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CHALLENGING THE STATUS QUO “If people don’t tell you your idea is crazy, it’s probably not that innovative.” Alexander Blass, inventor and founder of person-to-person giving technology on the Internet, SHares his secrets for success.

The pulse of healthcare

How to survive paperwork

Prenup agreements for business owners

Who rules: men or women?

Business licenses

Issue 65 April 2011 www.smeadvisor.com

ADCB BUSINESSEDGE – Cutting edge financial solutions for Small and Medium Enterprises

ISSUE: 65 APRIL 2011

Contents

Women in business

32 ENTREPRENEURSHIP: Who’s better? Men or

52 TECOM SME BUILDER: More than 100

women, asks John Lincoln, Vice-President - Enterprise Marketing, du, at much risk to his life and limb.

36 INVESTORS: Why are women not making

32 Shoptalk 08 TRENDS AND UPDATES: A quick look at

news and events that will impact SMEs in this region. 16 SHELF LIFE: New toys for you and your business. Like you need an excuse!

to survive paperwork, by marketing manager and licensed sports massage therapist, Donna Masing A day in the life 28 ALEXANDER RAUSER: Alexander Rauser, CEO, Prototype Interactive, takes us through a typical day in his life.

DIC DEMO CAMP 2011: With an overwhelming application response, this event promises to be an eventful evening.

Sales

BUILDING BRIDGES THROUGH BUSINESS: Highlights from the Dubai School of Government panel discussion which highlighted the changing dynamics driving trade between the GCC, India and China.

Trade

MANAGEMENT: This month Peter Heredia, Managing Director of Max Sales Solutions, discusses what the key activities of an effective sales manager should be.

Customer service

55 INNOVATION AND CREATIVITY: Dr. Ashraf Mahate, Head of Export Market Intelligence at Dubai Exports, and Vice Chair of the Economic Policy Committee, Dubai Economic Department discusses the ability to harness creativity in a profitable and sustainable manner.

Legal 42 BUSINESS LICENSES: Joumana Azzam of Al Tamimi & Company discusses the new measures introduced by the Department of Economic Development in Dubai to help ease financial strains on businesses.

global study from A.T. Kearney indicate that fragmented processes, transparency and compliance issues are evident in the Middle East.

Management

Director of Mediastow, discusses unrest in office workplaces and how best to deal with disgruntled employees.

62 STRATEGY COHERENCE: According to a Booz & Company survey, executives say they’re pulled in too many directions and their company’s capabilities don’t support their strategy.

Finance

46 EXPERT OPINION: Mike Byrne puts some tough questions to top business leaders to find out what more can be done to drive financing within SME circles.

SME about town 49 CIO MENA SUMMIT 2011: This C-level event, which is reserved for 100 participants, includes expert workshops, facilitated roundtables, peer-to-peer networks and co-ordinated technical meetings.

DUBAI SME 100: Dubai SME 100, is the first-ever ranking of top-performing and fast-growing SMEs in Dubai.

Industry watch

60 INDIRECT PROCUREMENT: Results of a

44 IT’S A REVELATION: Mo Elzubeir, Managing

Business protection PRENUPTIAL AGREEMENTS: Independent financial advisor, Greg Pogonowski, explains why these agreements are essential for SME business owners.

Managing Director, Ethos Consultancy, talks to Mike Byrne about customer service trends in the Middle East.

Business guru

How to 26 MINISTRY LIASONS: Advice on how

inroads into the investment landscape, especially here in the Middle East? Shimi Shah, founder of Tilly & Pinch, offers food for thought.

40 ETHOS CONSULTANCY: Robert Keay,

Banking on business THE PULSE OF HEALTHCARE: Nilanjan Ray, Sr. Vice President Head, SME Banking at Abu Dhabi Commercial Bank explains the global healthcare industry and financing options for the purchase of medical equipments.

22 ALEXANDER’S AXIOMS: Alexander Blass, President and CEO, Alexander Blass International, inventor and founder of person-to-person giving technology on the Internet, shares his secrets for success with Ketaki Banga.

representatives from the SME sector participated in the 13th edition of the TECOM SME Builder event which offered legal and financial tips.

Corporate wellness

64 HEALTH & SAFETY: Many SMEs are failing to recognise and address the substantial losses incurred due to poor ergonomics, says Dr. Sarah Peeters, an occupational health specialist.

66 SIGN OFF: Guillaume Mariole, Managing Director of Ignite fitness and wellness discusses sun protection when out and about for work.

Editorial

Publisher Dominic De Sousa COO Nadeem Hood Commercial Director Richard Judd richard@cpidubai.com +971 4 440 9126 EDITORIAL

You may be right, we may be crazy But it just might be a lunatic you’re looking for... Billy Joel’s timeless classic just about sums us up. In a good way, might I add. These last few years we’ve happily covered small and medium enterprise issues and we’ve evolved all along. Some of it is due to the fact that we are an SME too and being aware of how the shoe fits, to an extent, prevents us from operating in a vacuum. While we have really enjoyed featuring many of you in our

magazine, some of our readers have written in to ask what we, as an SME, are like. Well, since you’ve asked, our publishing company CPI is like Hotel California – you can never leave, if you’re a certain type of person. By that I mean someone who is a self starter, eternal optimist but also a practical realist, passionate, able to think on one’s feet, independent, not fond of being micro-managed, creative, outspoken and, yes, a little crazy. We may be many things, but the one thing we are not is a factory line. Every face has a name and a direct line to our publisher Dom. Speaking of Dom, those of you who attended our SME Advisor Stars of Business Awards 2010 would recollect him as the ponytailed dynamo in a red jacket who performed hit after hit at the gala dinner. No speech from him! His office is a cornucopia of bold colours – red leather couches, a zebra striped rug, lots of bling, and a guitar in the corner.

That’s Dom...he gives Red Bull a complex and makes a lot of us 20- (oh alright, 30-) somethings struggle to catch up. Over the years, CPI has attracted and retained people who like to do things differently. I’ll be honest – everyone here is a character! But that’s part of what makes this place tick. There are days when I feel like trading it all for some sanity in a cottage in the woods, but, can I? Can I give up the exhilaration of being an SME, the freedom and the frustrations and, most of all, the ability to dream and do? Okay, let’s turn that around – can you? What makes your SME tick? As summarised by our business guru of the month, Alexander Blass, the inventor and founder of person-to-person giving technology on the Internet: Everyone has a story. What is your story? Do write in. We’d love to hear from you.

Ketaki Banga, Senior Editor Talk to us: E-mail: ketaki@cpidubai.com Twitter: @SMEadvisorME Facebook: www.facebook.com/ SMEAdvisor

LinkedIn group: SME Advisor

Dave Reeder dave@cpidubai.com +971 4 440 9106 Senior Editor Ketaki Banga ketaki@cpidubai.com +971 4 440 9115 Sub Editor Mike Byrne mikeb@cpidubai.com +971 4 440 9105 ADVERTISING Group Sales Manager Sandip Virk sandip@cpidubai.com +971 4 440 9130 CIO PROGRAMMES CIO Programmes and Events Lead Kavitha Rajasekhar kavitha@cpidubai.com +971 4 440 9132 Strategic Marketing Services Lead Sreejith Nambiar sreejith@cpidubai.com +971 4 440 9133 CIRCULATION Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 PRODUCTION AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107

DIGITAL www.cpilive.net www.smeadvisor.com www.cpidubai.com Webmaster Tristan Troy Maagma troy@cpidubai.com +971 4 440 9141 Web Designer Jerus King Bation jerus@cpidubai.com +971 4 440 9143 Web Developer Elizabeth Reyes eliz@cpidubai.com Published by

1013 Centre Road, New Castle County, Wilmington, Delaware, USA

Head Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Printwell Printing Press LLC © Copyright 2011 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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SHOPTALK trends & updates <<<

ADCED launches second phase of Akoun The Abu Dhabi Council for Economic Development (ADCED) has announced the launch of the second phase of Akoun, an ambitious campaign to nurture and develop the culture of entrepreneurship amongst young UAE nationals in the Emirate of Abu Dhabi.

First launched in partnership with the Khalifa Fund for Enterprise Development, Abu Dhabi Chamber of Commerce & Industry, the Western Region Development Council and twofour54 in November 2009, Akoun is an awareness program designed to inspire young UAE nationals to embrace the path towards entrepreneurship. By equipping them with the right

Phase two will take on a more focused and practical approach whereby smaller groups of students will be given a step by step guide to putting a business plan together. Participants will be able to walk away from each session with a completed document that could be used to apply for financing through Khalifa Fund or other financial institutions 8

SME ADVISOR MIDDLE EAST

attitude and skills, the initiative aims to encourage young people to use their passion as a springboard, and their ambition as fuel to launch a successful business of their own. Fahad Saeed Al Raqbani, Director General of ADCED said: “nurturing a culture of entrepreneurship among the youth population is key to energising the economy of Abu Dhabi. In support of the emirate’s Economic Vision 2030 that aims for sustainable growth on a solid economic basis, Akoun aspires to infuse an entrepreneurial mindset among young UAE Nationals so that they can contribute to the economy of Abu Dhabi in creating new, innovative Emirati products and services.”

Workshop programme Building on the success of Akoun’s first year programme that saw ADCED conduct 11 workshops attended by over 1300 students, the Akoun team will conduct a second series of workshops at key universities across the Emirate of Abu Dhabi. Phase two will take on a more focused and practical approach whereby smaller groups of students will be given a step by step guide to putting a business

APRIL 2011

plan together. Participants will be able to walk away from each session with a completed document that could be used to apply for financing through Khalifa Fund or other financial institutions. UAE national entrepreneurs will also support by sharing their own experiences of setting up a business to inspire and encourage attendees into turning their ideas into reality. Some of the previous workshop presenters include jewellery designer Azza Al Qubaisi, renowned UAE cultural ambassador and creator of the “Ask Ali” brand, Ali Al Saloom and Qais Sedki, the founders of Page Flip Publishing and winner of Sheikh Zayed Book Award for “Children’s Literature”. “Interacting with the young minds of students through participation in the Akoun campaign has been a delight. It was reassuring to see the spark of entrepreneurship take hold in many of the students’ eyes as ADCED focuses on the exciting opportunities and thrill of overcoming personal challenges inherent in entrepreneurship,” said Sedki. “An optimist sees an opportunity in every single challenge; a pessimist sees a challenge in every single

opportunity. I participate in Akoun, because I want to inspire our youth to be optimistic and build up a solid base of private small and medium enterprises, that are the backbone of each and every economy,” said Alsaloom, Founder of Maestro Commercial Enterprises who was awarded the Khalifa Fund Business Award by His Highness Sheikh Mohamed Bin Zayed Al Nahyan in 2010.

Akoun competition Students will also have the opportunity to participate in the hugely successful Akoun Competition which seeks to find and support new entrepreneurial talent. For the second year running, students will be invited to submit a business proposal which will then be judged and evaluated by a panel of representatives from Akoun’s partners. Three winners will be chosen from Abu Dhabi city; Al Ain and Al Gharbia and will receive the following: • 1st prize: AED 50,000 • 2nd prize: AED 30,000 • 3rd prize: AED 20,000 Further support (financial and non-financial) will also be provided to those who meet the criteria set by Khalifa Fund, whilst all competition applicants will receive detailed feedback and recommendations on their submission. The closing date for the competition is April 30th, 2011, and the winners will be announced at the Akoun Awards 2011 ceremony to be held on May 24th, 2011. Additional information on Akoun, the workshops and Akoun competition can be found at http://www.adced.

ae/akoun.

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SHOPTALK trends & updates <<<

Only 3% of UAE professionals highly satisfied with salary 24% of UAE professionals optimistic about country’s future employment opportunities

Salary satisfaction across the Middle East is looking stable with just 3% of residents stating they are highly satisfied with their remuneration, 52% saying they are averagely satisfied and 45% stating they have low satisfaction, according to a recent survey conducted by a Middle East job site, in conjunction with regional research specialists YouGov Siraj. The UAE recorded 3% of respondents with high satisfaction, 50% with medium

and 47% with low. Elsewhere in the Gulf and wider Middle East area, a peak of 5% of professionals highly satisfied with their salaries was witnessed in Kuwait and a low of just 2% of professionals highly satisfied in Jordan and Lebanon amongst other countries. Across the Middle East and North Africa (MENA) region, the average monthly salary differs considerably from country to country, the survey found. However, the UAE maintained a high number of professionals

Amer Zureikaty, VP Sales, Bayt.com

SME ADVISOR MIDDLE EAST

APRIL 2011

with the biggest salaries, with 7% earning USD $8,001 or more each month. Unsurprisingly, the Gulf region has the highest number of professionals earning top tier salaries: 9% of professionals in Bahrain earn more than $8,000 each month, as do 6% of professionals in Oman, 5% in Kuwait and 3% in KSA. As in the previous wave, the lowest paid residents in the region are in the North African countries of Algeria, Egypt and Morocco – with the total number of professionals

receiving the lowest salary level having risen in each country. This year, 56% of residents in Algeria earn under $500 per month compared with 50% last year. In Egypt, 53% of professionals receive up to $500 per month, along with 45% of professionals in Morocco, while only 1% of professionals in Morocco earn more than $8,000 per month, as do just 1% of professionals in Egypt. The Middle East Salary Survey, conducted annually by bayt and YouGov Siraj, is designed to look at the current levels of wages and benefits in the region, and to gauge employee opinion and satisfaction levels vis-à-vis the salaries they receive, and how these have kept pace with the cost of living. “There is a very high demand for accurate figures on salary levels in the Middle East across industries, job roles and career levels as we have witnessed with the tremendous uptake of the Bayt.com online salary calculator tool which has been the MENA region’s first pan-regional pan-industrial comprehensive online salary tool,” stated Bayt.com’s VP Sales, Amer Zureikat. As found in previous Bayt. com research, professionals resoundingly felt that the average salary increase did not reflect the rise in the cost of living in any of the surveyed countries. Overall, professionals across the Middle East felt that the cost of living had increased by 24.6%, yet the average salary increased by just 7.6% - than two thirds less. In the UAE, respondents said that living costs had increased by 22.2% while the average salary increase was just 6.2%.

SHOPTALK trends & updates <<<

Less than 5% of SMEs in Jafza companies trade worth the UAE utilising social over US$60 billion in 2010 zone posts robust growth; accounts for more media to boost business Free than a quarter of Dubai’s total trade.

Zed Ayesh, Managing Director of Flagship Consultancy Speaking at the 13th TECOM SME Builder workshop, Zed Ayesh, Managing Director of Flagship Consultancy called on the SMEs in the UAE to start looking more seriously and sustainably at social media for boosting their sales. Ayesh added: “Marketing through social media allows SMEs to communicate, educate and share information directly with their current and prospective customers.” Ayesh said that it is time for SMEs to start building communities on the web which would help them boost their profit and efficiencies in the long run. Social media collaboration tools like review sites, video sharing sites, blogs, wikis and more allow users to collaborate and potentially serve as an endorser for small businesses. Social media works as a

SME ADVISOR MIDDLE EAST

marketing tool because people are more likely to trust peers rather than companies. Ayesh added: “Social media can be used to build business contacts with those who are more likely to buy a service or a product, but in the UAE the potential has not been tapped.” He added: “Engaging customers through social media holds the key to retain them and prevent churn in an organisation regardless of its size. However, any SME should make sure it doesn’t cut the conversation half way because social media is like chatting with someone so it is important to keep the conversation going and end it in a mutually satisfying way.” The event was organised by Dubai Knowledge Village (DKV), a popular destination for human resources management and a member of TECOM Investments’ Education Cluster.

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Jafza, the flagship entity of Economic Zones World, posted robust and healthy growth in 2010, generating trade worth over US $60 billion and attracting fresh investments in diverse sectors. The performance reaffirms Jafza’s position as one of region’s leading business hubs. Jafza accounts for more than a quarter of Dubai’s total trade, in line with its performance since 2001 as a consistent contributor to the emirate’s economy. Last year’s robust performance testifies to the anchor role played by Jafza as a growth catalyst that contributes to Dubai and the UAE’s economic growth and recovery. 480 new companies, among them 55 multinationals, launched operations in Jafza in 2010 drawn by its customer focused value proposition that brings together products and relevant services. “We are very proud of our positive contribution to the economic growth of Dubai and the UAE. The performance is in line with the vision set for Jafza as a growth engine of the local economy. By choosing Jafza as their preferred investment destination in the region, our customers have expressed their confidence in our ability to deliver a world-class business environment that empowers our position as an efficient regional hub,” said Salma Hareb, CEO, Economic Zones World. Jafza offers multimodal connectivity enabled by its ideal location between sea port and

airport. It is built around Jebel Ali Port, one of the world’s top ten container ports, served by 150 shipping lines, offering 90 weekly services as well as feeder services that provide connection to regional markets. Jafza is further connected by air to more than 200 destinations worldwide. It is also linked regionally through an extensive road network and hosts over 50 of the world’s top logistics companies, all totalling to the fastest lead times for the movement of goods. The petrochemical and oil sectors led the expansion, followed by the automotive and electronics industries. Investors from the UAE topped the list, with 97 new establishments, followed by India with 47 companies, UK with 37, the United States with 29, Germany with 18 and China with 17. In 2001 there were 40,000 people employed within the Free Zone and this figure rose rapidly over the decade to reach in excess of 115,000 personnel in 2010.

SHOPTALK >>>trends & updates

Protiviti highlights major business challenges for 2011

Bob Hirth, Executive Vice President and Global Internal Audit Leader of Protiviti Bob Hirth, Executive Vice President and Global Internal Audit Leader of Protiviti, a business consulting and internal audit firm, said the number one challenge for Middle East businesses in 2011 is managing through the economic recovery and finding new sources of growth. This was one of a list of ten major challenges identified for the coming year highlighted during a corporate seminar in Abu Dhabi in March. The seminar, which was organised by Protiviti Member Firm for the Middle East Region, was attended by

representatives from UAE’s leading companies and organisations, including a number of board and audit committee members, chief executive officers, chief internal auditors, chief risk officers, chief financial officers and chief technology mangers. In his presentation Hirth highlighted Protiviti’s Perspectives on Business Challenges and the Board/ Audit Committee Agenda for 2011. “Mangers should also understand and respond to the changing risk portfolio, assess capital and manage cash-flow effectively and benefit from the data and information available

in the organisation to make timely and informed decisions,” he said. Hirth provided interesting observations and ideas for consideration by businesses and their boards and audit committees. He mentioned that the past few years had been unforgettable and that new issues and even emerging trends will make 2011 a year in which to act cautiously, yet still act decisively in order to create value, grow revenues and control the business. Organisations now have to operate in a world that is vastly different from two years ago, and in an environment which continues to be challenging. Key areas of concern and opportunities highlighted by Bob were based in large part on Protiviti’s experiences with audit committees and board of directors from around the world and the knowledge and deep expertise that resides within the firm.

Ten major challenges facing businesses 1. Managing through the economic recovery with emphasis on finding new sources of growth 2. Monitoring the competitive environment and adjusting the strategic direction of the company accordingly 3. Adjusting to the challenging realities of continued globalization 4. Maintaining morale and retaining top talent 5. Building customer loyalty 6. Protecting sensitive and private information 7. Managing in an environment of increased regulatory oversight 8. Understanding and responding to a changing risk profile 9. Assessing capital and managing cash flow effectively 10. Effectively using the data and information available in the organization to make timely and informed decisions

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SME ADVISOR MIDDLE EAST

Slihfeelf

Single inkjet launch Epson has announced the Middle East launch of its Stylus Office BX525WD, an all-in-one inkjet aimed at smaller business users. Offering fast double-sided printing plus scanning and copying, it provides a high performance solution with a significantly low colour cost per page. Easy to use, the BX525WD has a frontloading paper tray for convenience and a 6.3cm LCD screen for clear and simple menu navigation. It can print from memory cards, and is network-ready so multiple users can print and scan over Ethernet or Wi-Fi. PageManager 9 software is included for easy document management and text editing of scanned materials.

New toys for youss. ine and your buansex cuse! Like you need

Weathering the storm Lexmark International, a provider of imaging products, software, solutions and services, and AccuWeather, a multimedia weather information source, recently announced the availability of the AccuWeather. com SmartSolution for Lexmark’s Web-connected all-in-one (AIO) inkjet printers. The SmartSolution is good for companies involved in activities such as landscaping, construction, and event planning that must take weather conditions into consideration in order to make informed business decisions, as well as business travellers who can use the information to make smarter daily and long-term travel plans. The application provides current and localised weather conditions, as well as seven-day forecasts, that are instantly available on your Lexmark all-in-one-device without the need for a computer. The AccuWeather SmartSolution is free and available on all Lexmark AIOs with SmartSolutions. For more information visit www.lexmark.com

SME ADVISOR MIDDLE EAST

Rapide headway Aston Martin has announced that 2010 saw a company increase with its market share in the region’s luxury car segment compared to the previous year. Sales were given a significant boost with the launch in May 2010 of the Rapide, Aston Martin’s first luxury four doors, four-seater sports car. Within just seven months the vehicle had become one of the most popular new models in

APRIL 2011

The BX525WD is able to print on a wide range of media, making it a versatile choice, and uses Epson DURABrite Ultra Ink to deliver fast-drying prints that resist water, highlighter pens, smudging and fading. Users can save money with individual ink cartridges and XL inks for high volume, lowcost printing.

the Aston Martin range of vehicles. The Rapide was joined by a number of exclusive limited editions including the DBS and V12 Vantage Carbon Black, the DBS UB2010 and the Vantage N420. 2011 promises to be an equally exciting year for Aston Martin launches. There will be deliveries of One-77, tipped to be one of the most advanced sports cars by Aston Martin, as well as the Cygnet, a city car which will offer an environmentally conscious vehicle for use in the urban context.

Saluting the spirit of women du have demonstrated its recognition of women entrepreneurs and professionals with the launch of Her Business Super Plan – a first-of-its kind plan in the region. The new mobile plan is specifically tailored to the requirements of modernday business women in the UAE (both UAE nationals and residents), providing benefits such as bundled calling minutes, business calling circle, free national data, shopping rewards, special offers on latest handsets and much more. Among the benefits of the new plan available for just AED200 per month: - 400 national minutes; - 200 international minutes; - A choice between 2 GB of free national data per month or unlimited BlackBerry within the UAE, roaming benefits and smart phone bundle; and - Her Business Calling Circle, a feature that offers all subscribers on the Her Business Super Plan free calling benefits.

From left to right: Georgie Hearson, Claire Fenner, Hala Badri, EVP, Brand and Communications, du, Shabana Karim and Nayla Al Khaja

Unveiling innovation Xerox, a provider of document management solutions, participated at Gulf Print 2011 as one of the largest exhibitors of the show, where they unveiled a range of firsts for the region including the Xerox iGen4 EXP and Colour Press 1000. Held from 14th – 17th March, Xerox demonstrated ways in which print professionals, graphic designers and vertical enterprise businesses can reduce costs and grow through the strategic use of digital and value added services. According to a recent market intelligence report by Pira International, the total printing revenues in the Middle East and North Africa (MENA) in 2009 reached $5.7 billion, and are expected to increase to a total of over $7 billion by 2015. At Gulf Print 2011, Xerox also launched a range of new software tools designed to enhance customer productivity as well as the range of products that are available to their customers: Myclick2print- a cloud based software tool that enables users to easily create, manage, store and submit documents using the web. CMI- a cloud based colour management tool that facilitates remote monitoring of a digital print devices’ color systems in order to maintain accurate colour reproduction. XMPie- a multi-media suite of software that enables fully customised communications across web, email, SMS and print.

Genius pen mouse KYE and its regional partner GCT have introduced its latest innovation pen mouse for the market. It offers completely new experience for the users on cursor control which provides better handling and offers more comfort than a regular mouse. The pen mouse boasts the following features: Powered by 1200 dpi tracking technology and is switchable between 400 and 800 dpi. User can tilt it up to 85 degrees to provide a noncompromising surface advantage. With 2.4GHz technology, the pen mouse gives the user an efficient performance with reliable smoothness at all times. For power saving, a smart auto-detection is added to put pen mouse into sleep mode when no action has been detected, and just press any button to start using it again. A plug and forget pico receiver to prevent breakage when using a laptop or desktop. A travel case is included for the protection of the device.

Improving people’s lives SANYO Electric Vice President and Chief Regional Officer for the Middle East, Africa and Europe, Takashi Hirao, has stressed that the company’s priority is to build a legacy that ensures the improvement of people’s lives through sustainable products. SANYO has already achieved great strides when it comes to producing sustainable products and energy technologies. The company is currently the largest manufacturer of rechargeable batteries in the whole industry. From consumer products such as the Eneloop battery which can be recharged 1,500 times, to the development of the world’s most efficient solar panels – the HAE Hit solar panel features an energy conversion rate of 23% – much higher than that of competitors. The company is also moving forward with the development of its consumer electronics surveillance products that include CCTV cameras which now boast HD image capabilities.

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SME ADVISOR MIDDLE EAST

BANKING ON BUSINESS FINANCING medical equipment <<<

THE PULSE OF healthcare The global healthcare industry is one of the world’s fastest growing, absorbing over 10% of gross domestic product of most developed nations. Today THE healthcare INDUSTRY is considered one of the largest in the world but there are very few financial institutions WITH specialised financing to cater to the needs for the purchase of medical equipments, says Nilanjan Ray, Sr. Vice President Head, SME Banking at Abu Dhabi Commercial Bank.

The recent landmark of Dubai Government has been the introduction of Dubai Healthcare City, an $1.8 billion project which will work closely with the government of Dubai’s Department of Health & Medical Services and the UAE’s Ministry of Health

SME ADVISOR MIDDLE EAST

APRIL 2011

Healthcare consists of broad services offered by thousands of hospitals, clinics, physicians, nursing homes, diagnostic laboratories, pharmacies and supported by drugs, pharmaceuticals, chemicals, medical equipment, manufacturers and suppliers. The total healthcare expenditures across the world was valued at $4.5 trillion, of which medical equipment industry was valued at US$ 290 billion in 2009 and the global prescription drug market was $550 billion in the year 2006. For the United States, the healthcare share of gross domestic product (GDP) is expected to hold steady in 2011 before resuming its upward trend, reaching 19.6% of GDP by 2016. In 2009, for the Organisation for Economic Co-operation and Development (OECD) countries, the average was 8.4%, with the United States (11.9%), Switzerland (9.9%),

BANKING ON BUSINESS

and Germany (8.7%) being among the top three. In the UAE, as a percentage of GDP healthcare expenditure per capita terms is among the top 20 in the world. Overall health expenditure was estimated at US$5.4 billion in 2009, equal to 2.6% of GDP. Approximately US$14 billion is being spent in the Gulf countries alone on new hospitals and healthcare facilities and infrastructure. In the last few years there has been a steady annual growth of more than 10% in the healthcare industry and the momentum is expected to prevail due to the high rate of population growth. The recent landmark of Dubai Government has been the introduction of Dubai Healthcare City, a $1.8 billion project which will work closely with the government of Dubai’s Department of Health & Medical Services and the UAE’s Ministry of Health to improve the overall healthcare system and facilitate delivery of healthcare. The UAE is committed to improving its health sector and, as such, is investing a significant amount in the construction and renovation of health facilities. In 1971 the UAE had only seven hospitals and 12 health centres. By 2007, however, there were more than 1,000 hospitals (public and private, including primary health centres and dental clinics, maternal and child health centres, and school health care centres), 1,193 pharmacies and 432 medical stores. With over 50 private hospitals, 2,461 beds and 2,281 private clinics, the government of the UAE has initiated plans to boost the market share of the private sector and as a result, many

new hospitals have entered the market, with a steady increase in the number of hospitals expected in the years to come.

The medical equipment industry For purposes of finance and management, the healthcare industry is typically divided into several groups and sectors. The Global Industry Classification Standard divides the industry into two main groups: • Healthcare equipment and services; and • Pharmaceuticals, biotechnology and related life sciences. Healthcare equipment and services comprise companies and entities that provide medical equipment, medical supplies, and health care, such as hospitals, home health care providers and nursing homes. The second industry group comprises sectors and companies that produce biotechnology, pharmaceuticals, and miscellaneous scientific services. The dynamic medical equipment market is intricately interwoven into the healthcare landscape. Valued at $290 billion globally, various facets of the industry are increasingly becoming interdependent whereby various products and services are being integrated to provide patients with better treatments and high quality care. As the cause for providing quality and widespread healthcare increases and continues to escalate, demand for equipments for a variety of conditions will continue to rise. While the cardiovascular equipments market remains the largest medical device sector, orthopaedic devices are a close second. Driven by the baby boomer population and

With over 50 private hospitals, 2461 beds and 2281 private clinics, the government of the UAE has initiated plans to boost the market share of the private sector and as a result, many new hospitals have entered the market

the demand for reconstructive surgery, growth rates in the orthopaedic spinal and biologics segments will be significant. As reduction in healthcare costs and faster recovery times become a high priority, devices that enable minimally invasive procedures in all areas of medicine will witness strong growth, with the goal of becoming the standard of care for many treatments. The medical equipment industry consists of various establishments or units engaged in designing, manufacturing selling and distributing surgical and medical instruments, ophthalmic, lab apparatus, electro medical, dental, irradiation, surgical appliances and supplies. In the UAE the import of equipment accounts for an estimated 96.6% of the market in value terms and growth is expected to remain strong over the forecast period, taking into account the country’s limited domestic production capability. The UAE market, estimated at $US 1.25 billion in 2009, is projected to grow an average minimum of 10%.

Facts about financing The medical equipment section is one of the most capital intensive parts of the healthcare industry and the availability of the latest equipment is important from the points of view of new technology, quality of treatment, and medical services to the end customers. Also, for new hospitals and clinics this is a major stumbling block when it comes to budgeting and finance, and in terms of expansion this is one of the major costs that APRIL 2011

SME ADVISOR MIDDLE EAST

BANKING ON BUSINESS

needs to be budgeted for. While most banks and financial companies look at financial needs on a broader level for this industry to be fulfilled from within the working capital finance offered, there are very few financial institutions offering any sort of specialised financial products to cater to the needs of funding requirements for the purchase of medical equipments. Conventionally, manufacturers driven with no alternatives have begun offering credit for this capital investment to the healthcare industry in the form of a credit period to customers, typically 6-12 months with the costs towards this inbuilt within the price of the equipment. Of late, non-banking financial institutions have been active in terms of medical equipment finance but only in limited spurts. Recently there has been the entry of Abu Dhabi Commercial Bank (ADCB) in the medical equipment funding space, with a customised financial package specially aimed at hospitals, clinics, pathology labs and medical centres. ADCB will now fund up to 80% of the cost of the equipment of most major brands with tenures of up to five years, with the evaluation criteria and product structure specifically designed. The key benefits, from the point of view of the healthcare industry, of such financial product loans are: Conserve cash flow and improve liquidity as such loans do not tie up other sources of funding and credit lines Flexible terms and fixed monthly payments to suit various budgets

SME ADVISOR MIDDLE EAST

Conventionally, manufacturers driven with no alternatives have begun offering credit for this capital investment to the healthcare industry in the form of a credit period to customers, typically 6-12 months with the costs towards this inbuilt within the price of the equipment

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assistance in terms of medical institutions being able to make available the latest technology equipments. All over the world, the spending on medical equipment has increased considerably. In Eastern Europe, public hospitals are increasingly approaching financial institutions to Nilanjan Ray, Sr. Vice President Head, SME Banking at Abu Dhabi Commercial Bank gain financial independence. Initial investment of only 20% This financial autonomy will of the cost of the equipment allow the healthcare industry Upgrade of outdated to invest in newer and more equipment to avoid technology expensive medical imaging becoming obsolete modalities, resulting in enhanced Customers can acquire quality and services in the more for their money as they industry. can afford more or better equipment ABOUT: The future perspective of the medical equipment Nilanjan Ray currently heads the SME industry seems to be immensely business at Abu Dhabi Commercial Bank bright and encouraging for (ADCB). ADCB is the second largest bank in the healthcare industry in Abu Dhabi promoted by government owned terms of the expected surge entities. Prior to joining ADCB in October in global demand and upsurge 2007, Nilanjan had worked in ICICI Bank, Bahrain, as Vice President - Corporate & in investments. Several Commercial Banking. trends such as globalisation, Prior to his assignments in GCC, Nilanjan continuous investments in was heading Asset Products & Credit for ICICI research and development, bank, Business Banking (SME) in India. He has newer techniques of drug also worked in HDFC Bank & IDBI Bank in India in various senior roles in SME Banking, Cash development and discovery, Management & Fixed Income Sales. product proliferation, mergers He was part of the start-up teams in and acquisitions, all are the key SME Banking in ICICI Bank & HDFC Bank. He drivers of this industry. started his career with Agriculture Finance Corporation, Mumbai, in project evaluation Such financial packages of and monitoring. funding medical equipments Nilanjan holds a post graduate business purchases will go a long way in degree and a graduate degree in economics. bridging the gap for financial

SME ADVISOR EDITORIAL BOARD

We are hiring! To ensure that our readers keep getting rich and varied advice, not just in print but also in our various other initiatives like social media and events, we will be regularly reviewing our editorial advisory board. The aim is for our readers to get access to a core group of advisors from our existing panel, and also a rotating group of advisors, who change every year. Are you up for the challenge? Itâ&#x20AC;&#x2122;s not for the fainthearted, but it is a platform to connect with the biggest and most dynamic SME community in the region! Get in touch with us if you are an industry guru who wants to give something back to the business community by sharing your expertise and advice. Mail ketaki@cpidubai.com.

Business Guru INNOVATION <<<

Alexander’s Axioms Alexander Blass, President and CEO, Alexander Blass International, is the inventor and founder of person-toperson giving technology on the Internet – that has been referred to by the media as the “eBay of Giving”. He is an internationally acclaimed entrepreneur and innovator who was in town for the second Abu Dhabi Innovation Forum. He shares his secrets for success with Ketaki Banga.

lexander Blass serves as President and CEO of Alexander Blass International, an executive consulting and training firm based near Washington DC. Now 36, he is the youngest grand prize winner ever of the Daily Record’s Top Innovator of the Year Award, which credited him with “revolutionising charitable giving” in 2007. He is the inventor and founder of person-to-person giving technology on the Internet. Alexander is also the recipient of the Daily Record’s Influential Marylanders Award, recognising the top 50 people in the state, up to the Governor, as well as the Baltimore Business Journal’s Top 40 Under 40 Executives Award. He was also honoured as Entrepreneurin-Residence at the Wharton School of Business. Previously, Alexander was a venture capitalist, equity research analyst, strategy consultant, senior government executive, and software developer, beginning his career at KPMG Consulting. He has worked with leading organisations worldwide on opportunities totalling over $1 billion, as well as serving on boards of various for-profit and non-profit organisations in the US and overseas. Alexander has been an invited expert at the National Science Foundation on a dozen occasions, making investment recommendations on over $100 million of emerging technologies for the US government. 22

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Axiom 1 Big ideas always begin with a tenacious innovator but they require a great team to be successful. Don’t underestimate the power of the potential partnerships and collaborations you have all around you. Sometimes you wonder if innovation is top down or bottom up? In my view it’s kind of a trick question because the employer-employee relationship is symbiotic; they are dependent on each other. It’s essential that an innovative culture runs through the lifeblood of the entire organisation. It has to trickle down from the top to attract and retain the best talent. Today’s talent expects and demands it. You have to give them the tools and resources they need to innovate – you can

Business Guru

no longer compete on salary alone. But it’s also from the bottom up – it’s also the young, tenacious talent where many of the recent greatest inventions and developments have come from. The younger generation we have today is less risk averse, more open to taking that step and looking at the world a bit different. So it has to be a twoway street.

Axiom 2 Your innovations reveal a lot about who you are and your passions and values. Look at any innovation and you’ll learn about that innovator. When someone revolutionises a certain industry, something gave him or her that fire in the belly – that motivation to shake things up. That’s because all of us are unique and have unique experiences that make us who we are today. We all have two toolboxes – personal as well as professional. Your personal toolbox is where you come from, your influences, and what and who has shaped your life. Your professional toolbox includes your CV, your education, training and experience. It is essential for your personal and professional toolboxes to be in symbiosis, to be in synch, to be working together to maximise your potential whether you’re an entrepreneur or a large company because, guess what, even the largest companies are made up of human beings and all of us human beings have our own ambitions as well. Your employees have their own quest: “How can I align the goals of my company to my personal ambitions?” It doesn’t matter if you’re a student or business owner, we all have individual goals and the challenge is to integrate the goals of your business with your

personal aspirations. So what are my passions and values? How did I use them to reinvent myself as an innovator? I love technology and entrepreneurship but what else am I passionate about? You’re more than just your CV! What do you do outside your work that motivates you? My parents really emphasised the importance of philanthropy and helping others. They always said they’d rather run the risk of helping someone who didn’t truly need their assistance than turn away someone who really needed their help. That message resonates with me to this day, decades later. What a powerful message to teach children! I had a good job as a venture capitalist but over time I felt largely unfulfilled. One of the fund’s portfolio companies went from a $500,000 fund investment to a nearly $500 million all-cash acquisition by a Fortune 50 corporation. That’s pretty exciting stuff. It’s as good as it gets when you’re out of business school. But what wore at me over time was that out of all these eager entrepreneurs pitching their ideas – the next big thing – I couldn’t recall even a single one that was about helping other people. I began to feel like my job was to make rich people richer. It wasn’t fulfilling after some time. Right then everything clicked. Philanthropy had been in the news over and over; this was 2004. There were people like me, and people who wanted to help, and this big black hole in between. I was tired of sitting on my couch, yelling at my television saying, “This doesn’t make sense any more. We can do this better.” So many industries had been revolutionised through technology – we’d cut out the middleman – how could philanthropy and fund raising still be in the dark ages.

I realised I had to combine my professional qualifications and interests with some of those key influencers in my life, and apply the social networking theory to the fund raising process (which today doesn’t sound very innovative, but in 2004 this was innovation). Social networking wasn’t as big as it is today, but what could be more social and person-to-person than fund raising! So I invented and patented person-to-person giving technology on the Internet where you directly help those in need. It took three long years to develop; innovation isn’t easy or overnight, but I am happy to say that after three years of work we became somewhat like an overnight sensation because we were focussing on the human element. And the wonderful thing was we were helping so many people around the world through our innovation. It wasn’t about us, it was about them. And that’s why it was interesting for the media. So you now know about my passions and role models. What about you? Everyone has a story. What is your story?

“Guess what, even the largest companies are made up of human beings and all of us human beings have our own ambitions as well. Your employees have their own quest: How can I align the goals of my company to my personal Axiom 3 ambitions?” Innovators are constantly -Alexander Blass, President and CEO, Alexander Blass International

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reinventing themselves and that’s okay. It’s actually not just okay; I believe it’s a good thing. Prior to my “big idea”, I never had a single day of experience in the non-profit sector. That works to your advantage. All of you can revolutionise any industry you choose because innovation is better when it’s with an open mind and a fresh perspective. Sometimes you get too entrenched, too set in an industry. We are too close to it; take a step back and say we can do this better. Think about these questions: What were you doing five years ago? More importantly, what SME ADVISOR MIDDLE EAST

Business Guru

will you be doing five years from now? Look around you – opportunities are everywhere. I’m not saying quit your job tomorrow, but in all seriousness you can innovate within your organisation, in your daily jobs.

Axiom 4 Successful innovators embrace the uncomfortable and what others are unwilling to do. You have to get comfortable with discomfort. Innovators know that common sense is all too common. If someone told me I had common sense, I’d be offended. I want to have uncommon sense.

Axiom 5 Innovators know that regret is far worse than failure. You know that big idea that’s been gnawing at you for ages? That big idea is not going to go away. You have a very simple decision to make – you can either follow your passions, take a risk, try and make it happen, or you can wait until someone else halfway around the world does it instead. Because I can assure you, if you’re right and you just know this idea will work, if you don’t do it, someone else will. And that regret of wondering “what if” is so much worse than the regret of trying and learning from the experience. You could be sitting on your couch, watching the television one day and the news flashes about someone else making it happen and you yell at your TV, “They stole my idea!” Well, guess what, no one stole your idea my friend because you never got off the couch to do it. They did it. Don’t let that happen to you. You have to take calculated risks. True innovation requires a lot of hard work and personal sacrifice. None of this is easy and I do not want to oversimplify.

SME ADVISOR MIDDLE EAST

“If people don’t tell you your idea is crazy, it’s probably not that innovative. Think about how absurd eBay would have sounded at its inception. Let me get this straight – you want me to buy something from a stranger on this thing called the Internet, who lives a few thousand miles away, prepay for the item, based upon a photo that’s not even verified and hope that it arrives!” -Alexander Blass, President and CEO, Alexander Blass International

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Alexander Blass, President and CEO, Alexander Blass International

Innovating is difficult, but tell me one thing in your life that has ever been fulfilling that came easily to you. I can’t speak for you but the most fulfilling things in my life have come from tenacity and “sweat equity”, lots of hard work and perseverance. But if you follow your passion, it doesn’t seem like hard work because you love what you’re doing.

Axiom 6 If people don’t tell you your idea is crazy, it’s probably not that innovative. You want people to tell you that you’re crazy. Think about how absurd the business models of some of the most successful innovations, such as Amazon and eBay, would have sounded at their inception. “Let me get this straight – you want me to buy something

from a stranger on this thing called the Internet, who lives a few thousand miles away, prepay for the item, based upon a photo that’s not even verified and hope that it arrives at all a week or two later, much less remotely in the condition depicted in the photo. That’ll never work!” “Wait – you want me to buy a book online, pay for shipping and wait ten days till it arrives when I want to read it right now and there’s a bookstore five minutes away. I can sit there, touch the books, hold them, browse through them and take them home tonight. What problem are you solving? That’s ridiculous! That will never work!” The same reaction applies to the online dating phenomenon which is popular in some countries. “So you’re saying I

Business Guru

should meet a stranger on the Internet. They’re going to lie about their height, their age and weight, and who knows what. You don’t verify those things. My parents didn’t meet online! That’ll never work.” Do you see the trend here? All of these ideas sounded ridiculous at their inception but they’re all now massive and only in hindsight do they seem obvious. Now they’re obvious; back then they were innovation. Look at Facebook – it has over half a billion users; if it were a country it would be the third largest country in the world. Only after you’re successful do people say, “Why didn’t I think of that!” If they say you’re crazy at the start, you may be on the right track. Take it as a compliment.

Axiom 7 Innovators are optimists by nature. You think about what’s possible, not what’s impossible. You look at the world differently. Don’t think about what makes sense today; think about what makes sense in the future. Create the trend; don’t follow the trend. If I ask how many of you are on Facebook, nearly everyone will say yes. Now let me ask you a question – do you want to be on Facebook, or do you want invent the next Facebook? Think about what’s next. A fascinating concept I’ve noticed when I travel is that ancient texts often predict the society of today, like the upnishads in India; they talk about people separated by distance being able to talk, and wireless and the Internet. How was that even possible? The answer is – our innovations reflect the society we want and, when technology catches up with our ambitions

as humanity, it becomes a selffulfilling prophesy. When we can, we make it happen.

Axiom 8

“True innovation improves the human experience. Did you save someone time? Did you save someone money? Did you make someone money? Did you put a smile on their face today? You need to fill a void. Remember, it’s not about you” -Alexander Blass, President and CEO, Alexander Blass International

Innovators get inputs from lots of smart people but, ultimately, you make the call. Collaboration is essential for success. Get inputs from people whose opinions you respect – your mentors, family, friends, partners. It’s essential, but the final say has to be yours. You’ve got to tune out the sceptics and contrarians if you believe in something. Have confidence in your own abilities.

Axiom 9 Your innovations are absolutely useless and won’t help anyone if nobody knows about them. You’ve got to get the word out. How do you do that? The most important thing to remember is that the media and media-seeker relationship is symbiotic as well. We tend to think, “If only we could get the media’s attention people would be beating a path to our door. We really need the media!” Well, let me tell you something, they need you as well. You need your story to be told, but the media also needs great stories to tell. They need to fill content 24/7! When we launched personto-person giving technology, my picture wasn’t there in the front page press coverage we got. Well, who cares! What was there instead was a photo of a beneficiary of our service – a couple who used our technology to raise money through their social network to adopt a child. It was the human element that captured the imagination of the media. Remember, the story is not about you; focus on the human element because that’s what the media is interested in. Talk about the impact of your APRIL 2011

technology, not the technology itself. Then take that and build momentum. Momentum is such a powerful concept! Like when you go to a restaurant and it’s totally empty, you think, “It can’t be that good, nobody’s here. I’ve seen 200 people next door. Let’s eat there. It must be better.” Don’t underestimate the power of psychology in decision making. Where do we send our children to school? Where do we go on holiday? The clothes we wear, the cars we buy. Build that momentum because those local stories become regional stories, which become national stories. And those become international media sensations. And at that time you won’t be trying to call them – they will be calling you.

Axiom 10 If you only take away one message from this, I hope it’s this: True innovation improves the human experience. What does that mean? Did you save someone time? Did you save someone money? Did you make someone money? Did you put a smile on their face today? You need to fill a void. Remember it’s not about you, it’s not about your innovation, it’s about your customers. You are changing lives every day. Think about this: Do you have an innovation looking for a problem, or do you have a problem looking for an innovation? Answers to this question will have enormous impact on your business. So, challenge conventional wisdom and the status quo, be willing to take calculated risks because you know regret is far worse than failure, improve the human experience in some small incremental way. But above all else, never ever forget who you are, where you come from, how you got there and who got you there. SME ADVISOR MIDDLE EAST

How to Processes <<<

Survival skills for Ministry liaisons It’s no secret that life in Dubai often comes hand in hand with piles OF laborious processes. Offering ADVICE ON HOW TO SURVIVE appointments and paperwork is Marketing Manager and licensed sports massage therapist, Donna Masing.

Being the Marketing Manager for a successful sports injury clinic can be a tough gig. Staying on-trend with social media as well as finding ethical ways to promote medical professionals is enough work, without having to obtain Ministry approval for advertising. However, a visit to your local Ministry office doesn’t need to be a nightmare. Take out the stress of Ministry liaisons by following these tips:

Be patient Sounds so simple, doesn’t it? Arriving in a rush will do nothing for your stress levels if you can’t be seen immediately – and let’s face it, it’s likely you won’t be. Take a good book (or this month’s SME Advisor) and see your waiting time as an excuse to catch up on your reading.

Be polite Rudeness will get you nowhere. If you feel like you’re losing your temper, take a deep breath and smile – it’s not the end of the world if things aren’t going the way you’d like. If your request has been rejected, ask for the details in a calm manner. This information is not always automatically given to you and is crucial in rectifying the issue.

SME ADVISOR MIDDLE EAST

Take a number and stick to it The number system is in place to ensure people are seen in a civilised manner – so respect it. After all, you wouldn’t want someone to jump in front of you. Additionally, don’t forget to collect your number when you arrive, or you could be waiting a lot longer than you thought.

Dress with respect Remember that you’re going to a government building of a Muslim country. Ladies shouldn’t be wearing anything too revealing and men should also be covered to the ankles and forearms. Ladies, keep a shawl in your handbag so you’re never caught short.

Speak clearly Most Dubai residents deal with language barriers on a daily basis. Speak slowly and clearly to convey your message and avoid embarrassing misunderstandings. Stay calm if you are being misunderstood, getting agitated is not going to help the situation.

Speak Arabic, if you can If you don’t know Arabic fluently, just try your best – it’s the effort that’s appreciated. Try APRIL 2011

out these for starters: - Salaam Alaykum (hello) - Kef Halak (how are you?) - Shukran (thank you) - Afwan (you’re welcome) - Ma’a Salaama (goodbye)

Be prepared Do you have the right forms? Are they fully completed with company stamp, signed and legible? Are your Donna Masing, marketing manager and sports massage therapist papers in the same order as the checklist on the form? Noncompliance will see you coming back ABOUT: with everything correct, so make sure Donna Masing, Adv. Dip you’ve got it right the first time. Mktg (Sport), DRM, is the Marketing Manager for a sports medical centre in Go early Dubai. Her hobbies include The best time to visit Ministry drinking coffee, balancing offices is first thing in the morning. the delicate egos of nine They usually close at 2pm so arriving clinicians (including her at lunchtime will mean you might own) and tweeting like a pro. Donna is also a fully not be seen to. licensed sports massage therapist, who can often Learn their names be spotted trackside or If you frequently visit Ministry courtside at local and offices make the effort to build a international sporting events across the Emirates. rapport with the people behind the desk. Start by learning their names and asking how their day is going. Ministry employees may see hundreds of people throughout the working week; it makes a difference when someone addresses them by name.

8 9

Clear your schedule Don’t book any meetings close to your visit to a Ministry office. Leave yourself a generous amount of time so you can avoid the stress of rushing and won’t be late for your clients.

A day in the life of… Case studies <<<

LET’S GET DIGITAL At a time when many are looking to switch industries or try something different, we bring you the first person accounts of the lives of entrepreneurs or senior executives, outlining a typical day in their business. Who knows, maybe the perfect idea is waiting for you. Read on and get inspired. Alexander Rauser, CEO, Prototype Interactive Established in 2010, Prototype Interactive is a Dubai based digital agency, with service offerings which include Web experiences, online marketing and mobile solutions, motion graphics and help brands tackling modern marketing challenges by approaching them from a digital perspective. Their recent projects include the creation of Yalla Apps, a developer portal for Windows Phone 7 and Internet Explorer 9 launch campaign.

:30am I wake up to my alarm clock. Lucky me, I live only ten minutes from work so 7:30 is early enough to snooze at least once before heading to the shower. With my clothes on I start my way to work.

:30am I go to my car in the basement and start my ten minute drive. It’s actually only five minutes, but everyone else

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is going to work at the same time, so I often get stuck in traffic.

:45am I walk to the coffee shop to get my morning dose of caffeine. They know me, so this only takes around two minutes before I can go check the PO Box and walk to the office looking slightly overloaded with my bag, a cup of coffee and a lot of spam mail in my hands.

:00am We start work. I usually start reading emails – who doesn’t? I open a lot of browser windows too, with news I find on my RSS reader application about design, technology and marketing. I flick through headlines and read a couple of articles.

:15am I make a list of the things I want to do today, which involves all sorts of stuff such as updating the accounts, PR, working on proposals and our most active projects.

:30am Team meeting with our senior account manager and the production director. We do this every day and I try to be there most times. We discuss project status and schedules. This takes up to 45 minutes to allocate the work and tasks for everyone.

:30am Meeting with client, we can walk to their office which is awesome. We sometimes go ten minutes earlier as they have an XBOX with steering wheel and Forza motorsport in their waiting area. We fight on the way there about who will play the game first.

:30pm Back to the office. More emails. I am

thinking of my first boss, he was addicted to his fax machine, it took us two years to get him on emails and we made fun of him as after that he couldn’t live without emails anymore.

:00pm After a quick lunch a client comes to visit us to discuss a new web project. We discuss the details together with the team to get as much information as we can. This is usually the most critical part of a project so the more we can define the idea at this stage the better for everyone.

:15pm We do an internal review of some work for a digital campaign. Kurt Cobain is signing in the background. We are all nodding to the music and as we are happy with the results and send it for review.

:30pm Meeting with a potential client who wants to ramp up their social media strategy. We prepared a presentation the week before, so this one should be easier. We present for an hour and feel it went well. We are heading back to the office to make some adjustments that were discussed during the meeting.

:45pm Internal meeting, which we do once a week. Everyone has to present something cool they saw online. It’s a great way of getting everyone together and come up with new ideas.

:00pm The office is emptying slowly and it gets quiet. This is the perfect time to do some left over work before going back home and calling it a day at Prototype.

If you're a student, entrepreneur or a start-up, this is your opportunity to demo your application or business to an audience of VCs and business professionals Don't miss the upcoming DIC DemoCamp April 27th, 2011 | 5 p.m - 8p.m. American University in Dubai To view the participation criteria, submit your demo or to attend: www.dic.ae/democamp

BUSINESS PROTECTION PRENUPTIAL AGREEMENTS <<<

WHAT IF?

WITH TODAY’S GLOBAL DIVORCE RATE APPROACHING 50%, A PRENUPTIAL MAY BE AN UNCOMFORTABLE BUT PRUDENT DECISION TAKEN BY SME BUSINESS OWNERS WHO MAY WISH TO PRESERVE WHAT THEY HAVE WORKED HARD TO BUILD, SAYS INDEPENDENT FINANCIAL ADVISOR GREG POGONOWSKI. A prenup normally details how financial matters must be dealt with in the event of divorce. In other words, how assets will be divided, how debts will be handled, and whether each party has any financial responsibility and so on. In the UAE, some wealthy

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couples also go down this route to try to protect their wealth or businesses. But no matter the income and asset size, anyone can enter into a prenup. Of course, the longer the marriage remains intact, the greater the future assets are likely to become. Prenups can be useful for couples of any financial

means because they are an important part of the wider need for thoughtful planning when couples decide to marry. When people who live in different jurisdictions, or who contemplate doing so, are planning to marry – they should seriously consider entering into a prenup and consult with their financial advisor, so this article is for information purposes only. It must be checked by legal counsel in your local jurisdiction before being acted upon. With divorce now more common, couples need to consider this unromantic option before taking the plunge. In the UAE, the divorce rate among Emiratis alone is over one in four, according to figures released by the Dubai courts. It must be said, however, that the courts in the UAE give little weight to a prenup, and have viewed the enforcement of prenups as appearing to be against public policy, Shari’ah law aside. With this said, the traditional view is shifting and the courts appear to be now saying that

Business protection

a prenup can be a material consideration when considering what adjustments to make to a divorcing coupleâ&#x20AC;&#x2122;s financial circumstances on divorce. Marriage itself is already a financial commitment, whereby a couple agrees who pays the mortgage, debts and bills, and how they should go about savings and investments. It stands to reason, therefore, that couples entering into a marriage, regardless of religion or country of origin, should have a full understanding of each otherâ&#x20AC;&#x2122;s expectations of the financial aspects of the marriage and what happens if the relationship ends. Asking serious questions about how you see finances in the marriage partnership may save you pain and money later - and might even save your marriage. Prenups are a relatively new legal way of setting out what the financial arrangements will be if a married couple decides to divorce. At present, they are more usually used by American and European couples, and are not so common among Asian and Arab couples. Although they are not enshrined in law in most countries, they are useful because they guide lawyers and judges in the event of a marriage break up. As in much of the world, these agreements are a declaration of intentions in the event of divorce, but are not binding on the courts and cannot create a breach of local law in any way. If you are rich and want to protect your assets, a prenup in itself is insufficient. Wealthy clients should restructure their assets for 100% protection, by placing as much of their wealth as possible into a trust or foundation, before marriage. As to when the subject should be raised, no financial advisor can recommend a perfect time, although the earlier into the relationship this is done, the better. A court will throw out any

prenup where it feels that either party has not been given sufficient time to consider its position. As a rule of thumb, it should be completed at least one month before the big day. A prenup can act as a safeguard for both spouses. It aims to protect your assets and Greg Pogonowski, Independent financial advisor may prevent expensive and acrimonious litigation if a divorce should occur, by defining the rights and responsibilities of the parties in advance. For your prenup to have a chance of being binding there are certain key elements you should include in your prenuptial agreement, so here are my top ten tips: 1. List all assets, liabilities, income, and expectations of gifts and inheritances. A full disclosure is a critical element of a prenuptial agreement to ensure that it has a chance of being referred to during proceedings. 2. Describe how premarital debts will be paid. This will help to identify which debts will be satisfied by marital resources or premarital resources, and is often overlooked. 3. Resolve what happens to your premarital property in reference to changes in value including appreciation, gains, income, rentals, dividends and the proceeds of such property in the event of divorce. 4. The marital residence is often an issue that can become contested in the event of divorce. Decide which spouse will own the marital residence and secondary homes in the event of divorce, and how any proceeds from those homes and real estate assets be divided in the event of a divorce.

A court will throw out any prenup where it feels that either party has not been given sufficient time to consider its position. As a rule of thumb, it should be completed at least one month before the big day

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5. Clarify what will happen to each type of property, whether jointly or individually owned, such as real estate, art work, collectibles and jewellery. 6. Alimony, maintenance, or spousal support, is another particularly contentious issue. Prenuptial agreements allow parties to allow for a waiver or property settlements instead of support, although it should be noted that many jurisdictions are reluctant to limit recovery in this regard and, as a result, it is very important to understand local laws. 7. Decide what will happen in the event of a divorce with regard to medical, disability, life insurance, and long term care insurance. 8. There is a full and fair disclosure of the earnings and property of each party, and the parties have had an opportunity to consult with legal counsel of their own choice. 9. As a general rule, the agreement must also be in writing; executed in the presence of two witnesses independent from each other and all parties. 10. The prenup should be acknowledged by the parties before a person authorised to administer an oath (notarised). It is only in cases where full disclosure is not given, or the agreement becomes substantively unfair at the time of the divorce that courts strike down the validity of such agreements. A prenup may be deemed substantively unfair if the circumstances on which the agreement was based have changed so drastically that enforcement would not have met with the reasonable expectations of the parties at inception.

ABOUT: GREG POGONOWSKI is an independent financial advisor with over 27 years experience in the Financial Services profession and works with Pinnacle Asset & Wealth Management. He can be contacted by email at: greg@yourmoney-matters. com or by calling +971 (0) 50 8769035.

SME ADVISOR MIDDLE EAST

Women in business Entrepreneurship

<<<

Who really rules the roost? Is it men or women, asks John Lincoln, VicePresident - Enterprise Marketing, du, at much risk to his life and limb. The opinions expressed here are his own; we value our safety too much to risk taking sides! I know that it is yawningly obvious that men and women are truly different. Have you ever wondered as to which of them make better entrepreneurs? As always, there are exceptions to the rule. However, if we take into account the majority of people on this lovely planet, who do you think make better entrepreneurs? Obviously, this topic has the potential to be controversial and irk the sensibilities of both men and women. Ladies, I am not treading the path of a male chauvinist here.

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Please bear with me as patience is indeed a virtue. Therefore, here are my caveats first. I have had no formal rigid training in sociology, psychology, neurology or physiology or any of the relevant sciences or arts. I am neither an expert in women or men. These insights are based on my own experiences, readings and inferences. My opinionated and possibly blinkered views are based on my personal capacity. Therefore I bear full responsibility for any consequences thereof. Of course, as always, I welcome ideas and

Women in business

thoughts, flexible, dogmatic or otherwise where I will or not, stand corrected.

The traits of successful entrepreneurs Before I dwell into the mother of all battles, the battle of the sexes, I think it would be prudent to understand the traits of successful entrepreneurs who have built great companies, big and small. Once you have a great idea, a unique value proposition, key differentiation from your competitors, funds and the required skill sets, there are a unique set of personality traits that are required. These personality traits will separate the men from the boys or rather the women from the girls or even the women from the men. It should however be noted that women find it more difficult to obtain funding due to existing biases and prejudices and this topic itself will require a different article. All things being equal, these set of behavioural and personality traits matter and are required for successful entrepreneurship. Let us now discuss each in detail and why it’s important.

Interpersonal and communication skills All business is about people-topeople (P2P) and not B2C or B2B as is commonly expressed. Most businesses are done among people that have built relationships over a period of time. Good communications and interpersonal relationships among all stakeholders including customers, employees, partners and shareholders and suppliers are essential to the success of any business. A keen intuitive sense In business, decisions about suppliers, partners and employees often have to be made on the

fly. Small businesses do not have the luxury of time that large corporations have. A right or wrong decision would determine whether the business will survive or not. Having a keen intuitive sense is therefore essential for entrepreneurs.

Good listening skills I have purposefully separated this from the communication and interpersonal relationships traits required for successful entrepreneurship. Good listening skills are required by all, but for entrepreneurs they are a must. Often what is said and intended are not the same. Missing cues could mean false expectations and wasted time. This is not a luxury that small businesses have. Knowing the differences between, and deciphering and acting on what was said, what was intended to be said and what you actually heard is really a critical success factor for most entrepreneurs. Understanding the nuances is especially imperative in the current age of globalisation and transmigration of cultures from different parts of the world.

opportunities and threats. Often these changes, opportunities and threats begin as weak signals from the periphery. Most companies large or small have not developed this capability in sufficient capacity. Successful entrepreneurs have this innate ability to see at the periphery when signals are weak at best.

All business is about peopleto-people (P2P) and not B2C or B2B as is commonly expressed. Most businesses are done among people that have built relationships over a period of time

Abstract reasoning Abstract or inductive reasoning is the ability to analyse information. Entrepreneurs have to form hypothesis on their business ideas, processes and solve problems at a complex level. Business is not a liner logical application but often requires complex and multi-faceted problem-solving capabilities. Entrepreneurship requires the ability to detect patterns, trends, and understand relationships between verbal and non verbal ideas.

Sustainable mindset Good entrepreneurship requires prudent and calculated risk taking. It is not about taking huge risks with other people’s money. It is not just about building or creating something for the short term. It requires a long-term view, taking into account all stakeholders. It includes knowledge and best practice sharing so that employees and other shareholders are well equipped to sustain in the long haul. Kaizen attitude The Japanese concept of “Kaizen” or continuous improvement is a must for successful entrepreneurship. It means that you cannot rest on your laurels. It means that good entrepreneurship requires you to be receptive to other’s ideas. Good entrepreneurship also requires a balanced dose of self appraisal and self critical abilities. Multitasking capability Entrepreneurs, during the early stage of a business, often are required to address multiple facets of their business. Due to the innate nature of small businesses’ limited resource availability, good entrepreneurship requires this very important but often ignored capability. Independence, endurance and attention to detail Due to the limited resources of small businesses, good entrepreneurship requires that the entrepreneur be healthy and be able to do

Peripheral vision Small businesses and entrepreneurs do not have the budget for an army of research consultants to identify changes in customer needs, APRIL 2011

SME ADVISOR MIDDLE EAST

Women in business

look at the sexes of children in language remedial classes or the ones that stutter. Men have a pronounced need to fulfil their goals and women rank relationships with others first. John Lincoln, Vice-President - Enterprise Marketing, du

monotonous tasks, often enduring long and lonely periods. Most entrepreneurs are required to be independent and detail oriented. Entrepreneurs can’t survive with just the “big picture” thinking capabilities.

So what are the differences between men and women? Who do you think has more of these personality and behavioural traits? Experts have discovered that there are real differences in the way men and women’s brains are structured and in the way we react to events and stimuli. We all are wired and created differently as embryos in the womb – not engineered by some mad scientists somewhere (not yet, at least).

Who has better interpersonal and verbal communication skills? It is an established fact by scientists that women communicate more effectively than men. Girls say their first words, learn to speak, read and are better in coping with language than boys. As adults, women are more fluent and have better command over languages. Women’s relationships are generally deeper and more sustainable than men’s. Their sensitivities are more and deeper than men. If you need further proof,

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Who has a keener intuitive sense? Women have a more superior and keener experience of all the senses. It is also known that women have a keener sense of picking up social cues, nuances, intonation, meaning and intensity of conversations and expressions. Men are often utterly frustrated and exasperated at a woman’s reaction to what they say. Women tend to be better judges of character. As we age, women have a better memory for names and faces, and a greater sensitivity to other people’s preferences. All this makes women more intuitive than men. Who is a better listener? I think the answer to this is obvious. Just think about who gets up in the middle of the night to the dripping of a tap or the cry of a baby? During my early years of marriage to Carol, I have often wondered why she kept insisting that I was yelling and that I needed to “tone down”. I am enlightened now! This is because sounds are more acute to women than men. The combination of their deeper multi-sensory awareness and hearing skills makes women better listeners. Who has better abstract reasoning? We have all heard that a man’s brain is programmed for hunting. Men are laser focused and goes for the kill (rhetorically speaking). APRIL 2011

Who is a better listener? I think the answer to this is obvious. Just think about who gets up in the middle of the night to the dripping of a tap or the cry of a baby?

Women’s brains can decipher a wider range of information. Women are equipped to receive a wider range of sensory information, to connect, correlate, compute relate and act on that information with greater facility and agility. When entering a parking garage, men generally look and head to the direction of where their car is parked. Women on the other hand look around, notice faces (and strangers) and calculate possible threats perceived or otherwise. Men can definitely better grasp a situation as a whole and think globally. However, women think locally, relying on details and nuances that matter. Women have a better capability of rewinding relevant information over and over.

Who has better peripheral vision? Men have a firmer sense of direction. They need to track, trace and navigate the path to their goal. In other words, men see in a narrow field – mild tunnel vision – with greater concentration on depth. They have a better sense of perspective than women. Women, however, take in better the bigger picture literally speaking. Not only do women have literally a wider peripheral vision but woman can also store, for short periods at least, more irrelevant and random information than men. Men can excel only when the information is organised in some coherent form, or has specific relevance to them. The combinations of an acute sensory awareness, a wider view of the world and overall intuitiveness gives women a better advantage in sensing signals that are almost always weak for men to detect. Who has a more sustainable mindset? Women are by nature, nurturing, caring and giving. Men are builders whilst women pass on the most valuable information for the positive evolution of the next generation. This innate ability to

Women in business

unselfishly nurture and give, gives them an advantage in ensuring that all under their care get the needed information to sustain in the long run. In business, this gives women an advantage as the combination of their superior communications and personal relationship skills and this need to care and share will ensure that all shareholders are informed and act on the long-term sustainability of their enterprise.

Who strives better for continuous improvement (Kaizen)? Men are normally satisfied with their own performance. Women on the other hand are self critical and often have a low self appraisal of their work. Men are more independent in their thoughts and actions, whilst women seek out and are open to others’ suggestions, comments and opinions. You need to be self critical and not satisfied with the status quo to strive for continuous improvement. Who is better at multitasking? We have all heard that men are not good at multitasking or that women are superior at multitasking. Scientific studies have proven that women multitask better than men. This is not surprising. Look at how working and at-home moms do it. How they juggle a career, work, study, childcare, cooking and home all at the same time. I can never even try to do this. Just thinking about it gives me a massive headache. I salute all the women who do this, day in and day out. I am stunned by the seemingly easy way women multitask. This is a no brainer for me. Women are definitely better and I don’t need any scientific proof for this truism! Who has better independence, endurance and detail orientation? We all know that women have longer life spans and are less prone to getting sick. Therefore in the macro sense, they are more

Men are more independent in their thoughts and actions, whilst women seek out and are open to others’ suggestions, comments and opinions. You need to be self critical and not satisfied with the status quo to strive for continuous improvement

enduring. Women also perform well when required to do monotonous and arduous tasks. Look around your company and the different projects being worked upon. Who amongst them works independently and looks into every detail? The men normally boast of the big picture, but it is the women who endure and deliver superb and detailed work. (Note to the men in my team: “Contain your ire.”)

Words from two amazing women I have also spoken to a few men and women entrepreneurs and professionals to get their views on this subject. It was interesting to note that most men felt that men were better in business. Most women did not want to generalise or stereotype. I particularly liked and agree with the quotes from Georgie Hearson and Claire Fenner, co-founders of Heels & Deals (www.heelsanddeals.org) – a UAE-based network and consulting firm for women entrepreneurs. “In our opinion women and men are equally as good in business but they possess different strengths and weaknesses. For example, women are excellent at multitasking, enabling them to manage multiple business functions simultaneously, which in turn is a benefit to working mothers who run not only their own businesses but their homes,” said Georgie Hearson. Claire Fenner added “As we all know, women are excellent communicators whether it be through the spoken or written word. If you get 200 women in a room, speed networking, the energy is phenomenal! The women know how to use this skill to their advantage. When it comes to supporting each other men are maybe more guarded and less likely to seek help from their colleagues or peers for fear of being seen as weak, whereas women are willing APRIL 2011

to look for help when required as well as support each other. In our opinion successful companies are those that work with the best in their field like we do at Heels & Deals.” There you go guys, in the words of two award-winning and successful entrepreneurs. In conclusion – so who are better entrepreneurs? Well, it all depends on who you are and how your brain is wired to think. Guys, as most of you are husbands, fiancées or boyfriends, brothers or sons to some wonderful women somewhere, remember this before you try to contradict this article – “Hell hath no fury like a woman scorned.” Oh, and before signing off, I have just had a Homer Simpson moment – If I as a man claim to have these skills as well, then, logically speaking, am I a man or a woman?

ABOUT: John Lincoln has over 20 years telecommunications experience in the USA, Japan, Europe, India, Dubai, Malaysia, Latin America and various other countries. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery. John also has executive experience with general management, marketing, P&L, product development and revenue management responsibilities in both consumer and enterprise segments for both the fixed and mobile sectors. In addition John has an impressive operational and management portfolio of established proven expertise in incremental business value creation and management of large multi-cultural teams in Vodafone Global in the UK, Japan Telecom in Tokyo, AirTouch and Pacific Bell (now AT&T) in San Francisco and Tokyo, Airtel in Delhi and other telecom and technology companies. Additionally he has extensive large scale business development, M&A and operational project experience across the USA, Europe, Asia and Latin America. John has an MBA and MS in Telecommunications from the Golden Gate University in San Francisco, California, USA. You can find John’s personal blog at johnlincoln.blog.com. He can be contacted via: john.lincoln@gmail. com, Twitter: @lincolnjc.

SME ADVISOR MIDDLE EAST

WOMEN IN BUSINESS INVESTORS <<<

TOUCHED BY AN ANGEL

Women have proven time and time again that they can match and even surpass men in any given field of expertise in the modern world. So why, then, are they not making inroads with the investment landscape, especially here in the Middle East? Shimi Shah, founder of Tilly & Pinch, offers food for thought. Did you know that the figure invested in female owned or led businesses is still under 10% in the US and this figure is significantly lower in the Middle East? Of course, there are many successful stories of female investors such as Kay Koplovitz, the founder of Springboard, and Janet Hanson, founder of 85 Broads, but what about women in the Middle East? We have many examples of women who have become successful at business but how many can you name that have become known for their investment experience? There is a distinct lack of early stage female investors especially in the Middle East. So why is this case? Is there a difference between male and female investors? If so, what is it? The difference in risk levels, approach to investments, commitment of follow through, or simply a different investment personality between the two genders. In most cases women do not turn to angel investing until much later in their career and life, once they have successfully exited their own businesses, in many cases when family needs are more

SME ADVISOR MIDDLE EAST

minimal. Hence the typical age and dynamics of a female angel is different to perhaps men who start their investment profile at a slightly younger age, and hence are perhaps more active risk takers. One thing is worth noting, when it comes to angel investing the investment criteria should remain the same for both genders. Normally businesses which cater for gaps in the market and where the market potential is significant are good start to check off on an investment check list. However there are many more factors that are important, such as personality, founder commitment, financial viability, size of market, competition, intellectual property protection, corporate structure and so on. The assessment of the mentioned characteristics are generic for all early stage investors, however women still have a different approach. Women like to invest in companies they can relate to. Women are also more risk averse as they will want a clear path forward, and hence will often feel more comfortable with a debt product such as a loan versus pure equity with little or no security. They will be willing in many cases to give up a bit of the upside to protect their initial capital. APRIL 2011

ABOUT: Shimi has been actively involved in angel investing and venture capital for over 15 years and has made over 50 investments in early and expansion stage transactions, of which many have been successfully exited with superior returns for investors. Shimi is currently in the process of establishing several new businesses, one of which is a startup and SME advisory business providing assistance for start-ups and small businesses in relation to expansion plans, business planning, and other strategic initiatives such as capital raising and exits. She also has another business, which is a social selling enterprise in the accessories sector. Shimi is also currently an advisor to a US based medical product start-up. To contact Shimi email: shimi@tillyandpinch.com

In most cases female angel investors are those that have run successful businesses and have exited them and gone onto become investors. In most cases the move is because they can oversee different businesses in comparison to working 24/7 in one business. Most experienced female angels are not passive investors and will want to contribute to their investments either as an advisor or a non-executive. Female investors also like to invest in businesses that they understand, either through their own experience of the market or because they have a personal interest in the space. There is definitely a gap in the number of female angel investors compared to men, the same way the gap is equally as defined in the venture capital and private equity market. However, this is changing with formal organisations such as Springboard in the US and Women into Investing in the UK and informal female investment clubs and networks. However, there needs to be more awareness of angel investing as an asset class, but equally important is also how to manage, grow and exit angel investments. Female angels are definitely a benefit to many early stage companies and start-ups and their insight and intuitional investing should not be overlooked. Women are politicians, business leaders, activists, artists â&#x20AC;&#x201C; so why not investors?

The RiTz-CaRlTon ShaRq Village & Spa, Doha, qaTaR

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2nD - 4Th May 2011

networking days

workshops

one-2-one meetings

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03 OVER

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industry Leaders

Sales Management <<<

Finding that inspirational sales leader What is sales management? Most companies have sales managers today, but what is their role in the business? This month Peter Heredia, Managing Director of Max Sales Solutions, discusses what the key activities of an effective sales manager should be and the startling impact on results that a good sales manager can have.

High performing teams are led by people who understand that coaching and motivation are the keys to success

SME ADVISOR MIDDLE EAST

APRIL 2011

How important is the role of the manager? If a team is doing poorly, the buck stops with the manager. If the manager is playing in the matches at the same time as managing the teamâ&#x20AC;&#x201D;a player manager, they may be performing well themselves although the team is not. Should they be excluded from responsibility then? Will their role in the activity ensure the team stays on track? How different is this to managing a sales team? If sales people are hitting the road each day and nobody is monitoring their performance or studying what they do, how will they improve? How will they be directed toward their goals on a regular basis? Will your best player automatically make the best manager? Or, alternatively, should youâ&#x20AC;&#x2122;re new sales manager be your best sales person? There is a popular logic that sales managers have to be great sales people and have often been the top sales people at their companies. They bring in business; they build fantastic relationships and keep their customers happy. These activities are very important and if this is the job they need to do to make your company successful, then great. However, most companies need all of their sales team doing all of those things well and to make this happen your sales manager must lead, drive, motivate and develop their team to deliver even bigger results. Some questions that you should ask yourself when thinking about what you expect from your sales team and sales leadership: How much time is dedicated to developing your sales people? How are they building their skills, competencies and productivity focus on key selling activities? Apart from their day to day gain in experience, where do you believe

Sales that their growth will come from in the next 12 months? Is this in line with your targets? How much more motivated would your staff be if they were receiving clear development? What would be the impact on retaining the best staff? Why do only a small fraction of sporting teams have a manager that also participates in the games that they play? It’s for the following reasons: So that they can see from the sidelines what is and isn’t working in delivering positive results. So that they can focus on motivating all of their team who are on or off the pitch. So that they can provide feedback to encourage every individual. So that they can identify skills and activity that needs developing. So that they can view the opposition from every position rather that just their immediate area of focus. So that they can make tactical changes when improvement is needed. So that they can look at every player and spend time with them one on one to improve their game.

The facts about managers who embrace their coaching staff · 72-79% see an improvement in their relationships with direct reports · 60-70% see and improvement in team work · 60-65% have an improvement in job satisfaction · 53-60% report that they become more productive increase their productivity by more than 80% – the percentage is 20% with training alone.

Coaching Peter Heredia, Managing Director of Max Sales Solutions

Training Training sales people when they are new or when new products or procedures are introduced will give them the basic knowledge and skills to do the job. When training is combined with coaching, individuals

agers get the best results We have seen that the best sales manin the following areas: by supporting their sales teams S 1. LISTENING TO THEIR CUSTOMER nced sales people don’t do this. t experie It is amazing how even the mos

NGS FIRST 2. DOING THE MOST IMPORTANT THI most of the time on the active king Make sure that everyone is wor ly to buy. like t mos are that opportunities

When training is combined with coaching, individuals increase their productivity by more than 80% – the percentage is about 20% with training alone

Coaching reinforces what has been learned during training and introduces new information, new approaches and practicevs to improve individual performance. Coaching makes sure that results are delivered. Coaching addresses performance gaps that are to do with attitude or how the salesperson feels. If an underperforming salesperson knows his products and has strong sales skills then training is not going to help. If he is experiencing fatigue, de-motivation, boredom, stress, or lack of focus, then coaching is what he needs.

ABOUT: Peter Heredia is the Managing Director of Max Sales Solutions. He has worked with sales teams around the globe for more than two decades and has worked in the Middle East for the last ten years. His passion is helping smaller businesses to significantly improve revenue performance by focussing on the productivity and efficiency of their sales teams. His approach has proven extremely effective in part because he truly understands the psychology of sales people and realises that to change their behaviour they need to be involved with any new solutions. If you would like to talk to Peter about your sales team then please contact him on peter@maxsalesolutions.com

3. ORGANISING THEMSELVES

contribute all the other activities that will Schedule calls, meetings and e. sibl pos er nev whe vity ute acti to selling more. Avoid last min

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TING ACTIVITY 5. FOCUSING ON REVENUE GENERAsales role. for any Everything else isn’t a priority

T THEY DO 6. BEING PASSIONATE ABOUT WHA everyone and it will affect their day and ude Everyone can choose their attit . that they deal with

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SME ADVISOR MIDDLE EAST

Customer service Ethos Consultancy <<<

A helping hand Customer service has been a hot talking point amongst SME Advisor followers in recent weeks. Social media platforms such as Linkedin and Twitter have seen various discussions about the condition of this service in the region. To shed more light on the issue, Mike Byrne spoke to Robert Keay, Managing Director of Ethos Consultancy.

As it stands, what is your assessment of the current attitudes to customer service from the private and public sector businesses? Historically, organisations in the UAE can define and understand what customer service is but not how it can be used to transform a reputation for better or worse. This lack of prioritisation means that customer service is often the responsibility of middle management and it is ignored in annual budgets or worse, at an executive level. Consequently, customer service becomes reactionary to a complaint and the process to deal with such feedback is not ingrained into the culture of an organisation. The trend is changing and since Ethos Consultancy began operating in 2004, increased competition has forced companies to focus its attention on customer service as poor word-of-mouth between customers takes a toll on the brand equity of a company. This is especially true with the economic situation, whereby customers are becoming loyal to fewer brands but staying true to those companies for a longer period of time.

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With this, what are the recurring attitudes of the public in the region about customer service feedback from businesses and public bodies? The UAE is very unique because with such a large expatriate population, the public is looking for international standards of customer service similar to what that they might experience back in their home country. Naturally those standards fluctuate, especially if a company has a similarly diverse work force implementing customer service policies. This is then pitted against the expectations of what an organisation in the UAE can deliver â&#x20AC;&#x201C; so there is very strange dynamic at play whereby customers expect a level of customer service but at the same time appreciate that this is still a developing economy and are not surprised when expectations

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That said, if there is one generic answer â&#x20AC;&#x201C; it is the economy and the recession has forced organisations to focus on the acquisition of new customers rather than retaining and keeping happy current customers

are not met. This is why there is such a great opportunity for organisations to carve out a very positive reputation for themselves, because the element of surprise will delight customers when customer service exceeds expectations and inspires brand loyalty.

What are the sectors showing particular strength with customer service satisfaction in the region? The public sector is one such field in which customer service is improving and it is being considered at an executive level, but this is a recent shift and to ensure that change is inherent and lasting, it will take time until change is noticed.

Customer service

The aviation and hospitality sectors are two perfect examples in which increased competition has forced the improvement of customer service in the UAE. Furthermore, the advent of social media and review-based websites has meant that the hospitality sector is listening to its customers and acting upon any concerns or negative feedback.

ABOUT:

Robert Keay, Managing Director, Ethos Consultancy

What are the reasons for lack of good customer service in the region? The answer is very sector specific and indeed, there are various factors that affect the level of customer service to which an organisation operates. Training, employee engagement, bureaucracy, ICT, integration with marketing and many other variables illustrate that a customer service policy is not just a feedback form at the till. That said, if there is one generic answer – it is the economy and the recession has forced organisations to focus on the acquisition of new customers rather than retaining and keeping happy current customers. Is there a consistent and explicit effort to increase customer service in the region? Transparency is not the issue and what Ethos is trying to do is educate companies as to the definition of customer service and what it can achieve if proactively integrated into the sales and business development strategy. Those companies that then understand, will willingly commit to a root cause analysis regardless of the findings, because they appreciate customer loyalty is going to be the key differentiator. Is it a case of SMEs in the current economic landscape, where budgets are stretched and customer service is seen as not overwhelmingly necessary? Naturally, the bigger the company the more they will need to invest in

the correct technology and software that can identify problems and manage the customer feedback process. But whatever the size of the organisation, the first step is a willingness to commit to a customer service policy and being brave enough to let it affect the business strategy when certain trends and issues are identified on a consistent basis. Such commitment will always be rewarded through better customer loyalty and an increased ROI as a result.

The market here is still catching up in terms of professional standards and as such we should be patient in waiting for the gap to be bridged between expectations and actual services. In your opinion is this a practical consideration to take into account when viewing customer service in the region? It is a very astute point – just because something is historically part of the business culture does not make it right or mean that it cannot be changed. To illustrate, standardbased certificates are beginning to build their brand in the Middle East and companies are showing off ISO 9001 accreditation, while in the public sector organisations are implementing the EFQM model. Likewise we are working closely with BSI (British Standards Institution) and this is being well received by clients. So Ethos is sensing a real commitment to customer service and even if it’s by a few – the results will ensure the competition takes note and is forced to follow suit.

Robert Keay is the founder and Managing Director of Ethos Consultancy, a customer service measurement, training and consultancy firm. Robert set up Ethos in Dubai in early 2004. He is also the author of the newly released book Value Moments – discover what your customers really value – then deliver it. Robert is also co-founder and Chairman of The International Customer Service Institute and was the driving force behind the development and launch of The International Customer Service Standard, now implemented globally. With 46 full-time staff operating out of Dubai and Abu Dhabi, Ethos Consultancy is currently servicing 65 active clients in the UAE, Qatar, Bahrain, and Oman, clients including Jumeriah Group, Abu Dhabi Tourism Authority, MAF, WAFI, Sony, Landmark Group, Dubai Roads & Transport Authority (RTA), Dubai Bank, Abu Dhabi Islamic Bank, First Gulf Bank, Qatar Islamic Bank, Qatar National Bank, Bahrain Islamic Bank and the UAE Ministry of Interior. Ethos Consultancy in 2008 was given the UAE’s best Small business award and in 2009 Robert was given the Middle East’s Recommended Employer of the Year award. Ethos Consultancy also won Business Star of the Year at the SME Advisor Stars of Business Awards 2010.

APRIL 2011

Ethos Consultancy has just launched Jawebny – is this a software program that has been severely lacking in the region in terms of the services it provides or is it a case of this program offering some new features and improving on already existing software in the market? Both – Jawebny is the first feedback management system in the region that can provide a multi-lingual feedback process and be built into an organisation’s pre-existing IT system. It will have the ability to generate multiple feedback reports from customers which can then be segmented by the type feedback. This ensures that it will identify recurring complaints or trends and because it is developed to function in real-time. Jawebny will also ensure that any comment or complaint is acted upon. In addition to that it accelerates root cause analysis and provides management with a comprehensive dashboard of crucial customer and organisational performance information. Whilst there are a lot of similar programmes, they are located outside the Middle East and do not have the Arabic functionality as well as English. Will this new software require employees to be extensively trained or is it something which can be installed and utilised in a short period of time? Whilst it is a powerful solution it is also easy-to-use and can be easily installed and configured for any organisation. Furthermore, Ethos Consultancy is just that – a consultancy. Whilst we develop our own intellectual property, we also advise how it can be best implemented into a company’s culture and the wider customer service strategy, which might include training, benchmarking, mystery shopping, accreditation and employee and customer satisfaction surveying. SME ADVISOR MIDDLE EAST

Legal Business licenses <<<

Putting the brakes on expired licenses In the current financial climate with business budgetary constraints, an increasing number of companies licensed in Dubai declared their willingness to suspend their businesses and refrain from renewing their licenses. Joumana Azzam of Al Tamimi & Company discusses the new measures introduced by the Department of Economic Development in Dubai (DED) to help ease financial strains on businesses. The Department of Economic Development in Dubai (DED), being the official licensing authority, was keen to assist companies whose licenses have expired and whereby

SME ADVISOR MIDDLE EAST

APRIL 2011

such companies are not able to run their businesses and maintain their welfare. The DED came up with a temporary solution allowing such companies the opportunity to suspend their licenses to avoid any

liquidation and prevent losses. Such assistance has been provided by giving companies the possibility to suspend their expired licenses for a limited period ranging from one to three years, during which time the companies licenses will be frozen, and therefore be unable to operate their businesses. Freezing a license means to stop the activity of the expired license and stop the accumulation of fines during the suspension period. Fines are imposed by the DED on monthly basis in case of license expiration without renewal. The license freeze can only be deactivated once throughout the duration of the freeze period. The steps, documents and fees required for such deactivation are as follows: Submission of an application proving expiration of the license and inactivity of the company, and justifying such request; the

Legal

application should be signed by one of the shareholders or by the authorised representative or manager of the company. A letter from the Labour Department proving that there are no labour restrictions imposed on the license. The request for suspension of license shall be submitted to any of the DED branches in Dubai or online (through DED e-services – note some e-services are yet to be activated by the DED), or to one of the certified offices approved by the DED which can serve the customers and provide them with the DED services. The fees for freezing expired licenses are as follows: AED 2000 per each year of suspension, to be added to the outstanding fines of AED 210 per month. The fines are enforced from the date of license expiration until the date of payment for the suspension.

Frequently asked questions

Which companies can apply for suspension and how many times can they suspend their licenses? Almost all companies licensed by the DED in Dubai: Limited liability companies, sole establishments, foreign branches, local branches, private joint stock companies can apply for freezing their licenses. Public joint stock companies may also apply to freeze their licenses provided they obtain the approval from the Securities and Commodities Authority. Note that suspension can be applied only one time throughout the lifetime of the company. Is it possible to block the license for less than three years? Sole establishment licenses cannot be suspended for more than one year. Other types of companies and branches can suspend their licenses for a period ranging from one to three years.

Joumana Azzam, Associate, Al Tamimi & Company

Sole establishment licenses cannot be suspended for more than one year. Other types of companies and branches can suspend their licenses for a period ranging from one to three years

Can you stop the deactivation of the license before the expiry date of the suspension period? It is possible to stop the deactivation of the license at any time after the date of suspension and before the end of the suspension period, bearing in mind that no refunded fees shall be applicable. Can a company with a suspended license practice the activity during the suspension period? It is illegal for a company with a suspended license to practice any of its activities during the suspension period and fines will be imposed as per the regulations applicable on infringing licenses. It is important to mention that the owner of the license or shareholder is allowed, during the suspension period of his expired license, to apply under his name, for a new license and is able to set up new companies and businesses in Dubai. To restart the operations of a deactivated company, a request signed by one of the shareholders or the manager of the company shall be submitted to any of the DED branches in Dubai or to one of the certified offices approved by the DED, or through DED e- services, calling for renewal of the deactivated license by submitting: An application for renewal before the expiry date of suspension. The due date is counted from the date of paying the fees of suspension, that is, the date APRIL 2011

displayed on the suspension receipt. A valid lease contract The DED shall quote the fees, and upon payment, an updated license shall be issued by the DED and the company can begin to operate its business. The advantage of deactivating a license is to help non-active companies with expired licenses to freeze their businesses for a limited period, and therefore to avoid paying unnecessary renewal fees and fines. This temporary solution gives such companies the opportunity to avoid liquidation, and the chance to renew operations and restart their businesses in due time without the burden of going through the new set up procedures or paying new set up costs.

ABOUT: Joumana Azzam joined Al Tamimi & Company’s Corporate/Commercial department as an Associate in April 2007. She previously worked at one of Beirut’s largest law firms where she gained experience in corporate and commercial practices as well as in litigation, where she directed many litigations and company setups in Beirut. Joumana has expertise in setting up a variety of companies, advocating in all courts, advising and drafting court documents, handling lawsuits, dealing mainly with commercial, corporate, real estate, rent, family, and criminal law. She has attended over one-hundred legal seminars and lectures held at the Beirut Bar Association, and participated in training courses certified by both Beirut Bar Association & United Nations Office of the High Commissioner for Human Rights Middle East Regional Office, on United Nations Mechanisms of Human Rights. Joumana is a member of the Beirut Bar Association. She has published legal articles in the Legal Journal of the Beirut Bar Association. She is a member at the Legal Woman Committee at the Bar Association, dealing and advising on women’s legal rights. Al Tamimi & Company Advocates and Legal Consultants, originally established in 1989, is today one of the leading law firms in the Arabian Gulf region. It is the largest local, non-affiliated law firms in the United Arab Emirates, with offices in the Emirates of Dubai, Abu Dhabi and Sharjah, and also offices in Riyadh (KSA) and associate offices in Doha, Baghdad and Riyadh. For more information visit www.tamimi.com

SME ADVISOR MIDDLE EAST

MANAGEMENT THE VOICE OF DISSENT <<<

Vive la revolution?! Uprisings, protests and conflicts are in the air. We are used to reading about it in the newspapers and watching it on television, but have recent struggles indirectly triggered a wave of unrest amongst EMPLOYEES? Nothing so dramatic, argues Mo Elzubeir, Managing Director of Mediastow. employees rarely want to hurt their employers and the company – they just want to be heard. The call A friend of mine calls me, frustrated with his staff. He was blaming me for convincing him to create incentives for his staff because they have now become too demanding. “They think it’s a revolution!” he exclaimed. “I’m going to fire every single one of them! They think this is a game!?” he blasted. He was angry enough that I had to turn down the volume on my phone’s speaker.

SME ADVISOR MIDDLE EAST

“You and your incentives programmes! Where did that get me? I give them an inch and they want the whole yard!” I listened, holding back my laughter. You see, my friend is an animated guy. I’ve learned to give him a few minutes to cool down before a conversation can start. “What happened?” I asked. “They all got together and decided not to come to work because the new bus route was too early for their liking! Imagine that! They APRIL 2011

Here’s the thing though, most people don’t want to hurt the company they work for. They want to be heard but it is very rare that someone wants to actually harm their employer

think they can force me to do what they want!” he went on. He was angrier than usual. You often hear about how companies and bosses are evil, overworking their staff and underpaying them. Rarely do I ever come across someone telling the other side of the story. It’s a problem many people face when their startup takes on a more settled shape. Graduating from a start-up to an SME is not all fun and games. I remember thinking about how I wanted to handle HR in my future company during my college years. I took every HR course I could and, aside from marketing and my core computer science courses, HR was a subject I took a great interest in. I had it all figured out as I sat taking notes in my MGMT3860 Human Resource Management class. It all made sense to me. Then, I found myself in the position to actually make these decisions. Nothing made sense anymore.

Ideals vs. reality You can’t offer healthcare if you don’t have money to pay for it.

MANAGEMENT You want to pay your staff more but outgoings keep draining you at every opportunity. You are constantly strapped for cash and clients aren’t paying on time. Employees are restless; they don’t appreciate late salaries. Rent is due, Internet bills are mounting, reality hits. Budding entrepreneurs know this struggle all too well. We march on and deal with it. Given enough hard work, good planning and a bit of luck, we come out of it and settle into the SME phase. But now, your staff have increased and decisions are no longer arbitrary but are based on policies. The organisation takes a life of its own. Procedures, policies, rules, regulations – the makings of everything you hated when you were employed are now very important tools that are essential for your company to scale. So, when my friend was telling me that his staff are not motivated and are always asking for more money, I took an interest in his problem. He told me how he has tried giving increases and it only resulted in more demands. Frustrated, we sat over many cups of coffee and an ashtray full of cigarette butts. Not mine; I don’t smoke, but he sure did smoke for the two of us. People respond to incentives. Ask any economist. It’s actually one of my all-time favorite paradigms. I toyed with this in our organisation with varying degrees of success. I can’t claim that I have discovered the holy grail of employee incentives in our organisation – far from it. I think it’s a constantly moving target that requires a lot of work. So, why did my friend have what he called a revolution? It all started with moving the transportation pick-up time by ten minutes. It resulted in 30% of his staff missing work. It’s a strike, which is not tolerated by the UAE Labour Laws. Here’s a question from the Ministry of Labour’s site on Disciplinary Rules [1]: What is the procedure followed in charging a worker with a deliberate crime involving assault on person or property or

ABOUT: Mohamed (Mo) Elzubeir is the Managing Director of Mediastow, a media consultancy firm established in 2005which provides communication evaluation, measurements and analysis, which helps to make companies’ communication program more accurate and efficient by managing it better. Mediastow is a member of The Association for Measurement and Evaluation of Communication (AMEC), the global trade body and professional institute for companies and individuals involved in research, measurement and evaluation in editorial media coverage and related communications issues. At the 2010 SME Advisor Stars of Business Awards, Mediastow was a finalist in the category of Media and Marketing Mo graduated from the University of North Texas with a Computer Science degree. He has had a keen interest in journalism and marketing. After working in the IT industry, a stint at the Saudi Research and Publishing Company provided the necessary bridge onto the media research field.

crimes related to honour and honesty or the offence [sic] of unlawful strike? It’s put in the same sentence with assaults, crimes related to honour and honesty. It really is very much frowned upon. So when people strike, they’re either ignorant of the law or have decided that is no longer relevant to them – consequences or not. This is not a good place to be with your staff. Ten minutes? My friend insists that this whole region’s political unrest is to blame. Watching protests everywhere has made it so much likely that his employees will take such a stance. They must think we’re some country and they want to revolt!

Time out I’m not entirely dismissing that the political unrest in the region has made people more likely to take a tough stand against what they perceive as injustice. That is not a bad thing in itself. The problem is, what is injustice? Ten minutes is hardly injustice. It’s a bus route’s schedule. The bus is uncomfortable, the ride is long, the work is hard and then, a new schedule. They add up and someone eventually snaps. Here’s the thing though, most people don’t want to hurt the company they work for. They want to be heard but it is very rare that someone wants to actually harm their employer. So, the first step to remedy such a situation was to sit everyone down and understand the reason behind this overreaction. Then, explain how that affects the company. It’s easy to make your staff understand you if you have a track record of incremental improvements in the workplace. I had my friend enumerate all the good things he has done for his staff since our initial incentives discussions happened a couple of years ago. He has improved working hours, instituted a two-day weekend, and created a weekly and monthly cash bonus based on performance evaluation. Thursdays were officially pizza day for the APRIL 2011

office. He couldn’t understand how they would repay him with such a harsh response. He felt betrayed. I advised my friend to sit his staff down and explain to them about how he felt – what he has done and how they have reacted. I thought it was essential that they see how he saw things. In my experience as an employee, the only time I recall a boss speaking to us so frankly was the only boss everyone respected. It turns out, they were upset that new employees were adding to their travel time and no one really thought about their boss and how it was affecting the entire company. They just lashed out without thinking about the big picture. In fact, the ten minute delay is not so much the problem as the travel time on the way back. He has agreed to change the way the drop-off happens so people don’t spend too much time stuck on the road. The next day, everyone was on time. Not only were they on time, but the bus didn’t even have to wait for them. Talk to your staff. They’re people too. References: [1] http://www.mol.gov.ae/controlpanel/ Attachments/06092010/Disciplinar%20 Rules_Eng.pdf

Mo Elzubeir, Managing Director, Mediastow

SME ADVISOR MIDDLE EAST

Finance WORDS OF ADVICE <<<

TAKING A PAGE OUT OF THE EXPERTS’ BOOK Whether it’s finding that initial injection to help set-up the business, handling day-to-day business transactions or TRYING TO expand, no-one is finding it an easy road. Mike Byrne puts some tough questions to top business leaders to find out what more can be done to drive financing within SME circles. Michael Hasbani, MENA Strategic Growth Markets Leader, Ernst & Young

During his 18-year career in management consulting and professional services, Michael has led teams of professionals in undertaking human capital and organisational restructuring assignments as well as providing focussed advice to some of the region’s largest and most progressive companies. He is currently a partner at the Ernst & Young Dubai branch, leading the Advisory Services Department. Generally, what are the main points entrepreneurs and start-up in this region should consider when seeking funding in order to grow, prosper or reinvent themselves? MENA seems to face immense challenges due to the low levels of SME financing by banks and financial institutions. Attracting funding can be extremely testing for aspiring entrepreneurs and start-ups have a tough time simply starting up as competition for available capital is fierce. Entrepreneurs need to keep their finger on the pulse of the market. Access to information and trends, but more importantly having the right strategies and resources in place to leverage this information effectively, can be a game-changer. Developing a sustainable business model with strong fundamentals and adequate risk-management layers should always be an important parameter for any entrepreneur seeking access to funding.

SME ADVISOR MIDDLE EAST

For investors (interested in venture set-ups), the priority is long-term revenue generation. In today’s competitive global business environment, having well-carved out customer retention and acquisition strategies and an appropriate framework to manage anticipated risks are critical to attracting funding. And of course, agility and flexibility to reinvent are crucial.

What is your advice to entrepreneurs and SMEs who want to remain agile, adapt quickly to change and diversify but who might consider change an unaffordable tactic or risk from a cost point of view? It’s very simple – if you fail to prepare, you prepare to fail. Standing still does not help and market leadership gravitates regularly. Change does not always come with a huge price-tag. Change, more often than not, is linked to keeping your ears close to the ground. It’s about bringing that slight modification or enhancement to your product or service – anything that provides you with an edge over your competitors. In fact, improving cost competitiveness in itself is an important adaptation tactic SMEs should be looking at. Closely monitoring cash burn rate, improving operational efficiency, considering new pricing strategies and models, managing discretionary spending, acting to preserve capital and optimising IT infrastructure are some affordable APRIL 2011

change management tactics.

One of the key areas that you specialise in is transactions. What are the common mistakes which you see entrepreneurs and SMEs making with their transactions and what is your advice to them for more efficiently achieving their goals? A common mistake, post the financial crisis, is knee-jerk reaction to cash management. Many companies have not moved beyond short-term or tactical efforts to institute policy and process changes. Entrepreneurs have a keen insight into actions needed to remain on course. These are times when fortunes are made and new market leaders rise to the top. Their approach to transactions is to cautiously raise capital, renew focus on seeking mergers and acquisitions and divest non-core assets to realise capital. Our advice to entrepreneurs is to secure their present, protect assets, improve performance by reshaping business, and pursue new market opportunities. However, it is essential to take a measured approach. Look to enter new markets through acquisitions at reduced prices or enter partnerships where significant customer value can be derived.

Michael Hasbani, MENA Growth Markets Leader, Ernst & Young

Standing still does not help and market leadership gravitates regularly. Change does not always come with a huge pricetag. Change, more often than not, is linked to keeping your ears close to the ground. It’s about bringing that slight modification or enhancement to your product or service – anything that provides you with an edge over your competitors

What other advice can you offer in terms of SMEs better managing their finances, especially at a time when chasing payments, making payments and accessing further financing often pose problems? Our advice to SMEs is to understand their core competencies, their position in the customer value chain and identify low-cost/high-quality suppliers to support in achieving that positioning. Entrepreneurs should focus on designing and building an efficient supply chain model, develop early warning systems to identify distress and cash-flow obstacles.

Finance

Aziz Valliani, Founder and Chairman, enTrust & Title

With a business career that has spanned over 30 years, Aziz has led several private and public multinational companies, including @ POS.com and Crossvue Inc., as well as directing the Escrow Institute of California and Escrow Association of California from 2005-2007. In 2008 he founded enTrust & Title in Dubai, with a view to streamlining escrow services in the region. What are the advantages of escrow services for SMEs? We realise that people involved in transactions are often limited by time and are too busy to run around getting paperwork sorted and making appointments. In this respect we will handle this for them. A lot of expatriates, who may no longer be here and back in their own countries, also give us power of attorney to handle certain transactions on their behalf. The agent’s role is to make sure that both parties are comfortable with the transaction and that the agreement is honoured within the time frame set down. Both parties are monitored to make sure they are performing to their respective obligations. The role of the escrow agent can be performed by individuals from independent companies like our own, from agents of a bank and attorneys. Can you elaborate on the areas where SMEs commonly request escrow services? We handle real estate transactions, credit notes, bad debt, we do business transfers and we do what is called, creative transactions. In the latter instance it’s normally an issue of a person wanting to buy a property but they are not sure of the neighbourhood, if they are going to like it or if their job is stable enough. So if they wanted to purchase this property, but only after renting for a couple of years, then they may want that option available and not for the

The agent’s role is to make sure that both parties are comfortable with the transaction and that the agreement is honoured within the time frame set down. Both parties are monitored to make sure they are performing to their respective obligations. The role of the escrow agent can be performed by individuals from independent companies like our own, from agents of a bank and attorneys

ABOUT Aziz Valliani, Founder and Chairman, enTrust & Title

Aziz and his team also act as instructors for classes on escrow services at the Dubai Real Estate Institute (DREI), which is an arm of the Real Estate Regulatory Agency (RERA). Best practices are dealt with and attendees are mainly progressive companies who want to educate themselves and who deal in domestic as well as international markets. Bringing safety and security and protecting the consumer is becoming an area where all companies, big and small, are investing time and money. Classes are mainly attended by bankers, developers, brokers, attorneys, SME owners and governmental officials.

landlord to sell it while they are renting. So escrow agents help accommodate that. We also deal with aircraft transactions, intellectual property and personal notes that people may have – in this instance if one family wants to issue a loan to a family member or another family to help set up a business, interest free, and to be paid over a period of 15 years, then we arrange the terms and conditions and cheques are regulated and paid through us.

Taking into consideration that SMEs often run on small budgets, how affordable an option is using an escrow agent for transactions? Has the cost been reduced in recent times as these services have become more widespread? We if you ask me the cost is not high but if you ask the customer then they will tell you it is too much! It’s like any other business – it’s all in volume and you need to have a certain APRIL 2011

standard operating cost. So naturally the more that a customer wants us to do for them, the larger the volume of work for us and the more the cost will have to go up. In this region the cost of escrow services are falling in line with costs around the world. Transactions can vary from the millions to the thousands depending on the clients, so costs will naturally vary according to this. But in the scheme of things, it’s an affordable service for SMEs as well as larger corporate companies – for peace of mind and security throughout the transaction and for a lot of the worries and logistical issues that the service handles, then the cost is good value for money.

SME ADVISOR MIDDLE EAST

Finance Jahangir Aka, Senior Executive Officer, SEI Investments Middle East

Prior to establishing SEI’s office in Dubai in 2008, Jahangir was responsible for sales and marketing initiatives in SEI’s London branch. He has also worked extensively for Standard Charted for over nine years in roles across Europe, Asia and the Middle East. Jahangir has been actively involved with entrepreneur mentoring groups in the UK. Within the UAE he has also helped develop entrepreneurship through the CERT Wharton EPIC Programme. What are your views on the SME segment and the financial difficulties many of them face? What I can see is that not everyone is learning the lessons they should have learnt from the last crisis. Yes people have been more cautious in recent years but sadly I think that 85 - 90% of people or businesses that I see will revert to old behaviour. The reason we write our papers is to highlight and make it more visible to people, no matter what it is, that you learn from what happened in the crisis – and that goes to all business, whether SME, investor, investment firms, and banks. SMEs cannot carry out due diligence with a two man team – businesses need to recognise that they need help from professionals and leveraging resources from third parties because they can’t go on taking risky decisions to save costs. As you specialise in due diligence, what financial elements of running and operating an SME do you feel need more efficiency? Well there is a better way for these businesses to manage their risk management in general. One element which could be re-worked for better efficiency is that of gratuity portfolios. Currently businesses finance this through their cash

SME ADVISOR MIDDLE EAST

What SMEs in the region need to do, for the protection of their employees, is separate the cash of their gratuity from their balance sheet as is done by businesses in the West and push the liabilities off their balance sheet. So if you invest $93 dollars this year it will be $100 dollars next year – this drives the cost of the company down and it’s a more efficient way of managing that liability

Jahangir Aka, Senior Executive SEI Investments Middle East

flow. In the West these things are called pensions, are better categorised and these are pots which the company will move aside and provide the employee protection with because they are separated from the cash flow of the company. As it stands now, here, if you have to pay out some cost you have to take it directly from your cash flow – there is no market growth driving savings or investment returns of equity. What SMEs in the region need to do, for the protection of their employees, is separate the cash of their gratuity from their balance sheet as is done by businesses in the West and push the liabilities off their balance sheet. So if you invest $93 dollars this year it will be $100 dollars next year – this drives the cost of the company down and it’s a more efficient way of managing that liability.

In your opinion what are the realistic options entrepreneurs and start-up SMEs have for seeking funding for their potential business? I think less of an issue is the bank issue, and the lack of funding being offered by banks. A good entrepreneur, in an environment like this where there is cash if you seek it, will be able to sell their idea, if APRIL 2011

indeed the idea is worth selling. A lot of the businesses that try and sell their concept and come to market are honestly weak. It’s so very difficult being an entrepreneur and part of that is having the ability to articulate the proposition and to sell the proposition. If your idea is good enough and you are determined enough you will find someone to invest in your idea. This region, contrary to popular belief, has plenty of capital, whether it is domestic or foreign. Between the local capital and the expatriate communities there are plenty of doors to go knocking on! I don’t know a brand new start-up that has received a big chunk of change to set itself up, whether it is in the UK or whether it is here. When seeking funding for a business, entrepreneurs and start-up SMEs need to look for the three Fs: friends, family and fools. When I say fool I mean it in the sense that everyone else might see that person as a fool but, regardless, they have the confidence and vision and belief to persist with it and attract people who are willing to be fools with you and to back an idea that everyone else sees as unworkable.

SME ABOUT TOWN >>> CIO MENA Summit >>>2011 ???

Business made easier THE CIO MENA Summit 2011, FROM 2ND - 4TH OF MAY, promises to build on the success of last year’s event, with a number of different channels to execute and promote business. The business model is built around the success of targeted oneon-one meetings and focused interactive workshops.

CIO MENA Summit 2011 Dates: 2nd – 4th May, 2011 Location: The Ritz Carlton Sharq Village & Spa Overview: This C-level event, which is reserved for 100 participants, includes expert workshops, facilitated roundtables, peer-to-peer networks and co-ordinated technical meetings.

Among those topics which have been highlighted for extensive discussion and debate on the event’s agenda is the recent strategic agreement between Optimus Technology and Telecommunications, a Value Added Distributor (VAD) of IT and telecommunications products, and, global vendor, Netgear. For SME owners in this region looking for networking solutions, life just got a little bit easier. The deal will give Optimus capability to distribute its range of products designed specifically for the SME segment across the Middle East and Africa with exclusive distribution rights in countries such as Qatar, Kuwait and Oman. According to Suraj Thampi, Group CEO Optimus, the ground-

breaking partnership is a win, win for both companies: Optimus was looking to add a strong midmarket networking and storage brand, while Netgear was looking for a distributor that could offer a suite of value-added services and product distribution. “This partnership is very important as it provides access to a range of mid-market networking, storage and security solutions that are technically strong, yet highly price competitive. Netgear solutions complement Optimus by enabling it to provide a solution offering in the SME space,” Thampi said. One of the other major issues which will receive review will be the results of an international workplace study, which has revealed that 60% of global

workers believe being in the office is longer needed to be productive. It’s an increasingly common challenge for IT departments: how to manage information across an infrastructure that increasingly extends beyond the boundaries of the enterprise. Consumer hardware such as smartphone’s, tablets and netbooks have become common currency within the enterprise, while communication tools such as Skype and social media channels like Facebook and LinkedIn have rapidly advanced the cause of the mobile worker. Demand to work anywhere, anytime is stronger than ever before. But the changing nature of the way employees interact with information is causing CIOs major headaches – not least in MENA where the use of smartphones and other such mobile devices is expected to witness rapid growth over the next few years. The global smartphones market alone is estimated to reach US$258.9 billion in 2015 from about $85.1 billion last year, according to US-based research firm M&M. Highlighting this shifting dynamic, Cisco recently evaluated the workplace study, noting that three out of every five workers around the world feel they do not need to be in the APRIL 2011

office anymore to be productive. Dave Evans, Futurist and Chief Technologist for Cisco’s Internet Business Solutions Group, feels that the report findings reflect the fact that remote and mobile workforces are now considered business-as-usual for most firms. “Employee mobility is a fact of life, and the business advantages are clear across many industries,” he says. “While this report does identify real challenges for businesses, it also spotlights an opportunity for IT to enhance its relationship with employees and its role as an adviser and educator.” “Simply put, this report serves as a call-to-action for IT organisations,” says Evans. “Work is not a place anymore. It’s a lifestyle, and the IT profession’s role is only going to get more strategic as it tries to help businesses stay agile and increase productivity.”

ABOUT: This closed door session, hosted by GDS International, features leading figures from the MENA IT sector, including Jay Bauer, President of STI Systems, Justin Doo, Director of Security Practices Emerging Markets for Symantec, Mohammed Al-Mandeel from the Council of Saudi Chambers and Farhan Mazhar from BP. The summit will provide a number of different channels to execute and promote business. The business model is built around the success of targeted one-on-one business meetings and focused interactive workshops. Other key issues that will be covered include strategic outsourcing, building a comprehensive virtualisation strategy to achieve cloud computing, maximising enterprise IT security performance and the role of IT in the coming decade. CPI publications, including SME Advisor Middle East www.smeadvisor.com, Computer News Middle East www.computernewsme. com, Security Advisor Middle East www. securityadvisorme.com and Network World Middle East www.networkworldme.com, will be among the Media Partners for the event. For more information, visit www.ciosummitmena.com

SME ADVISOR MIDDLE EAST

SME ABOUT TOWN Dubai SME

<<<

Recognising quality Dubai SME, an agency under the Dubai Department of Economic Development (DED), mandated to develop the small and medium enterprise (SME) sector, AND announced the launch of Dubai SME 100, the first-ever ranking of top-performing and fast-growing SMALL AND MEDIUM ENTERPRISES in Dubai.

The rankings aim to recognise and celebrate the SMEs that have made a difference to Dubai’s economic landscape, while also establishing clear benchmarks to enable the creation of bigger, better, sustainable and globallyoriented enterprises. Dubai SME 100 follows the successful launch of the first official definition of SMEs in Dubai in 2009, which is defined as any Dubairegistered firm with a turnover of up to AED 250 million and employs up to 250 staff. The Dubai SME100, which will rank SMEs based on their performance across a set of financial and non-financial parameters, will now serve as a strong credential for enterprises to access new markets and funding for capacity building and expansion. The launch of Dubai SME 100 is in line with the core strategy of

SME ADVISOR MIDDLE EAST

Dubai SME to nurture promising and growing SMEs, and to make Dubai the global entrepreneurship and SME development hub. It indicates the enhanced focus of the Government of Dubai on SMEs as an enabler of long term social and economic development. “Dubai SME 100 will objectively indicate the competitive positioning of the top SMEs and also serve as an invaluable tool to identify the capability development gaps of SMEs and address them,” said His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Economic Sector Committee and Chairman & CEO of Emirates Group. The ranking also recognises the growing importance of SMEs as a driver of innovation, entrepreneurship and economic diversification as well as a major employer and supplier to key industries. The SME sector comprises 95% of the enterprise APRIL 2011

The Dubai SME100, which will rank SMEs based on their performance across a set of financial and non-financial parameters, will now serve as a strong credential for enterprises to access new markets and funding for capacity building and expansion

population, 42% of the workforce and accounts for 40% of the annual gross domestic product in Dubai. “I am happy to note that the Dubai SME 100 seeks to rank top SMEs based on a set of financial and non-financial dimensions. It will serve as an invaluable, holistic tool to identify the capability development gaps of SMEs and address them effectively. “We need to further enable the creation and development of quality enterprises that are innovative and globally-oriented. Dubai SME 100 will serve as a foundation for other SME initiatives including the possible development of a SME secondary listing and the building of an equity market dedicated to SMEs,” said H.H. Sheikh Ahmed. H.H. Sheikh Ahmed also discussed the pending SME draft legislation, noting that it was the clear intention from the outset to achieve consensus among all partners, and by all the Emirates “We have been meeting with economic departments, chambers of commerce, specialist SME foundations, funds and programmes. In addition, we met with the federal departments concerned, including the Central Bank, Ministry of Labour and Ministry of Finance,” he said. In addition he noted that after receiving input, comments and suggestions from all partners, a final unified definition will be presented by June, at which point it will be submitted to the Cabinet for approval.

Financing H.H. Sheikh Ahmed outlined the elements which needed continued effort when he spoke of financing for SMEs. “Financing remains the greatest challenge and it needs strategic partnership between

SME ABOUT TOWN

SME Dubai SME 100

across a set of Will rank SMEs based on performance ers. met para l ncia -fina financial and non the official definition Independent entities falling under can apply for the ai Dub in d stere regi of Dubai SMEs and e years audited thre t leas ranking provided they have at ts. financial statemen only be done online. Applications and submissions can and the judging d tliste shor be will ions Eligible applicat interview with the l fina a panel will conduct site visits and ber 2011. Octo in ing rank the cing oun CEO before ann es will be gori cate ific spec Top achievers overall and in y. mon cere ial spec honoured at a

governmental departments and the private sector to tackle this. Today we have several major banks and financing institutions eager to play a major role in supporting the SME sector and the Minister of Economy has also been working extensively with our federal and local SME partners on a number of ideas regarding establishing a specialised fund for national SMEs,” he said. Impressive progress has been made by the leaders of Dubai to seek advice from outside experts and there have been MoUs signed with Germany and South Korea to provide SMEs here with strategic advantages such as increasing national production and re-export by entering into joint ventures. A similar MoU has been prepared for signature with Italy also. As a final point, H.H Sheikh Ahmed highlighted several other strategic steps to aid SMEs in getting the best start possible. “We have asserted the importance of allocating a percentage of governmental purchasing contracts and services to SMEs. We have also included a whole range of incentives for SMEs that include minimising fees and licenses to waiving fees completely for the first three years for national SMEs,’ he said.

Since 2002 the Government of Dubai, through Dubai SME, has successfully facilitated creation of more than 5,000 start-ups and SMEs. His Excellency Sultan Bin Saeed Al Mansoori, UAE Minister of Economy, reinforced this fact at the launch and emphasised the integral role of SMEs in Dubai. “Small and medium enterprises are uniquely placed to attract much-needed private equity into our economy. In many developed economies, high performance SMEs are supported by financial markets. SMEs also have the flexibility, variety and adaptability to lead diversification like no other. “The new businesses have created jobs, added new products and services to the Dubai and UAE markets, some major suppliers to the public and private sectors; and some have even successfully internationalised, flying the UAE flag high,” he said. Independent entities falling under the official definition of Dubai SMEs and registered in Dubai can apply for the ranking, provided they have at least three years audited financial statements. The non-financial metrics, which sets Dubai SME 100 apart from other ratings, include

Independent entities falling under the official definition of Dubai SMEs and registered in Dubai can apply for the ranking, provided they have at least three years audited financial statements

APRIL 2011

innovation, international orientation, human capital development and corporate excellence. This will also help SMEs to identify capability gaps and address them. Applications and submissions can only be done online. Eligible applications will be shortlisted and the judging panel will conduct site visits and a final interview with the CEO before announcing the ranking in October 2011. Top achievers overall and in specific categories will be honoured at a special ceremony. Dubai SME is mobilising support from the government and private sectors, including banks and other financial institutions to optimise participation in the ranking. More than 830 eligible SMES have already been nominated by banks and other stakeholders. “The development roadmap for SMEs is taking concrete shape with the official SME definition and now the launch of the Dubai SME 100. The ranking is a milestone for Dubai and will enable us to identify and address gaps in our SME development. It will bring tangible benefits to the economy of Dubai and the UAE,” said Sami Al Qamzi, Director-General of the Department of Economic Development in Dubai. His Excellency Abdul Basit Al Janahi, CEO of Dubai SME termed the rankings as a logical evolution in Dubai SME’s efforts over the last eight years to serve as a catalyst for developing entrepreneurship and SMEs. “Our efforts will now gain further traction with Dubai SME 100 and encourage us to launch new and effective programmes. The 100 SMEs in the roll of honour will be able to gain recognition, increase brand equity, attract investors and earn considerable goodwill and otherindirect benefits,” Al Janahi added. SME ADVISOR MIDDLE EAST

SME ABOUT TOWN TECOM SME Builder <<<

Building the foundations for success More than 100 representatives from the small and medium enterprises sector participated in the 13th edition of the TECOM SME Builder event WHICH offered tips to SMEs on establishing a legal presence in the UAE and approaching banks for working capital. An initiative of TECOM’s Partner Development Management (PDM) department, TECOM SME Builder is a platform for small businesses to gain access to experts and consultants in different operational aspects of the industry. The initiative was created on the back of positive projections that recognise the role of the SME sector in the growth of the national economy. Held on 24th February at the Dubai Knowledge Village Conference Centre, the workshop featured presentations on Establishing a Legal Presence in the UAE by Therese Abou-Zeid, Senior Legal Consultant, DLA Piper Middle East, as well as on What banks look for in SMEs by Vikram Venkataraman, Finance Expert, Salvus Strategic Advisors. Therese Abou-Zeid said: “SMEs are regarded as the backbone and main driver of the UAE economy. Such businesses continue to play an extremely significant role through employing a large number of people. This makes it imperative for such units to comply with the legal and regulatory framework at the time of establishment and thereafter.”

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Therese Abou-Zeid deliberated on the options available within TECOM, licensing regulations, cost, documentary and procedural requirements, as well as statutory obligations. Vikram Venkataraman offered his insights into the key aspects banks look for while offering credit, ways to understand a banker’s mind and skills for negotiating with a financial institution. Dr. Ayoub Kazim, Managing Director of TECOM Investments Education Cluster, said: “SMEs are one of the most viable contributors to economic development. TECOM SME Builder aims to support the county’s growing sector by offering a platform to encourage exchange of knowledge and best practices. “The discussions stimulated by the workshops are gaining increasing significance among small and medium-sized business owners who are in dire need of industry expertise and effective solutions.” The triannual workshops provide the ideal environment for owners of small and medium enterprises to upgrade business management skills and widen contacts within their specific business segment APRIL 2011

“The discussions stimulated by the workshops are gaining increasing significance among small and mediumsized business owners who are in dire need of industry expertise and effective solutions.” - Dr. Ayoub Kazim, Managing Director of TECOM Investments Education Cluster

for greater synergy. In addition to SME owners, membership to SME Builder is open to even those who are considering the prospects of launching their own business. Qlina Alemai, Media Manager, Spear Advertising, said: “This is the first time that I have attended the TECOM SME Builder workshop. The highly informative session with different experts gave me the right guidance on how to go about setting up my own company.” The 13th edition of TECOM SME Builder was partnered by SME Advisor ME and organised in conjunction with participating experts from TECOM Investments’ business partners such as Salvus Strategic Advisors, business en motion, Envestors, Flagship Consultancy, The Referral Institute, Arabianbusiness.com, Bayt.com, RealHR, Integris Law Group, DLA Piper, Platinum CPD, Potential and Disruptive Play.

SME ABOUT TOWN >>> DemoCamp Series >>> 2011 ???

DIC MATCHMAKE ENTREPRENEURS AND INVESTORS As announced in last month’s issue of SME Advisor, DIC are bringing their DemoCamp to budding entrepreneurs and business enthusiasts. With an overwhelming application response, the event, being held on the 27th April, promises to be an eventful evening. Entrepreneurship is no longer just about a few geeks getting together, a laptop and a good business concept. In the Middle East, this community has grown over the years mainly because with a total population of almost 300 million in the region, two-thirds fall in the under-30 age group. These young entrepreneurs have a lot of unanswered questions including: Where do we start?, or where do we find investors? These questions are fundamentally relevant to take any idea to its next level in business. Currently forums to talk about entrepreneurship are

lacking, and most essentially platforms to display their innovations are not always available. However, this challenge can serve as an advantage for the young business individuals in the region. With a high percentage of the population constituting youth, entrepreneurship is set to take the region to its next level of growth. But with this, young innovators face challenges such as lack of family support, lack of proper business mentoring and most importantly lack of initial investment. As one of the most successful ICT clusters in the region, Dubai Internet City has always taken various initiatives to support entrepreneurs especially SMEs.

Providing the right platform in the form of events and workshops has helped budding entrepreneurs interact with investors and venture capitalists from an early stage. Many of them have also been encouraged and influenced by industry mentors at such gatherings. Malek Al Malek, Managing Director of Dubai Internet City and Dubai Outsource Zone, both members of TECOM Investments’ Information and Communications Technology Cluster, said: “Most of the large global brands have established their presence in the Middle East to tap the potential of the region that has become a hotspot for investors and VCs. There is truly an abundance of talent and the right environment to incubate ideas in the country. They just need direction and support to grow their idea into a successful business proposition.” One of the most successful events conducted by DIC is DemoCamp, which is modelled on the DEMO conference being organised in the US for more than a decade. It is a gathering of venture capitalists and corporate high-tech investors to watch demonstrators present their efforts. APRIL 2011

The first of the four-part series of DemoCamp in 2011 will be held on 27th April. James Oliver, Sales and Marketing Manager at The Question Company, and a participant from the last DemoCamp held in Dubai, said: “Events like DemoCamp are vital, especially in this region to raise the spirit of entrepreneurship and widen awareness. It offers a platform to present their ideas to the VCs and the local media in order to obtain finance and get vital exposure. This is why events such as DemoCamp help connect the two and make young entrepreneurs realise the availability of financial support should they need to launch the business in the region.” The Middle East’s young population is an added advantage. In spite of being present in an emerging market, the region, especially the UAE, is being viewed as a fertile ground for breeding young talent. In addition, investors and global players are keen to invest in the market, providing additional opportunities to budding men or women entrepreneurs. Simon Nestel, CEO of Keychain Desktop, another participant, believes that DemoCamp is a perfect platform to demonstrate next generation technology to an audience of aspiring Emirati and expatriate youth who believe their destiny is the creation of the next Facebook or Twitter. DIC has already received interesting submissions from young innovators for the upcoming DemoCamp on 27th April. These enthusiasts will address a group of investors with the hope of attracting potential investment to crystallise their ideas. SME ADVISOR MIDDLE EAST

SME ABOUT TOWN FOREIGN MARKET CO-OPERATION <<<

Developing business links between GCC, India and China Dubai School of Government hosted an engaging panel discussion highlighting the changing dynamics driving trade between the GCC, India and China. While it was agreed milestones had been reached, participants and attendees agreed more had to be done. Building bridges through business: China, India and the GCC, the event was held in collaboration with APCO Worldwide, an, independently owned, global communications consultancy firm. The panel discussion highlighted the private sector’s leading role in driving the development of new business ties between the regions. Dr. Tariq Lootah, Executive President of Dubai School of Government (DSG), moderated the interactive discussion and began the event by addressing the need for further cooperation between both governments and businesses in the regions. “While countries in the GCC have for many years forged relationships with Western markets, there has been an economic shift from West to East. China and India are fast emerging as economic power-houses and as such it is important that the GCC make every effort to build sustainable relationships,” he said. Panellists included Margery Kraus, Founder and Chief

SME ADVISOR MIDDLE EAST

Executive Officer, APCO Worldwide, Lalit Mansingh, former Foreign Secretary of India, and James McGregor, journalist, author and a specialist on China. Each panellist is a member of the APCO Worldwide International Advisory Council (IAC), a global team of more than 20 international former government officers and experienced diplomats who provide high-level strategic insight on the opportunities and challenges facing business. Each panel participant examined the untapped resources available to help GCC-based businesses expand into the Chinese and Indian markets. They also highlighted the common misconceptions and the least understood aspects about doing business in the GCC, China and India, as well as the social and cultural initiatives that can effectively prepare public audiences for increased interaction. “The centre of gravity has shifted somewhere between Dubai and Shanghai and the APRIL 2011

recent global economic crash only served to accelerate this. OPEC recognised this shift long before the curve which is why we sought to make investments further east as far back at the 1980s. The markets of the West are now markets of consolidation and the economies of the East are fast emerging as the new growth markets,” said Margery. OPEC has been advising its clients how to survive in foreign markets for over 25 years – it has been our objective to teach businesses how to survive in foreign, less known markets. It has as much to do with cultural differences and preferences in foreign markets as it does economic considerations. What we really aim for is to assess the return on reputation (ROR) – not just the return on investment,” she said. Ambassador Lalit spoke of the historic economic and political cooperation between India and the GCC nations, noting that at present the largest single expatriate group in the GCC is Indian. “Political cooperation at national level needs to be increased. Within a couple of years an agreement should be in place for free trade between India and the GCC, which will no doubt be a boost for both

markets,” he said. The India-GCC Strategic Partnership Study Group held in Riyadh late last year placed trade exchange between the two markets above AED 235 billion in 2009.Statistics released by Dubai Customs in January 2011 show India holding the biggest share of non-oil trade transactions, valued at AED 123 billion, or 26% of the total. At the moment China is Dubai’s second largest non-oil trade partner, with a total of AED 37 billion. “The position of both regions economically and geo-politically brings a closer relationship inevitable,” said James McGregor. “But your business in China has to be good for China – it’s not enough just to make money. The hierarchy has to be considered in that big business is state owned by communist party and as such there are always political considerations as well as economic when decisions are being made. In concluding the discussion Dr. Tariq Lootah said: “At DSG, we strongly believe in the importance of bridging cultures and promoting Dubai’s role as a strategic hub for global commerce and industry.”

Trade >>> GENERATING SUSTAINABILITY

Innovation and creativity At the core of all successful businesses is the ability to harness creativity in a profitable and sustainable manner. Not all ideas that are implemented will be successful but the ones that are will go on to help support an innovative workplace says Dr. Ashraf Mahate, Head of Export Market Intelligence at Dubai Exports, and Vice Chair of the Economic Policy Committee, Dubai Economic Department.

Creativity is largely viewed as the mental process of generating ideas. Innovation on the other hand is the process that leads on from creativity and seeks to exploit the ideas so as to generate either a revenue or cost saving. Therefore, innovation results in a new or enhanced product, service or procedure. On the surface it seems a very easy process in that one simply needs to generate ideas which

can then be turned into profitable outcomes. However, the reality is far from this as the process leading to the generation of ideas cannot be switched on or off on demand.

Agilityâ&#x20AC;&#x2122; openness a sprinkle of risk Various studies have found that creative organisations are those that encourage an open and honest exchange of ideas within their staff as well as with key stakeholders. Creativity

APRIL 2011

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and innovation do not occur neither at will nor in a vacuum and need the right environment which includes appropriate strategies, frameworks as well as incentives. As such organisations need to be risk takers to a certain extent so that some of the ideas are put into practice. The same studies have found that organisations that are rigid in their nature and not prone to test new ideas tend to kill or at least stifle creativity and innovation. At the same time management needs to understand that they cannot manage the creativity process but simply manage the environment that supports the creativity process. The reason for this is that creativity may start in a single individualâ&#x20AC;&#x2122;s head but is structured and documented through interactions with those inside and outside the organisation. Creativity and innovation tend to have two key drivers which arise from the demands of the market whereby it seeks to satisfy customer needs. Second, innovation is supply led whereby firms develop a particular product or service and then push it onto the market. Technology plays an important role in allowing certain innovations to take place but this itself is not sufficient for creativity to take place. The famous management guru Peter Drucker listed seven sources of innovation namely unexpected occurrences, incongruities of various kinds, the particular needs of a process, the changing trends in an industry, demographic changes, changing perceptions of the company and/or the product and finally improvements in knowledge. Of course, there is nothing to say that a particular innovation

SME ADVISOR MIDDLE EAST

Various studies have found that creative organisations are those that encourage an open and honest exchange of ideas. Creativity and innovation do not occur at will, nor in a vacuum. They need the right environment which includes appropriate strategies, frameworks as well as incentives. As such, organisations need to be risk takers to a certain extent so that some of the ideas are put into practice

may not arise from two or more of the above sources. The importance of creativity and innovation in creating and ensuring a competitive advantage has meant that many companies have sought ways of increasing it within their organisations. Large organisations can spend vast sums of money on hiring talented people and installing specialised infrastructure to support their innovative process. However, this option is not always available to the SME sector. More often than not SMEs need to be resourceful in devising ways in which to be creative and spur the innovative process. The main technique that is commonly applied to increase creativity and innovation in the workplace is creating group based assignments and tasks. It is generally accepted that group based tasks can lead to a high level of interaction that leads to changes in both the process and the product or service. One reason for this is that groups tend to perceive the same problem in very different ways. In doing so the interaction between them leads to a discourse that promotes changes and the adoption of new ideas. This is more so the case where the group is diverse in its structure, knowledge and skills. The diversity implies that a problem that may not have been able to have been solved by a single individual is more likely with a blend of knowledge and skills.

Integration Although, group based assignments with team members who have a diverse range of skills and knowledge is important, it is, in itself, not sufficient. For groups to fully exploit their knowledge and skills the team members need APRIL 2011

to be integrated. In many ways this is a key advantage of SMEs who tend to be small in nature and hence all the team members work in close cooperation. However, research has also shown that this can be a major disadvantage especially for family based SMEs. Family owned SMEs have certain unique issues the most important of which is family feuds. In other words family members are tied at home and in the workplace and hence cannot easily differentiate personal arguments or disagreements from professional ones. From a regional perspective the family hierarchy may not operate in the workplace and hence members find it difficult to differentiate between the two. In other words the elder sibling may have authority at home but a younger family member is the head of the business and hence the two may end up in a conflict. Moreover, nepotism is a problem that is not limited to family businesses but is more relevant especially where certain family members are favoured over others. In other words positions are given on the basis of family relationships rather than ability. This is more important in the region whereby the siblings may have different maternal lineage. The emotional attachment to the business implies that family members may not be able to make rational or objective decisions. This emotional attachment tends to restrict the flow of creativity and innovation as change is disliked. In the ordinary business world decisions need to be made objectively for the long term survival of the firm and to ensure its growth. Group based assignments in family owned SMEs tend not be as

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productive as in non-family owned businesses because they alienate non-family members. The alienation may not be direct but could be indirect whereby decisions are made at home to the exclusion of other relevant staff. Then there is the issue of motivation in that family members may occupy key positions and nonfamily members feel that they have reached a glass ceiling. Therefore, any rewards from creativity or innovation may not be equitably shared. For firms to maintain their national competitive advantage creativity and innovation are important but can also encourage them to enter foreign markets. In fact, at the basic level exporting oneâ&#x20AC;&#x2122;s products or services to other countries itself can also lead to innovation as the company seeks to satisfy different tastes and market segments.

The main technique that is commonly applied to increase creativity and innovation in the workplace is creating group-based assignments and tasks. It is generally accepted that Creating the necessary group-based tasks can lead environment At the microeconomics level to a high level exporting allows the firm to of interaction recoup the investment incurred that leads to in arriving at the innovation as well as profiting from economies changes in both the process and of scale. Therefore, in many respects innovation is closely the product tied to exporting. If this is the or service. case the real question is: why is One reason there not enough emphasis on for this is that building creative and innovative groups tend organisations within the SME to perceive sector? This question can be answered by looking at what are the same the pre-requisites to a creative problem in very and innovation environment. different ways Some of the important aspects towards leading to an innovative environment are as follows:

i) A clear mission statement that allows for calculated risk taking that values innovation and promotes individuals to

SME ADVISOR MIDDLE EAST

APRIL 2011

Dr. Ashraf Mahate, Head of Export Market Intelligence at Dubai Exports (formerly known as the Dubai Export Development Corporation), an agency of the Dubai Economic Department; and Vice Chair of the Economic Policy Committee, Dubai Economic Department

challenge the status quo in a structured and constructive manner. ii) Integration across the organisation so that employees understand how a particular situation or problem impacts on the rest of the firm. Also, the integration brings about a greater diversity of knowledge and skills which promotes creativity and innovation as highlighted earlier. iii) To make all staff responsible for innovation and to provide them with the appropriate resources. iv) To create a physical environment that promotes creativity and innovation with meeting points, quite areas for thought, and so on. v) Communication tools that facilitate knowledge management and sharing throughout the organisation so that new ideas are widely dispersed to ensure their adoption and feedback. vi) A performance measurement system that measures the creativity and innovation within the organisation so that the outcome and impact becomes a learning tool within the firm. The above refer to the physical and organisational aspects of creativity and

innovation. These aspects need to be accompanied by appropriate rewards and incentives in order to encourage creativity and innovation throughout the organisation rather than from a handful of employees.

ABOUT: Dr. Ashraf Mahate is the Head of Export Market Intelligence at Dubai Exports (formerly known as the Dubai Export Development Corporation), which is an agency of the Dubai Economic Department. Dr. Mahate is also the Vice Chair of the Economic Policy Committee with the Dubai Economic Department. He has written a number of journal articles, chapters in books and edited books in the areas of economics, finance and banking. He has also presented papers at major international conferences. Dr. Mahate has provided extensive consultancy services to various organisations in the areas of banking, economics and finance. He has been a director of a number of companies including a venture capital company and a private equity fund. Dr. Mahate received his doctorate from Cass City University Business School in London (UK) which was ranked by the Financial Times newspaper as the 12th best university in the world for finance. He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London). He is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS).

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Success Through Exports Date: 20th April 2 011

Take your business to the next level. Find new markets and opportunities for your products and services.

Venue: Grand Hyatt , Dubai

AGENDA: 8:30 am:

Doors open, breakfast and networking

9:00 am:

Opening address: Saed Al Awadi, CEO Dubai Exports

9:07 am to 9:10 am:

Brief welcome and acknowledgements by SME Advisor Middle East

9:10 am to 9:30 am

Trade finance innovative solutions for SMEs

(5 minutes Q&A) 9:30 am to 9:50 am

Keynote Speaker – Notable business leader

9.50am to 10.10am

www: Your gateway to exports – Can web technologies and social media

(5 minutes Q&A)

platforms change your export business?

10:10 am to 10:25 am

Break and then move to parallel sessions in breakout rooms (choose one) Parallel session #1 Effective exporting techniques

10:25 am to 10:40 am

How to prepare your company for the

Followed by 10 min Q&A

next step of growth through exports

10:50 am to 11:05 am Followed by 10 min Q&A

Parallel Session #2 Managing export risk

Parallel Session #3 Reaching global customers

Export risk mitigation techniques

How to manage international customers

Franchising, agents and distributors

Protecting your intellectual

Global logistics: Value chain management

as a foreign entry route

property rights

– Getting better in managing supply chains is key to profitability

Break and move back to the main hall

11:15 am to 11:25 am

Our story - Succeeding as an exporter (Applying the day’s lessons to real-life examples) 11:25 am to 11:40 am

Export success case study 1: Gulf extrusion – Entry into Europe

11:40 am to 11:55 am

Export success case study 2: Dofreeze – Global food exports

11:55 am to 12:30 pm

Open house for Q&A with all speakers

12:30 pm to 1:30 pm

Lunch

1:30 pm to 2.30 pm

Meet the experts - Informal sessions for private one-to-one consultations PRESENTING PARTNER

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Industry watch highlighted in the study is a centralled organisation with collaboration across business units. Users of this model achieved savings greater than 10% over the last two years in 47% of categories. However, the 2010 study clearly shows that the adoption of these advanced techniques in the region has taken place at a much slower rate than anticipated. More than two-thirds of respondents measure financial and internal key performance indicators such as addressable spend, identified savings and addressable categories. But less than half of the respondents track compliance management metrics such as spend integrity or accuracy and supplier commitments, scorecards and reviews.

Indirect procurement <<<

Shifting the focus Global management consulting firm A.T. Kearney recently released the results of a global study, WHICH indicate that fragmented processes, transparency and compliance issues are evident in the Middle East.

The global survey showed that indirect procurement categories like IT, marketing and advertising, facilities management, MRO (maintenance repair order), logistics and professional services have become increasingly important to chief procurement officers and their organisations. Indirect spending of companies accounts for 60% of third-party spend in non-manufacturing companies, more than 90% in the financial services industry and sometimes 50% of spend in manufacturing organisations,

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according to A.T. Kearney. The respondents included procurement executives from 94 multinational companies with a combined indirect spend of $134 billion. “Given the fact that in the Middle East companies have grown very fast without a strong focus on procurement, the potential value in terms of savings and value improvements in the region is much higher than in the rest of the world,” said Frank Thewihsen, Vice President, A.T. Kearney Procurement and Analytic Solutions. The most successful indirect procurement organisational model APRIL 2011

Frank Thewihsen, Vice President, A.T. Kearney Procurement and Analytic Solutions

ABOUT: A.T. Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Their offices are located in major business centres in 37 countries. From their Middle East offices in Abu Dhabi, Bahrain, Dubai and Riyadh, A.T. Kearney supports both private and public sector clients. For more information, visit www.atkearney.ae

“The good news is that with the financial crisis and recession, executives managing indirect procurement have gained substantial influence within their organisations,” said Thewisen. “Indirect procurement still has a low priority within organisations in the Middle East and companies in the GCC need to invest in better trained and experienced procurement professionals, in transparency of their procurement spend data and upgrade their procurement departments from a pure tactical, operational task to a strategic approach.” The Indirect Procurement Study also shows that outsourcing of procurement has shifted its focus from business process outsourcing to close collaboration with managed service providers for specific spend categories like facility management, fleet and travel.

Industry watch Strategy coherence <<<

Biting off more than you can chew According to a Booz & Company survey, executives say they’re pulled in too many directions; their company’s capabilities don’t support their strategy and, in all surveyed industries, the majority feel that their companies lack coherence. With more than 1,800 executives questioned, there was a consistent trend whereby many struggle with setting a clear and differentiating strategy, ensuring that day-to-day decisions are in line with their strategy and allocating resources in a way that supports the strategy. Among those respondents were 120 executives from companies headquartered in the Middle East. The research also shows that companies with more coherence,

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where executives claim that strategy, capabilities and product offerings are in synch, perform better. “The survey results tell us that deciding on priorities is a huge issue for companies – and that actually linking priorities to decisions is a hurdle that few companies get past. We see this incoherent operating environment across industries and geographies, among all types of companies. It’s draining – and forcing companies to pay a significant penalty. We call it the APRIL 2011

“The survey results tell us that deciding on priorities is a huge issue for companies – and that actually linking priorities to decisions is a hurdle that few companies get past. We see this incoherent operating environment across industries and geographies, among all types of companies. It’s draining – and forcing companies to pay a significant penalty. We call it the incoherence penalty.” - Paul Leinwand, co-author of the just-released book: The essential advantage: How to win with a capabilities-driven strategy

incoherence penalty,” said Paul Leinwand, co-author of the justreleased book: The essential advantage: How to win with a capabilities-driven strategy. (Harvard Business Review Press, December, 2010. “Respondents from MiddleEastern companies share those challenges,” said Ahmed Youssef, Partner with Booz & Company. “For 63% of them ensuring that day-today decisions are in line with their strategy is a significant challenge. That’s a higher percentage than for any other region in the world.”

Executive frustration is palpable According to the survey; A great majority of executives (64% of the survey respondents) say that their biggest frustration factor is “having too many conflicting priorities.” Executives report that their biggest challenges are (a) ensuring that day-to-day decisions are in line with the strategy (56%) and (b) allocating resources in a way that really supports the strategy (56%). Half of the executives (50%) consider setting a clear and differentiating strategy a significant challenge. In fact, most executives (52%) do not feel their company’s strategy will lead to success. Only 21% say their company has a right to win in all the markets in which it competes. Most executives (81%) say growth initiatives lead to waste, at least some of the time. The vast majority of executives (82%) say functional departments in their companies get competing demands from different business units. Differentiating strategy: What is the company really good at? “The root of the problem is that too many companies grab too hastily for what seems like the next answer to growth. They don’t have a solid framework to decide which set of

Industry watch

opportunities will lead to sustainable success. They end up stretched thin, trying to play in too many disparate markets. The winners, on the other hand, stick to a well-articulated path to success. “They define the fundamental identity of their company by developing a clear idea of what it does best and how it creates value – and focus investment on the capabilities that matter. Growth then follows as a consequence of the strategy rather than as a set of separate and often unsuccessful initiatives,” said Booz & Company Managing Director and co-author Cesare Mainardi. The survey confirms that few executives find themselves in that kind of coherent environment: A significant number of executives (43%) say their company’s strategy does not fundamentally differentiate the company in the market. Nearly half of executives (49%) say their company has no list of strategic priorities. While most executives say their company has a clear way to create value, most (53%) say that this way is not understood by employees and customers. Similarly, most executives say their company has a clearly stated set of capabilities, but only a third of executives (33%) say those capabilities support the company’s strategy and the way it creates value in the market. Very few executives (21%) say all of the company’s businesses leverage the same set of capabilities. In fact, most executives (54%) say their company’ capabilities do not reinforce each other.

Problems with setting strategies “There’s clearly a problem with how a lot of companies set strategies. We passionately believe companies must choose what they will be excellent at – what they will do rather than just what they sell. The survey results, however, suggest that most companies take a somewhat incoherent approach,”

“The root of the problem is that too many companies grab too hastily for what seems like the next answer to growth. They don’t have a solid framework to decide which set of opportunities will lead to sustainable success. They end up stretched thin, trying to play in too many disparate markets. The winners, on the other hand, stick to a wellarticulated path to success.”

said Leinwand. “It’s not surprising that the fast economic growth in the Middle East accentuates the problem. The percentage of respondents (24%) indicating that their philosophy about strategy is to choose an attractive market and then figure out how to be successful in it – independent on their company’s capabilities – is nowhere as high as for companies headquartered in the Middle-East (35%), added Youssef.” Most executives (57%) say their company creates strategy by either “pursuing a broad portfolio of strategic options and spreading the risks” or by “choosing an attractive market and figuring out how to be successful in it.” Only 43% say their company’s philosophy about strategy starts from the inside – looking at what they’re great at and finding markets that capitalise on those capabilities. “It’s not surprising that, based on an algorithm applied to the

- Cesare Mainardi, Managing Director, Booz & Company

participants’ answers, only 13% of the respondents come from a company that we would deem coherent,” said Mainardi. “This percentage is even lower for respondents from companies headquartered in the Middle East: a mere 6%”, commented Youssef. (Based on a point system, the algorithm slates companiesintothreegroups–coherent companies, those on the journey towards coherence and incoherent ones.)

The coherence premium The survey results also point to the financial and growth rewards of coherence; Executives who say their companies have very few (one to three) firm-wide strategic priorities are the most likely to say their companies have above average profitability and revenue growth (compared to those having more firm-wide strategic priorities or no list of priorities at all). Executives who say their company’s capabilities support the company’s strategy are most likely to say profitability and revenue growth are above average. Respondents whose companies are deemed coherent by the Booz & Company algorithm are most likely to say profitability and revenue growth are above average. “Companies succeed when they have a well-defined set of differentiated capabilities that connect to their chosen way of competing and their portfolio of products and services. Unfortunately, few companies have these elements in what we would describe as a coherent strategy, and therefore don’t have a right to win in their markets,” Leinwand said.

ABOUT:

Ahmed Youssef, Partner, Booz & Company

APRIL 2011

Booz & Company is global management consulting firm, helping businesses, governments and organisations, with more than 3,300 people in 61 offices around the world.

SME ADVISOR MIDDLE EAST

Corporate wellness Health & Safety <<<

Damage control If you had a problem that was cutting down productivity in your employees by 35%, wouldn’t you do something to change it? What many SMEs are failing to recognise and address AREthe substantial losses incurred due to easily preventable sick days and low productivity resulting from poor ergonomics, says Dr. Sarah Peeters, an occupational health specialist based in Dubai. What is ergonomics exactly? To give you a simple definition; ergonomics is the science of people at work and of the level of fitness and health between people and their work. The primary aim is the adaptation of the working environment and conditions to the capacities of the worker, and not the other way around. Health problems in full-time office workers have been growing at a staggering rate over the last few decades. Longer hours, shorter breaks and more stress are just some of the reasons why we find ourselves glued to our desks every day. So, why if we’re spending more and more time at the computer, has so little been spent looking into comfort? The good news is that many of these health problems are easily preventable. Bad lay out of the office and poor design or use of the individual workstation are the leading causes – which is where good ergonomics comes in. Simply put, we’re talking about changing the environment around you. Do you complain of cold air-conditioning blowing on your head, the sun shining into your computer screen in the

SME ADVISOR MIDDLE EAST

afternoon, going home with a headache or red eyes and blurred vision, having sore shoulders, back and neck pain, numb fingers, wrist pain? These symptoms don’t sound so serious if they’re a one off. A lot of the time you could probably put it down to having a bad week. But what happens to productivity when employees are off sick for a few days from a bad migraine? Or can’t type efficiently due to wrist pain? The cost of easily preventable sick days and poor productivity is ultimately absorbed by the SME, and adds stress to the other employees left behind. Some of the common health problems arising or being aggravated by computer work with poor ergonomics are; Different international studies reviewed by NIOSH report that up to 75% of computer workers occasionally suffer from discomfort caused by eye strain. This includes red, burning or aching eyes, blurred vision and headaches. Musculoskeletal discomfort is even more common with rates of over 75% for the occasional experience of back, neck and shoulder pain and rates of 20 – APRIL 2011

Dr. Sarah Peeters, occupational health specialist, based in Dubai

25% for almost daily discomfort in the upper torso. While there is no evidence of permanent damage or impairment to the eyes from using computers, there are proven long-term health risks associated with musculoskeletal discomfort from computer use. These include musculoskeletal disorders (MSD), injury from repeated stress (RSI) or upper limb disorders (ULD). MSD, RSI or ULD cover a wide range of disorders caused by overuse of muscles, bad posture, and repeated tasks that can result in tenderness, aches and pain, stiffness, weakness, tingling numbness, cramps and swelling. So what about stress then? Discomfort, pain and aches, injuries or illnesses can lead to unhappiness, poor satisfaction at work and stress. It is likely to increase the number of days off work for medical reasons, which can again create extra stress which in turn leads to poor job satisfaction, performance impairment, errors, accidents and injuries and so a vicious circle can ensue. In conclusion, disorders

caused or aggravated by computer work are a significant problem with respect to ill health, productivity and associated costs for the employee, employer and community. But let’s not panic. Most of the discussed problems can be avoided by good workplace and job design, and by the way you use your computer and workstation. Simple and inexpensive solutions are within reach for everyone. Read next months’ article to see what ergonomics can achieve for you and your staff or colleagues.

ABOUT: Dr. Sarah Peeters is a trained occupational health specialist physician, based in Dubai. She received her training at the Catholic University of Leuven in Belgium, in 1990 and has since been working in Belgium and Dubai as a specialist in occupational health and safety. She has been serving a vast number of different small to large companies, both corporate and industrial, which allowed her to gain extensive experience in her field. The OHS areas of specific interest to her are offshore health, travel health and office ergonomics. For more information conatct Dr. Sarah at occmediadubai@hotmail.com or call +971 (0) 50 859918.

CORPORATE WELLNESS SIGN OFF <<<

Are you packing protection?! the full force of the summer sun is returning and with it the dangers of sun exposure ESPECIALLY WHEN OUT AND ABOUT ON MEETINGS. Protecting your skin doesn’t have to be a laborious chore says Guillaume Mariole, Managing Director of Ignite fitness and wellness.

The extreme summer months will no doubt involve leaving the comfort of our air-conditioned offices and cars to be struck with what will resemble putting our heads in oven. But never mind the effects that cause us discomfort. What about the all-important matter of sun protection? You may not be dressed in a bikini but your hands and face will be subject to the glaring rays - and your legs and arms, depending on what you’re wearing. With this in mind, follow our top tips to stay safe in the sun and in turn, keep those wrinkles at bay. Here are a few easilyfollowed tips to consider: Apply sunscreen with a sun protection factor (SPF) of 30 or greater every morning as a matter of habit. Men are notorious for not wanting to wear sunscreen because they don’t like the way it feels or they perceive it to be

SME ADVISOR MIDDLE EAST

greasy. If this is the case, opt instead for sprays or gels. The higher alcohol content in these products is often more tolerable than creams or lotions. Select cosmetic products and contact lenses that offer UV protection. Wear sunglasses with total UV protection as eyelids and the skin around your eyes are common sites for skin cancer and sun-related aging. Sunglasses also help reduce the risk of cataracts. Wraparound shades are best. Try to stay away from mirrored sunglasses, such as Aviators, because they intensify the sun’s rays which can ultimately damage your eyes. Cover up your skin as much as you can. Long-sleeved loose cotton or linen mix pants / dresses will still keep you cool but if you can bear it, wearing tightly woven fabrics and darkly coloured clothes will block more UV rays than wearing thinner, lighter-coloured APRIL 2011

Guillaume Mariole

fabrics. If you can see light through a material, UV rays can get through too. If you work in fairly casual dress, wear a hat, a cap or a visor if out and about during the day. The broader the brim, the more preventative as the ears, scalp, face and neck are particularly sensitive and susceptible to damage when exposed. Pick a table in the shade when having an al fresco lunch or coffee. Avoid direct sun exposure as much as possible during peak UV radiation hours between 10:00am and 3:00pm. Perform skin checks regularly to become familiar with existing growths and to notice any changes or new growths. If you spot any changes, get them checked out immediately. They are probably nothing to worry about but you cannot put a price on your peace of mind or catching anything early. Take note that some prescription medications, such as acne treatments and birth control pills, increase your skin’s sensitivity to the sun. If you’re taking these medications, increase your sun protection If you are a parent, bear in

mind that 80% of a person’s lifetime sun exposure is acquired before age 18 so be a good role model and foster skin cancer prevention habits in your child. Finally, if you truly love the idea of having a sun-kissed glow, fake it instead. There are a number of places in Dubai where you can get a fasteffective spray-tan in minutes. Ultimately, with the climate we have here in the UAE, we need to take greater care than most and although sunshine helps the body to produce vitamin D and also helps to combat symptoms of depression, experts agree that there is no such thing as a safe tan. Our risks of sunburn and skin damage are very real but by taking the preventative measures highlighted here you will minimise that risk, protect yourself from potential skin problems or disease and keep ageing at bay – if that’s not an incentive then what is.

ABOUT: Guillaume Mariole is the Managing Director of Ignite fitness and wellness. For more information visit www.ignite-wellness.com or call +971 (0) 4 448 7142 or email info@ignite-wellness.com

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