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DUBAI SME 100 RANKING

QUARTERLY PERFORMANCE SURVEY

Issue 76 MARCH 2012 WWW.SMEADVISOR.COM

presents

Publisher Dominic De Sousa

EDITORIAL

Group COO Nadeem Hood

The best is yet to come

Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126

What a month it has been! If January is notoriously a slower month on the events calendar, February certainly makes up for it. From all the SME outings we attended the mood in the region can only be described as upbeat.

EDITORIAL Group Editor, CPI Business Ketaki Banga ketaki@cpidubai.com +971 4 440 9115 Editor Mike Byrne mikeb@cpidubai.com +971 440 9105

Dubai SME kicked off the month with their much anticipated top 100 SME rankings list. The 1,092 entrants had undergone thorough analysis by this government mandated agency. All the details can be found on pages 56-57.

Contributing Editors Aparna Shivpuri Arya aparna@cpidubai.com +971 440 9133 Meghna Pant meghna@cpidubai.com +971 440 9130 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 Sales Director Francis Morgan francis@cpidubai.com +971 4 440 9163

The Dubai Economic Outlook 2012 conference that was held a few weeks ago spoke of the synergy between the public and private sectors to accelerate economic growth and reiterated that SMEs will be the centre piece for this development.

Later in the month we attended the TECOM SME Builder event. Organisers continued to express delight as turnout was up from last year and the high foot count was matched only by the positivity that accompanied these attendees. What’s more, the talk on the day was about long-term planning, something that SMEs in the region are thankfully embracing more and more with each passing financial quarter.

PRODUCTION AND DESIGN Operations Director James Rawlins jamesr@cpidubai.com +971 4 440 9108 Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Art Director Kamil Roxas kamil@cpidubai.com +971 4 440 9112 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107 Photographer Cris Mejorada cris@cpidubai.com +971 4 440 9108 DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya online@cpidubai.com +971 4 440 9100

Another development for the SME community was du’s announcement of its launch of “The Entrepreneur” television show. Ten contestants will be selected to pitch their ideas to a panel of judges and battle it out for the ultimate prize – AED one million in cash and AED 500,000 worth of professional services and support. Yes, you read correctly! More details are inside on page 32 and 33 but do hurry – submissions are only being accepted until 31st March.

As if that wasn’t enough we turned our sights to some very interesting opportunities for SMEs in the region. DIFC Courts spoke to us about new legislation extending their remit of authority. The Small Claims Tribunal and Pro Bono Clinic programme will slash both time and cost for cases. The beneficiaries of these new laws will of course be all of you SMEs. You can read all about the ins and outs on pages 40-42.

Lastly, our SME Quarterly Performance survey gave a positive outlay of the first few months of 2012. The numbers suggest that not only has this been a better quarter than the end of 2011, but that expenses are being better controlled, orders are up and staff dismissals are being replaced by predictions of more recruitment.

So we may read about downturns, second dips in regional economies, high inflation rates and mounting debt, but this region has shown more than once that it has the ability to go global when required and yet protect itself.

It’s an exciting place to be right now. Some of you may have begun the year with one eye on the job and the other looking out for the next hit. Don’t! This breeds apprehension, spreads fear and fosters negativity. Instead, give yourselves a tap on the back and keep putting one foot in front of the other.

And keep repeating …this is going to be a good year…the best is yet to come!

Published by

Mike Byrne, Editor 1013 Centre Road, New Castle County, Wilmington, Delaware, USA

Branch Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Atlas Printing Press LLC © Copyright 2012 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.

Talk to us: E-mail: mikeb@cpidubai.com Twitter: @SMEadvisorME Facebook: www.facebook.com/SMEAdvisor LinkedIn group: www.tinyurl.com/smeadvisorme

CONTENTS Issue 76 March 2012

Opportunities 32 THE ENTREPRENEUR

32

To foster new ideas in business du has announced the intention to launch a unique and exciting reality TV show to give entrepreneurs throughout the UAE an opportunity to turn their business ideas into reality.

34 ARABNET Founder, Omar Christidis, talks to Mike Byrne about current and future ventures in the digital domain and ArabNet’s upcoming summit.

Marketing 36 DIGITAL EVOLVEMENT Sawsan Ghanem, Managing Director, Active Public Relations, discusses the need to continuously evolve and adapt across all digital platforms.

38 SOCIAL MEDIA FAQs

du introduces its reality TV show for aspiring entrepreneurs

Legal

Shoptalk 06 TRENDS AND UPDATES

Alan Devereux, Communications Officer, British Business Group, has been covering social media in his articles and how it can help your business, provided you do it right.

This month he answers some of our readers’ frequently asked questions.

22 SME EVOLUTION

40 DIFC COURTS

14 SHELF LIFE

Celine Chami, Partner, Potential, talks to Aparna Shivpuri Arya about the hurdles SMEs face and what support Potential offer in the region.

New toys for you and your business. Like you need an excuse!

Business setup

New legislation has armed the courts in the Dubai International Financial Centre (DIFC) with the ammunition to handle a wider scope of disputes for a reduced fee.

Mike Byrne brings you the breakdown on how SMEs will benefit.

Trade

24 BEING YOUR OWN BOSS

Finance

A quick look at news and events that will impact SMEs in this region.

16 INTERNATIONALISATION Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports, and Vice Chair of the Economic Policy Committee, Dubai Economic Department, explains what it takes to be a “Born Global” SME.

Business growth

Rupert Connor from Acuma Wealth Management lists the benefits of being your own boss, and provides a reality check on the challenges to getting started.

28 INDIA Meghna Pant asks Indian property experts about the best way forward for regional businesses seeking to set up shop in India.

20 BACK TO BASICS To make serious money you’ve got to first get a few basics right, advises Simon Hodges, CEO, The Alchemy Network Middle East.

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SME ADVISOR MIDDLE EAST MARCH 2012

44 INVESTORS Yousef Hamza, Associate, Envestors MENA, takes us through the ins and outs of pitching your business to the cash cats.

Management 46 COLLABORATION Some businesses ignore the one thing that makes them most competitive – the way their people operate. Stephan Melchior, Managing Partner, Wilson Learning Middle East, explains how management need to lead from the front to forge better collectiveness.

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SME about town 56 DUBAI SME 100 The first-ever Dubai SME 100 ranking of SMEs in the UAE was announced this month by the government agency mandated to develop the sector.

58 DUBAI OUTLOOK 2012 Government officials and private sector leaders speaking at the second Dubai Economic Outlook forum shed light on the economic growth prospects for Dubai in 2012.

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60 TECOM SME BUILDER We bring you coverage from the Dubai Knowledge Village event that gathered together over 150 leading industry experts and SME owners to discuss long-term profitability in a growing business.

Technology for business 62 BUSINESS ANALYTICS SAS and EMC Greenplum have come together in the region to help launch a power packed Business Analytics Appliance solution for SMEs.

66 NETWORK STORAGE

56

Business pin up 48 YEBAB.COM Mike Byrne talks to Murshed Mohamed about his online platform that provides Arab brides with comprehensive wedding planning services, from gown selection and photography, to catering and venue booking.

Industry watch 52 BEST WORKPLACES

Western Digital has introduced the Sentinel DX4000 small office storage server, which combines centralised storage and backup and restore protection for 25 network devices.

SME speak 68 SME QUARTERLY PERFORMANCE SURVEY SME Advisor Middle East, along with Tickbox Surveys Middle East, conducted the SME Quarterly Performance Survey to see how the sector was performing in the first few months of 2012.

Great Place to Work Institute UAE (GPTW UAE), revealed its second annual list of Top Companies to Work For in the UAE.

Sign off

54 LIBYA

70 SHE’S BACK

Dubai Chamber of Commerce & Industry has extended its support and endorsement to the upcoming Libya Infrastructure & Rebuild Conference.

Ketaki Banga, Group Editor of CPI Business, makes herself comfortable in her new home and column by embarrassing everyone she can.

MARCH 2012 SME ADVISOR MIDDLE EAST

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shoptalk

trends & updates

DED issues 14,360 licences in 2011 Key economic sectors and economic activity in Dubai remained stable and growing in 2011, with the Department of Economic Development (DED) issuing 14,360 business licenses during the year. The professional services sector, at 7%, accounted for the most number of licenses in 2011 followed by the tourism sector at 5%.

“The strong economic performance in Dubai, as demonstrated by the high number of business licenses issued, was led by the visionary policies of the government. It also shows the high level of investor confidence in Dubai, chiefly on account of its leading economic role in the region and the world. One of DED’s strategic objectives is to create a suitable

environment that retains Dubai as a destination of choice for investors,” said His Excellency Sami Al Qamzi, Director General of DED. “We always seek to attract investment and boost economic activity in Dubai by providing value-added services to investors and the business community,” added Al Qamzi.

Facts and figures The top ten business activities in Dubai accounted for 12,527 – 24.8% – of the 50,589 activities for which licenses were issued in 2011, compared to a share of 11,733 in a total of 46,287 licensed activities in 2010. General trade led the list of the top 10 licensed activities in the commercial category with 1,799 licences issued in 2011, compared to 1,543 licenses in 2010.

Mauritius International Knowledge Investment Forum Large investments have been made to ensure quality education at public and private sector institutions at the basic, secondary and university level, according to Dr. Ayoub Kazim, Managing Director, Dubai Knowledge Village and Dubai International Academic City, members of TECOM Investments’ Education Cluster.

Dr. Kazim’s comments came during his keynote address at the Mauritius International Knowledge Investment Forum (MIKIF) held on 30th January in Balaclava, Mauritius.

On behalf of the TECOM Education Cluster, Dr. Kazim also shared best practices adopted across the UAE’s higher education sector and highlighted Dubai’s strategy of developing specialised

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infrastructure to host leading education providers from around the world.

MIKIF 2012 was organised by the Board of Investment, the national investment promotion agency of the Government of Mauritius. Focusing on latest trends and opportunities in higher education and providing an overview of international best practices in infrastructure and real estate development in higher education, the forum drew over 300 key decision makers from the Mauritian education sector including Dr. Rajesh Jeetah, Honourable Minister of Tertiary Education, Science, Research and Technology.

Investors and CEOs of property development firms,

SME ADVISOR MIDDLE EAST MARCH 2012

Dyes & paints; carpentry and flooring & tiling were the other business activities that showed significant growth last year.

The total number of amended licenses in 2011 was 58,129, an 18% increase over 2010, while the total number of renewed licences grew 4% to reach 97,355. The total number of transactions rose 25% to 503,792 in 2011, from 402,081 in 2010.

The total number of commercial permits issued in 2011 was 39,898, while the total number of trade names reserved reached 52,136, a 15% increase. DED also conducted 82,916 random and organised inspection visits in 2011, 3% more compared to 2010. The number of trademarks protected by DED was 132 in 2011, a 30% increase compared to 2010. Meanwhile, the

number of commercial agencies that have been protected was 22 in 2011, an increase of 45% over 2010.

The number of licenses issued to companies according to legal status and for investing in Dubai reached 14,361 in 2011. Limited liability companies topped the list of companies at 8,787 and a growth rate of 17%. There was also a 33% increase in simple partnership firms and 300% increase in government liaison offices.

policy makers, university administrators and academics from India, Singapore and the UK keen to forge strategic alliances and make inroads into new markets were also present.

Nitin Pandea, Director, Board of Investment, Mauritius, said: “Over the years, Mauritius has meticulously assembled all the ingredients to transform itself into a leading knowledge hub, which has gained it a reputation as a reliable and trusted provider of quality education. Recently, the country has attracted prestigious academic institutions and universities to set up campuses in Mauritius. We are delighted with the participation and perspectives drawn at the Mauritius International Knowledge Investment Forum, which aims to showcase the diverse investment opportunities that we offer to the global education community.”

The Mauritius International Knowledge Investment Forum was supported by the Amity University of India and Medine Properties, Mauritius, as platinum sponsors.

Dubai International Academic City hosts 27 higher education institutions from 11 different countries that cater to approximately 20,000 students. Students at DIAC have access to over 300 higher education programmes including undergraduate and post-graduate disciplines in engineering, IT, media, business, fashion design, healthcare and mass communications.

Established in 2003, Dubai Knowledge Village is home to over 450 professional centres specialised in HR development, professional testing, as well as management training and consultancy services.

HE Sami Al Qamzi

shoptalk

trends & updates

Turkish President praises Dubai’s rapid advancement

His Excellency Abdulla Gul, President of the Republic of Turkey, called upon UAE and Turkey business leaders to benefit from the political will of their respective countries to enhance their economic cooperation.

Praising the rapid advancement of Dubai, the Turkish President stated that from his last visit as Foreign Minister of Turkey in 2005 till date, Dubai has witnessed incredible development due to its great organisational ability, efficiency, discipline and above all its vision and foresight to be ahead of the times. Dubai can greatly contribute to the dynamism of the Turkish business world, he said.

HE Abdulla Gul urged the emirate’s businesspeople to increase trade ties as he said that Dubai has one of the most sophisticated and advanced ports and airports, and provides worldclass logistics and financial services.

His Excellency was addressing a gathering of 500 UAE and Turkish business leaders in the presence of HE Sultan Al Mansouri, UAE Minister of Economy, and HE Mehmet Simsek, Turkey’s Minister of Finance, during the UAE-Turkey Business Forum organised by

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Dubai Chamber at Jumeirah Beach Hotel on Tuesday.

His Excellency called upon Dubai businesses to invest in Turkey’s lucrative manufacturing, agriculture, tourism, transport and financial services sectors stating that Turkey’s economy is very dynamic, achieving 9% growth in 2011 and is expecting 4% growth this year. He said the deep-rooted reforms Turkey has seen in the political, economic and legal fields and the facilities it provides to foreign investors in the country is very promising, especially as it provides opportunities for entering the European market by being a member of the European Union Customs since 1996 and its manufactured products compete with European products.

Gateway to the region In his welcome address, HE Abdul Rahman Saif Al Ghurair, Chairman, Dubai Chamber, stated that this is a historic opportunity to develop business ties with the UAE, which has built an excellent reputation in the world of business and investment and has developed into a global destination and a gateway to investment in the region.

SME ADVISOR MIDDLE EAST MARCH 2012

Also present at the forum were HE Hamad Buamim, Director General, Dubai Chamber, and keynote speakers including Korhan Kurdoglu, Chairman, Turkey-UAE Business Council Foreign Economic Relations Board (DEIK); Faik Yavuz, Vice President, Union of Chambers and Commodity Exchanges of Turkey (TOBB); and Abdulkerim Çay, Vice President, Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT).

The Chairman of Dubai Chamber further stressed that Dubai is an ideal point for many global companies to expand into the GCC, Africa and Southeast Asia, and the emirate offers huge prospects for Turkish investors.

HE Al Ghurair informed that Dubai has many thriving industries that are capable of attracting overseas investment, namely trade, tourism, logistics and financial services. These sectors are regarded as the pillars of the economy and each recorded significant growth last year and this is expected to continue, he said.

On Dubai’s growing commercial relationship with Turkey, HE Al Ghurair pointed out that at present there are 282 Turkish companies operating in Dubai across a number of industry sectors. In the first nine months of 2011 non-oil trade between Dubai and Turkey reached around AED 10.5 billion, making Turkey Dubai’s 19th largest trade partner.

Dubai’s trade with Turkey is increasing and encompasses semiprecious stones, electric equipment and machinery in addition to cosmetics while there are many potential areas in Turkey, including trade, construction, real estate, transport and logistics that Dubaibased companies can invest in, added Al Ghurair.

The Chairman of Dubai Chamber said that this forum follows the very successful

Country Focus Briefing on Turkey organised by Dubai Chamber last year as part of its efforts to explore new markets for Dubai’s business community.

He called upon Dubai traders to benefit from the networking and matchmaking meetings hosting top Turkish business leaders as Turkey today is one of the fastest growing economies, he added.

Trade ties He also said the forum provided a fertile ground for delegates from both sides to consolidate their trade ties, strengthen the channels of communication and explore potential investment opportunities which will further help boost bilateral ties for Dubai and Turkish businesses in the long run.

Mr. Faik Yavuz, Vice President, Union of Chambers and Commodity Exchanges of Turkey (TOBB), also urged the business community to unite their efforts in construction, tourism, financial and manufacturing sectors and called upon the UAE to remove the visa restriction and provide visa extensions to Turkish businesses in order to facilitate Turkish investments in the UAE. He emphasised on the importance of trade to his country as he said that Turkey exports to 200 countries and half of this goes to developed nations.

Mr. Yavuz further stated that the target is to increase trade volume between the UAE and Turkey to over USD ten billion by 2015, and Turkey can play a strategic role in connecting the UAE with the European and African markets as his country has investments in over 30 African countries and has a strong presence in the construction sector in Central Asia.

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shoptalk

trends & updates

From strength to strength

(L-R) Mohammad Abdulla, Managing Director-TECOM Investments Media Cluster; Andrew Hurt, General Manager, Xerox Emirates; Thomas Kuruvilla, Managing Director, Arthur D Little Middle East; Najam Khawaja, Chairman DDB; and Mehmet Noor Deen, Managing Director, Al Aan TV.

TECOM Investments’ Media Cluster, which includes Dubai Media City (DMC), Dubai Studio City (DSC) and International Media Production Zone (IMPZ), announced it has experienced steady growth in the number of companies registered in 2011, with 284 companies setting up base at the cluster.

Key segments that saw new additions at TECOM Media Cluster in 2011 include freelancers, consultancy, event management, media and marketing services, new media as well as television, film and radio production.

Digital audio firm Dolby Laboratories, Sony Pictures (CPT Holdings, Columbia), Fremantle Media, Scholastic, Christie + Co and Groupon are among the top global brands that established their operations at the TECOM media free zones.

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In 2011, TECOM Media Cluster also saw its business partners including MBC (Middle East Broadcasting Centre), Leo Burnett, outdoor advertising specialist JCDecaux and digital printers Costra Group expanding their commercial and business operations.

Mohammad Abdullah, Managing Director, TECOM Investments’ Media Cluster, said: “The year 2011 has proved positive for us. On the back of an industry uptrend, a good line-up of businesses set up base at the Media Cluster.

Additional investments in potential growth areas and operational expansions were also witnessed. The favourable year-on-year trend for the cluster reflects the development in the region that continues to attract a large community of media professionals.”

Total ad spend in the Arab-speaking media market (including GCC, Levant and Pan-Arab media) in 2011 was USD 14.3 billion, compared

SME ADVISOR MIDDLE EAST MARCH 2012

to USD 13.7 billion in 2010, marking a 4% year-on-year increase. UAE and Saudi Arabia-based media also saw an increase in ad spend of 1% and 9% respectively during the same period.

However, no significant downturn is expected in the content-production space.

According to a recent study by the Arab Advisors Group’s on TV Series Production Houses in the Arab world, a sample set of 26 production houses in the GCC, Egypt, Jordan, Lebanon, and Syria were seen to have produced 47 television series productions in the first nine months of 2011, compared to 57 in 2010.

Another area of significant growth potential is e-books.

Arabic content is only 4% of global content, with a small contribution of Arabic e-books. The Internet features over 600,000 Arabic books of which only 2% can be read on Smart-Phones and tablets. This is a tremendous opportunity, given the immense potential in the smart-phone market in the MENA region.

For example, according to research sponsored by Research in Motion, 95% of Smart-Phone users in the MENA region download apps, with six apps being downloaded on a monthly basis. E-content has monetising potential as one out of four smart-phone users spend at least USD 50 monthly on apps. This

is particularly insightful in a scenario where close to 6% of Arabic speaking SmartPhone users prefer apps in Arabic.

Mohammad Abdullah added: “The media environment in the Middle East is rapidly changing, buoyed by new satellite channels, the Internet and new media that offer more choice and alternative information to encourage industry reforms. Investors across the new media valuechain are particularly looking at areas such as content creation and delivery. With the media poised to serve as a platform to promote public debate, transparency, accountability and respect for diversity of views and opinions, the time is now right for international industry leaders to explore fresh areas of opportunity in the Middle East.”

Launched with 99 companies back in 2001, Dubai Media City marked its 10 th anniversary celebrations last year. Dubai Studio City, a dedicated free zone for media and broadcast production sector, and the International Media Production Zone (IMPZ), a cluster dedicated to the printing, publishing, packaging and graphic art industries, were created as logical extensions of the growth witnessed by Dubai Media City. TECOM Investments’ Media Cluster has grown to over 1,800 companies/business partners, creating a media ecosystem offering significant opportunities for synergies between the companies and professional community.

shoptalk

trends & updates

Dubai Free Zones Council and Dubai Statistics Center sign MoU The Dubai Free Zones Council announced that it has signed a Memorandum of Understanding (MoU) with the Dubai Statistics Center. The one-year agreement that mandates the sharing of data and information between the two institutions will qualify for automatic renewal.

Dr. Mohammed Al Zarooni, Chairman of the Dubai Free Zones Council, and Aref Obaid Al Muhairi, CEO of Dubai Statistics Center, signed the MoU that will also aim to facilitate institutional integration between government authorities in Dubai.

Dr. Mohammed Al Zarooni said: “Dubai Free Zones Council recognises the importance of research for planning growth-oriented projects. Research will offer an added advantage to the free zone destinations that are marking significant progress in business. The data and information collected will help nurture the investment climate for international companies seeking to establish a presence in this region. We look forward to a symbiotic and long lasting relationship with the Dubai Statistics Center.”

Combined efforts A team led by the Dubai Statistics Center and comprising representatives

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Dr. Zaroni and Al Muhairi signing the MoU

of the Free Zones Council will be instituted. The team will be responsible for the standardisation of methodologies and mechanisms for statistical work on par with the current standards that Dubai endorses. The team will also be tasked to supervise, extract results and adopt the surveys of the statistical research conducted in areas under the Dubai Free Zones Council.

Aref Al Muhairi said: “Providing the necessary statistics that support the

SME ADVISOR MIDDLE EAST MARCH 2012

development of Dubai is a core mandate of the Dubai Statistics Center. The signing of this MoU comes in line with our efforts to establish stronger ties with various government agencies and facilitate knowledge exchange. We strive to offer the best electronic services in disseminating databases and statistics in Dubai. Our tie up with the Dubai Free Zones Council will expand our scope of work and offer a wider base for conducting our surveys and sample

studies. This agreement will also help the Council set a roadmap for future strategic planning.”

The Dubai Free Zones Council recently drew up a general framework for the registration and licensing of companies within the free zones. Aligned with the indicators and standards of the World Bank for establishing companies, the new regulations aim to make the registration process more efficient and enhance the ease of doing business.

SHELF LIFE

The right route Portable projection Canon Middle East has announced the launch of the LV-8235 UST (ultra-short throw) projector.

The latest addition to Canon’s LV range can project high-quality images at 2,500 lumens from short distances, giving users more freedom to install the device in a variety of locations. An 80-inch image can be projected when the device is only 2.4 cm away from the screen, giving access to positions that were previously difficult to project from on ceilings, walls or floors.

Particularly beneficial to education and business environments is the device’s close proximity to the screen which ensures that limited shadows are cast and that light does not shine in a presenter’s eyes. The built-in 10W speaker is loud enough to be heard in meeting rooms or classrooms, without the need for an external audio system, while the 3,000 hours lamp life (in eco mode) means that minimum maintenance is required, and total ownership costs are kept down.

Auto Set and Auto PC adjustment features mean that set up is quick and easy, with the device configured to project from a range of digital and widescreen sources: the LV-8235 UST offers HDMI input and WXGA (a widescreen resolution of 1280 x 800 and 16:10 ratio) for use with laptops.

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SME ADVISOR MIDDLE EAST MARCH 2012

ASUS has revealed its new RT-N66U dual-band wireless-N900 router that brings a combination of features and optimised engineering for enthusiast-grade networking. The new flagship model within the Black Diamond series, delivers high performance on both 2.4GHz and 5GHz bands with up to 900Mbps in total bandwidth.

Exclusive Ai Radar technology amplifies signal coverage vertically as well as horizontally to reach a wide area, proving ideal for multilevel buildings. The newly-designed ASUSWRT dashboard interface lets users quickly set up the router and access network utilities in a few simple steps. The RT-N66U uses strict quality of

service (QoS) standards to ensure optimised performance with download multitasking and multi-role server functionality. It is fully DLNA compatible and comes with twin USB 2.0 ports for easy connections to a wide range of devices.

The RT-N66U utilises three detachable external antennas to ensure wide coverage in any environment. It operates using dual-band 2.4GHz/5GHz architecture with up to 450Mbps in bandwidth per band for a maximum 900Mbps in total. Dual-band connectivity provides enhanced bandwidth management and online multitasking.

Optimised signal strength in all directions results in faster connections with less lag and latency, creating a more enjoyable experience for users.

Slender aspirations Since Acer rolled out the first Ultrabook in September 2011, the company has extended the product’s features across its mainstream line of notebooks with 14-inch and 15-inch models. Acer has unveiled the Aspire Timeline Ultra, featuring high performance and a twospindle design in an Ultrabook. It also has Acer Green Instant On for fast boot

and resume, and Acer Always Connect technology, which lets users manage their multimedia and data on all their devices at anytime and from any location.

The new Aspire Timeline Ultra are slimmer and lighter than earlier generations of the Timeline series, and measures just 20 mm thin and features the latest Intel Core Series processors, an SSD/HDD storage option, professionally-tuned Dolby Home Theater v4 surround sound, as well as HDMI and USB 3.0 ports. They also retain the Timeline design heritage of more than eight hours of battery life via the PowerSmart long-life battery pack (with a 3X longer life cycle than traditional batteries) and a thermal technology that keep users comfortable even when the Timeline Ultra is placed on their lap.

The Aspire Timeline Ultra will start shipping in Q1 2012.

Things just got a little lighter!

Motorola has unveiled its new RAZR that mixes both slick design with efficient power and is now encased in a cool white exterior. This SmartPhone is recognisable by its light and thin design, and now offers two classic colour choices – original black or pristine white.

Motorola RAZR offers a sculpted glass screen, diamond-cut aluminium accents, and a vibrant 4.3-inch Amoiled display for vivid images. It also sports Kevlar to help the screen stand up to scratches and scrapes. It is protected by a splashguard coating, which even extends to the electrical boards, protecting the 1GB of RAM, dual-core 1.2GHz

processor, and Android 2.3.5 contained inside.

The phone comes preloaded with the Motorola MotoCast app, giving the option of streaming or downloading content from a home or work computer straight to the device so your personal content is always within reach.

It has a 720p HD video camera and an eight megapixel rear-facing camera, all with image-stabilisation technology.

Government-grade encryption ensures that your email, contacts and calendar are fully protected.

Motorola RAZR in white is expected to be available from all leading mobile phone retailers.

All-in-one solution Epson has reinforced its commitment to the small-business sector in the Middle East with the addition of three new all-in-one printers, specifically designed to help smaller companies save time and money, while delivering print quality. The Epson Stylus Office BX305FW Plus, BX630FW and BX935FWD, offer printing, scanning, copying and fax capabilities, plus a greater range of connectivity choices.

The BX630FW and BX935FWD models in particular are characterised by high print speeds, enabling smallbusiness owners the chance to boost productivity, while high-capacity, front-loading paper trays ensure time spent replacing paper is kept to a minimum. In addition, all the models feature a time-saving automatic document feeder, so users can quickly scan, copy or fax.

Individual DURABrite Ink cartridges save businesses money as only those colours used need be replaced.

Further savings are provided by Energy Star-qualified power efficiency, meaning lower energy bills, while the BX935FWD’s double-sided printing, copying and faxing capabilities allow businesses to reduce paper usage and costs by up to 50%.

MARCH 2012 SME ADVISOR MIDDLE EAST

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Trade

Internationalisation

Born to be global Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports, and Vice Chair of the Economic Policy Committee, Dubai Economic Department, explains what it takes to be a “Born Global” SME. He also explains how a traditional firm can be reborn so that it acquires a global perspective.

D

ubai Exports, an agency of the Dubai Department of Economic Development (DED), Government of Dubai, worked with Guarana, a recently formed Dubai based soft drinks producer, to become a strong player in the global beverage market.

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Although the company is less than a year old its owners and management are already thinking beyond their national boundaries and developing strategies in association with Dubai Exports so as to capture an ever increasing global market.

Mohammed Ali Al Kamali, Director of Dubai Exports, remarked that “SMEs should look at the global market if they

SME ADVISOR MIDDLE EAST MARCH 2012

are to continue to grow from the time that they are established.”

The idea that SMEs consider the global market rather than their domestic one has received considerable attention in recent years, not only from academics but also policy makers. There is considerable evidence to suggest that companies that think global actually behave very

Trade

Internationalisation

differently from those that have only the domestic market viewpoint. More importantly, anecdotal evidence suggests that firms which target the global market tend to have a much higher survival rate compared to those that are domestically focused.

What is a “Born Global” SME? The “Born Global” SMEs, a term that was coined by the management consultancy firm McKinsey, are companies that, though small in size, incorporate features of large, or even multinational enterprises as far as their global activities are concerned. Born Global SMEs tend to have revenues that are largely generated overseas across a range of countries.

More importantly, their dependence on the domestic market is minimal at best.

Technically, a Born Global firm needs to export 25% of its output within three years of establishment. However, most of the Born Global firms tend to export three times this figure – that is 75% of their output by three years of establishment.

Every firm would like to be global from its establishment because of the

There is considerable evidence to suggest that companies that think global actually behave very differently from those that have only the domestic market viewpoint. More importantly, anecdotal evidence suggests that firms that target the global market tend to have a much higher survival rate compared to those that are domestically focused.

Dr. Ashraf Mahate

Technically, a “Born Global” firm needs to export 25% of its output within three years of establishment. However, most of the Born Global firms tend to export three times this figure. benefits that such a strategy provides the owners. The real question is how is this internationalisation achieved from such an early stage? The traditional viewpoint is that SMEs gradually develop their overseas business in an evolutionary manner. In this way, as the knowledge and experience of the SME increases so do its overseas activities. Of course in reality knowledge also increases confidence and hence commitment to overseas activities. This developmental approach to internationalisation assumes that the typical SME is restricted by the “physic distance” which is not the same as the geographical distance. The physic

distance is a combination of different psychological factors which hinder a firm’s path to internationalisation. Some of the common psychological factors that tend to hinder SMEs from exporting include the culture differences between the exporting and importing countries, language, general exporting skills and experience of the SME owner, and the general inertia towards exporting.

The Born Global SMEs have turned the physic distance concept on its head and, in the process, have challenged the commonly held constraints. All too often SMEs argue that overseas expansion is not possible for them as they lack the

financial resources, sufficient managerial experience in overseas business, and also face uncertainty as to whether the foreign activities will generate the same returns as their domestic operations. As a result the typical SME has been reluctant to commit resources to international activities.

In contrast the Born Global SMEs are able to instantly internationalise their activities and overcome the commonly cited obstacles. Commentators argue that the Born Global SMEs have the ability to raise capital externally – that is outside of the firm – through either international networks or strategic alliances. As a result of this the Born Global SMEs are able to substitute external capital for their own. Second, their dependence on the domestic market is kept intentionally low so that they become reliant on the global market for revenues. Third, the Born Global companies are at a disadvantage in their home market due to stronger competition or weaker knowledge and other such factors.

Seeing the big picture The biggest differentiator is that Born Global firms view the world as their marketplace from the very beginning and they tend to have a wider vision, unlike traditional firms. Very often, the Born Global SMEs start business developing a product not for just the domestic marketplace but for the global arena.

This means that the product needs to be designed in such a manner that it is appealing as well as accepted (from the viewpoint of import controls) in many markets. To a certain extent the growth of communication in the form of films,

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Trade

Internationalisation

television, Internet, magazines and so on has meant that the global marketplace is now becoming increasingly homogeneous.

As a result, it is now much easier to create a single product that meets the needs of different markets. At the same time there has been a greater move towards global standardisation and hence the differing country requirements have been replaced by, at worst, regional ones and, at best, a single global standard.

The Born Global SMEs have also benefited from the globalisation process which has changed the environment in which business is conducted.

Environmental factors tend to impact the viewpoint of managers and their outlook on global activities. Increased globalisation is argued to make people perceive the world as being smaller. As a direct result managers may tend to perceive overseas activities with a much lower level of risk. At the same time the drivers of globalisation have enhanced the speed at which firms take their business overseas. For instance the traditional exporting process is continuously being simplified and obstacles are being removed. One reason for this is that each country wants to be viewed as business friendly in order to attract foreign direct investment. This is more so the case in recent years to fill the gap created by the lack of domestic investment. One important factor in attracting foreign direct investment has been the various indices and rankings of doing business or ease of trade. Therefore countries have made it a priority to change the manner in which business is carried out so that they can move up these rankings As a direct result of this, new firms which do not have the “historical baggage” find that they can export their products and services with ease and hence focus more on global rather than domestic markets. At the same time globalisation has allowed for a freer trade environment through the reduction in tariffs and nontariff barriers.

It’s not just the psychological nature of the Born Global firms that is different to

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The traditional viewpoint is that SMEs gradually develop their overseas business in an evolutionary manner. In this way, as the knowledge and experience of the SME increases so do its overseas activities. This developmental approach to internationalisation assumes that the typical SME is restricted by the “physic distance” which is not the same as the geographical distance.

the traditional ones but also their ability to leapfrog the developmental stages.

Academics have found that Born Global SMEs tend to have products which are likely to be innovative and have been developed in response to global industry changes. Their innovative nature and global competition implies that there is rapid product development. As a result the products tend to have a short life cycle and a correspondingly shorter time period within which to recoup their research and development costs as well as earn a reasonable return. Therefore, these firms need to generate high volumes which naturally imply a business model that is focused on global sales. Moreover, the constant pace of change and the continual need to launch new versions or models forces these firms to pursue global markets.

How to be reborn global The natural question that arises from the discussion above is how can a traditional firm be reborn so that it acquires a global perspective? The simple answer to this question is that it should revisit its products or services so that it is able to satisfy the demand from new global customers. The firm will need to assess its processes and the use of technology so as to reduce costs and improves quality. This may also involve up-skilling its employees so that they are able to meet the new challenges and to view the global marketplace as the avenue of growth. To become global the firm will need to make effective use of advances in

SME ADVISOR MIDDLE EAST MARCH 2012

communication technology so that it can conduct business across boundaries. In global markets speed is very important and hence the firm will need to take advantage of quicker response time as well as being flexible. Of course the road to being global is not easy for any company but it is rewarding. After all in today’s globalised and technologically sophisticated business world gradual internationalisation is not really an option.

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 AntiMoney Laundering Specialists (ACAMS).

Business Growth Back to basics

To make serious money you’ve got to first get a few basics right, advises Simon Hodges, CEO of the Alchemy Network Middle East.

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here comes a point when business owners wake up to the fact that their business has become a “job”, and the dream of what the business would bring has fallen by the wayside.

Financial freedom, more time with the family, and not having anyone to tell them what to do, have become distant memories. The

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reality is that it turns out harder than they first imagined, and there is a strong likelihood that they end up being statistic and failing in the first five years, as many businesses do.

All too often we find that companies see a period of initial growth, followed by a longer period of stagnation. It’s hard work just to keep the business afloat.

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Preparing a business for exit is rarely considered before it is too late. This can force the owner to accept a lower price at sale or, worse still, to cease trading; so you need to consider everything with this goal in mind right from the onset, otherwise there is little business to sell or pass on to your family. Here are a few business basics to keep n mind.

Business Growth Back to basics

Money is often a by-product of enthusiasm. If you get into something just because there is money in it, there’s a good chance you won’t be as successful as you wanted to be.

Business Basic No. 1: Every business is based on selling. A singer sells their voice, and an executive sells their business acumen and leadership skills.

Even if you don’t directly sell a product, like cars or furniture, you still make your living by selling something, such as your skills and time.

Business Basic No. 2: The success of your business, your relationships and your life is largely determined by the quality (or lack) of your communication with others. Whether it is with your wife, your employees, your customers, or at a job interview, the results you’ll achieve are dependent on two things: What you say or do, and how you say or do it.

Business Basic No. 3: If you aim low, you achieve less. If you always undersell you products or service, you will never

Business Basic No. 5: Work smart and multiply your efforts. You can make a good living doing what you do but, no matter how good you are at it, there is a limit to how much you can do.

Simon Hodges

daughter wanted to be on the programme and added a request for donations. She then sent the flyers to family, friends,

There are three reasons why someone does not buy from a company – they do not need your product, they cannot afford it, or they do not trust the company.

get their money’s worth. But if you have the courage to aim for the million-dollar deal, there is a chance you may just get it.

Remember, you won’t get what you want unless you ask for it.

A great example of asking for what you want is the true story of a mother who wanted to send her daughter to an exchange programme. There was just one problem – she needed USD 4,000, which she didn’t have. So the mother designed a flyer where she mentioned why her

as you wanted to be. Why do you think many professionals feel burnt out and depressed? Because they probably chose their career path based on where the money was, and not their passion.

If you hate your work, feel indifferent about your product or service and are unmotivated, lethargic and bored with what you do, then you are not living, and you’re probably not very successful either. Life is not always a bed of roses, and neither is business. You’ll have to deal with issues such as difficult employees, red tape, lack of funds, even lack of support from your family and friends. One of the factors that will see you through to the other side is your love for and belief in what you do.

acquaintances, clubs and local community centres. Besides the request for donations, the flyer spelled out their goal: “We are happily getting USD 4,000 by July for the trip.” To cut a long story short, they met their target and in time.

Business Basic No. 4: Sell something you love. Money is often a by-product of enthusiasm. If you get into something just because there is money in it, there’s a good chance you won’t be as successful

Here are some ways to make your efforts have a greater impact: Hire others and train them.

Document what you do and sell the system, or license others to use your methods.

Sell bigger value items.

Leverage yourself through the media.

Business Basic No. 6: Get to the root cause. There are three reasons why someone does not buy from a company – they do not need your product, they cannot afford it, or they do not trust the company. Find out what’s impeding your success and get working on it.

About The Alchemy Network is an international business advisory franchise made up of professionals who share a common profile, experience, integrity and mindset. Accredited members are trained to use proprietary business growth systems and programmes to grow business. For more information, visit www.alchemy-network.com.

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Business growth SME Evolution

A NUDGE in the right direction Even though SMEs form a large part of the private sector, they face major hurdles in starting and sustaining their business. Celine Chami, Partner, Potential, talks to Aparna Shivpuri Arya about these challenges and what support they offer to SMEs in the region.

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MEs are dominant players of most economies and are strategic facilitators in their development around the world. The strongest drivers of employment, they occupy a significant share of the industrial, commercial and office space. In most economies, smaller enterprises are much greater in number than large companies. They are often said to be responsible for driving innovation and competition in many economic sectors.

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SMEs are important to almost all economies in the world, but especially to those in developing countries and, within that broad category, especially to those with major employment and income distribution challenges. They are a nursery for the larger firms of the future, are the next (and important) step up for expanding micro enterprises, and contribute directly and often significantly to aggregate savings and investment. In addition, they are involved in the development of appropriate technology.

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According to a research report for the EUGCC Chamber Forum project, “The primary role that Gulf SMEs are expected to play in national development in the coming years is arguably that of employment creation. While GCC populations still grow at a rather fast clip of about 2% per year, public sectors have reached their absorptive limits as employers of last resort. Business, although growing, is not creating enough jobs attractive enough for nationals and the latter often lack the entrepreneurial skills, incentives and resources to start their own companies.

“SMEs will have to play a leading role in job creation and, almost by definition, in national entrepreneurship. The GCC nations have a long and deep tradition of trading and business activity; the challenge is to unlock this tradition in the post-boom era to spread the benefits of economic development to wider social strata,” said Celine.

Their increasing contribution to the UAE’s economy mandates its protection, not only to ensure growth and provide diversification, but also to ensure that this sector continues to play its extremely significant role through employing large numbers of the population.

Business growth SME Evolution

However, SMEs are facing a number of challenges including the lack of skills and resources that can help them grow their businesses. Only one out of ten businesses makes it to the medium-to-large scale, yet some of the remaining nine are initially backed by brilliant innovations and hard working entrepreneurs.

Barriers that prevent those businesses from growing include getting caught up in the daily operational work that prevents from looking at the bigger picture, lacking the resources and talent to delegate the work to, running out of cash, not reaching enough clients, and more.

If given the proper tools and resources, entrepreneurs and business owners of SMEs would have a huge impact on the economical landscape, whether locally, regionally or internationally. A growing business means more employment opportunities, more demand, more supply, more transactions, more production or services and most importantly more innovation. If one developing small and medium enterprise would greatly benefit the country in question, imagine the impact of hundreds or even thousands.

These businesses need to be an integral part of an ecosystem that links them together with both public and private sectors, in addition to the greatest minds and talent that will help propel businesses forward. It is imperative to provide a holistic programme to prepare SMEs to make the most of these opportunities and help them display resilience in the face of challenges. It is also important to make available to the sector a practical support to enable SME’s to compete internationally through improving their business readiness and exposure.

And this is what Potential’s SME Evolution programme is all about. It is about reaching out and integrating those private and public sectors by providing business owners with tools, templates and resources that will help grow their business. It is about connecting those lead business owners to each other and to a bigger, wider ecosystem, where they can expand their business horizons by benefiting from each other’s services and products and developing new, innovative and powerful value propositions. They can identify a way

And this is what Potential’s SME Evolution programme is all about. This unique initiative points business owners and managers in the right direction by exposing them to Potential’s regional partners such as Google, Intel, SAP, Aramex, Zawya, and AllWorld Network in addition to community partners, major telecom players and financial institutions in every country, which also provide a substantial and essential support to the programme.

Celine Chami

to express their needs and get answers to them; where they can develop their business performance and finally realise their true potential.

This unique initiative points business owners and managers in the right direction by exposing them to Potential’s regional partners such as Google, Intel, SAP, Aramex, Zawya, and AllWorld Network in addition to community partners, major telecom players and financial institutions in every country, which also provide a substantial and essential support to the programme. This is a key part of the programme; partners understand the challenges that SMEs have to face in the country, and as such are willing to come up with innovative solutions that help the SMEs acquire the right technologies, services, resources and skills to solve their problems and overcome the challenges they have to face.

Innovation is another key element in the programme as it introduces new methods,

ideas and techniques that will enable SMEs to innovate, expand and grow their business.

The programme also gives these businesses a boost by offering funding opportunities, by exposing them to worldwide competitions that will get them acquainted with a new and broader business environment.

Similarly, the programme helps in the creation of wealth and employment which depend to a very large extent on the speed with which scientific and technological breakthroughs are converted into practical and attractive solutions. By the end of the programme, SMEs will have a better understanding and exposure to the business landscape enabling them to present their unique ideas with solid value propositions.

With SMEs representing an overwhelming majority of businesses across the region, this kind of support system is essential to grow in size and revenue, become regional or international, diversify product offerings and compete efficiently in the marketplace.

About Celine Chami is a Partner in Potential and heads the branding and marketing department in the company. Celine has over 12 years of experience in marketing, communication and branding. She has worked with major ICT and telecoms players in the region and has held various positions within marketing and communication departments.

Celine has extensive knowledge in brand building and development, product modelling, marketing strategies and integrated communications. She is also a lecturer at the Saint Joseph University, where she teaches marketing-related courses to students in different majors.

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Business Set up

Be your own boss

Take the plunge Thinking of setting up your own business? Just do it, says financial planner Rupert Connor from Acuma Wealth Management, as he lists the benefits of being your own boss, and provides a reality check on the challenges to getting started.

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etting up your own business is not something that should be considered lightly. It is fraught with potential pitfalls. But, then, isn’t life in general? If your business is successful, we all know that the financial benefits can be huge because we see successful entrepreneurs every day, and increasingly so in the media. But not all the benefits are financial. Here are some of the other benefits you can experience by setting up your own successful business: You have control: When you work, what you do, who you do it with – you call the shots. The irony is that instead of taking it easy, you will probably work harder than you’ve ever worked before but the motivator is that it’s your choice now and one day in the future it could pay huge dividends.

You are the boss: Lots of people aren’t good at being told what to do. You can overcome this issue by becoming your own boss. Of course, you can’t quite do away with clients telling you what to do.

You can benefit from others’ talent: Once you can afford it, and when you realise you can’t and shouldn’t micromanage

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everything, you have the freedom to pick your dream team. Leveraging the abilities of others rather than trying to (or having to) do everything yourself is a huge advantage you will have if you set up your own business. This is referred to by Steven Covey in his book The 7 habits of effective people as habit no 5 – the ability to “synergise”.

Recognition: Entrepreneurs are lauded and never more so than today. In this day and age of social media driven reputation, build up a financially successful business that treats its customers, employees and all stakeholders well and the recognitions will follow.

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The stakes are high So why doesn’t everyone start their own business if it offers a route to fabulous wealth, peer recognition and eternal happiness? Well the answer is that, clearly, it does not always lead to these things and, even if it does, many people deem the sacrifices one has make in order to reach the fabled panacea too much to bear. Here are some of the things you need to take into account if you are considering setting up your own business: It is likely that you will have to work harder than you have ever worked before.

Every successful entrepreneur’s story has a chapter where they worked day and night and weekends to get a new business off the ground. Peter Jones of Dragon’s Den fame spent many nights sleeping on the floor of his office to get his mobile telecom business

Business Set up

Be your own boss

off the ground. Can you commit to this?

Can your bear to be away from your family and can they cope without you for a while?

Do you have the determination necessary to forgo your current lifestyle? Sacrifices will have to be made which are, unfortunately, no guarantee of success.

Peter Jones of Dragon’s Den fame spent many nights sleeping on the floor of his office. Can you commit to this? Can your bear to be away from your family and can they cope without you for a while? Do you have the determination necessary to forgo your current lifestyle? Sacrifices will have to be made which are, unfortunately, no guarantee of success.

Another possibility is that there could be reduced earnings in the early days. It can take quite a while for a new business to start generating income and this can be very tough on the whole family. As a financial planner, I know that one of the most important things in people’s lives is their lifestyle. Once we get accustomed to a certain standard of living it is incredibly tough to then accept a lower standard, even if it is only temporary. This is difficult if you are on your own, but is especially hard if you have to support a family as well and is another reason why it is vital to have the full backing of your spouse and wider family if applicable.

The stress is a killer. One of the biggest advantages of setting up your own business is being your own boss, but this can also be one of the biggest pitfalls. Ultimately, the buck stops with you and you may be not only supporting yourself and your own family, but if you employ staff you also have

Minimise your risks All of life involves risk. If you go into a business, or a marriage, or anything else thinking that you’ll fail, then chances are that you will fail. But to help you mitigate these risks, here are some tips to help you be successful in your new venture:

Rupert Connor

countries where, if you don’t meet your liabilities, you could end up in jail.

So, yes, there are pitfalls, negatives and things you need to consider, especially

Many an accountant have told me that this is the single biggest reason they see new businesses fail – they simply run out of cash.

No matter how well your product or service is selling, no matter how profitable you are, if you don’t have the cash to pay your creditors, you could find yourself out of business very quickly.

Don’t assume that people will pay on time – most don’t.

a responsibility to pay them so that they can provide for their own families. What’s more, if you have personally guaranteed any loans, you have the added worry that if things go wrong you could stand to lose a lot more than just your business – another big concern if you have a family. This debt issue takes on a whole new dimension in some

in the early days, and there aren’t any guarantees, but there are risks involved with working for somebody else, too. You might lose your job. You might hate the job and be miserable every day of your life. You might have to take a salary cut, or become estranged from your family because you’re travelling for weeks at a time.

1 Start small and keep your overheads low.

Don’t spend any more than you have to on your startup. Plenty of big businesses started very small: Laura Ashley began on her kitchen table, M&S started with a market stall, Tesco was just a couple of local grocer’s shops at the beginning. So don’t rush out and get yourself a big posh office, if you don’t need it right away. Don’t rush out and buy the latest laptop and phone; use what you’ve got until you’ve made some money and new kit becomes essential.

2 Watch the cash flow. Many an accountants have told me that this is the single biggest reason they see new businesses fail – they simply run out of cash. No matter how well your product or service is selling, no matter how profitable you are, if you don’t have the cash to pay your creditors, you could find yourself out of business very quickly.

Don’t assume that people will pay on time – most don’t. Cut down your waiting time by getting them to agree to your payment terms at the start. Also, don’t spend money now assuming you’ll have some coming in soon.

You probably won’t, so wait until you have the money before you spend it.

3 Work out a plan. As the saying goes: “If you fail to plan you plan to fail.”

Many businesses fail because the person

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Business Set up

Be your own boss

who started them didn’t set goals, or failed to thoroughly think through what he would do, and how he would do it.

Some entrepreneurs try to start a business without ever having a business plan, which is a huge mistake. A business plan is an absolute necessity. It not only serves as a road map for where your business will go and how you’ll get it there, it will be an important sales document when you’re trying to attract funding for your business.

If you do your homework, and adequately

at best you will actually attract traffic to your Website and generate sales as a result of it. Don’t ignore it simply because you or your peer group don’t understand it yet. Catch up, don’t be left behind and make the most of every opportunity to promote your business.

Work ON your business, not IN your business. Michael Gerber has built an entire career based on this incredible insight following the publishing of his 6

The more information, help and advice you get before you start and while you are getting your business together, the more likely you are to succeed. Take business courses, read books on setting up a business and talk to people who are doing what you want to do to get their advice.

prepare before starting a business, chances are good that you can make it work. And remember that not attempting something you really want because you’re afraid of the risk involved might be the biggest failure of all.

4 Network. As the old cliché goes: “It’s not what you know, it’s who you know.”

Get out there, meet people and promote your business. Nobody will be a more enthusiastic ambassador for your company than you and people enjoy dealing with the boss – it makes them feel important and they also often think that as the boss you will be the best person at what your company does – something that hopefully isn’t true (remember the benefit of leveraging others’ skills).

Utilise social media. This is related to the previous point, but deserves a separate mention. No matter what your personal views are on Twitter or blogging or indeed the Internet, make the most of it. At worst, it represents a free (or very cheap) opportunity for you to promote yourself and your business online and 5

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first book “The E-Myth” (“E” standing for entrepreneur). Because you are a good computer programmer doesn’t mean you will be good at promoting or selling a company that offers computer programming. Doing something is VERY different from running a company that does the same thing. Understand this concept and work on your business rather than in your business and you will create something of value. Ignore this concept and you won’t have a business. You will be the business and when you want to sell, who will buy it if you are leaving or retiring?

7 Put the hours in but take time off. You will be amazed at just how much time your business will take up for the first year or so, mainly because there are so many things that need to be done and only you to do them. You will need to do your own sales and marketing, finances, production and management for a start.

It’s not unusual to have to work seven days a week as a startup. However, make sure you slot in time off here and there and take actual holidays a couple of times a year.

SME ADVISOR MIDDLE EAST MARCH 2012

8 Learn, learn, learn. The more information, help and advice you get before you start and while you are getting your business together, the more likely you are to succeed. Take business courses, read books on setting up a business and talk to people who are doing what you want to do to get their advice. It can make the difference between success and failure.

9 Connect with supportive, helpful people.

You can feel very alone running your own business. Seek out positive, supportive people who inspire you and give you help.

Keep away from negative people who drag you down or criticise. If you can, find a mentor – someone who also has a business in a similar area who will give you advice and useful contacts.

10 Employ professionals where appropriate.

You need a good accountant and you need a good business financial adviser.

These professionals can help you plan, budget and allocate funds appropriately.

A good accountant will help you avoid the common cash flow pitfall and a good business financial adviser will help you implement an effective employee benefits programme that not only complies with the local laws, but is cost effective for you, helps you budget more effectively (for example, when planning for gratuity payments) and helps you attract and retain good staff. Employ trusted professional experts in areas where you are not an expert and they will pay for themselves many times over.

About Established in 1999, Acuma Wealth Management is a provider of financial planning solutions in the Gulf region, with a head office in Dubai and licensed by the Central Bank of the United Arab Emirates, the UAE Ministry of Economy, and the Health Authority of Abu Dhabi. The company has over 50 qualified professionals working across three different divisions including Acuma Wealth Management, Acuma Insurance Brokers and the Acuma branch in Abu Dhabi. For more information please visit www.acuma.ae.

Business set up INDIA

Setting up shop in india Are you a UAE-based company looking to expand your operations to India? Do you think that in order to setup your office it’s best to buy commercial property or lease office space? Meghna Pant asks Indian property experts about the best way forward.

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hy India?

As companies based in the UAE continue to suffer from the construction bust, many are looking at neighbouring countries like India, where infrastructure demand is bustling. It also helps that India is looking increasingly lucrative as a business destination due to several factors. It’s common knowledge that reasons such as demand, due to its population of 1.2 billion and the telecom boom, make India a great market to do business in.

Particularly for construction and real estate companies, increased

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Internet penetration has helped due to easy accessibility to information and transparency in real estate prices. With the easening of foreign direct investment (FDI) norms the route to India is getting even easier, and due to the active presence of commercial developers, a company can deal directly with the owner, instead of dealing with a middle-man.

The depreciation of the rupee has opened greater avenues for foreign players as they get an instantaneous 15-20% discount, and this has led to more investor interest in India. But will this not in turn affect the investor’s rupee profitability?

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Kapil Dev Sharma of Vatika, one of the leading Indian real estate developers, says that it will not affect profitability as prices of real estate are rising 30% per annum, so even if the rupee becomes stronger by 7-8%, it will be offset by an increase in real estate prices.

Therefore it’s no surprise that in a new trend, many companies, instead of laying off employees, are sending them to India. In addition, these UAE companies may be better suited to do business in India, than in the US or UK, due to the active presence of UAE companies in India, as well as the cultural similarities that the two countries share.

Business set up INDIA

There are three options available to foreign companies looking to enter the Indian commercial space – invest in equity, take FSI from a developer, or enter a joint-venture in a particular project. But, according to all the experts, companies are best off leasing commercial properties for the short-term, between three to five years, and then making an outright property buy.

Sunil Jaiswal, CEO, Sumansa Exhibitions

There is increasing interest in the Indian commercial space from the Middle East region. For instance, an exhibition such as the recently held Indian Property Show, which is one of the largest property shows on India property in this region, with 30% commercial properties showcased, has seen a return of interest to pre-recession 2006 levels. Out of the 15,000 investors, the show saw 5-10% turnout of business owners looking to buy or lease commercial property in India. Sunil Jaiswal, CEO of Sumansa Exhibitions, organisers of the Indian Property Show, says that in 2006, he saw a 50:50 spilt between those looking to invest and those interested in buying their first home. During the economic downturn this dropped by 30%, but has bounced back in the last year. The show organisers, Sumansa Exhibitions, conducted a survey amongst 15,000 non-resident Indians (NRI’s) and the result showed that 49% of NRI are looking to buy properties in India purely for investment purpose, while 11.6% wanted to buy commercial properties.

A much-quoted example of a foreign company that found a local real estate partner and conducted successful business, is hotel conglomerate Starwood. The company entered India by tying up with the local Vatika Group, and then setup the Westin Hotels.

Options There are three options available to foreign companies seeking to enter the Indian commercial space – invest in equity, take FSI from a developer or enter a jointventure in a particular project.

However, according to all the experts, companies are best leasing commercial properties for the short-term, between three to five years, and then making an outright property buy, as it is a sizeable investment more suited for big companies.

Since most companies lease for three to five years, it is good news for startups as they can test the market for that period without making a full commitment.

The size of the property and location is also a key determinant. Jewellery companies can have showrooms of 100300 square feet and can be present in small or large cities; consultancy firms need to be present in a bigger city with offices with typically 1,000 square feet coverage, though for smaller cities 800 square feet is ample for them.

According to these industry gurus, if a company is entering India for the shortterm and plans to pull out after a few years, investing in commercial property still makes sense. From a pure investment point of view, Indian commercial property yields 12-14% returns (especially in a mall), along with assured rentals that are given by many developers. This is an even better investment than the much touted residential property, which gives 2-3% yields in terms of rent.

Also, this is a good time to invest, as developers are giving sweeteners like

special holiday packages and early bird specials. For example, companies such as Nirmal Lifestyle offer eco-friendly offices such as Discovery Offices that are specifically targeted at foreign investors.

They require an investment of AED 600,000 upwards for offices between 600-1,000 square feet and the builder gives assured rentals of 80 square feet per month on purchase price of 15,000 square feet until possession after three and a half years.

Criteria The criteria to enter the Indian market as a UAE-based foreign company are: Seek permission from the Reserve Bank of India (RBI).

Find a local Indian partner as 100% ownership is not permissible in the Indian market. Ideally, the partner should have land holdings, though OCI/PIO’s are welcome. These partnerships can be in the ratio of 50:50 or 60:40. It is important to find a local partner, as they can help a foreign entity raise capital through debt or an IPO. Consult international property consultancy firms, such as Knight Frank, who can help a foreign firm find a local partner.

Use the foreign direct investment (FDI) channel.

Do solid market research.

Develop price points and routes to the entry market.

According to industry experts, it is easy to enter the Indian market. This is because an entity requires no minimum investment,

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Business set up INDIA

no bank guarantees, or visa. Licences are easy to obtain. As long as a company has a well-researched business plan and a solid project report, it can avail bank loans from financial institutions like Kotak Bank, Reliance Money and India Bulls.

Sunil recommends that the best industries to enter India through are real estate and hospitality, while Kapil Goyal, Head of International Sales with Nirmal Lifestyle, says that education and telecom are other lucrative sectors in the Indian market.

Kapil Dev Sharma from Vatika tells us that in the last three to four years the company has seen corporate interest from the likes of SAB, and attracted industries like telecom and BPO’s, especially in Gurgaon and Hyderabad. These areas are popular due to the presence of 30-40% vacant buildings. Five to six big global companies have set-up base there in the last few months itself. Five million square feet is still available there, while 3.5 million square feet has already been leased. As an example, Etisalat is one company that has taken space in Vatika Techpark in Gurgoan.

Caveats But it’s not all peaches and roses. India is a tough market to enter for SMEs (due to high investment criteria, political instability and rampant corruption, according to Sunil). Kapil agrees, saying that smaller businesses will find it more difficult as it is a competitive market that requires a high investment of USD 10-20 million in order to buy/rent/franchise, find local partners, set up supply chain management, market, and hire employees. For the medium range companies this obstacle may be overcome with a little more ease.

Sunil, like all the other developers, expects residential and commercial property to appreciate by 30% or more this year. Kapil, on the other hand, warns that in the coming months prices will stabilise due to the downturn in more developed markets and higher interest rates. He confesses that in the last three to four months there has been a lull in

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The good news for smaller and more risk averse companies is that if they don’t want to be physically present in India, then they can use the option of a virtual office. Due to increasing Internet penetration, touted to reach 121 million people, Indian customers can be reached even online.

looking to attract foreign companies and encouraging local companies to expand to foreign markets. There is more interest in that market than in the UAE, according to Kapil, because investors burnt their fingers by investing in Dubai at certain times, so Bahrain, Kuwait Abu Dhabi are more alluring than Dubai. But many companies like Nirmal Lifestyle see Qatar as a goldmine, since the purchasing power and disposable income of locals is higher than for those in Dubai.

Kapil Goyal, Head of International Sales, Nirmal Lifestyle

the commercial real estate market, which will continue for a few more months, but should bounce back due to ample local demand. Still, UAE companies should not be severely impacted by this, as they are fewer in number than US or UK companies, or even Japanese or Chinese companies that are showing greater interest.

The good news for smaller and more risk averse companies is that if they don’t want to be physically present in India, then they can use the option of a virtual office.

Due to increasing Internet penetration, touted to reach 121 million people, Indian customers can be reached even online.

What about other Middle Eastern markets? According to Sunil, Qatar also has a huge demand for commercial property, though it remains less than the UAE. The primary factor for this is the presence of Indian investors. GDP in Qatar is one of the highest in the world, and its government is

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About Sunil Jaiswal is the CEO, Sumansa Exhibitions, and the brains behind India’s largest property show in Dubai. Often described as a man who has nothing to hide, Sunil has a wealth of experience that he is eager to share to make people financially independent. An expert in investments, Sunil is a goldmine of knowledge on generating passive income. Property market investments are his forte and he takes keen interest in the dynamics of the Indian property market.

Not only is Sunil an investor, but also an entrepreneur, visionary and guide. He is a motivational speaker and a celebrated personality across the UAE and India for his sessions on financial investments.

Kapil Goyal currently works as the Head of International Sales with Nirmal Lifestyle, a leading Mumbai-based developer of both residential and commercial properties in India. Kapil’s main focus is to push for sales in the international market, and during his tenure, he has led the team in markets like Dubai, London and the US. With 21 years of experience, he has worked and travelled to almost 35 countries to promote Indian real estate. He is a regular columnist for Indian and international news papers and magazines.

He holds an MBA and Diploma in Foreign Trade, as well as a Diploma in International Real Estate Marketing.

OPPORTUNITIES REALITY TV

du the business!

To foster new ideas in business, du has announced its intention to launch a unique and exciting reality TV show to give entrepreneurs throughout the UAE an opportunity to turn their business ideas into reality by offering financial and professional support. Read on for more details.

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alled “The Entrepreneur”, the show is yet another first from du in the UAE. It is a home-grown entrepreneurial reality TV show that intends to empower entrepreneurs to venture into creating new businesses in a sustainable manner.

Conceptualised by du, the show is aimed at both existing ventures that

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need recapitalisation for growth as well as high impact business ideas requiring start-up capital.

“The Entrepreneur” is to air on Dubai One, a part of Dubai Media Incorporated, as the exclusive broadcaster and du has commissioned the internationally acclaimed Sony Pictures Television Arabia as the producer of the show.

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Unveiling the show, Hala Badri, Executive Vice President, Brand and Communications, du, said: “We are convinced there are many good ideas out there which need to be heard and, which need to be promoted.

The UAE is brimming with fantastic entrepreneurial talent which just needs a platform to take it to the next level. “The Entrepreneur” aims to empower and support the new breed of UAE entrepreneurs that build new enterprises which are innovative, sustainable and, most importantly, contribute meaningfully towards the social development of communities. This truly is a once in a life time opportunity, and for those with big dreams, I would say – go for it!”

When speaking to SME Advisor, Hala said: “The winner will not just receive the financial prize to boost their business idea but, what we view as equally as important, will have the opportunity to avail of mentoring, marketing expertise, office setup, and, assistance with other logistical issues that many businesses often find difficulty to access.”

Entries open 21st February 2012 and interested applicants can visit www.theentrepreneur.ae to submit their applications. The last date for submission of entries is 31st March 2012.

The primary evaluating panel comprises UAE-based personalities who have trod the path to success and are eminent in their chosen field of work today. They will be assisted during the initial stages of evaluating entries by Ernst & Young.

About the show • The competition is open to all UAE residents above 18 years of age and who have a registered company in their name. NGOs, societies, and associations are also welcome to submit their innovative business ideas.

• Shortlisted contestants from across the country will be invited to participate in an audition day, where they will be required to pitch their ideas/product/business infront of judges.

• After the final round of auditions only ten best contestants will be selected to be on the show and they will battle it out in the final round of challenges.

• On the final episode, only one deserving winner will walk away with AED one million in cash plus professional services and support towards their business in terms of marketing, mentoring, premises and other logistical areas to assist the business.

OPPORTUNITIES REALITY TV

Meet the Judges Abdul Baset Al Janahi, Chief Executive Officer, Mohammed Bin Rashid Establishement for SME Development Abdul Baset Al Janahi is currently the CEO of the Mohammed Bin Rashid Establishment for SME Development. In his role as CEO, Al Jamahi has contributed significantly to their growth and development.

In addition, he has become renowned for his support of young and aspiring entrepreneurs in the UAE. Prior to his appointment with the Establishment in 2002, Al Janahi held a number of senior managerial positions in leading organisations in the UAE. He was the founding member of Dubai Shopping Festival (DSF) and was also one of the founding members of the Dubai Internet City (DIC) and its Commercial Department.

Muna Al Gurg, Director of Retail, Easa Saleh Al Gurg Group (ESAG) Muna Esa Al Gurg is the Director of Retail for the Easa Saleh Al Gurg Group (ESAG). She is responsible for strategy and operational development for the group’s international retail brands. Prior to 2010, Al Gurg oversaw the group’s marketing department. Her role as Head of Corporate Communications included working with media, customers, partners and other stakeholders in support of ESAG’s business objectives.

She is currently the Chairwoman of Young Arab Leaders UAE and is repsonbile for guiding essential components of the initiatives’ success across education, entrepreneurship and youth development.

In June 2010, she was presented the Emirates Women’s Award for outstanding achievers by HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group.

Nisreen Shocair, President, Virgin Megastore, MENA Nisreen Shocair has been the President of Virgin Megastore for the Middle East since 2006. She has been instrumental in building the Virgin brand across the region by incorporating local and international consumption trends into one shopping experience.

Prior to joining Virgin Megastore, she held important positions at Sony Music, Bertelsmann AG and Hearst Entertainment. Nisreen has extensive experience within music, publishing, licensing, digital entertainment and retail sectors.

Yogesh Mehta, Managing Partner, Petrochem Middle East Yogesh is a first generation entrepreneur and the Managing Partner of Petrochem Middle East and his success story is an inspiration to anybody with an entrepreneurial streak. Having started his first business venture in 1982, Yogesh had to face several tribulations before he found his true calling – petrochemicals, when he co-founded Petrochem Middle East in 1994.

Today with a turnover of more than USD 1.1 billion, his business has a global presence with office in China, Singpaore, India Egypt, Antwerp, the UK and with the headquarters in Dubai.

“The winner will not just receive the financial prize to boost their business idea, but, what we view as equally as important, will have the opportunity to avail of mentoring, marketing expertise, office setup and, assistance with other logistical issues that many businesses often find difficulty to access.”

- Hala Badri , Executive Vice President, Brand and Communications, du

“The Entrepreneur” will be aired on television channel Dubai One later this year, with eight episodes, each lasting 30 minutes.

John Lincoln, Vice President, Enterprise Marketing, told SME Advisor: “In terms of criteria for

ideas for the show, there are no restrictions, unless the idea goes against the legal, social and moral fabric of the UAE. The competition is open to all UAE residents and we at du are very excited about the entire process.”

Nisreen Shocair, President, Virgin Megastore, MENA, spoke to SME Advisor about the contribution and expertise of Virgin Megastores and what it can bring to the table: “We have been working closely with businesses in the region for quite some time and have teamed up with du on other business related initiatives.

At this point are in a position to spot what ideas have the potential to succeed and what ideas will not. What I will be looking for is a business proposition that will sell and will be received well by consumers in the market.”

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Opportunities ArabNet

Digital delight The ArabNet Digital Summit is touted as one of the most influential digital events in the region for developers, entrepreneurs and startups to interact with investors and industry leaders. Mike Byrne talks to ArabNet’s Founder, Omar Christidis, about current and future ventures in the digital domain.

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stablished in 2009 by its Yale University educated founder, Christidis, ArabNet has clearly accomplished a lot in a short space of time. In a period witnessing rapid growth in the mobile and Web industries across the region, this company and its schedule of events have proven a big hit with entrepreneurs and digital professionals alike.

“ArabNet serves as a platform for innovative individuals in the region to not only connect and learn, but also leverage

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their ideas and talents in front of the right people. We aim to facilitate the growth of entrepreneurs and help them overcome challenges such as limited funding, support, and resources with the ultimate goal of strengthening the web and mobile industry in the region,” said Omar.

And looking through the specs on the events it has held over the last two years, you would be inclined to agree that real work at the grassroots level is being achieved. The two-day ArabNet 2010 was held in Beirut, gathered over 500 attendees, 20 speakers and gave 20 entrepreneurs the

SME ADVISOR MIDDLE EAST MARCH 2012

opportunity to pitch their ideas and startups to investors, industry leaders and the media are all present.

Fast forward to ArabNet 2011 and the figures become even more impressive. It was increased to a four-day affair with over 1,000 attendees, 100 speakers, 20 pitches, 18 panels, 17 talks and six workshop tutorials. And all this in the midst of the Arab Spring, with the event making its Egyptian debut in revolution capital Cairo.

So how do you induce investors, industry leaders and influential speakers to travel from all over the globe to attend, especially in the midst of civic unrest? “That’s a good question,” answers Omar.

“Growing ArabNet has been a labour of love for us for the past few years. The first year, I travelled everywhere and built connections piece by piece, asking for introductions from everyone who would listen. I organised a lot of tweetups, where I met with excited techies and social media influencers, and they also helped me get a lay of the land. It was still fragmented and there was a need for a platform to bring everyone together and so we came in to fill that gap.”

“There are some people from global executives at major companies that I keep in touch with for years before they accept our invitation. I’m patient, and I know that eventually they’ll come around, especially as our market continuous its rapid growth,” he said.

In addition to summits in Beirut and Cairo, ArabNet also organised a roadshow in 2011. “It was a crazy bus adventure that took our team across seven countries; Lebanon, Egypt, Syria, Jordon, Saudi Arabia, Qatar and the UAE,” Omar notes.

“In each country, we organised a workshop to train and inspire entrepreneurs to start their own businesses, bringing in top local investors and entrepreneurs, who could serve as mentors and role models.”

What makes the initiatives of ArabNet more appealing to the business community is its ability to also form partnerships with regional governmental initiatives; Queen

Opportunities ArabNet

In addition to events, ArabNet is also amassing a digital database. Omar explains that the ArabNet Startup Database is one of the most comprehensive registries of Arab Web and mobile startups online, with more than 250 companies listed across the region. The idea behind the database is to provide entrepreneurs and companies with exposure, and to present the industry with a reference for the startup landscape.

Rania Center for Entrepreneurship (ORCE) in Jordan, ICT Qatar in Qatar and Dubai Internet City in the UAE. “Each country has a specific organisation that is working in tandem with our efforts and its makes sense to seek cooperative arrangements. QRCE in Jordan organises regular trainings and initiatives for entrepreneurs, ICT Qatar launched the digital content incubator in March 2011 and Dubai Internet City (DIC) regularly hosts DemoCamp, which is a platform for entrepreneurs to pitch their business ideas,” he explains.

So what can the winning pitches from the entrepreneurs at the ArabNet summits hope to expect in terms of prizes and investment?

A simple monetary cash price will not suffice, especially with the conditions of the present economic climate – and Omar knows this.

“The winners for the Ideathon receive cash prizes; USD 2,500 for first place, USD 1,500 for second and USD 1,000 for third place and the Startup Demo finalists all receive exhibition space in the Summit venue, which is quite valuable.

“But this is not all. All finalists receive tremendous exposure to the region’s top investors, incubators, executives, and media.

We’ve got a lot of great success stories and many of the finalists also get approached by developers, marketers, or other entrepreneurs who are interested in working or partnering with them. If you look at our first conference in 2010, 40% of the startups that pitched have received investment,” he says.

“Recently, Jamalon, who pitched at ArabNet 2011, raised USD 400,000 and I-call Taxi, who pitched at ArabNet Cairo in October 2011, is being incubated by Flat6Labs and will launch his product by March 2012.”

Omar Christidis In addition to events, ArabNet is also amassing a digital database. Omar explains that the ArabNet Startup Database is one of the most comprehensive registries of Arab Web and mobile startups online, with more than 250 companies listed across the region.

At the moment, if anyone is interested in connecting with these startups, they can reach out to ArabNet, or visit the startup directly. It is also currently working on developing ways for entrepreneurs to network and connect across the platform so that the process becomes even more expedient.

Most recently, ArabNet announced the ArabNet Case Study Challenge (ACSC) which is aimed at individuals and agencies in the advertising industry and will recognise excellence in online advertising. Applications will be filtered by ArabNet and a panel of judges composed of individuals from top global agencies, brands, and publishers.

“Six finalists will be given 15 minutes on stage in front of hundreds of attendees at the ArabNet Digital Summit in March 2012 to present their case studies of campaigns that have leveraged technology and new media to promote a brand.

One case will be presented with an award for the Best Digital Campaign of 2012,” explains Omar.

The five day summit, to be held in Beirut, will be split up into four parts: two Developer Days (March 27th – 28th), which will host technical discussions and workshops for programmers, an Industry Day (March 28th) focused on how web and mobile applications are transforming traditional industries, two Forum Days (March 29th – 30th), which will feature pitches by some of the region’s top entrepreneurs and are aimed at bringing together digital business leaders in the region to cover the latest web and mobile trends and technologies, and finally, a Community Day (March 31st) open to the public and focused on raising awareness about the power of digital.

Most recently, ArabNet announced the ArabNet Case Study Challenge (ACSC) which is aimed at individuals and agencies in the advertising industry and will recognise excellence in online advertising. Applications will be filtered by ArabNet and a panel of judges composed of individuals from top global agencies, brands, and publishers.

The idea behind the database is to provide entrepreneurs and companies with exposure, and to present the industry with a reference for the startup landscape.

For more information on how to register and attend the ArabNet Digital Summit in Beirut in March, visit www.arabnet.me/ conference/summit.

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Marketing

Digital evolvement

Keeping up with the pack Marketing and PR professionals are under a constant pressure to evolve fast and be super creative, even more than their predecessors, thanks to the nature and pace of the digital world. Sawsan Ghanem, Managing Director, Active Public Relations, discusses the need to continuously evolve and adapt simultaneously across all platforms.

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ou just need to look at the accelerating progress of new applications, social networking forums, state-of-the-art video conferencing, and much more, to understand the unrelenting pressure to stay ahead of the curve.

More and more publications, including newspapers, are going virtual and cancelling their hard copy counterparts for good. Social forums, such as Facebook, Twitter, LinkedIn, Google+ have become

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SME ADVISOR MIDDLE EAST MARCH 2012

the preferred mode of communication amongst us, for personal, business and marketing needs.

To conduct effective and result driven public relations today, you need to be flexible and fast on the uptake, but the key is to know how to utilise different platforms and networks effectively. This may not be a simple exercise, as it involves time, money and a desire to really learn and apply in a targeted and relevant way to client campaigns to ensure they are successful.

There is a skill to offering a client successful social media campaigns, as they are so diverse in application, reach, style, content and tonality. Any small mistake can backfire and yield the communication campaign a failure.

There’s no denying the power you can yield from social media and yet many people continue to undermine it, or sideline it, for many reasons; some don’t understand how it works, some are too scared and some just don’t want to adapt.

This is a grave mistake to make as social media is not a passing phenomenon, but rather its one that’s part of the communication fabric and here to stay. You really need to embrace it and understand how it works and how it impacts your target audience, or stakeholders.

If you look at Twitter, adoption is at times slower than Facebook but, nonetheless, it is fast becoming a social media networking force to be reckoned with. Whatever your business communication needs may be, they can be translated and tailored to suit the Twitter style and engage the growing number of businesses networking and connecting with each other on this platform.

There is so much you can do and ways to communicate, as well as chatting

Marketing

Digital evolvement

to your target audience, you can get widespread publicity for your articles, various developments in real-time, news announcements, achievements, announce and invite people to your seminars, launches, briefings, TV and radio interviews and engage them in competitions – the list is endless.

A really important tactic is to follow and study the thought leaders, experts and even the competition in your industry. There’s nothing wrong in getting a few tips from those who know how to work social media effectively.

Besides just following them, you need to monitor and digest what they are saying and how; understand what makes tick, what interests them and check out

Sawsan Ghanem

A really important tactic is to follow and study the thought leaders, experts and even the competition in your industry.

There’s nothing wrong in getting a few tips from those who know how to work social media effectively.

the sites they recommend. Learn how to engage them, through common interests, opinions, live dialogue, should they throw a question out to your audiences, and even attend Tweet ups or other gatherings they announce they will be attending on Twitter.

It’s also key to be up to speed with the common references used in various social media platforms, such as RT (retweets), FF (Follow Friday), # (Hashtags), Tweeps, Post, Tweets and more.

To get an intimate insight into the media, following them on Twitter/Facebook is a valuable activity. Search for the key reporters who are a target for your business and communications. Join and follow their publication accounts and do your homework on what interests them, what they are writing about and get to know them better. By doing so you can then comment on their tweets or posts and refer to their articles, thus building a relationship with them, based on mutual respect.

I believe that most people would agree that Facebook is more straightforward and easier to master. The key here is to spend some time expanding your network.

Build relevant relationships; it’s more about quality than quantity and the success of this is based on how many fans really want to engage with your brand in the long-term and are genuinely interested.

Your challenge besides securing those fans is to keep them engaged through interesting and eye grabbing content. You need to

differentiate yourself from the competition, through fast-paced and incredibly creative solutions; it’s all about making a noise, but a noise that needs and wants to be heard.

At the end of the day, like any proper marketing plan, you need to manage, coordinate and stay consistent across a number of platforms and not look at each in isolation.

PR’ing your business through social networking doesn’t have to be expensive if you just remember to network and use all the tools available to you in an intelligent way. In fact, it can be a lot of fun, as you become part of the future and the digital social networking crowd and learn to adapt fast to evolving.

If you feel that you don’t have the bandwidth, or the know-how, you can call on the support of social networking experts who spend majority of their time on various platforms. There is no excuse for not getting on-board.

About Sawsan Ghanem is the Joint Managing Director of Active PR. She has lived in the Middle East region for the greater part of her life. Sawsan lived and studied in the UK for a few years where she gained her BSc in Chemistry & Management from Kings College, London University and MA in International Business, from Webster Graduate School (London Campus).

Sawsan began her career in PR over 14 years ago, when she caught the PR & Communication bug. She founded Active PR in the summer of 2003 along with Louay Al Samarrai.

Sawsan has in-depth experience in strategic PR campaigns, media relations, creative thinking, crisis management and more. She is the SMB Advisor Middle East winner [before the magazine was rebranded SME Advisor] in the category of Admirable Woman Entrepreneur (2008) and she won Arab Entrepreneur of the Year at the SME Advisor Stars of Business Awards 2011.

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Marketing

Social media FAQs

What’s on your mind?

If you’d like to ask Alan anything related to social media and how it can be leveraged for your business, send in your questions to info@britbiz-uae.com. moment you type it, but someone looking at your content history will see it. Be very careful if you are using your real name and/or your company name.

How many tweets should I send a day?

Pop the question Over the last few months, Alan Devereux, Communications Officer, British Business Group, has been covering social media in his articles and how it can help your business, provided you do it right. This month he answers some of our readers’ frequently asked questions.

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There is no rule to this, it all depends on the goal of you account. The real value of Twitter for many companies is the ability to connect with people.

If your plan is to send out a steady stream of messages that describe your company’s products you could look at buying advertising on the television or radio. Here is an example of how Twitter can work for you. You meet someone on Twitter. You build a relationship with this person, albeit an online relationship. This person has 4,000 followers, writes a blog that is read by 500 people, and manages two different Facebook pages with 1,000 fans each. One day, because that person likes you they decide to talk about your company favourably to all the people they are connected to – using this example you have potentially reached 6,500 people because of an online relationship started on Twitter.

ow do I delete one of my LinkedIn contacts?

Should I connect with people I don’t know on LinkedIn?

In the menu bar click connections.

In the top right corner you will see Remove Connections. Follow the steps to remove the connection, remembering that the system organises you contacts by surname (family name) and not first name. Please also remember that when you remove a connection your network will shrink, carefully consider whether you should remove a connection before you click the button.

If you already know everyone you want to connect with, why create a LinkedIn account?

LinkedIn is about your network, you need to make connections to grow your network. You cannot search for someone outside of your network; equally, someone outside of your network cannot search for you. Now that we understand this, doesn’t it make sense to increase the size of our networks? Someone may not know I exist by name; I need to be searchable by job title to be found. So I increase my network by accepting connection requests.

How do I follow someone’s list on Twitter?

Go to the profile page of the account containing the list. You will see under the profile information a tab called Lists. Click it. This tab will take you to all the lists the account has created and the accounts the account is following (I say account and not “person” as sometimes accounts are managed by more than one person). Click on the list you want to follow and the Follow this List tab will be visible. When you follow a list, the accounts within that list are not added to your

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Alan Devereux following total. If you are following 100 accounts and you follow a list your number will remain 100. You are following a list, not more accounts.

Should I create a personal Twitter account or a company one?

That depends on your purpose. Before you start using Twitter you should have a goal set. Twitter can be very time consuming and you may not see financial reward for some time. Whatever type of account you create, remember that everything you type can be seen. It may not be seen at the

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About Alan Devereux is a husband, father, and Communications Officer for the British Business Group, Dubai and Northern Emirates, and can be found here: http://ae.linkedin.com/in/alandevereux. He can be contacted at info@britbiz-uae.com

Legal

DIFC Courts

LEVELLING THE PLAYING FIELD E As with most legal cases in most jurisdictions, proceedings can prove both time-consuming and costly for both parties involved. But new

legislation has armed the courts in the Dubai International Financial Centre (DIFC) with the ammunition to handle a wider scope of disputes for a reduced fee. With less than six months since its inception, SMEs are fast emerging as the biggest beneficiaries of this Small Claims Tribunal (SCT). Mike Byrne brings you the breakdown.

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SME ADVISOR MIDDLE EAST MARCH 2012

ven with a quick glance over the sections of the new legislation, Law No. 16 of 2011, has SME written all over it; the SCT in essence opens the courtroom doors to the general public so long as the parties ‘opt in’ to the DIFC Courts’ jurisdiction by agreement in writing.

Ghada Qaisi Audi, Head of Disputes Resolution, Fichte & Co Legal explained to SME Advisor: “The DIFC Courts’ SCT recently decided a case between two Dubaibased parties that had no connection to the DIFC to settle a matter concerning the non-payment of an invoice. So long as the

Legal

DIFC Courts

FACTS AND FIGURES Small Claims Tribunal No. of cases 2011 - 83 2010 - 81 2009 - 66 2008 - 54 Court of First Instance No. of cases 2011 - 31 2010 - 27 2009 - 36 2008 - 9 Court of Appeal No. of cases 2011 - 2 2010 - 4 2009 - 2 2008 - 1

parties agree in writing, the SCT can hear any civil and commercial claims up to AED 500,000 (such as contract claims and debt collection matters) and employment claims without a cap on the amount in dispute.”

The Small Claims Court was originally set up in 2007 but was more limited than in its current form. It was ruled under the common law system and was held in English. Before 2009 the cap on the top ceiling monetary amount that could be considered was AED 100,000 and companies had to be registered as operating within the DIFC. In 2009 this monetary cap was raised to AED 500,000.

Under the newly passed legislation employment disputes amounting up to AED 2000,000 can be heard, but there is potential for the court to waive this cap if both parties agree in writing and the judge rules this to be beneficial for both parties involved.

In its current form, the SCT is conducted with the aid of eight judges, two of which are Emirati and the remaining six are chosen from various common law jurisdictions from across the globe. Decisions are binding and hold the same weight of authority and enforcement as domestic court rulings, with the freezing of bank accounts and assets as possible imposition tools at the court’s disposal. The DIFC Courts also work very closely with Dubai Courts and a Joint Committee meets regularly to discuss issues such as joint lectures, Memorandums of Understanding (MoUs) and enforcement.

How it all works So what is the process from start to finish and within what time scale can SMEs hope to have the dispute settled? “The SCT provides a speedy and efficient forum, in English, that is confidential and binding on the parties. Lawyers are not permitted to participate and the first step is a ‘consultation’ where the parties sit before a Small Claims Tribunal Judge, who assists the parties to come to an agreement. More than 90% of the cases are settled amicably by a Consent Order in the first consultation with an SCT Judge and within three weeks from the date the claim is lodged with the DIFC Courts,” says Ghada.

Indeed it is perhaps the absence of legal counsel that affords both parties and the judge to participate in a more direct manner to resolve the matter. According to Small Claims Tribunal Judge, Shamlan Al Sawalehi, small claims litigants can expect the SCT judge to take an active role to assist the parties to agree. “It is the process such as asking questions, getting the parties to consider their options and whether it is in their best interest to settle.

Sometimes the parties need to let out their emotions, but then they realise the benefit of making a settlement because they actually want to continue working with the other party, for example,” he said.

Commencement, response and appeal to a claim • In order to lodge a small claim, the claimants must submit a P53/01 form to the Registry. The form is available on the DIFC Courts Website, www.difccourts.ae. The DIFC Courts’ Registry will serve the claim form on the defendant.

• The SCT requires that the claimant to provide both the claimant’s and defendant’s full contact information to include name, address, e-mail address, telephone number and fax number. The claimant must also provide a full summary of the dispute, what compensation is expected to receive and the justification for seeking compensation.

The monetary value of the claim must also be included. If the dispute is employment related, a photocopy of the employment contract and/or offer letter is required.

• The defendant must respond to the claim within seven days of it being served and must either admit the claim, file a defence to the claim, or complete an application to dispute jurisdiction.

• An intending appellant must file an appellant’s notice on Form 53/02 within 14 days after the date of the decision. The form is available at www.difccourts.ae.

So what has been the response to the new court’s powers of decision making?

Amna Sultan Al Owais, Deputy Registrar and SCT Registrar told SME Advisor that the most common cases are in the instance of employee versus employer and involve

MARCH 2012 SME ADVISOR MIDDLE EAST

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Legal

DIFC Courts

an issue of payment. “If the dispute is not resolved in the consultation stage, the case continues to a second step, a ‘hearing’ before another SCT Judge that will take place a week later, and with the judge rendering an Order,” she notes. Amna also pointed out that all judgements and rulings are available as public record and it is only in the most rare of circumstances that that the court is closed to the public.

Indeed, according to Judge Al Sawalehi, many SME’s stand to gain from the new rules because the fees are low, the process is very quick and confidential and the outcome is a binding Court order that can be enforced against the other side if they do not pay immediately. “When it comes to enforcement practices, the general rule is that people take a court Order seriously and pay it within the prescribed timeframe. In case they do not, the winning party can take it to enforcement to have the losing party’s assets seized in order to pay off the amount,” he says.

However, there are certain points to keep in mind, notes Ghada. “While it is true that parties can file their claims before the DIFC Courts SCT without legal representation, when the disputed amount

Decisions are binding and hold the same weight of authority and enforcement as domestic court rulings, with the freezing of bank accounts and assets as possible imposition tools at the court’s disposal. The DIFC Courts also work very closely with Dubai Courts and a Joint Committee meets regularly to discuss issues such as joint lectures, Memorandums of Understanding (MoUs) and enforcement.

Lodging the claim and following up with the DIFC Courts Preparing for the consultation and hearing Appealing the decision to the Court of First Instance (see text box for further details) Enforcing an SCT Order

Pro Bono Clinic In addition to the developments of the SCT, Amna told SME Advisor of the recent launch of the Pro Bono Clinic, whereby people seeking legal advice and guidance, but who are unable to pay a fee for a

“While it is true that parties can file their claims before the DIFC Courts SCT without legal representation, when the disputed amount is towards the high end of the cap, it is still suggested that companies consult with a lawyer before approaching the DIFC Courts to avoid any disappointment.”

Those seeking this service must fill out a criteria form and are then assessed. The DIFC Courts do point out that they are part of the selection process but do remain neutral insofar as the advice afforded to successful applicants by lawyers from the 23 local and international firms participating in the scheme.

The clinic is also exclusive to those companies and employees registered and operating within the DIFC, but precedent case law suggests that if a party has a presence in the DIFC but the dispute originates from outside, then, as long as both parties agree, a judge can grant permission to have the wishes of the parties upheld.

Without doubt, both the SCT and the Pro Bono Clinic programme, are both very progressive legal developments that best.

Small claims tribunal costs

- Ghada Qaisi Audi, Head of Disputes Resolution, Fichte & Co Legal

is towards the high end of the cap, it is still suggested that companies consult with a lawyer before approaching the DIFC Courts to avoid any disappointment,” she says.

According to Ghada a lawyer will in fact be able to give preliminary advice and assistance on the correct procedures to follow, and in particular advise on: Determining whether your claim or counterclaim can be brought in the SCT Drafting forum selection clauses in new and existing Agreements

42

consultation, can avail of the services and expertise from some of Dubai’s finest legal counsel.

“The Pro Bono programme (for the Court of First Instance) was the first of its kind in the Middle East. It had its first session on the 16th February where attendees were able to book free appointments and sit with a lawyer from one of the international volunteer firms participating, for free and confidential advice,” she said.

SME ADVISOR MIDDLE EAST MARCH 2012

• When filing a claim related to an employment dispute, the fee for filing will be 2% of the value of the claim, with a minimum of AED 200. Any claim relating to an employment dispute that must be referred to the Court of First Instance (CFI) will incur a further 1% of the value of the claim with a minimum of AED 100.

• The filing fee for all other claims (nonemployment related) in the SCT is 5% of the claim value or a minimum of AED 500. Any claim related to a non-employment dispute that must be referred to the CFI will incur a further fee of 2.5% of the value of the claim of a minimum of AED 250.

• The SCT Registrar will be able to waive, defer or reduce any fees it deems appropriate.

Finance

Investors

The power of persuasion You often hear of angel investors, venture capitalists and general business investors, but finding that person who will take a chance on your business is often more difficult that you know. Yousef Hamza, Associate, Envestors MENA, takes us through the ins and outs of pitching your business to the cash cats.

I

n the Middle East it is often the case where investment is sought from close friends and family, randomly knocking on people’s doors or a “boy have I got the guy for you” lead from someone you may or, may not, know. In some scenarios investors will spend three to six months finding creative ways to buy time and in the end say no, wasting time that you could have spent pursuing more productive leads.

The truth is, on average, 60% of investors reject projects in the first 30 minutes. This could be caused by anything from a weird handshake to a voice with no confidence, how you smile, to how quickly you can bore them, it sometimes even depends on external factors out of your control. A further 25% are rejected within the first three hours, 10% after a full day, 3% as a result of negotiation, and at best only 2% raise finance, which means you need to be speak to 50 investors to find one solid one (on average). More importantly, it means that only one in 50 companies is good enough to be invested in.

If, however, you know exactly what you are doing and receive the right support, it can be a rather positive experience.

However, even with prior experience, the process can be both daunting and disconcerting.

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Crucial factors The question I am most asked always boils down to the same thing: “What’s the most important factor when raising capital?”

I cannot stress the answer enough; the management team. Whether it is just one, two, or ten people, a fantastic team with a bad product still has a chance of creating a successful company; a horrible team with an “amazing new ground breaking product” will definitely fail within six to twelve months.

Finding the management team Start with friends and family; look for the skill sets you need but don’t bring family in just because they are relatives. After that, go out there and look for them. Conferences, events, networking groups and begin good

SME ADVISOR MIDDLE EAST MARCH 2012

old fashioned conversations with people.

Another way is to seek professional help in placement.

Necessary management qualities Drive: Young companies usually depend on the drive of the head person, thus no drive, no success. Investors can see that from the outset and will drop the project fast if there is no passion.

Experience: In raising finance, in running companies and in the business world in general, it is good to have technology and industry specialists in the team, as it gives confidence to the project, but the company must be spearheaded by someone with business acumen.

Flexibility: A management team’s inability to be flexible and find solutions is one of the core aspects that determine the success of a company. This can be seen in anything from negotiating shareholding to plans moving forward. If someone is unwilling to change, their company will never be able to change with market demand and will be swept aside by the tide. Be humble and quick to learn.

Good presentation skills: This is a must and can be taught by professionals.

Don’t fall in love with the asset: Despite having spent five years researching the product, hearing amazing feedback from everyone and knowing you’ve hit a gem, do not fall in love with your assets. At the end of the day, it is a product, and no product is perfect, therefore you need to focus on developing, improving, changing and updating all the time.

Trust: Last but not least. Be open and honest, be yourself and don’t shift or try to conceal facts; investors can see them all and remember they do this for a living.

The next step Firstly, you will need a business plan (though generally investors will only read

Finance

Investors

three to four pages, they need to know that you know what you’re talking about and have structure and direction).

Secondly, something that is undervalued but highly valuable is a board of advisors or directors; this proves that you are not claiming to know everything and can lean on the shoulders of those larger than you. Finally, add detailed explainable financials to the mix and a good pitch and you are ready to go.

Investors can be your best friend, ally, confidant and, in most cases, the key success factor to your business. Envestors MENA deal with everything from advisory, business plan, presentation, placement, legal, valuation, financials and so on and also deal with both investors and entrepreneurs on a daily basis. A “Dragon’s Den” style show is conducted every few months, where the entrepreneur pitches to around 80 credible investors (and even more in the broader network).

When seeking financial investment the first start should always be close friends and family. If you can’t convince them, you won’t be able to convince investors. It is very difficult in general, but don’t despair.

Let people within your wider circle know of your plan and need for raising finance as opportunities can arise that way.

Speak to people who have previously financed small companies in the region and try to set up meetings with them, taking literally only ten minutes of their time – anymore and you run the risk of boring the investor. Remember to always do your due diligence on the investor in advance if you do not know them.

Has investment lost traction with the economic downturn?

Though investors are putting a lot less cash in than they did pre-crisis, they are still actively seeking SME’s to invest in, as it is a healthy substitute to other available alternative investments such as derivatives, government bonds and so on.

They like tangible businesses, ones they can touch, feel and kick the tires on. There is an appeal to helping something that benefits the greater community we live in and it is especially good if it is an add-on

Investors like tangible businesses, ones they can touch, feel and kick the tires on. There is an appeal to helping something that benefits the greater community we live in and it is especially good if it is an add-on to their already existing businesses in some shape or form.

plan should be a clear and definable exit strategy.

To sum up

Yousef Hamza to their already existing businesses in some shape or form.

What do investors like to see?

Good management team: This can never be overstressed!

Credible financial projections: If you presume you will be making net profit of AED 50,000 in the first year and a net profit of AED 50 million in the second, investors won’t even give the rest of the plan a second glance; you are clearly not reasonable and this can be immediately off-putting.

Adequate financial returns: If a business will not make an investor’s money back within a couple of years, then they are unlikely to invest.

Scalable: Don’t bother starting a business that does not have a market you can sell to. It needs to be scalable, in terms of market and geography. A product that only caters in one country is not likely to receive investment; there must be a growth plan.

Clear exit route: Investors want to see that this isn’t a lifestyle business for you, that you intend to make money and have a more valuable asset to sell onto the next individual or company; in every business

As we all know, raising finance for your business is probably one of the most important factors for its success. You need money to make money. Despite this, entrepreneurs spend months and years on business planning, customisation, marketing, and just about every other aspect of a business, but do not spend enough time learning about the correct angles for raising finance. Even people who have been raising finance for years find it extremely difficult as they have never truly sat on both sides of the table.

Be realistic, be humble, be reasonable and remember if you’ve thought of the idea chances are somebody, somewhere else has too. This isn’t a bad thing; competition is healthy, but just ensure you’re there faster, are more flexible to change and development and have a better management team to execute the project.

About Yousef Hamza is an associate with Envestors MENA, a company which has advised over 1,000 entrepreneurs on everything from business plans, company strategy, valuation, placement, legal advice, presentation skills and local aspects.

Envestors is a regional Business Angel Network which has taken on, advised and raised finance for nine startup/growth companies for just over USD 12 million, with a further USD six million offered to four additional companies in the last six months alone.

They have also actively advised on larger M&A deals, including the raising of finance for projects totalling over USD 150 million.

MARCH 2012 SME ADVISOR MIDDLE EAST

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Management

Collaboration

Lead and they will follow Many companies invest heavily in their advertising, marketing collateral, pricing and service options, all the while ignoring the one thing that makes them most competitive – the way their people operate. Stephan Melchior, Managing Partner, Wilson Learning Middle East, explains how management needs to lead from the front to forge better collectiveness. purpose that creates the “we” in problem-solving and pulls individuals together. On the other extreme stands groupism.

Groupism Employees with a groupism mindset want to get along with each other for the sake of harmony.

The focus is on the other person, “you”, and the daily method of operating is cooperative.

Some countries and organisational cultures are known for their groupism approach, where it is difficult for individuals to measure their personal contributions. Company resources are allocated more based on tradition, and leaders act as if they have no personal accountability. Everything

I

t is an odd reality that companies must collaborate internally to compete externally. Leaders create collaborative environments through their mindset and approaches to decision making. The ease with which leaders can become more collaborative depends on their starting point. Individual collaboration is highly influenced by a company’s culture and even the countries in which it is located.

The two mindsets most frequently found at company and country levels are individualism and groupism.

Individualism Individualism is a mindset to win for the sake of victory. It promotes an environment where the focus is on, “I” and the way people operate internally is competitive. Performance achievements and compensation are more based on individual goals; team performance is not evaluated. Company resources are allocated based on power, meaning the most influential manager gets access to more or better resources

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Groupism is often thought to be collaborative, but it is not.

Avoiding relationship tension shuts off important contributions and shows little respect for individual diversity. It is difficult to break out of a groupism mindset because leaders and employees aren’t accustomed to taking personal risks. They need to be reassured that their unique perspectives are important to the functioning of the team and the business itself.

than other managers. Leaders act as if defending a territory, or field of activity.

The sales organisation believes it owns customers, and without them, the organisation would not survive. Problems are hushed or hidden to avoid losing position or status, and finally, decisions are often made autonomously and delivered in a directive manner.

The most common barrier to changing the “I” mindset is the leap to a common vision and purpose, which is necessary for living a collaborative mindset. It is a shared vision and

SME ADVISOR MIDDLE EAST MARCH 2012

is around a team, however, not to an extreme that does not leave room for individual pride and confrontation. Problems are hushed or hidden to avoid relationship conflict, even when detrimental to business results, and consensus is the preferred approach to decisions.

Groupism is often thought to be collaborative, but it is not. Avoiding relationship tension shuts off important contributions and shows little respect for individual diversity.

It is difficult to break out of a groupism mindset because leaders and employees aren’t accustomed

Management

Collaboration

to taking personal risks. They need to be reassured that their unique perspectives are important to the functioning of the team and the business itself.

Collaboration as the way out Regardless of how a culture is currently operating, the way leaders make decisions builds a pathway to establishing a collaborative environment.

Leaders contribute their own value and facilitate team members’ contributions as a standard way of doing business.

Collaboration is an effort to achieve solutions that rise above individual interests and at the same time, respects individual diversity; the focus is on, we and us. Collaboration combines talents and integrates differences to ensure more innovative outcomes.

Performance objectives and compensation are based on both individual and team goals.

Company resources are allocated based on need and strategy.

Leaders act in alignment with the company’s vision, purpose and values.

The sales organisation believes it represents both customers and the company.

Problems are openly discussed and actively pursued without blame.

Various decision approaches are used depending on the situation.

What can we do as leaders in our daily work and interaction with our teams? Let’s start by simply involving team members more actively in decision-making. Using a collaborative approach rather than announcing, “the organisation will now be collaborative” or “we have to work better as a team” – be the first to demonstrate.

People simply will not trust new behaviours until they see collaboration and team work demonstrated consistently over time, with their managers as role models. Even at that, sometimes employees don’t respond in the way expected; they may see contribution as a burden rather than an opportunity because usually managers expect their teams to collaborate among each other, but managers don’t include themselves into the team.

Instead of using one approach to decisions, which is governed by culture, let’s challenge ourselves to think about our approach based on the needs of the business. We should challenge our decision making approach in a variety of situations, including budget allocations, office space assignments and hiring new people.The following are four

People simply will not trust new behaviours until they see collaboration and team work demonstrated consistently over time, with their managers as role models. Even at that, sometimes employees don’t respond in the way expected; they may see contribution as a burden rather than an opportunity.

Stephan Melchior

approaches to decisions which can be applied by situation: Autonomous: The leader makes the decision, based either on information he or she already has, or, on information gathered by this leader.

Consultative: The leader shares the problem with employees and discusses it with the whole team to gather opinions. While the leader is influenced by others, the final decision is made by the leader.

Consensus: The leader and employees share the decision-making process. Making decisions by consensus means that everyone expresses, feels heard by others and can support the decision, and the decision is only made once everyone agrees.

Delegate: The leader assigns the problem to one or more employees who then have the authority to make the decision. It is important to communicate that the leader will support any decision that is made.

For example, is it really necessary for a leader to reduce the budget autonomously? Consider how a consultative or consensus decision approach might achieve more understanding of budget issues and greater commitment to a new budget.

Most leaders start at the autonomous approach, and then check how suitable the other approaches would be. What if we turned it around, starting with the delegative approach?

In a collaborative environment, multiple decision approaches are utilised and communicated depending on the issue; there is no right approach for all situations. An effective decision-maker explores his or her reasoning and assumptions and considers the payoffs and costs of each approach.

In many situations, leaders are afraid of involving their teams too much into problemsolving or decision-making at high levels because of time and confidentiality. However, using collaboration is not only a tool to become more competitive and agile in the market place, but also to create engagement and employee commitment.

Those employees, who are involved in higherlevel projects, even only by asking them for their opinion, are more engaged and have a deeper feeling of ownership and contribution to the organisation’s vision and strategy.

Leaders must pay attention to more than the decision that needs to be taken; leaders must decide how to decide. It is their way of discovering what builds, or blocks collaboration.

With a collaborative internal environment, a company has the strength to compete locally, nationally, and globally.

About Stephan Melchior has been working in the learning and development field for more than 15 years; designing and delivering training programmes in more than 20 countries. He is well known for the graphic facilitation approach he uses in his courses.

Today, Stephan is Managing Partner at the Middle East office of Wilson Learning Worldwide, based in Dubai Knowledge Village. As a global organisation, Wilson Learning is the founder of the Performance and Fulfillment concept, and was rated among the Top 20 Leadership and Sales Training companies in 2010 and 2011 (www.trainingindustry.com). Wilson Learning Middle East was also recently ranked among the TOP100 SMEs in Dubai.

Wilson Learning Middle East can be contacted at info@wilsonlearning-me.com, or at +971 50 7553800.

MARCH 2012 SME ADVISOR MIDDLE EAST

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Business pin up Yebab.com

Here comes the bride!

E-commerce will witness an upward growth trend in the UAE, Saudi Arabia and Egypt with Internet retail sites touching a billion USD in sales in 2011 for the first time. One man who has tapped into a rather niche market in the region is Yebab.com CEO Murshed Mohamed. He talks to Mike Byrne about his online platform that provides brides with comprehensive wedding planning services, from gown selection to photography, catering, and venue booking.

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o how exactly does a Mechatronics engineer graduate come up with the idea of automating the wedding planning process online? And what gave this Emirati entrepreneur the edge to turn this idea into a booming business, spanning across three countries in the MENA region and being awarded the Wharton prize for Entrpreneurship?

idea was to find people who needed something delivered, and to have another person offer to transport it, all for a smaller fee than conventional courier companies normally charged.

“The idea was quite well received but at the same time I had my eye on launching an e-map buying service – the application would allow people to locate a product for sale and its location, similar to e-Bay but with the products actually at various locations across a given area,” he explains.

Murshed explains that he had launched several other business ventures prior to Yebab.com. His first was to create a marketplace for delivery services. Using a cloud-sourcing technique, the

Inspiration It wasn’t until the topic of weddings arose at a dinner with friends. Murshed sprung onto the

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SME ADVISOR MIDDLE EAST MARCH 2012

concept of streamlining the services onto a single directory platform and with the help of his sister he got to work on a Website in 2008.

“At first it required a lot of interaction with businesses catering to the various aspects of weddings and going to bride shows,” he explained.

“My next step was to approach Dubai SME and seek expert consultation as to how next to proceed. I convinced them of the validity of the concept and for the next three to six months the site went live, I began to plug the site, traffic began to flow and after some sporadic pricing we finally started making payments compulsory.”

Murshed explains with a smile on his face that the startup costs were very slim. He paid AED 2,000 for the license and AED 700 for his business cards and online hosting. Quite the bargain! “The plan from the beginning was to follow the lean startup concept, testing different business models and adapting to what works for our business. This was also done keeping in mind the needs and requirements of the consumer. Therefore, the Website focused on giving the bride a new experience be reducing the time spent online and bringing in innovative design concepts, said Murshed.

The official launch was in February of 2009; 30 businesses were on board for the directory and a mini (pretend) wedding was thrown to demonstrate 12 companies and their

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Management Yebab.com

services and spent the remainder of the year recruiting businesses for the directory, going to meetings, attending more shows and weddings and generally creating awareness wherever possible.

Fast forward to 2012 and Murshed now has a well established team of developers, programmers and managers from across the region. The directory has grown from 30 online retailers in 2008 to more than 1,400, each within a system of 22 categories. Revenue has nearly doubled while traffic has increased tenfold in 2011 compared to the previous year, recording over 11 million page views.

Investment It was with his attendance at TECOM’s DemoCamp event in 2010 that Murshed struck gold. After presenting his business plan he met the CEO of N2V, one of the largest Internet holding companies in the Arab world and for the next five months talks were pursued.

“The delay with receiving an injection of investment was not down to lack of interest but to my reluctance to give up my job and dedicate all of my time to Yebab.com. After taking an initial unpaid leave I spoke once again to Dubai SME and it was following this meeting that both myself and my sister took the plunge, quit or jobs and went into the project full time,” he says. And with this came immediate capital, mentorship and development from N2V. The decision of Yebab.com to then offer both paid and free memberships, depending on the company, resulted in an increase of 15 times more traffic, helped in part also by search engine optimisation (SEO) and word of mouth at exhibitions and marketing events. The priority

makeup, wedding themes and many more. There are also regular special offers and a discounts section, where discounts to brides from shops of quality services and products are displayed.

And lastly, the site offers unique expert advice, affording brides the opportunity to post questions and inquiries or urgent requests through Yebab’s Q&A section.

Murshed Mohamed

He explained that the markets in Saudi Arabia and Egypt are attractive and lucrative for a number of reasons; either the brides there do not have the service which Yebab provides, or they are simply not aware of the service, if indeed it exists.

Murshed is confident that this expansion will potentially bring the directory membership to over 2,100 shops and businesses across the region, with larger spending power due to the larger populations.

at this point was to make the site name a recognisable and respected brand name.

Fast forward to 2012 and Murshed now has a well established team of developers, programmers and managers from across the region. The directory has grown from 30 online retailers in 2008 to more than 1,400, each within a system of 22 categories.

Revenue has nearly doubled while traffic has increased tenfold in 2011 compared to the previous year, recording over 11 million page views.

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As it stands, every business listed in the directory has a webpage which consists of the contact details, prices, details of products and services and photos too, which enables the bride to make her decision online and shop offline.

Through the Arabic version, the site offers features which include Yebab Budget Management Tool; blog articles and latest news in the market; the Yebab Album, which gives the bride initial ideas and thoughts about dresses,

SME ADVISOR MIDDLE EAST MARCH 2012

Expansion So what’s next for Yebab.com? “As part of our expansion plans in 2012, the aim is to extend our services to Saudi Arabia and Egypt, in addition to unveiling the first Emirati cartoon Ya Mae’arees’ that portrays the experience of a young Emirati bride in a modern environment. A joint venture with Kharabbesh, the animation can be currently viewed on YouTube. In addition to these innovations, Yebab.com will also incorporate new design and features to compliment its user-friendly interface,” says Murshed.

He explained that the markets in Saudi Arabia and Egypt are attractive and lucrative for a number of reasons; either the brides there do not have the service which Yebab provides, or they are simply not aware of the service, if indeed it exists. Murshed is confident that this expansion will potentially bring the directory membership to over 2,100 shops and businesses across the region, with the larger spending power due to the larger populations.

“The spending power here rests with the women and in the case of weddings this is certainly true. With this in mind we designed and implemented an envelope scheme, whereby we provide brides with envelopes so that they can tag and monitor spending, allocating an envelope for each thing on their checklist – it has certainly proven very successful, especially with husband’s whose wives spend too much,” he jokes.

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Industry watch

UAE top companies

A cut above the rest Great Place to Work Institute UAE (GPTW UAE) – part of a global research, training and consultancy firm that recognises the best workplaces in over 45 countries worldwide – revealed its second annual list of Top Companies to Work For in the UAE during an awards ceremony.

T

he annual benchmarking study – which assesses the level of credibility, respect, fairness, pride and camaraderie within an organisation – forms part of the world’s largest employee survey. Most of a company’s score (two-thirds) is based on the confidential feedback of their staff, with an audit of management and HR practices by the Institute comprising the remainder of the score.

Climbing from second place in last year’s Top Companies list to number one in 2012 was FedEx Express. Its Purple Promise Award (PPA), which recognises a team member who goes beyond the typical expectations to ensure the customer’s needs are met, was among the internal procedures recognised by the Institute as contributing to its leading result.

FedEx Express was followed by Microsoft, Marriott, PepsiCo and THE One, rounding out the top five positions. They were joined by

OmnicomMediaGroup MENA, Merck UAE, Bayt, Dulsco and EMC, who took the honours in the top 10.

In addition to its awards for overall workplace excellence, GPTW UAE gave special recognition to the country’s top companies for Emiratis and top companies for women.

General Electric and PepsiCo were acknowledged for implementing best practices in hiring, developing and retaining Emirati talent. According to GPTW UAE these

companies’ programs hold valuable lessons for the UAE business community on how to develop the local workforce.

Globally the Institute recognises the importance of creating work environments that address both the historical barriers that keep women from succeeding, as well as supporting the needs of women workers. In the UAE General Electric, THE One and OmnicomMediaGroup MENA were three companies commended for their efforts in enhancing the workplace experience for women.

Commenting on the Top Companies lists, Dr. Michael Burchell, Partner & Director of Great Place to Work Institute UAE said: “We would like to thank all the participants in this year’s programme. We have seen remarkable development in HR practices in the UAE in the two years that we’ve been running the Top Companies to Work For study.

“We are pleased to see new companies make the list this year and that some of our previous list makers have improved their positions among the top 10. This shows they are applying what they learn from the research into models for continuous business improvement.”

Dr. Farrukh Kidwai, Partner & CEO of Great Place to Work Institute UAE added: “Following the completion of the evaluation procedures, we found there were companies implementing some very impressive practices for Emiratis and women.

Although they are a small group this year, we believe it is important to recognise the efforts for these companies so that we can all learn from their examples. We look forward to recognIsing more companies in the programme next year”.

The top companies to work for in the UAE 2012 Rank 1

Company Name

Fast Facts

What makes them great

FedEx Express

www.fedex.com

Fed Ex’s P-S-P or “people-service-profit” philosophy guides all of their efforts. To thank employees who exemplify PSP,

Transportation

it uses the Purple Promise Award (PPA) which recognises a team member who goes beyond the typical expectations for his or her job to ensure the customer’s needs are met. Sometimes the individual’s effort requires the assistance of coworkers. In such cases, more than one employee may receive a Purple Promise Award for the same endeavor.

2

Microsoft Gulf

www.microsoft.com

While Microsoft has a business focused culture, it also works to create a sense of work/life balance. To that

Technology

end, it introduced across multiple teams and businesses within Gulf the idea of having a visible Work-Life Balance Charter that the whole team prepares and signs together. This sets the principles that the team feels would assist in raising awareness of some of the key issues impacting an individual’s work/life balance.

3

Marriott

www.marriott.com

Employees at Marriott benefit from a culture of appreciation. As an example, a Certificate of Excellence comes

Hospitality

in the name of the associate from the Corporate Headquarters in Washington DC, and signed by the Company Co-Founder J. Willard Marriott, if an associate receives a thank you note from a customer on excellent service.

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SME ADVISOR MIDDLE EAST MARCH 2012

Industry watch

UAE top companies

Rank 4

5

Company Name

Fast Facts

What makes them great

Pepsi Co Asia, Middle East

www.pepsico.com

Employees at PepsiCo benefit during welcoming from an assigned “functional onboarding coach” and a

& Africa

Food & Beverage

“culture coach.” These two mentors help the new employee adjust to the company and its culture.

THE One

www.theone.com

At THE One, employees are invited to participate in the organisation’s community involvement efforts.

Retail

THE One set up THE Onederworld - a Sustainable Village Community programme with balanced quality education at its heart. Presently, six classrooms of a brand new school have been built in the Pimbiniet community in Kenya in conjunction with Free The Children.

6

OmnicomMediaGroup

www.omnicommediagroup.com

The Circle of Excellence is the OMG forum for thinking “outside the box”. It is championed by a senior and

MENA

Media

provides a confidential forum in which to brainstorm solutions to challenges in business, personal and family life for themselves and on behalf of their colleagues. Participants are asked to share their commitment to maintaining a life-long focus on progress toward their long and short-term goals.

7

Merck UAE

www.merck.de

Effective communication is important to Merck UAE. It developed an “Employee Council” where every 15

Pharmaceuticals

employees elect one member to be their voice to senior managers. The employee council meets directly with the Managing Director of the organisation, the HR director and the VP of the region. In this meeting, all issues are discussed openly and there are no barriers to topics. Direct feedback is given to the employee council who transfer the message back and answer all queries of their respective teams.

8

Bayt.com

www.bayt.com

Bayt works hard at creating an employee-centric culture. In developing employees, for example, it conducts a

Technology

daily training. These 30 to 40 minutes training sessions are called STARS training and the content is prepared by a bayt head and the same content is shared across the offices each day.

9

Dulsco

www.dulsco.com

Dulsco actively listens to employees. Its open door and ‘open office’ model facilitates two way communication,

HR & Industrial Services

especially down-up, and it also has Suggestion Boxes across every location/department to encourage suggestions through awards and recognition. The GPTW employee satisfaction survey is conducted each year to understand the areas of strengths and weaknesses and to understand how it fairs against other companies. The results are shared with the management and plans are designed for improvement in the following year. Results are announced to the entire organisation along with the improvement plans.

10

EMC

www.middle-east.emc.com

EMC works hard to provide a caring culture, going beyond what is required. For example, it grants paternity

Information Technology

leave, marriage leave, compassionate leave, even though it is not required to do so by labour law. And it grants public holidays in excess of government announcements.

Top Companies For Emiratis in the UAE 2012 are:

Top Companies For Women in the UAE 2012 are:

Company Name

Fast Facts

What makes them great

Company Name

General Electric

www.ge.com

GE has developed strong

General Electric (GE)

(GE)

Manufacturing &

relationships with key

Production

universities in order to build a

Fast Facts

What makes them great

www.ge.com

The Women’s Affinity Group

Manufacturing & Production

bolsters women’s appreciation of GE’s fair work environment.

robust and sustainable talent pipeline, and supports Emirati

THE One

leadership development.

www.theone.com

Women are role models at THE

Retail

One – 40% of managers and executive managers are female.

PepsiCo

www.pepsico.com

Emiratis at PepsiCo benefit

Food & Beverage

from a strong assessment,

OmnicomMediaGroup

www.omnicommediagroup.com

Women on maternity leave need

coaching and mentoring,

MENA

Media

not worry about the impact of

career guidance and

taking leave; they are automatically

counseling programme.

included and considered for salary changes and bonuses while away.

MARCH 2012 SME ADVISOR MIDDLE EAST

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Industry watch Libya

Show of support Dubai Chamber of Commerce & Industry has extended its support and endorsement to the upcoming Libya Infrastructure & Rebuild

Atiq Juma Nasib

Conference, which will be held on June 27 and 28 at Dubai’s Dusit th

th

Thani Hotel. Atiq Juma Nasib, Senior Director, Commercial Services Sector, Dubai Chamber, will deliver the keynote address at the conference.

D

ubai Chamber has hailed the stronger UAE-Libyan ties, stressing the support of Dubai to the Libyan people to develop their country in all fields. The UAE is playing an active role in supporting Libya on political, military, security and humanitarian grounds, while also offering technical support.

Nasib stated that Libya is a promising destination for Dubai’s business community as the country’s redevelopment process offers excellent opportunities for Dubai Chamber members to use their expertise and benefit from the growth prospects offered by the country’s trade, infrastructural, and financial services sectors.

He pointed out that Dubai Chamber members’ exports and ere-exports with Libya registered a 43% growth from its December 2011 figures of AED 261 million to AED 374 million in January 2012, which is a good indicator of rising trade with the African country. Dubai Chamber’s endorsement of the

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conference will go a long way in supporting the competitiveness of Dubai’s business community and opening up the gates of opportunities in the Libyan markets, Nasib said.

“The event has already gained global recognition, said Raj Menon, principal host of Arabian Reach Dubai, adding, “We are confident that the conference will further boost the cooperation ties between Dubai and Libya and the relationship with UAE will improve and flourish,” he said.

The event will provide a major showcase of various industry expertise reflecting the importance of the vital sectors to Libya’s economy by bringing together, production, service and supply companies from the world’s leading technology companies.

Visitors will include Libyan government officials and private sector planners, procurement officials, engineers of all disciplines, global specialist contractors, consultants and trading agents providing the essential contacts necessary for the participating

SME ADVISOR MIDDLE EAST MARCH 2012

companies to secure a part in Libya’s economic development programme.

“The Conference and Exhibition is also a practical and significant stride towards opening new markets for UAE traders, manufacturers and services establishments in Libya which is considered a gateway to the North African countries including Tunisia, Algeria, Morocco and Mauritania, besides the West African countries including Mali, Togo, Niger, Nigeria, Senegal, Ivory Coast, Ghana and Chad,” he said.

“These countries are net importers of various types of goods to durables, raw material and machinery. Businessmen and entrepreneurs in the UAE can develop and maintain stronger relations with their Libyan counterparts to tap the limitless opportunities utilising the easy access to these countries by sea, road and air. Libya is also strategically located close to the Mediterranean countries including Malta, Cyprus, Greece, Italy, France and Spain.”

Over 150 delegates from Canada, China, Germany, Egypt, Italy, UAE, UK, GCC, Middle East, USA and other countries, will be participating in the event and will demonstrate and reassure their commitment to the Libyan market and create and strengthen their trading links with Libya’s public and private sector business communities.

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SME about town Dubai SME 100

Cream of the crop Dubai SME, the agency of the Department of Economic Development in Dubai (DED) mandated to develop the SME sector, announced the first-ever Dubai SME 100 ranking of companies in a ceremony held at the Dubai World Trade Centre. The companies that made it into the first list of top 100 SMEs were honoured by His Highness Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Economic Sector Committee in Dubai, President of Dubai Civil Aviation, and Chairman and Chief Executive of Emirates Airline and Group, at the ceremony.

S

peaking at the ceremony, His Excellency Sami Al Qamzi, Director General of DED, said, “The Government of Dubai has launched various initiatives to promote entrepreneurship and SME development under its SME five year plan.

This commitment to promote entrepreneurship and SMEs is in the DNA of Dubai, supported and led by our socioeconomic stability, openness and visionary leadership. The Dubai SME 100 initiative will serve to inspire our emerging SMEs. It will encourage them to think outside accepted parameters, push their creativity and thus achieve their goals,” he said.

He added: “I congratulate the first batch of Dubai SME 100 companies who have demonstrated the willingness and capabilities to be evaluated under the Dubai SME 100 model. They have shown commendable performance and vision for growth and

56

development. I also commend Dubai SME for launching such an initiative to create a dynamic platform for all SMEs to come forward on their own will, participate, exchange information and share best

Maktoum on 14th March 2011. The initiative, aimed to identify outstanding SME performance and potential, forms a critical component of the Dubai SME five-year plan approved by the Economic Sector Committee in 2009.

Unlike other rankings which are based mainly or purely on financial indicators, the Dubai SME 100 ranking places a balanced emphasis on financial and non-financial dimensions that affect enterprise performance and development. The non-financial dimensions cover innovation, international orientation, human capital development and corporate excellence.

practices. I am sure SMEs will be curious to know how their fellow-enterprises have grown and developed.”

The Dubai SME 100 initiative was launched

by His Highness Sheikh Ahmad Bin Saeed Al

SME ADVISOR MIDDLE EAST MARCH 2012

Abdul Baset Al Janahi, CEO of Dubai SME, said, “Dubai has been the epicentre of global business opportunities and development for decades. Many great companies and global brands have been built in Dubai over the last

SME about town Dubai SME 100

three decades. Indeed, their story is the story of Dubai’s economic development. Moving forward, to sustain Dubai’s dynamism and the can-do spirit, we need a new wave of thinking, action and energy. We need new ideas, more innovations; we need new ways of doing things; we need to take more risks, stretch ourselves, and overcome challenges. In short, we need to overcome all barriers to create new value for the economy. Dubai SME 100 is a major means to achieve this.”

“By ranking and recognising the top SMEs, we are opening several fronts. These top 100 SMEs have persevered to achieve major triumphs for their business models, innovations and brands over the years. They have become successful in their own right. Dubai SME’s role is to create a platform for evaluating these top SMEs. Investors, in particular will be interested to know who these promising SMEs are, and perhaps invest in them. Through Dubai SME 100, we hope to create an indirect pipeline of SMEs for a secondary SME listing market

and contributing 42% of the annual valueadd created by the emirate. Many SMEs that originated in Dubai have grown on to become global enterprises. The SME sector, in addition to being a key source of innovations, new products, services, markets and new business models, also supports a whole business ecosystem and all parts of the industry value chain making up the economy of Dubai and the UAE. Dubai SME 100 The Dubai SME 100 ranking will act as a platform and catalyst to identify promising SMEs – to groom them to become bigger, better and sustainable enterprises; eventually graduating them to large globally-oriented companies. At its core, the ranking is aimed at: Celebrating Dubai’s top performing SMEs. Creating greater awareness of the importance of SME development.

Creating a national motivational psyche in the nation’s social and business community.

The basic criterion is that the applicant must be an SME based on the official definition of Dubai’s SMEs. In addition, it must have audited financial statements for at least three years, and be an independent entity registered in Dubai (under DED or the Free Zones). Hence the ranking does not necessarily represent Dubai’s top SMEs, but SMEs that have undergone the Dubai SME evaluation process for ranking.

in Dubai. This will help SMEs gain additional external capital, new talents, markets and brand enhancements,” he said.

Al Janahi noted that Dubai is home to a rich diversity of companies, especially SMEs across varied sectors such as trading, services and manufacturing. “Yet we do not often hear or know who among them are the fastest growing and most talented, or what their ambitions are. These SMEs have used Dubai as a base to start their business journey, and are now flourishing,” he said, adding that Dubai SME 100 will bring the spotlight on these SMEs, enabling them to accelerate growth.

The SME sector in Dubai is a major driver of the economy, accounting for 95% of the enterprises and 40% of the workforce in Dubai

Encouraging SME role models to share best practices.

Marketing the capabilities of Dubai’s SME’s to regional and global investors.

Providing opportunities for SMEs to raise capital.

Creating a base of SMEs for a potential secondary listing of SMEs (IPO) that can attract equity capital for growth.

Providing development path for SMEs to graduate.

Creating a culture of transparency and corporate governance Unlike other rankings which are based mainly or purely on financial indicators, the Dubai SME 100 ranking places a balanced emphasis on financial and non-financial

dimensions that affect enterprise performance and development. The non-financial dimensions cover innovation, international orientation, human capital development and corporate excellence. The ranking will also serve as a tool for helping SMEs identify capability gaps for improvement. This is the real value add of Dubai SME 100.

The ultimate outcome will be for Dubai to have more growth-oriented, innovative, capable and sustainable enterprises that can fly the UAE flag high.

The basic criterion is that the applicant must be an SME based on the official definition of Dubai’s SMEs. In addition, it must have audited financial statements for at least three years, and be an independent entity registered in Dubai (under DED or the Free Zones). SMEs will be ranked only after they have submitted all relevant information voluntarily. Hence the ranking does not necessarily represent Dubai’s top SMEs, but SMEs that have undergone the Dubai SME evaluation process for ranking.

Key facts A total of 1092 SMEs registered for the initiative, of which 196 SMEs applied to move on to Stage two of the application and evaluation process.

From these 196 serious applicants, the top 100 were selected and ranked based on complete submissions of financial statements, supplemented by either a management interview or site visit to ascertain facts and evaluate the merits of each case.

Of the 100 ranked SMEs, based on Dubai’s official SME definition, 15% are classified as micro SMEs, 52% as small SMEs and 33% as medium-sized SMEs. In terms of sectors, 62% are from the Services, 13% are from the manufacturing and 25% belong to the trading sector.

The combined turnover of the top 100 SMEs based on their latest financial records is estimated at AED 2.3 billion. Their estimate total assets are worth at AED 1.4 billion and the combined profit is AED 220 million.

Together, the top 100 SMEs in Dubai have 4,319 employees.

For a full list ranking of the 100 SMEs visit http://www.smeadvisor.com/wpcontent/uploads/2012/02/Dubai-SME100Ranking.pdf.

MARCH 2012 SME ADVISOR MIDDLE EAST

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SME about town

Dubai Outlook 2012

Accelerating out of THE downturn

Government officials and private sector leaders speaking at the second

Dubai Economic Outlook (DEO 2012) forum, February 15th, shed light on the economic growth prospects for Dubai in 2012, emphasising the various drivers, opportunities and strategies to harness potentials for further development and growth.

I

n his keynote address at the forum, hosted by the Department of Economic Development (DED) in Dubai, His Highness Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Economic Sector Committee, President of Dubai Civil Aviation, and Chairman and Chief Executive of Emirates Airline and Group, said: “Through strategic responses and close co-ordination between the government and the private sector Dubai has steadily built confidence among businesses and residents on the strength and sustainability of its growth. Dubai’s economy returned to positive growth during the last two years.”

Sheikh Ahmad cited the strategic role of government-related entities and public-private partnerships in Dubai’s economic resilience and quick response to challenges arising from prevailing global conditions. “Dubai’s government-related entities have once again

58

displayed strong determination and ability to service debt obligations and we have seen ratings upgrades reflecting strong internal revenue generation.”

Sheikh Ahmad also said that Dubai’s infrastructure has reinvigorated growth across the emirate’s traditional sectors such as trade, tourism and logistics, which together accounted for almost 60% of Dubai’s GDP in 2011. Continuous engagement between the public and private sectors will enhance their role and accelerate economic diversification in Dubai.

Speakers at the one-day forum also highlighted the macro-economic and sectorwise trends that Dubai and investors in the emirate can leverage for further growth.

Uncertainties resulting from the global downturn and Euro-zone crisis as well as regional developments following from the Arab Spring have underscored the importance of Dubai’s economic vision. The subsequent eastward shift in economic activity and financial flows present

SME ADVISOR MIDDLE EAST MARCH 2012

vast opportunities for Dubai’s economy and the private sector.

DED launched the Dubai Economic Outlook forum in 2011 to present the macroeconomic and the sector-wise outlook for Dubai’s economy and encourage public-private sector dialogue for economic growth. The forum is part of DED’s commitment to the overall development, policy making and planning in relation to Dubai’s economic matters.

“While the global economy is in transition Dubai is ushering in a series of changes, new economic policies as well as innovative strategies. These changes, along with our fundamental economic strengths, will allow Dubai to play a greater role in global economy while as well achieving our objective of sustainable growth and development. Dubai Economic Outlook provides businesses and policymakers with an effective platform to design or reorient strategies in line with the ongoing changes,” said His Excellency Sami Al Qamzi, Director General of the Department of Economic Development.

Held under the theme The Power of Vision – Economic Development in an Uncertain World, Dubai Economic Outlook 2012 brought the focus on to three key topics: Macroeconomic Outlook, Restructurings for Development and Engines of Growth.

Speakers at the forum also presented outlooks on key sectors such as finance, logistics and transportation, trade, real estate, tourism, and retail, among others.

Their Excellencies Engineer Hamad Buamim, Director General, Dubai Chamber of Commerce and Industry; Marwan Bin Galitha, Director General, Real Estate Regulatory Agency; Khaled Ahmed, Senior Vice President, Economic Zones World; Dr. Nasser Saidi, Chief Economist, Dubai International Financial Centre Authority; and Dr. Mohammad Lahouel, Chief Economist, DED, shared the public sector perspective on the future of Dubai’s economy at the forum.

The sector leaders and analysts who addressed the forum included His Excellency Jamal Majid Bin Thaniah, Group CEO, Dubai World; Dr. Marios Maratheftis, Head of Research, Western Hemisphere, Standard Chartered; Dr. Farouk Soussa, Chief Economist, Citibank; Trevor Rowe, Executive Chairman, Rothschild Australia; David Staples, Managing Director, Moody’s; and Dr. Sean Dougherty from the Organisation of Economic Co-operation and Development (OECD).

SME about town

TECOM SME Builder

Focusing on the long road

We bring you coverage from the Dubai Knowledge Village event that gathered together over 150 leading industry experts and SME owners to discuss long-term profitability in a growing business.

T

oday’s highly competitive business landscape is characterised by a large number of players trying to chase the same market with very little differentiation, either from a product positioning or from a human capital standpoint. Established management theory states that businesses, whether large or small, need to have clear strategies and employ the right people to flawlessly execute these strategies, according to Shridhar Sampath, Founder of Motivaluate Consulting and Training.

Sampath’s comments came during his presentation titled How to Achieve Profitable Growth while your Competition Groans at the 16th edition of the TECOM SME Builder, organised

by Dubai Knowledge Village, a key regional destination for human resource

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management and a member of TECOM Investments’ Education Cluster.

Held on 16 th February at the Dubai Knowledge Village Conference Centre, the event was open to the public and essentially aimed to provide cutting-edge solutions to crucial issues faced by small and medium business owners with a view to improving long-term profitability. The event gathered over 150 participants including prospective business owners who stood to gain considerable expertise through interaction with peers from various industry sectors.

Dr. Ayoub Kazim, Managing Director, TECOM Investments’ Education Cluster, said: “The SME sector in the region makes up for over 90% of the existing private sector enterprises, highlighting the increasing need for these businesses to have a competitive edge in order to distinguish themselves.

SME ADVISOR MIDDLE EAST MARCH 2012

TECOM SME Builder provides the ideal platform for business owners from diverse sectors to come together to discuss issues and challenges, share best practices and exchange knowledge and experiences. This, in turn, will contribute towards equipping them with the skills with which to succeed in today’s modern and dynamic business environment.”

The all-day workshop featured key highlights including a presentation titled The Business Sale: Creating Long-term Profitable Business with your Clients led by Shadi Banna, Managing Partner, Potential.com. Further, experts from established companies provided valuable insights on various subjects including body language, innovation, human resources, social media, digital marketing and communications, sales and finance.

TECOM SME Builder was sponsored by Flagship Consultancy and supported by partners Bayt.com and Stratgic Partner, SME Advisor Middle East.

TECOM Investments, a member of Dubai Holding, regularly hosts events that support and encourage the growth of businesses in the region. TECOM Business Parks (Dubai Internet City, Dubai Outsource Zone, Dubai Media City, Dubai Studio City, International Media Production Zone, Dubai International Academic City, Dubai Knowledge Village, DuBiotech, Dubai Industrial City and ENPARK) offer an attractive ecosystem for SMEs through shaping and enabling a business environment that guarantees the sector’s long term growth.

Technology for Business BUSINESS ANALYTICS for SMEs

Life just got a little bit simpler SAS and EMC Greenplum have come together in the region to help launch a power packed Business Analytics Appliance solution for SMEs in the Middle East. Amir Sohrabi, Regional Alliance Director for Middle East and Africa, SAS, tells us how SMEs can gain the competitive advantage in their business by being able to access multiple sources of data in a streamlined yet comprehensive manner. This drives real-time, actionable intelligence from this information so that appropriate action can be taken to maximise profits for their organisation.

A

mir describes the D1 Business Analytics Appliance solution, powered by SAS, as a complete, fully integrated offering designed to meet the full spectrum of data integration, data quality and business analytics. SMEs can now access data from multiple sources, cleanse it, drive it through a business intelligence layer and then apply analytics to this data.

Business leaders and researchers from organisations of all sizes are turning to business analytics to gain an unbeatable advantage in today’s dynamic marketplace.

This helps them understand the impact factors such as economic and market conditions, customer demographics, pricing decisions and marketing activity

62

have on their business, providing realtime, fact based decision making. The business analytics process will also help organisations be more proactive and shape their own destinies toward a more profitable future.

Called D1 Business Analytics Appliance, it combines hardware and the EMC

SME ADVISOR MIDDLE EAST MARCH 2012

Amir Sohrabi

Greenplum data warehousing platform with data management and business analytics applications from SAS as a pre-configured, network ready, ready-to-use device. The solution has an entry level price point that has been chosen on the basis of affordability for the market segment to address return on investment concerns. The D1 Business Analytics Appliance solution also has an upward migration path, allowing end users to add on additional SAS applications as they progress towards more demanding business returns from the solution.

For a small and medium enterprise wishing to implement a data warehousing

The D1 Business Analytics Appliance solution, powered

by SAS, has been set at a price point that makes it affordable for a small and medium business to consider investing in such a solution. It comes fully integrated and ready to run, eliminating technology and cost hurdles of implementation and go-live activation.

Technology for Business BUSINESS ANALYTICS for SMEs

and data management solution there are two primary hurdles. The first is the cost of the application software and the second is the capacity to execute systems integration, knowledge transfer and data migration.

The D1 Business Analytics Appliance solution has been set at a price point that makes it affordable for a small and medium business to consider investing in such a solution. It comes fully integrated and ready to run, eliminating technology and cost hurdles of implementation and go-live activation.

The functionality of the D1 Business Analytics Appliance solution is the same as in any large scale enterprise. Any organisation spending resources organising and trying to access multiple sources of data manually into Excel spreadsheets and creating ad-hoc reports, can now automate the process with the D1 Business Analytics Appliance solution and gain greater efficiencies for their organisation to meet their operational and strategic objectives.

“The D1 Business Analytics Appliance solution takes out the complexity of data management and business analytics by combining the software and hardware in an integrated appliance. These are the foundations required to deliver business analytic solutions to the mid-enterprise market in a streamlined approach, to gain greater efficiency and quicker return on investment, which is what the midenterprise demands,” says Amir Sohrabi.

Avoiding the costly and time consuming route of systems study and custom implementation across a business

64

“The D1 Business Analytics Appliance solution takes out the complexity of data management and business analytics by combining the software and hardware in an integrated appliance. These are the foundations required to deliver business analytic solutions to the mid-enterprise market in a streamlined approach, to gain greater efficiency and quicker return on investment, which is what the mid enterprise demands.”

- Amir Sohrabi, Regional Alliance Director for Middle East and Africa, SAS

does not restrict the functionality of the D1 Business Analytics Appliance solution in any way for the small and medium enterprise end users.

“The software functionality of the D1 Business Analytics Appliance solution is the same as in any large scale enterprise solution. The hardware is limited to use in a 4-core CPU appliance,” says Amir. “This configuration provides ample power to scale for any mid-enterprise.”

“We have built upon the global initiatives between SAS and EMC in the area of High Performance Analytics and Big Data management. With this in mind, we have created a solution to address the specific requirements of the small to midenterprise in the Middle East.”

“The launch of the new D1 Business Analytics Appliance solution reflects the strategic relationship between SAS and EMC, bringing together leadership

SME ADVISOR MIDDLE EAST MARCH 2012

in business analytics and information infrastructure solutions. This joint initiative has brought the economies of scale required to reduce complexity and cost for the mid-enterprise, thereby creating the benefits of affordability and efficiency required to compete in a hypercompetitive market,” concludes Amir.

To find out more about the D1 Business Analytics Appliance, contact information@sme.sas.com.

Note The D1 Business Analytics Appliance is available as an integrated offering from Atlis Trading and other approved reseller partners, combining the best of multiple leading vendors, while contracting responsibility for the entire offering remains with one locally-based entity.

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With QlikView, businesses can take insight to the edges of their organization, enabling every business user to do their jobs smarter and faster than ever.

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Technology for Business Network storage

Defending your data Western Digital has introduced the Sentinel DX4000 small office storage server, which combines centralised storage and backupand-restore protection for 25 network devices and will allow SMEs better connecticity, protection and collaboration.

W

estern Digital, a provider in digital storage solutions, is introducing WD Sentinel DX4000, a complete network storage solution designed specifically to meet the demands of today’s SMEs. WD Sentinel DX4000 includes the Windows Storage Server 2008 R2 Essentials operating system software and the Intel D525 Dual Core Atom CPU. The WD Sentinel DX4000 is centralised shared storage and automatic server-based backup and restore for up to 25 devices (PC and Mac) in the network. It offers data protection with built-in hardware and software redundancy for all of the connected devices in the network. With capacities including 4 TB and 8 TB, WD Sentinel DX4000 lets small business owners expand small office server storage capacity as their business and storage demands grow. In addition, the WD Sentinel DX4000 small office storage server acts as the “onpremise cloud storage” for SMEs. “The WD Sentinel small office storage server is the ideal storage, backup, and secure remote access solution for any SME,” said Khwaja Saifuddin Ahmad, Senior Director Sales Middle East, Africa & South Asia. “The ability to have centralised storage that is both on-premise and offers secure remote access provides a small business owner and employees the flexibility needed for today’s mobile lifestyle.

WD is providing small business owners with a hands-free solution that offers complete data protection and peace-of-mind.”

Whether they’re personal or professional, digital content and important files are invaluable and often irreplaceable if lost or compromised. WD Sentinel small office storage server provides several ways for businesses to protect their information without user intervention. WD Sentinel comes preconfigured

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with enterprise-class drives, RAID storage protection, built-in server based backup and recovery software, redundant networking ports and a redundant power option. In addition, WD Sentinel offers users the ability to connect to a “public cloud” storage provider, which offers small businesses an economical and integrated disaster recovery solution against earthquake, theft and fire or water damage.

Software included with WD Sentinel provides business owners and their employees the freedom and flexibility to remotely access files and share files with external employees, independent consultants and satellite offices anywhere in the world.

Five levels of data protection WD Sentinel DX4000 provides five levels of data protection for every device on the small office network and is supported by WD Guardian Services.

1 The Drives Inside: Pre-configured with WD’s enterprise-class drives for durability and reliability.

2 RAID: Featuring levels one and five for data protection and speed.

3 Daily Backup: Automatic backup and recovery software provides daily full system back ups for up to 25 devices on your network.

4 Redundant Network Connectivity: Dual Gigabit Ethernet configured in Adaptive Fault Tolerance (AFT) automatically switches to second network port in the event of a network failure.

5 Optional Disaster Recovery Protection: Connect to the small business cloud provided by optional disaster recovery software and store your data offsite for disaster recovery.

WD Sentinel is certified to be compatible with a variety of Operating Systems (OS) including Windows XP, Windows Vista and Windows 7. In addition, WD Sentinel is

SME ADVISOR MIDDLE EAST MARCH 2012

compatible with Mac OS X Leopard and Snow Leopard for file sharing among Windows, Mac and Unix/Linux operating systems and allows businesses to share files with clients, consultants, and inter-office personnel regardless of the OS used.

WD Guardian services for small businesses WD Sentinel DX4000 is backed by WD’s customer service and support. All WD Sentinel small business customers will receive free tech support for 30 days from the time of the first call. WD Sentinel customers may wish to upgrade their service plan to one of three options: 1 WD Guardian Express: Offers next-day parts replacement service including shipping and handling costs.

2 WD Guardian Pro: Offers a one year support agreement with WD service, express parts replacement and priority access to technical support.

3 Guardian Extended Care: Service that extends the product warranty from the standard three year warranty to five years.

In conjunction with the WD Sentinel DX4000 launch, WD is also introducing SelectWD SMB Partner Program, a channel program that supports IT professionals and VARs servicing the needs of small to medium businesses. The SelectWD SMB Partner Program enables partners to grow their businesses by providing all of the tools and resources required to locally market, sell and support the new WD Sentinel DX4000 and WD Guardian service plans.

Price and availability WD Sentinel DX4000 small office storage server is available at select US retailers and online at the wdstore.com. MSRP is AED 4399 for 4 TB and AED 6399 for the 8 TB.

SME Speak

Quarterly Performance Survey

So far, so good!

In order to understand how SMEs are coping during the first months of 2012, SME Advisor Middle East, along with Tickbox Surveys Middle East, conducted the SME Quarterly Performance Survey.

T

SME performance shows that the sector is upbeat regarding the next quarter. In particular, SMEs feel that sales will continue to improve over the next quarter.

The stronger confidence levels have been most prevalent in the retail and tourism sectors, which has benefitted greatly from the large influx of tourists, as well as resident shoppers who have flocked to the stores to take advantage of the offers from the shopping festival. Also, it appears that the SME sector has been the beneficiary of the lower inflation data in January which has allowed it to control costs. The Dubai Statistics Center reported that inflation for the month of January 2012 fell by almost 1%, when compared with December 2011.

The data shows that rents, utilities and fuel prices fell by a little over 2% in January 2012 and this seems to have had a positive impact on the SMEs. For most SMEs rents and salaries form the bulk of their operating costs and it is important that the growth of these expenses is controlled.

The availability of rentable property has meant that the SME sector has been able to negotiate better rents with landlords. The

Experiences in the current quarter The higher sales have certainly been good news for the SME sector and have given it a much needed boost to its confidence levels. The survey has also found that new orders have increased in the first quarter of this year. Almost half the sample has experienced a slight improvement in new orders while a further 21% have had a significant improvement. New orders are important for the SME sector because it allows them to have a pipeline of work. The improved nature of the sector has meant that the typical SME is not as concerned regarding the level of competition as they were in the last quarter.

In the current quarter only a fifth of SMEs surveyed felt that the level of competition has become worse. In contrast over a half of the sample feel that there has been no change in the level of competition. Furthermore, a quarter of the sample felt that the level of competition in their industry had actually improved.

This is an extremely interesting result bearing in mind that the various economic

he SME Quarterly Performance Survey shows that the sector has started 2012 on a very bright note with over two thirds of the firms surveyed stating that the current quarter has been much better than the end of the last year.

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departments and free zones in the UAE have announced an increase in the number of new company registrations in 2011.

For instance, the Dubai Department of Economic Development alone has issued 14,360 new business licences in 2011. One explanation for this result is that SMEs have not been greatly impacted by the level of new competition and hence they feel that it has not changed.

Expectations for the next quarter The second quarter of the year has traditionally been a testing time for the SME sector because the major tourist based activities tend to take place in the first and last quarter of the year. The SME Performance Survey found that the sector is upbeat regarding the forthcoming quarter; with 80% of firms surveyed stating that they expect their overall performance to improve. It appears that the SMEs expect sales based improvement with 88% of firms stating an improvement is based on turnover. Interestingly, no firm felt that there would be a considerable deterioration in sales and only 4% felt that sales will fall slightly.

More importantly, SMEs expect new orders to increase in the forthcoming quarter. The survey found that 67% of firms expect new orders to increase in the next quarter while a further 29% expect no change. Only 4% of the firms in the sample expect a decline in new orders. In the case of operating costs, it appears that the typical SME expects no real change. However, 37% of the SMEs do expect operating costs to fall. We assume that the fall in operating costs will most likely be from the downward trend in property rents. Input costs in the form of raw materials and wages will most likely be the same as quarter one for the average SME.

SME Speak

Quarterly Performance Survey

The survey found that only 16% of SMEs felt that input costs will increase in the next quarter. Finally, 54% of the firms surveyed feel that there will be no change in the level of competition in the next quarter, while a further 25% are of the opinion that it will actually improve.

Selling price The survey shows that the average SME has not tended to change its price in the current quarter. This is similar to the previous quarter when prices did not really change. Interestingly, at the end of last year 51% of SMEs felt that they would be able to change their selling price in the first quarter of this year. The evidence shows that this has really not taken place.

In fact, only 29% of firms have been able to increase their prices implying that the firms who were planning to increase prices have tended to hold out for a further quarter.

The survey finds that once again over half the firms in the survey feel that they will be able to increase prices in the next quarter. Of course, all firms would like to increase prices but the reality tends to be very different. The survey indicates that firms prefer to keep existing prices and generate turnover rather than seek higher prices with a probability of lower sales.

Staff recruitment The survey clearly shows that the SME sector has moved away from the period of large scale staff dismissal to one of consolidation and slowly growing the head count in a sustainable manner. The survey finds no firm looking to carry out large scale staff dismissal and at worst only 4%

of firms are intending to dismiss a small number of employees. Even this figure has fallen from the previous quarter when 7% of SMEs were seeking to make a small number of staff redundant. Interestingly, the survey finds a higher proportion of firms in the current quarter seeking to employ a large number of staff than in the previous quarter. In the current quarter 13% of SMEs intend to recruit a large number of staff compared to 2% in the previous period. The survey tends to find that 38% of SMEs plan to increase their staff numbers by a small level while the majority intends to keep the same number.

The survey for the first quarter of 2012 shows that it has been a very positive quarter for the SME sector. Improved sales and lower operating costs have improved the sentiment of SMEs.The survey does show that it is not only a psychological improvement in the sector but the sector

has actually benefitted from increased sales and the expectations are that this will continue into the next quarter. Expectations regarding new orders are upbeat as well as actual sales.

At the same time the sector feels that it is able to benefit from lower operating costs primarily in rents which form a large proportion of the typical SME. Also, none of the SMEs surveyed felt that there were any wage or salary pressures. It appears that the recent economic period along with lower reported inflation has tended to control salary expectations. At the same time the survey finds that SMEs on average do plan to hire new staff but in small numbers.

Note: The figures may not add up to 100% due to rounding up.

About Tickbox Surveys Middle East specialises in market research surveys for the consumer, B2B, investor, community and employee segments. It also specialises in helping companies to identify appropriate interventions for improving customer and employee satisfaction as well as loyalty through using surveys and statistical analysis. For more information visit www.tickboxsurveys.com.

Sign off

SHE’S BACK

You can’t stop the beat Ketaki Banga, Group Editor of CPI Business, makes herself comfortable in her new home and column by embarrassing everyone she can.

T

here are endings and then there are diversions. My last editorial page in SME Advisor’s February issue was just that; it was more of changing tracks (and page numbers).

But guess what – I’m back.

Just read Mike’s first editorial and blinked away tears of pride. It seems like only yesterday when poor Mike joined the mad house, fresh faced and starry eyed. Look at him now! Haggard, underfed, dark circles under his eyes, and all grown up!

Well, I guess seasons come and go.

Our MD Richard Judd entered our lives back in 2010 and nagged us till we wept.

But, at the end of the day, he helped the team turn a nondescript magazine into one that pulled in the largest voluntary SME participation in the region. Our SME Advisor Stars of Business Awards in 2011 received 3,800 audited nominations and we are hoping to surpass that massive number this year. So watch this space as we’ll soon be opening nominations for the 2012 awards.

d: Nadeem Hoo Group COO reason The voice of It is obvious that our publisher Dominic De Sousa handpicked his staff to fit in with the company vibe. Dom is the original Rock Star entrepreneur and you have to check him out on Facebook!

The rock star, CP De Sousa. Visit wwI Publisher Dominic domtunes to see him w.facebook.com/ in action.

E Advisor’s Man of the world: SM rne By e Mik new Editor As for me, I’m bright eyed and bushy tailed as ever – or maybe not. Just dug up my first editorial photo for SME Advisor from way back in 2007. Yikes!

Bad hair day, huh?

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uise Our MD Richard Judd in disg Going back to Witchard...I mean Richard (oops, did I just say that out loud!)...when he’s not busy nagging us, he does let whatever’s left of his hair down (see photographic evidence).

Speaking of hair, our group COO Nadeem Hood seems to have plenty (see more photographic evidence). Nads, as he is better known, is the voice of reason when we are all stressed and hyperventilating.

These last five years, I’ve not just found great colleagues but also an extended family, which is very important when you’re an expat living away from home. And when you’re an SME, whether you like it or not, business is personal. That’s why – before I start talking about all the other SMEs out there and spewing stats and business advice month after month – it was important for me to capture the spirit of the SME where it all began for me in Dubai.

It’s been a long journey with many interesting twists and turns along the way, and a boom and a couple of financial crises thrown in for good measure but – to paraphrase a song from the movie Hairspray – you can’t stop the motion of the ocean, and you can’t stop the beat. So see you next month...

Talk to me:

E-mail: ketaki@cpidubai.com Twitter: @SMEadvisorME Facebook: www.facebook.com/SMEAdvisor LinkedIn group: www.tinyurl.com/smeadvisorme

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