as well as small operators alike in various segments of the business. MAFW has divided the nation into seven zones from the aquaculture perspective. Each zone offers its unique set of opportunities and challenges. So what is the best option for a new entrepreneur? If we go by the recommendations of a MAFW report, there are number of alternatives. Overall, the most suitable production system for Oman is RAS for production of European sea bream and sea bass. Ten sites could be developed for establishing bream and bass farming and each production unit would be designed for a production capacity of 500 tons per year
The second recommended culture system in rank is shrimp farming with 19 possible sites to be developed mainly in zones 3 (Gulf of Masirah), 4 (Masirah to Ras Al Had) and 6 (Muscat to Shinas) with the former zone presenting an immense area offering potential for 2000 tons of production. Total production could represent 19,000 tons. Investment required would be approximately RO55.1 millions for the implementation of the shrimp industry. The production turnover would correspond to RO 41.9 millions per year assuming RO 2.2 per kg farm gate price. The Government is also in the process of setting-up a dedicated aquaculture company with the mandate to undertake production as well as support the entrepreneurs in various segments and functions of the business. Though the complete structure and objective of the company is not known, it is expected to be a boon for the small and medium entrepreneurs.
Incentives for Entrepreneurs In order to motivate investment in aquaculture, the Government offers number of financial incentives. An investment in aquaculture allows 70
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Interested in aquaculture? Contact: Dr.Fahad Saleh Ibrahim, Director,
Aquaculture Center, MAFW Tel:968-24743585; Fax:968-24737782
per cent foreign ownership. In certain cases, it could be higher than 70 per cent mark also. Another attraction is corporate tax holidays for five years, extendable upto 10 years. There is no custom duty on import of machinery and equipment, raw materials (if unavailable in Oman) for five years, extendable by another five years. For Omani youth, small stakeholders and SMEs, there are special incentives. They will be provided technical training and financial assistance to develop the projects. MAFW provides 80 per cent support on ‘fair value’ of fish culturing systems (upto RO 3,000), small fish (upto RO 1,000), fish feed (upto RO 2,000) and equipment & devices (upto RO 1,000).
Challenges in the Development Despite a promising natural and business environment, the growth of aquaculture in Oman is beset with number of challenges. Starting of aquaculture business is a long drawn process. No aquaculture business can be done in the country without a license from MAFW. The license approval from MAFW is a two stage process. First, the investor has to submit an outline proposal to MAFW. It should include details such as location of site, type of aquaculture project (cages, ponds, recirculation system, etc.), species to be cultured, principle elements of project (hatchery, on-growing, processing, etc.), brief marketing strategy, principal shareholders, overall cost of project, basic economic assumptions and estimated staff requirements (specialist expatriates, Omanis). If accepted, MAFW will grant a provisional license within three months of receiving the application
and an exclusive access to the site. In the second stage, the investor has to prepare the full feasibility study and business plan proposal including the Environment Impact Assessment and submit the same to MAFW within one year to obtain the operational license. Large Omani companies and international investors have to shell out RO1000 for the operational license. The fee for the same is pegged at RO 100 only for Omani fishermen and small businesspersons with a production of upto 100 tons of finfish per annum. When the project enters production or three years after the grant of operational license, large entities are required to pay an annual fee of 1 per cent of ‘farm gate’ sale value. For Omani fishermen and small businesspersons, the annual fee is fixed at RO 50. Depending upon the activity to be undertaken, numbers of necessary approvals from various ministries and Government bodies have to be
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obtained. To ensure that Omani branded aquaculture products are accepted in international markets and protect the environment, the Government has established strict quality parameters, stringent management practices and environment friendly policies in place. In addition, the aquaculture farmer has to factor in natural calamities such as hurricanes, etc. which could damage or destroy the farm. Ruwad foresees that the sector would initially be dominated by large private sector players from Oman and the region apart from public sector company(s). As we move forward, numbers of small and medium scale players would join the fray especially in clusters where they have the best chance of survival with assured integration in the supply chain matrix. To conclude in the words of Dr. de Silva, “The pragmatic, resilient, low-cost and easily adaptable small scale farms will survive the challenge and thrive in the future.”
The needs of customers change. By obtaining on-going feedback, we can be “ahead of the curve” and adjust our offerings to these new requirements.
COLUMN
CLIENTS: THE VALUE OF QUALITY FEEDBACK WHEN WE OBTAIN CLIENT/CUSTOMER FEEDBACK, WE ARE COMMUNICATING A MESSAGE TO OUR CLIENTS AND THE MARKET.
William R. Crew, General Manager, GroFin
W
e often hear that a firm’s greatest asset is its employees, its people. While this is true, we also must look at our clients and customers as an equally great asset. The value of clients, of customers, is basic – this is the source of our revenue, our business’ money. But if we just passively assume that customer will always come and give us money, then we are setting ourselves up for disaster. We are also missing a valuable opportunity: Client Feedback.
Why is client feedback important? We want to be able to “fine tune”, to focus. To match our goods and services as perfectly as possible with the needs of our clients.
Another strong benefit of obtaining customer feedback is that it creates commitment (loyalty) on the part of your clients
We want to identify changing tastes and preferences for our goods and services. The needs of customers change. By obtaining on-going feedback, we can be “ahead of the curve” and adjust our offerings to these new requirements, so we are not playing “catch-up.”Client feedback allows us to gauge competition. Our clients/customers are motivated by lowering costs while receiving the same level of quality. They are a great source of information on the competition (of course one must verify independently
any competitor information from clients for the sake of accuracy). When we obtain client/customer feedback we are communicating a message to our clients and the market. This message is that we are serious and we care about the needs of our clients. We value them and we want to align our offerings to their needs. Whether it’s face to face meetings with your biggest clients, or customer feedback forms on Facebook or your company’s website, this information is extremely valuable. It’s market research, pure and simple. SMEs can pay a specialized firm a lot of money to provide this research or simply do it by themselves. Another strong benefit of obtaining customer feedback is that it creates commitment (loyalty) on the part of your clients. But only if you, the small business owner follows through and uses, leverages the information gathered. If you actually implement changes, etc. based upon this feedback the client will feel more valued, more appreciated, and more committed to keeping his/her business with you. Think about it. When, in the future, the clients need additional goods or services, who are they going to turn to? Those who have not shown a keen appreciation in improving their FOR THE NEXT GENERATION OF BUSINESS LEADERS
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Some clients would like to be courteous and may think that saying something negative, even though it’s true, is a bad thing. You must stress that by NOT saying the 100 per cent truth, you are not able to increase the quality of your business, better meet the client’s needs, etc.
services or offering to them, or those that have not? Below are some useful questions and rationale to help you design your own survey. These potential questions can be asked to each client in a face to face meeting or can be included on an online/ printed customer satisfaction survey:
Sample Qualitative Questions 1 Do you feel that you have access to me as the owner at any time to resolve any issue? Have you ever not been able to contact me when you have tried? (You want your clients to have access to the decision maker - you. In a written survey format, you will want to know how problems were resolved - to the satisfaction of the client, within a timely manner. Was a manager or senior person available if more junior staff could not resolve a problem or a complaint)?
am discussing? You as the SME owner may think that your quality standards are being transmitted to the market, to the client. This question verifies if this is true or not. 5 Did you know that my business has some of the most advanced machinery and equipment in Oman? (Or highest trained personnel, etc. The point is you want to know if the client understands all of the value you bring to the client’s business.) Quantitative survey questions are good for ease of completion (makes it easy for the client/customer) and ease for compilation (makes it easy for the SME owner). Generating results can also be computerized more easily.
Sample Quantitative Survey Questions Area
1
2
3
4
5
Excellent
Good
Indifferent
Fair
Poor
Overall quality of the product or service.
2 Do you believe that my company has a complete understanding of your business’ needs? Do our products/ services meet your needs? This measures the degree to which you are aligned to the market. 3 Do you believe that my business is sensitive to your requirements for quality? (that is, does the quality I provide you support the quality standards that you as a company maintain internally and externally?). For a written survey/products perspective, are your products considered value for the money? 4 Do you believe that all of my employees with whom you have met reflect the quality standards that I
Value: How do you rate the product or service in terms of cost/benefit? Transactions are completed efficiently? Employee/Staff friendliness and willingness to assist you? Problems are resolved in an efficient and effective manner? Your personal experience is equal to or exceeds the service level quality which is promoted?
(Note: Some clients would like to be courteous and may think that saying something negative, even though it’s true, is a bad thing. You must stress that by NOT saying the 100 per cent truth, you are not able to increase the quality of yourr c. business, better meet the client’s needs, etc. The SME owner’s goal in this scenario is absolute honesty and a critical assessmentt of the company’s offerings)
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Until VEC, there was no indigenous engineering company that focused on Front End Engineering and Specialised EOR
Engineering. This shortage coupled with access to strong experienced engineers created a perfect opportunity to start VEC.
SUCCESSFUL ENTREPRENEUR
EXCELLING DESPITE ODDS AL SAYYID MOHAMMED ALI AL SAID, MANAGING DIRECTOR, VALUE ENGINEERING CENTRE LLC (VEC) IN A SHORT SPAN OF SEVEN YEARS HAS MANAGED TO CARVE A NICHE IN A MARKET CROWDED BY INTERNATIONAL GIANTS.
BACKGROUND VEC is an engineering consultancy company with an ambition to become an international engineering design company. I started the company in 2004 after spending 10 years in Petroleum Development Oman (PDO). I’m an engineering graduate (mechanical) from Imperial College, London University and MBA from Lincoln University. My tenure in PDO ranged from exposure
to construction of the facilities to engineering and design of the facilities to maintenance of the facilities and project management.
THOUGHT BEHIND TURNING ENTREPRENEUR I believed that I could do more by being outside PDO rather than being inside. Whatever job I could do in PDO, there were others in the company who could
do the same. PDO is a great company for development of engineers with structured development schemes. Therefore, engineers in PDO, if focused well, could be developed and carry out any assignment given to them. However, looking at the contracting industry, I realized that there weren’t many indigenous companies serving the oil sector. Until VEC, there was no indigenous engineering company that FOR THE NEXT GENERATION OF BUSINESS LEADERS
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VEC has been involved in many EOR projects in the Sultanate and the GCC region. Starting with the largest two EOR Thermal projects in Oman; PDO and Occidental’s Steam Injection Projects.
focused on Front End Engineering and Specialised EOR Engineering. This shortage coupled with access to strong experienced engineers created a perfect opportunity to start VEC.
VISION FOR THE COMPANY It is quite simple. Generally, when you think of any global firm, the first thing comes to mind is the country of its origin. For example, in case of Worley Parsons one thinks of Australia; Mott MacDonald is UK; TR Engineering is Spain; and Tebodin is the Netherlands. So my vision is to make VEC synonymous with Oman by creating a quality global brand from Oman.
INITIAL YEARS OF VEC On the team front, we started with high-end, experienced international staff. On the work side, we started with small jobs. It wasn’t easy as we faced many challenges. The industry was not ready for an Omani thinking company competing with international giants on an equal or better footing. From 2007 onwards, clients started accepting us after having experienced our quality of work. From 2010 onwards, clients have started coming to us when they need our expertise as they have understood that we offer unmatched expertise that could add immense value to their business.
KEY ASSIGNMENTS DONE BY VEC Our key differentiators are EOR and Production System Optimization (PSO). VEC has been involved in many EOR projects in the Sultanate and the GCC region. Starting with the largest two EOR Thermal projects in Oman; PDO and Occidental’s Steam Injection Projects. Our engineers worked with teams of
VEC OMAN – BRIEF PROFILE
Value Engineering Centre is an independent, high value and high quality Omani specialist engineering firm in the oil & gas and petrochemical industry. VEC was formed in 2004 to provide Specialist Engineering Consulting and Design Services to oil and gas industries in Oman, with an initial focus on the value creation phase of projects. VEC has since grown and developed to be an extended partner by identifying and delivering value to oil & gas clients both in the design as well as the operation phase of the asset life cycle. VEC’s focus areas include Engineering Design, Process Safety Asset Integrity & Environment, Project Management, Enhanced Oil Recovery (EOR) & Sour Oil & Gas Service Expertise, Production System Optimization and Process Control. these projects and currently possess the knowledge locally in VEC. Moving on, in the second kind of EOR in Oman, VEC has engineered Polymer Flood Designs and Project Management of the execution. The third type of EOR in Oman is Sour Gas Treatment and Miscible Gas Injection. Our engineers have again worked with other engineering firms to facilities’ design and technology selection of sour gas treatment. Mussandam Gas Plant is one of those examples where VEC engineers supported the designers to arrive at a suitable technology and design. VEC has also carried out a number of Production System Optimisation projects where a detailed analysis of the production system is carried out to determine the operational problems that occur after the plants have been
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operated for a number of years. VEC has in-house capabilities to assess and troubleshoot processing plants’ production limitations and increase production handling without much hardware change. VEC carried out these studies for many E&P companies in Oman including PDO and Occidental.
STRATEGY TO MAKE VEC A GLOBAL BRAND We are putting the house in order first. We want to be a credible engineering consultancy force internationally. The next three years are critical to our survival and growth. We have bold plans and so far we are on target. Our vision is to be a recognized ‘Omani brand for excellence’ internationally by 2017. Our strategy is to attract the best in-class professionals to work alongside our Omani talented graduates. As told to Akshay Bhatnagar
LLC is an ideal format to pursue
for a small company looking to start up and obtain financing.
ASK THE EXPERT
SUITABLE LEGAL STRUCTURE FOR THE ENTERPRISE QUESTION: Are there other legal structures besides LLCs which I should consider using? Such as a sole proprietorship or consultancy. Are other forms seen as legitimate as LLCs in the eyes of banks? Fathi Al Balushi Manager, Ernst & Young
Saif Shamsuddin Analyst-Transaction Advisory Services Ernst & Young
ANSWER: From a banking perspective, an exact definition of what constitutes a small and medium enterprise (SME) in Oman is limited to a market segment that caters to customers whose borrowing needs for credit facilities are limited to RO500,000. With this in mind, one can begin to define and identify the most suited company legal structures that may be suited to a new SME looking to obtain financing from a bank, with a primary focus on their initial share capital requirements. The suitable options have been listed below, with brief descriptions on their share capital requirements and management-
requirement, and banks would be supportive of financing under this legal structure. LLC limits the liability of its investors to the extent of their respective investments made, and its management structure may be determined in any manner that the members desire. Members may manage the LLC directly, or provide for the election of managers or board officials. Members hold final authority in the LLC. The drawbacks of an LLC are seen if one member decides to leave. In this scenario, all the other owners must mutually agree to continue the firm. Often, interests in an LLC are not liquid, as transfer of ownership is entirely subject to approval of other members. Common types of LLC’s include - family businesses, professional services firms, and companies with foreign investors.
Limited Liability Companies
Partnerships
This is an ideal format to pursue for a small company looking to start up and obtain financing. The capital of an LLC company shall not be less than RO20,000. All shares of the company shall be of equal value and the full value thereof should be paid upon subscription. All shares shall be of equal nominal/book value and the full value must be paid on subscription. This requirement fits in well with the possibility of a new SME startup venture, due to its share capital
Both general and limited liability partnerships do not have a share capital threshold in Oman. The terms of the partnership agreement are subjective and therefore the initial funding from banks will be entirely dependent on the terms negotiated between the parties before the incorporation of the company. The partners of a general partnership will be jointly and severally liable for the partnership’s debts to the full extent of their property. On the other hand, a limited liability partnership is subject FOR THE NEXT GENERATION OF BUSINESS LEADERS
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General Partnerships, while preferable for ventures
with a short duration (three to five years) along with high levels of commitment from management during these periods; also come with their flaws.
to one or more partners liabilities being limited to the amount of their contribution to the partnership’s capital provided that such an amount has been stated in the Memorandum of Association. In an LLP, atleast one partner must have unlimited liability - which potentially means limited partners do not lose more than their capital contributions. Limited partnerships are generally seen in real estate, oil and gas and equipment leasing. However, other business ventures may be pursued under this structure. General partnerships, while preferable for ventures with a short duration (three to five years) along with high levels of commitment from management during these periods; also come with their flaws. Primarily, all partners have unlimited liability and may have to cover for debts arising from the less financially sound partners. Due to this, creditors may claim assets from one or more of the partners if the remaining partners are unable to cover their share of the loss. This is an important point to keep in mind while discussing the most suited legal structure to opt for with a bank. Often, partnerships lack continuity as they may be dissolved or terminated if a partner dies or withdraws, unless a new agreement is stated. This may have an impending effect on the going concern of the company in the long term.
Joint Stock Companies (SAOG, SAOC) Given that the threshold is RO500,000, this legal structure qualifies as a suitable option for an SME. However SME’s may opt for LLC or partnership style companies before venturing into the SAOG or SAOC formats – a decision that must be taken based
on potential growth opportunities, liquidity requirements and the overall receptivity of the business agenda in the local market. Initial share capital requirement for a joint stock share capital company that does not offer its shares for public subscription, shall not be less than RO500,000. The Capital Markets Authority (CMA) is supportive of companies who wish to list their securities for public offering. The initial role of the bank will be to keep funds received from subscribers and shall release these funds if all subscriptions have been accepted to the Board of Directors. In case there is a dispute on the incorporation of the company, the bank will release the funds paid to the person as may be appointed by the Authority for the settlement of any disputes. Subsequently, in the unfortunate event of a liquidation or bankruptcy, the bank will act as a secure creditor and have priority on the firm’s assets based on their funding.
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Forward your queries to akshay@umsoman.com and they will be answered by an expert from Ernst & Young.
Kakul Agha is an Assistant Head of
Department,Department of Postgraduate Studies and Research, Middle East College of Information Technology (MECIT)
VIEWPOINT
WHAT MAKES ENTREPRENEURS SUCCESSFUL! Inventors and Entrepreneurs differ from each other. Inventors create something new while entrepreneurs assemble and integrate resources – money, people, business model, strategy, and risk-bearing ability – to transform the invention into a viable business. Each one of us is an entrepreneur, but not many of us are able to make it big! Some distinguishing characteristics of effective entrepreneurs draw us apart. Many researchers claim that entrepreneurs appreciate differences across cultures, learn from them, find common ground and possess the entrepreneurial spirit where they are not afraid to do new things or put new combinations together. Steve Jobs is a great example of this who has made a difference through his innovative approach and creative thoughts. Entrepreneurs also possess certain fundamental values of empathy, integrity, honesty, respect for the dignity of people and personal responsibility. They are passionate about their beliefs and values. Passion takes them a long way. It is typically because of passion that entrepreneurs are ready to make a difference. They believe that their business or venture will positively influence people’s lives. John Plaza, the founder of ‘Seattle Biodiesel’ a company that makes environment friendly substitutes for regular diesel fuel, was a former airline pilot who quit his job flying commercial airplanes to pursue an interest in alternative fuels. A single flight sparked
his passion for the environment and that is when he decided to follow his passion.
is doing rather than as an end in itself.
Entrepreneur’s vision plays a significant guiding force in the development of a new venture. Entrepreneurs are able to put deals together, structure contracts and relationships, and build new kinds of organisations displaying Enterprise-design capabilities. Many of us are not able to execute plans and own them up whereas an entrepreneur does that without any second thoughts. The common characteristics for selfmotivation in an entrepreneur are commitment, perseverance, achievement, drive, and opportunity orientation. So are you an Entrepreneur? (Rate yourself on the following qualities on a scale of 10) Drive and energy level: The ability to work long hours for sustained periods with less than the normal amount of sleep. Self-confidence: A belief in yourself and your ability to achieve your goals. Setting challenging but realistic goals: The ability to set clear goals and objectives that are challenging, yet realistic and feasible. Long-term involvement: A commitment to work towards distant goals. Using money as a performance measure: Money, in the form of salary, profits, or capital gains, should be viewed more as a measure of how the company
Persistent problem solving: Must have an intense and determined desire to solve problems. Taking moderate risks: Success is generally the result of calculated risktaking that provides a reasonable and challenging chance of success. Learning from failure: Understanding your role in a failure can be helpful in avoiding similar problems in the future. Using criticism: You need to be able to seek and use criticism of the style and substance of your performance. Taking initiative and seeking personal responsibility: Put yourself in situations where you are personally responsible for success or failure. Making good use of resources. Competing against self-imposed standards: Set your own standard of performance, which is high yet realistic, and then compete with yourself. End of it all if you rate yourself more than 50 percent on all characteristics then you could pursue your skills and think of becoming an entrepreneur in future. It is interesting to note that the Sultanate of Oman is a budding ground for SMEs and Entrepreneurs. The young Omanis could very creatively and enthusiastically support the government initiatives and bring enormous financial and social gains to self and to the country at large.
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