The Intelligent SME Issue3

ISSUE 3

AUGUST - SEPTEMBER 2011

Price: AED 10

Give your business an unfair advantage www.theintelligentsme.com

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Power of Mobile Marketing for SMEs On September 11, Media Rotana, Tecom For free registration simply SMS your name to 055 9023185 [More details on page 31]

Female entrepreneurs What makes them tick?

SME pulse Sectors that are showing promise

The big idea

Animation for a cause

Maximise returns on investments

Direct marketing strategies and tactics for SME marketers

Corporate partners

Strategic alliance partner

CONTENTS

Enable 06 08 10 14 16 18

WPS: Burden or solution for SMEs? Bio-diesel: From oil to fuel Business updates Animation with a purpose Dubai, the next media hub A woman’s touch

18 Enlighten 24

28 32 36 40 42 44 46 48

How do female entrepreneurs influence the agenda for innovation?

Dubai SMEs optimistic, yet challenges remain Cash is king, manage it well Maximise returns on direct marketing investments Why CSR is great for smart SMEs

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SMEs, time to go mobile, go apps!

Let’s get social

Engage

Make the promise How to be direct with people and still connect

Media Partner for

Alliance Partner

Technology Partner

Strategic Partner

52 56 60 66 Supported by

What’s in TIS Events Events Calendar One Last Word

EDITOR’S NOTE N

Chief Executive Officer & Publisher Shantanu A.P

ews around the world could be more encouraging. What with the US dollar weakening, the UK riots, and a general feel of the second bout of depression, the questions everyone seem to be asking is, “What is happening in the world, and how are we going to be affected?”

Account Director Vijay G.

However, amidst the incessant updates of global happenings, there always seems to be a positive note, silently reassuring people, that we are on the right track, and need to keep giving our 110 per cent to reap the fruits of labour. Besides, what do we get by being negative?

Consulting Editor Utpal Bhattacharya

In the area that we operate as a publication, we have been witness to quite a bit of activity in the past couple of months. The UAE federal government and emirates, through agencies such as Dubai SME, are ensuring that small and medium enterprises in the country are supported financially and non-financially, through training, workshops, corporate governance, all with a focus on development.

Editor Sandhya Divakaran

Expert Contributors Kevin Abdulrahman John Lincoln Alexandar Williams Karen Osman Zed Ayesh Kristina Nyzell Anesh Jagtiani Farrukh Naeem Michael J.Tolan Satheesh Kumar

These efforts by the state and its various machineries are laudable, as these are times when for a small company, even to accomplish the smallest feat, one has to get into a battle mode, and in most times without resources and knowledge.

Art Director Aneesh Varghese

While every expert that I come across tells me that these are times to knuckle down, especially for small businesses, and keep doing at what they are good at, doggedly, it is not easy to accomplish much without expertise and knowledge. And that is where one can discern a deliberate push by the UAE’s leadership towards creating a robust SME business environment in the country, by empowering the businesses with knowledge, know-how and training. Efforts are also being made to establish a better regulated business environment, based on best international practices.

Editorial Enquiries & Contributions Tel: 04-2659704, 04-2650312 Fax: 04-2690566 E-mail: editor@spiholding.net

Companies are also slowly waking up to the fact that there is a need on their part to acquire in-depth knowledge and know-how in the business they are in, to be successful. We, as part of our responsibility in creating awareness, have covered a range of topics in this edition for our community of small businesses. I wish you all happy reading, and hope to get some feedback from you for our next edition.

Sandhya Divakaran Disclaimer: SPI Publishing has endeavoured to bring out a publication that is reliable and informative.

This is true to the best of our knowledge. However, SPI does not make representations or warranties on the accuracy, reliability, completeness or currency of the contents. The opinions presented are those of individual writers and not necessarily endorsed by SPI Publishing. The content in this magazine is protected by copyright law and is copyright to SPI Publishing unless credited otherwise, and may not be copied, reproduced or republished for any commercial purpose or financial gain.

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Industry insight ❘

WPS: Burden or solution for SMEs? Small and medium enterprises are main clients of financial institutions involved in the Wage Protection System. A TIS report.

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PS or the Wage Protection System is an electronic salary transfer system that allows institutions to pay workers’ wages via banks, exchange houses and financial institutions approved and authorised to provide the service.

Other than free zones, all [private] companies in the UAE that are registered with Dubai Department of Economic Development have to use WPS. Even our own company had to use it. So, since we keep getting more companies, especially SMEs using WPS, we started focusing more on this business.”

The system, developed by the Central Bank of the UAE, allows the ministry of labour to create a database that records wage payments in the private sector to guarantee timely and full payment of agreed-upon wages.

Raipancholia adds: “The good thing about WPS is that it ensures that salaries are dispersed directly to workers. We currently have 1,500 companies as our WPS clients, and more than half of them are SMEs.” Most in the trade say that the number of new trade licences issued by the Dubai Department of Economic Development is currently smaller than during the boom years, but the renewal of old trade licences will give a further boost to the WPS business.

The WPS covers all institutions registered with the ministry of labour, across all sectors and industries and will benefit

different categories of labour.

Says Rajiv Ashok Raipancholia, director of Orient Exchange, one of the oldest exchange houses in the UAE: “Up to 60 per cent of our WPS clients are SMEs, and the numbers have been growing since the system was first introduced two years ago.

“It is a very good system and exchange houses in the UAE are playing a major role in WPS.

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According to Isaac Thomas, vice-president and head of cash management at ADCB, since its implementation, there have been close to 2.7 million workers and 130,000 employers reaping the benefits of WPS, and with the majority of them being SMEs. Burden or key?

Established as per the ministerial decree No.788 by the ministry of labour in September 2009, WPS requires all companies registered under the ministry to pay their employee salaries through the system.

All employers registered with the ministry of labour are obliged to pay workers through the Wages Protection System. The WPS

❘ Industry insight

protects workers’ rights in the UAE, says Humaid bin Deemas, undersecretary at the ministry of labour.

All private companies in the country, even those with 15 workers or less, must register with the system, even if it means an additional financial burden for small companies.

Companies have to pay banks a fee in order to open accounts for their employees, an additional expense for them.

“It does not matter for us because all companies must be part of the system. We will take tough action against any company that do not pay salaries to the workers,” cautions Bin Deemas.

According to WPS regulations, an employer must pay workers at least on a monthly basis, through a financial institution registered with the UAE Central Bank. The employer sends the WPS team a spreadsheet, setting out workers’ names, dates of employment and the dates wages were paid.

Failure to apply the system can result in an employer being suspended from obtaining new sponsorships or renewing current sponsorship, either until the system is applied, or in the case of multiple breaches of WPS, for a specific period of time, according to the undersecratary.

“I’m not very comfortable with this new system,” says a mediumsized business owner based in Al Ras area of Dubai, who requested anonymity. His company, dealing in commodities, has been operating in Dubai for almost two decades.

“First of all, it is the mistrust, which is upsetting. We have been operating in the market for almost 20 years, and never had any problems with paying our staff, which consists of dosen of employees,” he says, visibly frustrated. “Secondly, we have to pay hefty fees to financial

institutions to open accounts for our employees, who also do not feel right about it,” he laments. However, some opine it to be the right thing to do in the changing business scenario in Dubai that has seen it all: ups and downs, boom and recession - time and again - for the last two decades.

Kishan Lal, who has been operating a furniture workshop in Al Quoz area of Dubai since the early 90s, says the system is hassle-free, even though he has to pay the fees. “Law is the law and we have to abide by it,” he asserts.

Needless to say that those at the “receiving end” – labourers – are all happy about the WPS. “I’ve seen it all: non-payment and delays [of salaries], but now it’s different,” admits Asim Ali, who has been working for a construction company for the last six and a half years.

Business growth Most experts say that WPS is not going to hinder the growth of the SMEs in the country. On the contrary, it will help to organise small businesses, and empower the SMEs to attract better skilled employees, which will, ultimately, impact company bottom lines positively. In fact, a recent survey has concluded that almost 90 per cent of the SMEs in the UAE are committed to their growth plans in the near- or mid-term.

The latest research by global management consultancy A.T. Kearney highlights the role small and medium enterprises play in the successful development of sustainable domestic economies.

According to WPS regulations, an employer must pay workers at least on a monthly basis, through a financial institution registered with the UAE Central Bank.

The research in emerging markets shows that successful SMEs create jobs at a rate which is four times faster than the rate of larger corporations, while creating revenues and GDP at a rate which is six times faster than large corporations.

“The total potential for the GCC is an additional US$100 billion to GDP and up to two million jobs in the coming years. This number is based on A.T. Kearney analysis of benchmarks of SMEs’ job creation and contribution to GDP from across the world,” says Dr. Dirk Buchta, vice-president and managing director A.T. Kearney Middle East.

Of late, GCC governments have been keen to develop long-term sustainable economies diversified away from oil. Recent announcements have demonstrated their commitment to re-investing oil revenues towards further development of their domestic industrial and service economies.

And SMEs have been playing a pivotal role in these developments.

According to Abu Dhabi Planning and Economy Department statistics, SMEs constitute 94 per cent of the total projects in UAE, followed by 92 per cent in Bahrain, Oman and Qatar, 78 per cent in Kuwait and 75 per cent in Saudi Arabia. These SMEs are entitled to prompt wages and the WPS system ensures that no employee is cheated out of their benefits.

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Made in UAE ❘

Bio-diesel: From cooking oil to fuel The Intelligent SME met up with Karl Feilder (KF), CEO and chairman, The Neutral Group (TNG) to discuss his company’s operations in the UAE as the first licensed organisation in the Middle East that manufactures bio-diesel from used cooking oil.

We currently have an agreement with McDonald’s, where their supply trucks will be operated using bio-diesel manufactured by us. All their trucks collect used cooking oil from McDonald’s outlets and bring it to us.

FRIED CHIPS & BURGER

The used oil that we receive is boiled and mixed with methyl alcohol and a catalyst to produce a mixture that includes glycerol. This is then put in a settling tank to remove the glycerol.

The mixture is then boiled at high temperature to remove any traces of alcohol and filtered further to obtain bio-diesel.

BIO DIESEL

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he company has worked with some of the world’s best known brands to improve their operational efficiency and sustainability footprint.

A tie-up with a local sponsorship has brought about Neutral Fuels LLC, which will establish long-term contracts with various organisations, to supply them with bio-diesel.

Here are a few excerpts from the interview: TIS: What makes bio-diesel valuable to a country like the UAE? KF: Bio-diesel is a clean fuel, compared to diesel obtained from crude oil. It is manufactured from used products, namely vegetable oil, which is normally used for cooking.

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Bio-diesel is quite important for the UAE, a country which gives a huge emphasis to its logistics sector, transport and storage sector, while addressing the pressing need to reduce the country’s carbon footprint. Many companies are already looking to bring clean technologies to their way of operation, and we are the bridge between these technologies and corporate organisations. It also costs the same as normal diesel, so why not use a recycled product than importing it?

TIS: Please give our readers an idea of how bio-diesel is manufactured.

KF: Our factory is located in the Dubai Investment Park in Jebel Ali.

This bio-diesel is 100 per cent pure and does not have to be blended with any other variety of diesel.

The trucks are powered entirely by

“The planning of this company began 18 months ago. Dubai FDI has been a great facilitator in this process, and the Dubai Department of Economic Development created a new category for us to obtain the licence. The authorities have been very cooperative, and this is a good initiative.”

❘ Made in UAE

bio-diesel manufactured by us and the collection process has begun already.

TIS: What are the properties of the bio-diesel being manufactured at Neutral Fuels and what is the quantity produced?

KF: Bio-diesel looks exactly like cooking oil. It is golden brown in colour; it smells like oil, and we produce the B100 variety, which is 100 per cent bio-diesel. In countries such as the UK, bio-diesel is usually blended with normal diesel, but this variety can be used as is.

We produce in batches, with 1000 litres or one tonne of fuel in a batch; the entire process takes four hours.

We manufacture five tonnes in a day, and hope to increase our production to a million litres in a year.

TIS: Can this same production process be applied to other varieties of oil, which are not vegetable oil?

KF: We are currently in talks to test the viability of converting animal fat.

But this is still only in the planning and testing phase and too early to discuss.

TIS: How easy was it to start up this company in the UAE? KF: The planning of this company began 18 months ago. Dubai FDI has been a great facilitator in this process, and the Dubai Department of Economic Development created a new category for us to obtain the licence. The authorities have been very cooperative, and this is a good initiative.

TIS: What are your future plans?

Will this be open to public collection centres in the future?

KF: We hope to take our bio-diesel to 10 more countries in the next three years. As far as public collection points are concerned, that will take time.

We have to sign contracts with certain organisations, mainly to ensure that we are able to obtain the desired quality in the oil that we collect. Some organisations or individuals may use their oil more than once, and there might be a lot of contaminants, mineral oil and so on. We have to follow a standard when it comes to the quality of oil. In future, we can chalk out a plan.

Karl Feilder (KF), CEO

Why bio-diesel? 

Bio-diesel is made from used product unlike diesel, which is refined from crude oil.

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It has lower carbon footprint, as exhaust emissions of sulphur oxide, sulphates are eliminated, while carbon monoxide are 48 per cent lower in bio-diesel.

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Exhaust emissions of particulate matter (soot and smoke) from biodiesel are about 47 per cent lower than overall particulate matter emissions from diesel.

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Bio-diesel does not have to be imported like diesel; it can be produced in the UAE.

The Neutral Group’s bio-diesel plant in Dubai-TIS Photo

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Business news ❘

Business Updates Dubai SME, Hawkamah CG code

Independence day celebrated

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ubai SME, the agency of the Dubai Department of Economic Development, Government of Dubai, entrusted with the development of the small and medium enterprise sector, has joined hands with Hawkamah to develop a code for SMEs on corporate governance.

The first-ever code with key principles and practices will be launched at a conference for Corporate Governance for SMEs to be held on September 26, 2011, in Dubai. It will serve as a guide for SMEs in various stages of growth to embrace best practices in corporate governance.

The aim is to create awareness amongst SMEs on the importance of adopting a basic level of corporate governance to make them more robust, better manage risks, and be more bankable and investable. It is also hoped that the promotion of corporate governance will make SMEs realise that corporate governance is a must-have to grow and progress sustainably.

Under Dubai SME’s Corporate Governance Plan for SMEs, a two-fold strategy comprising Promotion & Awareness Creation in the first phase and Capability Development in the second phase has been adopted to enable change and development for SMEs.

ndian Business & Professional Council recently celebrated the 65th Independence day of India, in Dubai.

Sheikha Lubna Al Qassimi, minister for foreign trade was the chief guest accompanied by M. K Lokesh, Indian Ambassador to UAE, Sanjay Verma, Indian Consul General, representatives of the Dubai Chamber, and members of the Diplomatic Corps of friendly countries as guests of honour. Mirza Al Sayegh, patron of IBPC was among the gathering.

Kulwant Singh, secretary general of IBPC, began the proceedings with a quote from Pandit Jawaharlal Nehru’s speech ‘Tryst with Destiny.’ IBPC president Dr.Bharat Butaney in his welcome address emphasised the new role of Indian women empowered with education. He further said that, while the world is teetering financially, India is in the midst of economic boom and resultant consumer revolution.

Ambassador Lokesh commended the role of IBPC’s efforts in promoting trade relations and thanked Sheikha Lubna on her personal efforts to boost the relationship between the two countries. Disclosing Indo-UAE trade figures, Consul General Verma said India is Dubai’s number one trade partner.

AudienceME launches brand advertising platform

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udienceME, a digital media sales firm, has launched the first brand advertising platform to service the MENA region, bringing quality global publishing inventory together with regional advertisers that are eager for high-quality advertising environments.

Starting August, AudienceME (www.

audienceme.com) will represent ad space on quality international sites to advertisers in the Middle East, where ad spending is growing at a phenomenal rate.

“The explosion of social media among the younger demographic in the Middle East has really blown open the doors for all digital media

RAK Ceramics wins at CMO Asia Awards 2011

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AK Ceramics has won the “Asia’s Best Brand Award” and “Best Employer Brand Award 2011” during the second CMO Asia Awards, held recently in Singapore. Organised by the USA-based CMO Council, the CMO Asia Awards recognises excellence in branding and marketing in the Asian region.

The awards were among the most recent laurels received by RAK Ceramics, which was also officially confirmed as the world’s largest ceramic tile manufacturer for the second consecutive year by the Ceramic World Review.

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in the region,” said Kumar Verma, founder and CEO of AudienceME. “Publishers are looking to find ways to effectively monetise page views and their audiences from around the world. We are stepping in to help market that inventory to regional advertisers who are eager for quality environments,” he added.

❘ Business news

Business Updates Emaar Retail joins hands with Dubai Cares

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maar Retail LLC has partnered with UAE-based philanthropic organisation Dubai Cares, to support the recently launched ‘Girls’ Education Campaign 2011.’ The campaign aims to increase awareness of the importance of girls’ education, as well as raise funds to support Dubai Cares programmes that address the gender imbalances in primary education and empower girls within their communities in developing countries across the world.

As part of a Memorandum of Understanding (MoU) with Dubai Cares, Emaar Retail LLC will host a summer-long campaign, which will run across all its leisure attractions in The Dubai Mall and Dubai Marina Mall throughout the month of Ramadan and conclude after Eid Al Adha. The MoU was signed by Arif Amiri, chief executive officer of Emaar Retail LLC, and Tariq Al Gurg, chief executive officer of Dubai Cares.

Al Hilal Bank to offer instant Visa debit cards

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l Hilal Bank, announced the launch of a first-of-its-kind instant issuance of Visa debit cards to their customers in the UAE. Customers opening accounts at Al Hilal Bank branches can now instantly receive their debit cards along with a personalised account number chosen by the customer.

The debit card is available for personal and business accounts (sole proprietorship only). With conventional card processing procedures usually taking up to 10 business days, the new instant card issuance feature of Al Hilal Bank significantly reduces the waiting time for customers and eliminates potential security risks related to lost or tampered cards, as customers will now receive their cards instantly at the branch.

DGCX to launch INR options contract

NBAD & ADIB execute first Islamic repo

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he Dubai Gold and Commodities Exchange (DGCX) is set to expand its Indian Rupee (INR) product offering with the launch of an INR Options Contract on September 26, 2011. The contract will be the only exchange-traded INR options product offered to markets outside India.

Eric Hasham, CEO of DGCX, said: “The provision of an Indian Rupee Options contract will enable us to build on the exceptional volume growth achieved by our Indian Rupee futures contract over the last 12 months and meet member demand to further strengthen our INR offering.”

Each DGCX Indian Rupee Options contract represents two million rupees. Prices will be quoted in US cents per 100 Indian rupees, with a minimum premium fluctuation of 0.000001 US dollars per rupee (US$2 per contract).

he National Bank of Abu Dhabi (NBAD), and Abu Dhabi Islamic Bank (ADIB), executed the GCC’s first ever Islamic equivalent of the conventional Repo product, a collateralised Murabaha transaction, opening the gateway to an alternative method of liquidity management. Together NBAD and ADIB concluded a one week maturity deal valued at US$20 million against Malaysian and Abu Dhabi government-related entity sukuk.

NBAD and ADIB jointly embarked on this initiative to formalise the Master Collateralised Murabaha Agreement (MCMA), thus enabling Islamic banks to utilise their holdings of sukuk. The MCMA offers a Shari’ah-compliant alternative to the repurchase arrangement, which conventional banks and financial institutions use to lend and borrow at extremely low risk.

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Business news ❘

Business Updates Air Arabia, Al Ansari Exchange sign flight payment deal

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ir Arabia has signed a strategic partnership agreement with Al Ansari Exchange. Under the terms of the partnership, Air Arabia customers can now pay for their tickets through any of the Al Ansari Exchange branches across the UAE.

Through the new partnership, customers can now book their flights and receive their reservation number by calling Air Arabia’s call centre on +97165580000. Upon presentation of the reservation number at any of Al Ansari Exchange, the customers can pay the full amount of the ticket, confirm the flight and collect their itinerary.

New interactive TV guide website

SMEs get AED40 million worth contracts

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nfo2cell.com has recently launched 3ala TV, a specially designed interactive TV guide website (www.3alatv.com) with selected TV channel schedules and information about shows and actors. Users can also sign in to the website for the latest news, read blogs and also participate in live forums.

Moreover, users can also create their own pages and select their favourite actors or TV shows, while also being able to add friends, who are already registered on this website, to their page. Users can also follow 3ala TV on Twitter, Facebook and Youtube.

Bashar Dahabra, founder and CEO, Info2cell.com, said: “Info2cell.com has always been focused on developing products and mobile applications services that are in tune with market requirements. We believe that users in the MENA region will greatly appreciate the effort gone into launching this interactive website that also allows them to take part in live forums and discussions. Going forward, we will also make continuous improvements to the website after considering the feedback we receive and in response to the latest TV viewing trends.”

overnment departments in Dubai have demonstrated their support to the small and medium enterprises sector by providing procurement contracts worth over AED40 million in the first half of 2011.

This was announced by Ibtihal Naji, director of the Government Procurement Programme at Dubai SME, at the annual forum for Government Procurement Programme organised by Dubai SME, the agency of the Dubai Department of Economic Development.

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Naji said: “Government departments contributed remarkably to promoting procurement through small and medium enterprises valued at AED40 million. This is a clear testament to the commitment of the public sector offices to support and drive the growth of SMEs. In turn, SMEs have proved their reliability and dedication to providing the highest services in line with the standards set by the Dubai government.”

The office will be engaged primarily in offering Non Resident Indian (NRI) banking products and services, while also facilitating transactions between the bank’s branches in India and NRIs in the UAE.

She added that seven government departments provided contracts more than the prescribed five per cent, with some of them reaching 29 per cent of the total contracts. Among the leading government departments that supported SMEs through contracts included Dubai Government Workshop, Dubai Police, Financial Audit Department, Dubai Courts, Public Prosecutor, General Administration of Civil Defence and Statistics Centre of Dubai.

Axis Bank opens in Abu Dhabi xis Bank, India’s third largest private sector bank, opened its Abu Dhabi representative office recently.

The office was inaugurated by M K Lokesh, ambassador of India to the UAE. The bank’s Dubai International Financial Centre office offers corporate banking services; it also has a representative office in Dubai.

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Media insight ❘

Animation with a purpose Dr. Tahsin Mzaik, owner of Aalami Media Holding, speaks on the animation industry and the need for companies to be socially responsible, to Sandhya Divakaran.

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ompanies in the small and medium enterprises sector (SME) often encounter many barriers in their journey to success, such as lack of information, or access to finance.

Aalami Holding, owned by Dr.Tahsin Mzaik, is one of those companies that have thrived despite the many challenges on the way.

Dr.Mzaik started his company- Emari Toons- in the UAE, in 2004, in a bid to produce Arab-based cartoons for the Arab people. He primarily targeted Arab viewers who were keen to learn more about their language and native culture.

In spite of having a PhD in supercomputers, Dr.Mzaik opted for a career in animation because of a higher purpose, which was to create awareness among the Arab nations about their own culture, introducing characters on the screen that they could relate to.

“We are so influenced by the western culture, and at a very young age, primarily by cartoons, that by the time we are adults, we find it difficult to relate to our own culture,” notes Dr.Mzaik.

Emari Toons, when it began operations, introduced a number of new characters for TV shows. But it soon found out that TV stations were not ready to accept these new characters. Thus, it became a hard grind for Dr.Mzaik. The resistance against new cartoons was

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❘ Media insight

compounded by the inability of the company to raise financing in the market. New Arabic cartoons, at that time, were not welcome in a market that was monopolised by the likes of Disney, Warner Bros, and so on, he explains.

Changing the model The compounding problems forced Dr.Mzaik to review his strategy and revamp his company, beginning by changing its name to Aalami Media Holding. Aalami introduced online marketing and distribution, branding support, toys manufacturing, and merchandising. The company also entered into international co-production partnerships that allowed it to open branches in Chicago, London and Jeddah. It has since been able to successfully launch new brands.

The company’s ToysLab brand, today, is a chain of toy stores that promote Arab characters such as Arabian Sindbad, a medium that encourages learning in Arabic. Aalami can proudly boast of 200 hours of animation selling worldwide, today.

There should be a 50-50 approach, he adds.

“We ought to have our own sense of identity, while keeping our minds open to the other cultures around us.

Currently, our value system is lacking in many ways. We must fulfill our responsibility to our children, as they are the workforce of tomorrow,” he argues.

Although Dr.Mzaik is happy with his international presence, he feels he can do more in the UAE. “I have invested heavily in this venture, but I am not able to generate sufficient returns. We need access to longterm finance for that to happen. Toys will never be affected by economic trends, especially in the Middle East, but that is not enough, as we need funding and stability to be able to achieve sustainable growth over a period of time,” he says.

Companies, such as Aalami Media Holding, that are home grown and have social objectives need special attention. Aalami represents a type of companies that stand out among the numerous SMEs that

dot the market for their calibre, skill, enterprise and ambition to grow.

Nurturing and supporting them would reap rich dividends for the economy in the future.

“We are so influenced by the western culture, and at a very young age, primarily by cartoons, that by the time we are adults, we find it difficult to relate to our own culture,” Dr. Tahsin Mzaik

Owner, Aalami Holding

The company has since won several awards, such as the 2004 golden award at the Gulf Festival for Radio and Television Production in Bahrain, and the 2003 best children’s film award at the New York International Independent Film & Video Festival, among many others. Short films, cartoons, and animation films, such as Know Your Nation, A Crown of Light, Candle of Lights, A Turtle Dream, and many more, that highlight social issues, the need for Islamic education, and aim at fostering discipline in children, have been well appreciated.

Dr.Mzaik realises that there is much more that is possible in the cartoon market in the UAE, being in the industry for more than 15 years. “The market here has to be systematic, and there is a lot of work to be done, in terms of pooling of local resources through collaborative efforts. And we should not rely on dubbing,” he says.

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Media insight ❘

Dubai, the next media hub The emirate has all the necessary infrastructure, resources and talent to be the next media hub in the Middle East. A TIS report.

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ubai can well be the next media hub, according to an industry study conducted by Dubai SME, an agency under Dubai Department of Economic Development.

The recently conducted media industry study is part of Dubai’s strategic approach towards development of small and medium enterprises, by understanding the context of the industry, competitive landscape, industrial environment, margins of profitability, international orientation, entry and exit barriers, government regulations and fee charging policies, as well as growth prospects of the entire industry.

Media industry The study notes that Dubai’s media industry is vibrant and at a relatively high stage of evolution. There is a high potential underlying this industry and even has the propensity to turn the emirate into the next media hub, especially in the area of Arab content for the Middle East. There is great promise, ever since the evolution of the emirate, owing to the set up of world class media companies in advertising, broadcasting, outdoor advertising, print and publishing and film, the study explains.

SMEs have occupied a space in mobile value add services, web designing, support services for TV broadcasters, production companies for TV commercials and corporate videos, game customisation and distribution as well as social networking.

“Over the years, the UAE has

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transformed into a valuable media hub, and serves as headquarters for numerous regional, national and international media companies.

Since the advertising industry follows trends similar to a country’s economic cycle, the UAE advertising industry has also experienced strong growth over the recent years,” says Umang Suri, CEO of Capital Group, responding to the findings of the study.

There are, however, many challenges associated with the task of turning the emirate into the next media hub. Dubai faces competition from the region, including Abu Dhabi, which is aggressively developing the emirate into an Arab hub for content

“Promoting the media industry in Dubai and enhancing Dubai’s position as the Arab Media hub is definitely a must to attract global and regional talents and SMEs and this activity should be carried out handin-hand between the National Media Council and the media industry,” Satish Mayya

CEO of BPG Maxus.

development and production. A key area to address is the need to review broadband costs as well as payment gateways to enable e-commerce businesses to set up, while encouraging gaming and other web development businesses, according to the study. In this regards, the media industry study has generated key strategic objectives to address certain areas of development.

Promotion According to the study, there should be a planned approach to promote the media industry, including an industry-based branding to attract global media savvy entrepreneurs, SMEs and talented individuals. The study proposes for the National

Media Council to take on a development role to groom talent and SMEs and, thereby, attract foreign investment in media, in addition to its current role, namely censorship and licensing. “Promoting the media industry in Dubai and enhancing Dubai’s position as the Arab Media hub is definitely a must to attract global and regional talents and SMEs, and this activity should be carried out hand-in-hand between the National Media Council and the media industry,” says Satish Mayya, CEO of BPG Maxus, on reading the industry study.

filming in partnership with the UAE production company like discounted rates for accommodation, travel and equipment, and facilitation of visas).

Hub of activity There should be a host of activities organised to establish Dubai’s position as the Arab media hub, the study points out. Talent competitions encouraged in various media, such as script writing, game concepts, mobile apps, TV programmes and animation in the GCC or wider region to identify and nurture budding talent and encourage the commercialisation of viable business ideas, including developing creative products and services. Dubai could also consider providing incentives for location filming (filming in the UAE, filming with UAE crew,

Talent pipeline The study recommended addressing the need for indigenous talent by adding creative subjects at early stages of learning and education.

Media industry-based training schemes should be in place to enhance talent development.

“Building the local market talents from within and investing in high-tech educational and training programs to develop their skills is equally and even more important to put up a solid foundation, not only to sustain media industry growth and evolution but also to cultivate a stateof-the-art standards,” advises Mayya.

The industry study also recommended defining and publishing of Arab content, and setting up of cultural treaties with other countries for co-production co-operation. Although Intellectual Property Rights are not new to the emirate, there is a need to create an IPR body or help desk to assess IPR assets and its commercialisation potential.

Seed capital and funding The industry study recommended the creation of a media financing platform for international players, local investors, private equity funds and banks to provide funds for media start-ups and SMEs. Review costs Review of broadband costs and ease of e-commerce business set-up, including easier private payment gateways is a key area to be considered, according to the study. This would help promote and encourage e-commerce businesses, web development and gaming.

A package should be created to include merchant bank account plus payment gateway at reduced prices for SMEs, with simplification of processes and applications.

Dubai, being the commercial hub of the region, has a potential to bring back the realistic market in terms of advertising spends with much more certainty on return on investment, notes Suri.

The measures stated in the industry study are a step forward to ensure the creation and recognition of Dubai as a media hub.

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A Woman’s Touch What is it that drives women to create their own path and how have they done it? Karen Osman talks to a few women entrepreneurs to learn more.

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he entrepreneurial spirit in the UAE attracts many potential and existing business owners looking for a platform to realise their big idea, or to capitalise on the business opportunities in the region.

This phenomenon is so prevalent, that small and medium enterprises account for 95 per cent of the total business population in Dubai, according to Dubai SME, an agency of Dubai Department of Economic Development dedicated to SME development.

Of that number, there are some impressive women leaders who have raised the bar when it comes to women in business, successfully setting up sustainable business models and continuing to inspire other women to do the same.

One such example of a successful business is Heritage for Henna developed by CEO Fathiya Ahmad, reflected in its 26 locations and franchise opportunities.

Shiffa is another company that is an ideal showcase for the achievements of women. Set up by Dr.Lamees Hamdan, her efforts as a businesswoman were rewarded when she picked up the accolade for Best Business Leader and Best Health and Well Care Organisation in 2005.

Dr Hamdan notes that it is very easy to do business in the UAE, as the general feel is conducive to businesses and entrepreneurial projects.

“As a woman, I am treated no differently, and I actually feel that in general, everyone is rooting for more women to join the business sector; there is a lot of support from all sides,” she adds.

The 3 F’s Women set up their own businesses for a variety of reasons including career satisfaction, freedom to

dictate their own schedule or for financial reward. While this may be true in the long run, the initial phase of setting up a successful business requires dedication, hard work, and motivation.

Simran Samtani, the co-founder and director of Xcel Accounting, sums it up when she explains what her motivations were to make her go solo in her business venture.

“There are three F’s that motivated me to become an entrepreneur: first, the freedom of being my own boss; second, the flexibility to do what I want and when I want; and lastly, finance, which is our product.

A tip for all new and budding entrepreneurs is that you have to give more of each of these in the initial years to then gain it back later,” she says.

Fatima Ebrahim Al Abbas, who set up Glittery Jimmies in December 2006 after getting married and having a daughter, is another successful woman entrepreneur. She took her inspiration from her family.

“I always wanted to be a business owner and to do it all by myself, like how my father did when he was young,” she says.

sentiment. And this is what she has to say about the country: “The ease of setting up your own business with no discrimination on nationality or gender in dealing with various authorities is one of the biggest motivators for female entrepreneurs in the UAE.” “I think it has worked to my advantage that I am a woman. There is an element of trust in all my work relationships and women are able to connect better with people,” adds Barbara Van Pay, owner of SmartHR. Freedom seems to be a concurrent theme with many of the women entrepreneurs interviewed by this writer, and there is no doubt that being the boss certainly has its perks.

But with freedom comes responsibility, and, when it comes

“Baking came to mind, I did some research, both online and in my kitchen, and came out with an amazing product. We were the first local cupcake company in the country at the time,” Al Abbas adds.

In addition to personal reasons, a viable business environment from which to launch was a key part of the process. “The government of Dubai and the UAE in general, have always been supportive, encouraging young female Emiratis to put their ideas into reality, and this, surely, motivates the thousands of young entrepreneurs to prosper,” explains Al Abbas.

Vanita Kapoor, managing director of Envogue Events, echoes the

Kelly Lundberg [Owner of Divine]

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She elaborates: “An absolute must is a key group of like-minded friends to share your experiences with and inspire one another. I have learned a lot from my friends who all run their own businesses, and have received sound advice and, at times, they have proved to be super sounding boards.”

This people-focused initiative reaps rewards internally as well. “I personally think that having the right team is the most important factor in growing a successful business.

You need people you can trust, people that would understand your vision, your mentality, in order to be a helping hand to reach your goals,” adds Al Abbas.

Nicola Tanner [Owner of Smart People Coaching] to actually setting up, running and growing your own idea, women entrepreneurs often find their multi-tasking skills tested to the limit.

Not only do they have to concentrate on their product or service, but also engage in marketing, hiring, finance, information technology and general management.

People person So, what actions are crucial when it comes to keeping all the balls in the air? Kelly Lundberg, owner of Divine, a personal styling company, attributes her success as a stylist, speaker and author to her decision to surround herself with people in the same position.

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People are at the heart of business, and this sentiment is especially reflected at networking events - a low cost activity that involves personal time and commitment. Many would agree that a strategic approach to networking both face to face and online can have a positive impact, as Nicola Tanner, a career transition expert, who runs Smart People Coaching, illustrates: “Networking is a key business development strategy for my business for two main reasons. Firstly, I hate cold calling and secondly, the type of work I do requires trust, which means that building business through referrals is vital. As a result, the majority of my business comes through referral marketing and networking.”

Research and planning One may have the most innovative idea in the world, and the financial backing to support it, but without thorough research and planning, chances of being a proud and successful business owner are slim.

Sara Abdulrazak, managing director of Sisters Beauty Lounge, explains how she took over the family business to expand the brand: “My mother, Shirin Abdulrazak, is one of the first female entrepreneurs in the UAE. She started her own manufacturing business of children’s uniforms in the ‘80s. After spending

so much time and money for herself and her three daughters in other salons which were not up to standard, she decided to open up her own full concept beauty lounge, a haven where women can go and relax and beautify. In 2004, Sisters Beauty Lounge was formed. I took over the business in 2007, and with a fresh young perspective, modified it and expanded it to a total of four branches.”

“Background research is hugely important. Some women feel that it looks very easy to just open a small beauty salon or retail outlet, but quickly fail due to lack of knowledge.

Know your market and your industry like a pro before any ventures.

Market research, interviews and speaking to people who are already in the industry are all aspects to consider,” Abdulrazak advises.

Today she has a 4,000 square foot flagship beauty lounge in Dubai Mall, an achievement that Abdulrazak refers to as one of her greatest accomplishments to date.

Similarly, Donna Benton, who has been in business for over 10 years with ‘The Entertainer’ books, a concept offering incentives in the form of buy-one-get-one free offers, cites pre-planning as a crucial factor.

After much success across the GCC and recently launching in Cyprus, Benton is proud to have transitioned from a regional brand to an international brand. “Great research and a strong business plan are essential, but hard work and passion are what can begin taking a business from good to great,” she explains.

Van Pay also believes passion is the key. “We impact people’s lives; therefore, we have to love what we do. In my business I do try to practice ‘HR with a heart’ and there has to be commitment, and care in whatever we do,” she notes.

Learning from challenges Running a business, while exciting and empowering, is not without its own set of challenges. Educating the

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market on a new type of service or product, set up costs, recruiting as well as simply having enough time to do everything, can all pose problems at some stage or another.

Kelly Lundberg remembers how she overcame her own obstacles:“One of the biggest challenges was the administrative start-up costs, and while there are more options around today, they are still expensive for those just starting up. Payments for your trade licence or company health insurance for example, tend to come out all at once; so, every month I put away what I need into a separate account so I know it is always there.

“Another challenge I faced was that I was offering a niche service, a concept that was not often understood. I underestimated how much I would need to educate my audience of the benefits of a personal styling and shopping service. That said, I have been patient (for once!) and thankfully it has paid off,” she adds.

Jacqueline Campbell, owner and managing director of The Travel Collection, an Arabian outbound

travel organisation recounts similar experiences. “When I started my business in the UAE, there was no licence category for this kind of profession. There was a language barrier, and setting up was the first hurdle. But I learnt to be patient, and to turn my fears into confidence, while getting used to rejection and multi-tasking,” she reminisces.

She adds: “We are very excited when we start, and then reality sets in. That’s when we need to be resourceful, and have a never-giveup attitude because we often learn along the way.”

Learning from challenges is a great way to develop your business as it provides a useful guide in establishing processes. Says Samtani: “One of the biggest challenges we have faced is hiring the right candidate. We did make some expensive mistakes in our earlier days. We have now learnt from them and have a system in place for hiring – a checklist of musthave and good-to-have attributes, job descriptions, written tests and an interview. We believe it is best when people work on their strengths.”

Simran Samtani [Co-founder and director of Xcel Accounting]

Entrepreneurial Tips Thinking of setting up on your own?

 Focus on yourself. Build up your personality and find out what is your passion.

 Research the industry you are intending to enter and keep in mind networking should be practised at every step.

 Focus on a niche in which you have an ‘edge’, where your skills, strengths and knowledge are a good fit and where you can offer added value to clients.

 Ensure you have a strong and viable business plan.

 Start by socially committing, telling people your plans. Once you start doing this, you are more likely to follow through with them.

 Find a suitable team to support you.

 Remember to focus more on collaborating than competing – there is abundant business out there.

 Ask for help! Most of the top entrepreneurs in the world have had help from someone in the beginning, whether from family already running a business, financial backing or emotional support from friends.

 Surround yourself with like-minded and positive people.

 Consider having a mentor or business coach.

 Read books and blogs, download podcasts, go on courses and keep learning and developing – ensure you invest in yourself.

 Do what you love and outsource the rest.

 Believe in yourself and always remember to enjoy it while balancing your lifestyle.

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More services open up exclusively for women Ajman Bank recently started a banking service exclusively for women, called Mahra Ladies Banking. The Intelligent SME (TIS) caught up with Maryam Al Shorafa (MAS), head of Ladies Banking.

Donna Benton [Owner of “The Entertainer’ books] And not forgetting of course, external factors such as market conditions, which Donna Benton has witnessed and survived during her years in business: “The Middle East has changed a lot over the last 11 years – we’ve faced September 11, the war in Iraq and, more recently, a recession. However, throughout all these hard times, people still want great value, which we are able to provide.”

The running of your own company is a unique journey that requires a wealth of attributes including patience, stamina, and the ability to multi-task, taking on different roles in order to fulfil both professional and personal responsibilities. The secret lies in being able to successfully balance the two and developing a working business to create a future of your vision for you and the people around you. Planning, research, networking and attention to detail along with a little bit of luck are all part of the process. But, perhaps, the most important thing is passion, as without it, the entire process is just that little bit harder.

“When you really believe in what you do, success follows,” notes Donna Benton from her experience. It is a profound statement most women entrepreneurs would agree with.

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TIS: Tell us a little about the Mahra Ladies Banking service.

MAS: Women, all over the country and the region, are choosing to be educated, start their own business and, generally, be far more independent than what was seen previously. We, at Ajman Bank, would like to encourage that with a banking service that has tailor-made products just for women. For a minimum investment of AED2000, we give financial advice, and lifestyle services such as concierge and valet parking service at malls, offers in over 60 restaurants across the UAE, exclusive discounts at retail outlets, discounts on fitness programs, unlimited membership of health and sports clubs, and hotels in Fujairah, Ras Al Khaimah and Abu Dhabi.

TIS: How is the response to the product so far?

MAS: The response is overwhelming, given the fact that we started the campaign during the summer. Many entrepreneurs are very interested and have already joined. Especially since we have focused on small and medium enterprises, it benefits this target group immensely. We have one more campaign on this product coming up, which should optimise the product further.

TIS: Do you also have business consultancy service associated with Mahra Banking?

MAS: We do cater to businesses, especially with a focus on small and medium enterprises and we realise women entrepreneurs need as much, if not more, support in their business needs. As part of the Mahra Banking service, we have consultancy services, coaching for various needs in business, and specific services for start-up businesses, especially financial advice. We believe in giving a complete proposition package, not just a banking facility.

Jacqueline Campbell [Owner, managing director of The Travel Collection]

Vanita Kapoor [Managing director of Envogue Events]

Her BSP Shabana 260x190mm-E.indd 1

6/16/11 5:37 PM

Special focus â?˜

How do female entrepreneurs influence the agenda for innovation?

Women are still largely absent from the boardroom in large multinationals, but are making strong progress as major actors in the entrepreneurial field, explains Kristina Nyzell.

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oday, women owned firms account for 38 per cent of businesses worldwide and the figure is steadily growing. As countries become more democratic, inequalities become less, offering a more entrepreneurial and productive work environment for both genders – not only women.

innovation by setting up their own businesses, building broad-based community dialogue and business partnerships.

With greater participation in economic activity, women also begin to influence the agenda for

Female owned and managed businesses are changing the face of business in a number of ways.

Female entrepreneurs play a vital role in identifying opportunity areas where women entrepreneurs can be successful and create wealth.

Women build a business around their passion. They turn this passion into a business that will drive wealth creation on many levels (as opposed to looking for the ONE IDEA that will help them make money fast and become successful personally).

Female owned firms employ a higher share of female workers at a professional and managerial level (rather than supporting roles or unskilled positions).

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Women build networks and collaborate with other women and small business owners to grow their business as well as help nurture other businesses in their innovation community.

They seed and exchange ideas, engage in dialogue, collaborate and share freely, as well as disperse knowledge, making it an open, free and available resource.

Female entrepreneurs choose business areas with a low barrier to entry (investment, technical and economic) and collaborate with others (open source network) to mitigate risks. Supporting female innovation and entrepreneurship is not only the right thing to do, it is the smart thing to do.

A question of access In societies where there is a strict gender divide, gender segregation has resulted in the emergence of female entrepreneurship, as only women can peform certain services for other women (medicine, education etc). Gender segregation, in this instance, opened up educational and economic opportunities for women in a social context where women traditionally need to seek permission from family or husband to work.

In countries dominated by patriarchical traditions and business corruption, explicit and implicit framework stifles economic participation and innovation and many women perceive ”home based” female entrepreneurship or social entrepreneurship (volunteering) as a way forward out of the deadlock.

Women have traditionally formed a large part of the informal economy through “informal entrepreneurship” (working for money but without a formal business set-up or helping their husband/family run their business) and voluntary work (working for free by helping out in schools, with charities and NGOs).

This is the case in the Arab world as

well as in many western societies.

However, in developing and transitional economies, it appears to be difficult for women to make the transition from the informal to the formal economy. So why is that the case?

In my experience of working with local female entrepreneurs I have observed a number of issues, some of which are highlighted below.

Social and cultural barriers may still persist, rendering it impossible and costly for women to work outside the home (as is the case in Saudi where workplaces require a separate work environment set up for women as well as transportation to and from the workplace). The social stigma of women working may also reflect negatively on the husband who may in his community be looked down upon and seen as someone that is not able to support his wife, children and family, if his wife goes out to work. Staying in hotels, meeting potential business partners who are men, to negotiate contracts, and generally speaking, being out there doing business may be looked upon negatively by the community.

choose the path of entrepreneurship, cumbersome registration and expensive start-up costs do not help women set up their own business, on the contrary.

Banks sometimes approach female entrepreneurs with an element of scepticism. I have faced this scepticism myself when I was setting up my business account with a reputable international bank in the UAE. Furthermore, very few banks, if none, offer a women-inbusiness programme or female entrepreneurship resource centre.

In many Arab countries, female entrepreneurs even need their husbands or brothers to co-sign loans. More often than not local female entrepreneurial ventures are financed through family investments, rather than a bank loan.

Economic participation In many western societies, entrepreneurship is perceived by highly educated and experienced women as a way to overcome some of the challenges that still remain in the workplace. Social progress and justice has given women access to education and work, but not necessarily a career (illustrated by

Complex registration procedures, large start-up costs and high minimum share capital requirements – although gender neutral in themselves – hit female entrepreneurs harder in combination with challenging social norms and attitudes. The complex registration and administration procedures are not something that only hits local entrepreneurs, but also expats operating in a free zone. Some budding entrepreneurs simply give up even before they have started.

Those that really make it are driven by a very strong passion for making a difference, self-actualisation and recognition. They will succeed no matter what. Sometimes women are driven by necessity to support themselves and their children and see entrepreneurship as the only way forward to secure a livelihood.

Regardless of what makes someone

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the lack of female board participation in multinationals and university professors in academia).

In a perfect world qualifications and meritocracy may well be that which governs career progression.

The truth is, more often than not it is other things than qualifications, experience, hard work and meritocracy that influence career progression in multinationals (government directives governing maternity-paternity leave and free child care. corporate work-life balance benefits and a supportive family-husband). Women (families with children) struggle to deliver on the informal performance measures such as availability, reliability, flexibility and presence during child rearing years. Yet, career progression is often measured on the ability to deliver on those four parameters, often referred to as the glass ceiling in academic texts and media.

I am a female entrepreneur and I often ask myself: Do women choose freely to leave the workplace or are they pushed out by persistent workplace barriers? Are women opting out by free will to achieve a better work-life balance or is it because corporations provide them with no choice?

Women who say they are opting out from a traditional business career to start their own business and saying they are doing so by free will could actually be hiding systematic and persistent constraints in the workplace environment. By opting out, companies (as well as society) don’t need to address hidden barriers like work-life balance, maternity leave, lack of high quality childcare, negative stereotypes of working mothers and workplace flexibility.

Female entrepreneurship is, hence, solving a challenge, which neither companies nor society are able to solve – the democratic and economic participation of women, their empowerment and financial independence. It is not always a

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More often than not local female entrepreneurial ventures are financed through family investments, rather than a bank loan. question of what you know but who you know. In an economy where connections, positions and patronage count, your name and who you know may, in the end, be the only way to secure a business deal or a contract.

Recommendations and introductions play a huge role in the procurement process in the Arab world.

It is, therefore, not surprising to see that, women owned businesses comprise less than one per cent of all domestic and international suppliers to corporations and governments.

Women sometimes struggle for access to business networks and some may even go as far as not recommending female entrepreneurs for a contract or a position that has come up in their trust network, simply because, they themselves are trying to come to terms with their own social prejudices and perceptions of what a female entrepreneur or social entrepreneur is capable of doing. In my case, I have often found that one is perceived to be running a hobbybased business as opposed to a “real business.” The answer to the question: So how much money did you make last year, may sometimes come as a surprise to many.

Women face the same barriers in their workplace, in setting up

their own businesses as they do in procuring business contracts, in my view.

The question which companies and society must ask themselves are: Q: Will including more female owned and managed businesses in your supply chain make a company more innovative?

A: The answer I have given when I have asked this question in business contexts is: I don’t know OR I cannot see it being of any importance whether my supplier is a female or male entrepreneur.

Q: How many women ownedbusinesses do you have in your company’s supply chain?

A: Most companies will answer: I haven’t got a clue.

Women may have access to education, access to work and will overcome career barriers by setting up their own business, yet to be faced with a procurement process, which again, may not take women’s contributions seriously, or discount their services away to that of a support function.

The result is that women’s businesses do not grow, corporations miss out on innovation, and national productivity suffers.That is a cost of lost opportunities, not only for women but for their families, companies and society as a whole.

Working with female entrepreneurs should no longer be a question of whether it is the right thing to do; it is really the smart thing to do.

Kristina Nyzell is the owner and M.D. of Disruptive Play FZ LLC, a Dubai-based Human Resource Consultancy.

She is an experienced strategy consultant specialising in open source, lead user/collaborative innovation and community development.

Industry insight â?˜

Dubai SMEs optimistic, yet challenges remain The second quarter performances of some sectors have had a steady rise, which mirrors Dubai’s overall business performance, explains Alexandar Williams.

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he current quarter results of the overall business climate in Dubai are indeed looking up, in spite of global conditions. Firms engaged in services are more upbeat about future profits than those operating in manufacturing and trading.

Dubai SME, an agency under the Dubai Department of Economic Development, recently conducted a survey among 475 small and medium enterprises, to gauge the pulse of the SME sector. Based on several performance indicators such as sales revenue, selling prices, volumes sold, profits and employee strength, the survey was aimed at understanding the current economic output and outlook of the SME sector in Dubai.

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Respondents included 160 trading companies, 60 manufacturing organisations and 255 serviceoriented enterprises.

The survey takes a close look at current market scenarios, future expectations and investment outlook of SME businesses over a period of one year, while examining key challenges that inhibit growth and development. The findings of the survey indicate stability across the first two quarters of the year, by way of assessment (Refer diagram Current Business Performance Q2, 2011 below).

The current quarter results point to stability in sales revenue. A breakdown into unit prices and

volumes further reveals that both parameters remain largely stable.

However, performance has varied across sectors, with manufacturing and services firms reporting better results in comparison with the first quarter.

Capacity use and employment Overall, SMEs maintained the same levels of capacity utilisation and employment in Q2, as compared to Q1 results, according to the survey. Across sectors, the hiring performance of services has been comparatively better than manufacturing and trading sectors (25 per cent businesses in services reported an increase in manpower, versus 18 per cent for trading, and 12 per cent for manufacturing).

❘ Industry insight

Cost of raw materials It is also apparent from the survey that increasing costs of raw materials have had a significant downside effect on SME margins. This increase was more of a concern to manufacturing firms than to organisations engaged in other activities, with 82 per cent of them reporting a rise against 63 per cent only for firms engaged in trade.

Cost of finance The survey indicates that the cost of finance is not expected to change significantly between quarters.

Almost half of the respondents reported either stability or some decline between Q1 and Q2, while the remaining half was divided between an increase (28 per cent) and ‘no relevance’ (26 per cent) of the issue for their business.

The non-relevance points to the fact that small businesses choose not to resort to external or bank finance, or are shut out of obtaining such finance. More specifically, a relatively large proportion of service firms have reported using bank finance, against 10 and 11 per cent, respectively, for the manufacturing and trade firms.

Labour cost The respondents’ views on labour cost were almost equally divided between no change or some decline and an increase in the second quarter. Reasons cited for the increase included the impact of visa renewal costs due to a change in the work visa duration from three to two years; salary increments to compensate for inflation; and retention measures to counter reverse migration trends of labour back to South Asia due the higher pay scales in those countries.

SME outlook A look at overall SME expectations for the coming quarter show positive trends, with 43 per cent of the respondent firms being optimistic about sales prospects, while about 26 per cent think sales will remain stable. At the sectoral level, service companies seem to be most optimistic about these prospects.

It is also interesting to note that these optimistic forecasts are driven by expectations of higher volumes, while prices are expected to remain stable, which signals a rise in the

Direct costs Thus, although sales remained more or less constant in the second quarter, the reported increase in direct costs seems to have resulted in pressure on profit margins. This pressure was felt more by companies in the trading sector, as 58 per cent reported a decline in profits against 47 per cent for manufacturing and 43 per cent for services.

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Industry insight ❘

level of real economic activity in Q3.

However, trading companies are also betting on rising selling prices. In line with these positive expectations, firms report to enhance their new purchase orders in the next quarter; with the proportion of those planning to increase these orders exceeding significantly the proportion of those planning to reduce them. These expectations are the strongest among services and trading firms.

In terms of outlook for employment, the survey notes that services and manufacturing firms expect to increase their manpower in the next quarter, while trading companies are leaning towards maintaining the same staff strength.

Key SME challenges The major challenges impacting Dubai’s SME business environment are displayed in the chart below.

High cost of operations The survey reveals that high cost of operations is the biggest challenge faced by SMEs in Dubai. For the

international demand, has raised challenges for the respondents.

Business regulations Lack of clarity on business licensing and registration procedures, as well as inadequate transparency in enforcing commercial contracts and protecting creditors’ rights have proved to be a challenge for the SME sector this quarter. Respondents have also cited increases in government fees, such as visa and licensing fees, to have had an adverse impact on their margins.

Across sectors, the hiring performance of services has been comparatively better than manufacturing and trading sectors.

Investment outlook Over a twelve-month time frame, SMEs are optimistic about their capital investment outlook. Around 55 per cent of them plan to upgrade technology and 61 per cent intend to expand their capacity in the next 12 months.

From a sectoral perspective, service oriented companies are the most optimistic lot about expanding their capacities, while manufacturing firms have their attention focused on investing in technology upgrading.

Trading companies are comparatively less inclined towards upgrading their technology, perhaps because of the nature of their operations, which are relatively less technology intensive than other activities, such as manufacturing.

Overall, there are no significant differences between exporting and domestically oriented SMEs: both are keener in the next twelve months on expanding capacity than on upgrading technology.

purpose of the survey, cost of operation includes direct costs (raw materials, labour) as well as indirect costs (rentals, leasing and utilities).

Competition Local and international players have increased competitive intensity, while the low demand, which is a protracted effect of the earlier slowdown in domestic and

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Alexandar Williams is the director of strategy and policy with Dubai SME. He has over 20 years’ experience in strategy and policy planning for SME sectors of various countries. He has an MSc in Public Administration from the London School of Economics and Political Science.

presents

Power of Mobile Marketing for SMEs Date : September 11, 2011 Time : 6.30pm 7.00 pm* Seminar Begins Venue : Media Rotana, Tecom, Dubai

An interactive session by: Mukkul Shyam

[Founder & CEO at GetInfo Inc Co-Founder and CEO at ValueFirst Middle East FZC]

Satheesh Kumar

[Director - Emerging Technologies TAVAS Consulting Services]

Mobile marketing trends and push and pull strategy How to increase consumer interaction and loyalty with mobile marketing?

How to increase sales and extend your customer base with personalised apps?

The era of NFC - Near Field Communication Technology. *followed by refreshments

FREE REGISTRATION - Hurry! Limited seats To confirm your participation just SMS your name to 055 9023185 / email:events@spiholding.net

Industry insight ❘

Cash is king, manage it well Profitability is not enough for companies to grow, and neither does it guarantee the continuity of a business if working capital is not sustained, explains Zed Ayesh.

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W

hen starting a business, many SMEs fail to include a detailed plan for managing working capital, also referred to as operational capital, which is one of the most, if not the most crucial part of sustaining a business.

by it and which have to be be paid within a period of no more than 12 months. In other terms, working capital refers to the amount of cash a business requires for day-to-day operations, and that is the money needed to convert raw materials into finished products, which a company sells for payments.

Many of the SMEs’ failures stem from their top executives’ inability to properly manage working capital of the company. Profitability is not enough for such companies to grow, and neither does it guarantee the continuity of a business if working capital is not sustained at positive levels, all the time.

Among the most important items of working capital are levels of inventory, accounts receivables, accounts payables and I would like to add man-hours (salaries) particularly for service business.

Working capital is simple: it is the difference between a company’s current assets, namely cash, inventory and items that can be converted into cash and its current liabilities, which are amounts owed

Stock days It is the number of stock units an organisation holds, divided by the number of units sold by the same organisation, on a daily basis. In other word, stock days indicates

Some details of the most important items of working capital are below.

❘ Management

Some strategies to better manage working capital  Identify the overall cash balance needed while considering the payment cycle of customers and suppliers.

 Create cash balance reserve for one cycle at least.

 Establish systems to measure working capital accurately and regularly on a daily and weekly basis.

 Benchmark your levels of working capital with the one of your industry

 Improve stock control systems.  Improve sales forecasting methods and systems.

 Improve dispatch and distribution systems of finished goods to avoid overstock.

 Eliminate slow moving items.  Aggressively work to reduce payment collection period of debtors, ageing report of accounts receivables should be managed more rigorously on daily basis.

 Create an effective credit control system with sensible collection policy.

 Ensure that invoices and account statements are correct and prompt to avoid delays in payment.

 Offer early payments discounts.  Make your team follow up late invoices personally.

 Resolve disputes quickly.  Better management of creditors by extending payment terms, and better credit conditions and terms.

 Pay sales commission on collection of payment only.

 Negotiate better terms with your current suppliers.

 Delay payment to suppliers until last day of trade terms.

 Calculate whether it is better to pay suppliers early and get the discount.

 Get daily, weekly and monthly reports on your cash position, to pre-arrange for any cash shortage.

to the number of days that an organisation can continue trading without buying or manufacturing new stocks, before it runs out. A lower figure is better, as it means fewer inventories, and which means less cash is tied up in stock.

Debtor days This is a measure of the average time payment takes. Increase in debtor days could mean a greater risk of defaults. This ratio is usually expressed by the number of days debtors take to pay, and can be figured by dividing the trade debtors on sales and then multiplied by 365 days. A lower figure is better as cash is being received faster from customers.

in advanced markets. A better management of working capital for SMEs (or any size business) can be the difference between failure and success. Companies with better-managed working capital are less likely to borrow money, a very difficult proposition these days.

It is important to, however, understand that all companies are not the same when it comes to working capital requirements; some companies are inherently better positioned than others. Examples include retailers that get paid on the spot, but face bigger challenges with managing inventory levels; or health insurance companies that get paid upfront and don’t have to pay until much later, when they have a claim.

Creditor days It is similar to debtors days; the average time that a company takes to pay its creditors; it can be calculated by dividing trade creditors over annual purchases and then multiplying by 365 days. The higher this number, the better it is, as it indicates a business is using other people’s money to do business. On the other hand, extended creditor days could mean trouble for a company, as it is a signal that it is unable to fulfill its obligations to its creditors.

Manufacturing, on the other hand, incurs large sums of investments upfront in the form of material cost, labour, finished products inventory, and usually accounts receivables take longer time to settle.

It is also important to understand that when creating any strategy to manage working capital, one has to be realistic and have great understanding of market conditions and changes. It is also important to involve your team in your strategies and plans.

Labour ratio It is a measure of the cost of labour as part of production cost, and it is calculated by dividing labour cost over production cost. Labour ratio indicates the amount of cash needed to have someone produce a unit of a company’s product. A higher number signifies a labour intensive operation.

I have included labour ratio in this article because it suits the local market; labour configures differently

Cash is king- and getting loans or investors now is a very hard and complicated task; it is more important than ever before for SMES and all other businesses to better manage their working capital, both in the short-term and long-term, improve cash flow, costs and service/products, in addition to being stronger and flexible against competition, a critical aspect in a slower economy.

Zed Ayesh has over 20 years’ experience in management and business development. He is currently the managing director of Flagship Consultancy based in Dubai, and works with clients on many aspects of the business from strategic planning, business development, marketing strategies, pre-sales and sales management, across different sectors such as government agencies, real estate, media companies, manufacturing, contracting, engineering firms, retail and shipping companies.

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Marketing insight ❘

Maximise returns on direct marketing investments This is the second part of a two-part series on direct marketing strategies and tactics that could be implemented by small business owners and SME marketers, by John Lincoln.

D

irect marketing is an effective marketing tool that SMEs should use, as part of their everyday marketing activity. It is one of the most effective ways a small business can acquire new customers, retain existing customers and increase the revenue potential of an existing base of customers.

Before we get into discussing the tactics of direct marketing, it is important for small business owners and SME marketers to seriously consider how to effectively build a lifetime relationship. Any direct marketing activity, without a precise understanding of managing the lifetime of the customer, will be futile.

Customer Relationship Management (CRM) is a buzzword that has been around for a long time. It, mostly, has been written in the context of systems, processes, opportunity management and

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so forth. However, small business owners and SME marketers need to understand CRM in the context of direct marketing.

A small business owner or SME marketer should know the three phases that must be considered when executing a direct marketing campaign: Are you in the relationship formation stage?

Small business owners and SME marketers should use this phase to reinforce their potential customers’ decisions to purchase. An SME marketer should have an offer, packed with benefits, to interest a customer. A small business’ reinforcement of a customer’s decision should include the fulfillment and delivery aspects of the proposition that a business is trying to sell.

Are you in the relationship cultivation stage?

A small business owner should ask if he is able to personalise his business relationship to meet his customers’ unique needs. The SME marketer should also consider if they are attempting to build trust or if they are able to better qualify the customer.

Are you in the relationship management stage?

At this stage, an SME marketer should consider if he is able to fit the value proposition to meet his customers’ unique needs. If he is, it gives his SME business a higher

❘ Marketing insight

potential to cross sell and up sell their existing propositions.

Tactics of direct marketing Now that we know about the advantages and disadvantages of direct marketing, the key success factors for direct marketing, when to use direct marketing, and all about managing relationship with customers, it is time to discuss each direct marketing tactic in detail.

Direct mail A small business owner or an SME marketer should consider the following tactics for direct mail: An SME should ensure that whatever it offers has to create a visual and logical experience, which is eye catching and truly different.

Remember that you have only four seconds to involve and engage the customer!

A small business should ensure that the targets are well defined and pre-selected based on the small businesses objectives. An SME must make sure that its value proposition differs significantly from competition.

propositions. Small business owners and SME marketers should seriously consider these direct marketing tactics, modes and methods, including magazines that include bind-in insert cards, toll-free numbers in newspapers and magazines, and infomercials and teleshopping channels.

Some key factors that they should consider are that this tactic enables the SME to emphasise the prime benefit and the total proposition.

Keep in mind that tricky, complicated openings rarely work. It would help if your brand name is well known.

If it is, make sure that you feature it conspicuously.

Another tactic that small business owners and SME marketers should consider is to make coupons into mini-ads, complete with the small business’ brand name, promise, and a miniature image of the proposition itself.

Other factors that a small business owner or an SME marketer should consider, includes the size and differentiation of the envelope, the day of the week when the mail is sent out, the reliability of the postal system and the uniqueness of the direct mail design.

In my personal experience, I have engaged in discussions with folks trying to save costs by insisting on low quality post cards, or by minimising the size of the direct mail.

But that should not be the approach, as you should not even bother with a direct mail campaign, if it does not differentiate you from the millions of junk mail delivered each year.

Direct response advertising The tactics for direct response advertising should also always include a “call to action.” This is an effective tactic for small businesses to promote and sell their

A special note on direct response advertising! In emerging and “nonevolved” markets such as the Middle East, South Asia and South East Asia and Africa, this direct marketing tactic has huge potential to drive customers to your small business!

Personal selling or direct sales Personal selling is the end to end process of face to face communications with existing or potential target customers and the persuasion activities therefore.

For any small business, having a direct sales team is most effective when the propositions or services have a higher total cost of ownership or are higher priced, are complex in nature, tailored to users’ needs, offer opportunities to cross sell or up sell or if they are opportunities for the customer to trade in, the decision process is complex or when decisions are made at the point of purchase.

Is direct selling the best option?

A small business owner or a SME marketer should seriously consider the factors, highlighted below, before deciding if a direct sales team is the best option for a direct marketing campaign.

Order taking: Is the direct sales effort just an order - taking tactic?

An SME should ensure that whatever it offers has to create a visual and logical experience, which is eye catching and truly different.

Remember that you have only four seconds to involve and engage the customer!

Technology consulting: Is the small business dependent on the direct salesforce to enable and empower the customer to have more technical information, advice, and service?

Complex propositions: Are your propositions sophisticated and complex?

System selling: Is your proposition an end-to-end system of propositions, products or services?

Continuous improvement mission: Is your sales team on a purposeful mission? Are your direct sales teams calling on accounts for purposes of monitoring the satisfaction of buyers and updating the buyers’ needs?

I personally believe that in emerging

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Marketing insight ❘

This direct marketing tactic offers a small business owner or SME marketer the ability to experiment with different scripts and delivery formats that are simple and practical. It offers an SME owner the ability to have a live constructive dialogue with its customers.

However, there are potential pitfalls that a small business owner or SME marketer should consider. These include the fact that telemarketing is very expensive on a costper-contact basis and a major portion of the prospects are not reachable. and developing markets, the channel and marketing economics make it ideal for direct sales as an effective tool for small businesses.

Direct sales marketing campaigns are one of the most effective ways in which an SME or small business can promote their propositions. It gives their customers the totality of experience that that no other marketing tool can provide. They include the visual, sound, logical, and touch experience.

The direct sales approach enables pre-selection and an ability to demonstrate the benefits of a small business proposition much better that any other means. Additionally, SMEs should know that when you have the attention of a customer or a potential target, there is no other competition to snare your potential customer!

Telemarketing Telemarketing is a very potent direct marketing tool for any small business owner or SME marketer to consider, as potential and existing customers can be selectively targeted. This method also monitors and tracks the success and impact of the campaign.

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Telemarketing can be annoying to your customers. They do not have the flexibility like direct mail.

You cannot choose your delivery options. Time is money for most customers – when you reach people in their space, you have a limited attention span to communicate your intention and elicit the responses that you intended to. The practice of telemarketing is, therefore, highly maligned due to the fact that it can annoy a customer.

Measuring effectiveness Small business owners and SME marketers should have a clear understanding of how they target their customers and how they measure the effectiveness of a direct marketing campaign. Direct marketing is an expensive strategy

and tactic to implement. Therefore, selecting the target is important.

Considerations for target selection In B2C direct marketing, the demographics that should be considered are age, income, gender, marital status, homeowner, dwelling type (home or apartment), mail order buying (by product type), interests, married, divorced or single, presence and number of children, and geography.

In B2B direct marketing, the demographics that should be considered: vertical or industry market, number of employees, revenue, title and responsibility of the person to whom the direct marketing campaign is addressed to, information on all influencers and decision makers, credit worthiness, geographical, number of branches, sites or, offices, number of laptops, and fixed assets versus employee size.

At the end of the day, no matter what your small business’ direct marketing strategy or the resultant tactic is, the sum total of your Cost per Inquiry and the cost per Order advantages of direct marketing becomes very important.

Small business owners should always remember that direct marketing sells the next step in the sequence of the relationship cycle.

They should always keep in mind the totality of the cost of the customer relationship – from the relationship formation, cultivation and the management stage.

Happy direct marketing!

John Lincoln has over 20 years of experience in telecommunications, worldwide, and is currently the vice president of marketing (enterprise) at Du. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery.

CSR â?˜

Why CSR is great for smart SMEs Should an SME owner embrace the concept and opportunity of getting involved and supporting Corporate Social Responsibility projects? Michael J Tolan explains why.

S

ome of you may have followed the news when it was recently announced that the US government was on the verge of defaulting on their debt. For average people around the world, this was one of the most confusing topics in recent times, considering the three tumultuous years of financial storms, earthquakes and tsunamis and let’s not forget, scandals.

What got my attention was that Apple Computer had within its own arsenal, stockpiled more cash in-house than the entire US government.

Could it be that Apple CEO, Steve Jobs, once a scrawny geek of a kid who scrapped conventional wisdom to go out and innovate as an SME,

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to fulfill a dream that everyone should own a computer, could ride in like a white knight and save the whole country? Does charity begin at home? Innovation and courage make it possible for an entrepreneur like Steve Jobs to support social programmes with millions of dollars each year.

give back to your own cause or community? Well, for my part, and for many of the consultants on my team, we believe in looking for opportunities even before rolling out a start-up and building that into the mix as an integral part of the holistic structure of the entire business strategy.

But what if you have a small business, and your focus is just on survival?

To understand these reasons, one should reflect on some of the advantages of actually shaping your company culture with this type of commitment.

What if you are struggling for loans or investors for your own project, and cannot even conceive the possibility of crossing the threshold of success and being able to give back?

When does it make sense to get involved as a small business and

Powerful message For a start, think of the message you will be sending out to your employees who will begin to realise that they are part of something more than just a 9.00 am to 5.00 pm job.

This will often give them a higher

❘ CSR

sense of belonging and loyalty to your project and endeavor that makes them proud to say to total strangers, family and friends, what they do, who they are and why they love what they are doing now.

This, HR managers will tell you, is a powerful factor in human capital retention, and a recruitment magnet is always more powerful, when the team within, are all ‘game on’ and buzzed about the company.

Among your clients, there is a percentage who will appreciate that some part of your margins which they contribute to, are recycled in a place that has a ‘feel good’ or worthy cause impression, again amplifying another good reason to do business with your company. This can grow to the next level, namely getting clients involved in social action projects, which are miracles of good CSR work in so many communities.

So, how much do companies need to invest in a CSR project, and how is it possible to do this before making a profit? The answer that I propose is that, although it’s nice to be able to donate cash, often, in the lifecycle of young start-ups, it’s not feasible. Many companies are, however, deploying winning strategies in order to bolster their own contribution in kind, either through barter or by volunteering time to an existing CSR project initiated by another organisation.

In the MENA region there are dozens of such organisations that have created CSR projects that would appreciate the focus and participation of one hour of someone’s time. This could range from having your team agree to spend half a day repainting a home for the elderly within your community, hosting a car wash to donate money to a needy school, creating a used book drive to donate to an orphanage. In fact, subject areas are endless and there is never enough. The unseen advantage in all of this is, there is a magical,

intangible and yet amazing feeling of giving back to something or someone.

We, as business people, are able to feel a little taller in the process of this work, and at the same time, we have the advantage of not only putting a smile on the receiver’s face, but also spreading pride and significance amongst our teammates and our network for our participation.

Brand recognition This is not thankless work either. Many participating SMEs are able to elevate their brand recognition and perception, by associating with causes that speak to their audience.

This is a key factor of creating a strategy that works for your company. Find a CSR synergy that fits to the services or products that you deliver to the market. Build this into your overall business plan and connect with people on various levels as a result of your winning strategy.

Be warned that there is a fine line between being genuinely involved in a CSR project and exploiting it so that you purely get a part of cash rewards.

When does it make sense to get involved as a small business and give back to your own cause or community?

It is better when companies form committees where employees and officers are part of the steering process, to make the best case scenario

recommendations to the shareholders, about not only installing a CSR department, but guiding it and sustaining it.

Another helpful hint if your SME adopts this practice is your key secret agents who can make your efforts even more powerful your suppliers.

You will be amazed that when your team is committed, and has the ability to share a clear vision about what, why, and who, your suppliers will ask when and how they can help.

Therefore, you, as the owner of an SME, are able to light a candle in your own store and by the power of passing the torch, ignite second and third party attention and support all around your organisation’s CSR wagon.

And yes, remember, charity begins at your front door.

Michael J. Tolan is a senior consultant for potential. com and a faculty member of the SME Evolution, a free online training resource for owners of SMEs throughout the MENA region and beyond that utilises the experience of academics from Carnegie Mellon University, Harvard and others as well as successful entrepreneurs who contribute to the knowledge base of the scheme that supports the skill sets of entrepreneurs.

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Technology insight ❘

SMEs, time to go mobile, go apps!

If you are in the SME business and planning to increase your sales and customer base, now is the time to take the plunge with an app, suggests Satheesh Kumar.

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echnology vendors like Google and Apple are posting record sales despite the downward trend in the global economy. How do they maintain their stellar sales figures in the same business environment as ours? The answer is: they have scaled up their growth platforms, using innovative technology.

pads, where information is received at their fingertips. Communicating with brands, buying products and services, and making payments among other services have become so much easier. If you are an SME business, planning to increase sales and extending your customer base, now is the time to go mobile and go apps.

The face of the internet is changing.

Gone are the days of desktop and laptop computers, as more people shift to smart phones and smart

If your company is still sitting on the fence about whether or not to offer a mobile app, consider these reasons why other smart, successful

businesses have already taken the plunge.

Customer’s need Studies clearly show that tablet and smart phone users strongly prefer apps over websites. You may not know it, but when it comes to your business, your customers are already asking: “Is there an app for that?”

Websites are not as functional or interactive as apps are for mobile devices. Websites were designed for computers. But apps are designed for touch screens and are optimised

❘ Technology insight

for fingers. An app allows a mobile customer to access information about your products and services, without requiring them to go to your website.

Grab attention Until now, apps mostly have been associated with large companies with big budgets and marketing departments. If you are running a small to medium business, an app would be something unexpected to surprise and delight your customers, and grab their attention. Allowing your customers to interact with your products through an app can also make you stand out from your competitors who have not chosen to support mobile customers.

Direct pipeline An app can push content and information to your customers automatically. If they have downloaded your app, you don’t have to wait for them to ask for your latest info. Apps allow you to speak directly to your customers and their interests. Until now, marketers have only dreamed of a way as reliable and immediate as mobile apps to constantly communicate with prospective and existing customers.

Now, this technology is within reach of any business.

Information With short product lifecycles, intense competitive pressure, and changing economic conditions, keeping your product information and pricing up-to-date can be a challenge. Sure, it’s on your website. But does that really help your sales team? And what about your customers who prefer their smart phone or tablet over their laptop? An app can be kept continuously updated with the latest information more quickly and easily than printed literature, catalogues, and even most websites.

Make your business stickier Wouldn’t it be great if your customers stayed longer when they do visit, and came back again and again? Ideally, your brand should be

like a song that keeps playing in their heads. Putting your products into an app can help you do that. Detailed information and photos about your products will be at your customers’ fingertips – literally.

Call your customers to action It’s not enough to merely communicate information and ideas to your customer – the goal is to get them to take action as a result. The interactive nature of an app makes it ideal for engaging your customers and spurring them to action. Apps make it easier to turn a prospect into a sale.

Keep up with the competition Virtually every major corporation already offers one or more mobile apps for its customers. But thousands of small and medium sized companies have also jumped into the game. When the world wide web exploded onto the scene in the mid-to-late 90’s, forward-thinking businesses of all sizes realised the opportunity and seized it early, while other companies waited and played catch-up later. It’s happening all over again. There are two types of businesses: the ones who have a mobile app, and the ones that don’t have one (yet). Which do you want to be?

Equip your sales team Your sales team can also benefit when you invest in a mobile app.

What salesperson doesn’t need instant access to the latest product information and pricing? And with your app on the bright, clear screen of a tablet, your salespeople can more effectively engage prospects during face-to-face sales calls.

Instead of just

passively viewing your product info, customers will want to reach out for your tablet and start interacting with your content.

If your company offers its products via a mobile app, what’s the worst that could happen? Is there any downside to making your business more accessible to more people, in more places, in the ways they prefer?

The only risks involved are the cost, diverted resources, and distraction from your core business associated with the process of creating an app. But that can be managed by choosing the right technology partner for your app.

Satheesh Kumar is the director of emerging technologies at TAVAS. He has experience in IT solutions and consulting, specifically in mobile apps strategy and consulting, multi-platform enterprise mobile computing and NFC touch ‘N’ go technology, He has an MS (Software Engineering) from BITS, Pilani, and has worked with companies such as Oracle and Accenture prior to TAVAS.

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Social media ❘

Let’s get social Do you have any questions on social media and promoting your business online? UAE-based social media consultant and award-winning advertising strategist Farrukh Naeem answers your queries on using Facebook, Twitter, YouTube, AdWords, SEO and any other online services. Send your questions to farrukh@spiholding.net

Q. Everyone is talking about Google+ these days. What is it?

A. Google went social with the launch of Google+ in Beta phase recently, and the response they received was overwhelming. Like any social network, Google+ is a way to connect, share and communicate with others online through your Google profile. What makes any kind of social feature by Google very powerful is the potential to connect it to all the other services by Google and the leverage it might have on search rankings too.

For intelligent entrepreneurs, the opportunity to step in and start building connections with the first movers and early adopters in their

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respective markets is immense. Most savvy trendsetters, ‘techpreneurs’ and media members are already active on Google+.

Currently, only profiles of real people are being allowed, and business profiles are being discouraged by Google. They are believed to be working on a more enhanced offering for businesses, a feature in high demand expected to be launched in a later phase.

You must have a Google account to join Google+ and then join Google Plus at http://plus.google.com – for an invite, members can send a request.

Q. Is Google+ different from the

+1 button that I’m seeing in search results? Is that useful for my website and my business?

A. The +1 button was launched around the same time as Google+, but it works differently. Going by the premise that we tend to trust the opinion and recommendations of others like us, when it comes to buying, supporting or endorsing a product or service, the +1 button helps us rate or vote on things online – from ads to search results to content inside the websites. Over a period of time, these user-generated votes could become a crucial factor in determining which ads, pages and content gets the most exposure.

“This is just one of many signals Google may use to determine a

❘ Social media

page’s relevance and ranking…” the official website says. Think SEO benefits based on that quote!

From a business viewpoint, it would, of course, make good sense to embed the +1 code across business websites to get Google love and customer love. It should also lead a business to see whether its content and communication online gets the vote it thinks it deserves from its target audience. You will need to have a Google profile to give a +1, and users signed into Google will see which of their friends have “+1’d” your content online. You can get the Google +1 button code here: http://www.google.com/intl/en/ webmasters/+1/button/index.html Q. I would like to have a presence of my company/brand on Facebook. How do I create a page?

Can I not just create a Facebook profile for my business?

A. Creating a page is easy. You can visit https://www.facebook. com/pages and start off the page creation wizard by clicking on the ‘+ Create Page’ button on the top right corner. Facebook expects profiles to be of individuals and not businesses. “Organisations of any type are not permitted to maintain an account under the name of their organization,” their official documentation states. “If you create a profile for your business, your account may be disabled for violating our Terms of Use,” Facebook says.

The intelligent way to leverage the power of personal Facebook profiles as well as the feature-rich capabilities of Facebook pages is to have socially active and responsible individuals in your business, be actively involved on an individual level in building your community on your page, as well as appointing admin to your pages, that also have active connections online.

Research shows that most people interact with pages in their own timelines and when you have fans and supporters and your own team with hundreds of personal connections, your message could

Google+ is a way to connect, share and communicate with others online through your Google profile. What makes any kind of social feature by Google very powerful is the potential to connect it to all the other services by Google and the leverage it might have on search rankings too. potentially reach thousands when your fans engage with it.

Q. I’ve joined Twitter and tweet about my business and offers. But no one seems to respond. What am I doing wrong?

A. Your Twitter messages are first noticed by the people who follow

you. If the messages are of value to them, they might respond back publicly (by a mention of your Twitter name prefixed by @) or follow you and then respond through a direct message (DM). If they find your tweet worth sharing, they could retweet it (RT), pushing it further to all their followers.

As in real life, one of the most important strategies on Twitter is to spend time listening to people and not just talking about yourself or your business.

Try searching using the Negative, Positive and Question filters on Twitter Search (http://twitter.com/#!/ search-advanced) to see if there are problems that your business can solve, or questions you can answer.

Brands that respond on time to the right questions and needs win the day – and Twitter is sometimes the perfect medium to engage your target at the moment of truth.

Farrukh Naeem is a digital strategist and social media consultant based in Abu Dhabi, UAE. His marketing blog (copywriterjournalist.com) has a readership across 140 countries and his tweets (@farrukhnaeem) are followed by more than 12,000 people worldwide. Farrukh has worked with global brands like Microsoft, Adidas, HP, Honda, Xerox, Siemens, the United Nations, etc. and has over 12 years of marketing experience in Asia and the Middle East.

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Leadership ❘

Make The Promise A winning requirement in the world of business is never to give up, writes Kevin Abdulrahman. having hurt his knee. In fact, he had dislocated his joint (a challenge, so to speak, considering a working knee joint is imperative when competing in a marathon).

Nonetheless, with his bandaged and bloody leg, John continued with his quest of moving forward and completing the marathon. As I mentioned, by the time he hobbled into the stadium, it had been over an hour and a half since the last person had crossed the finish line. But that didn’t matter – John needed to keep going until he crossed the finish line, because unbeknown to most people, John Stephen Akhwari was no ordinary man. He was unlike most people who set a goal and then give in to the challenges the world throws their way.

I

want to share with you the story of John Stephen Akhwari. Born in 1942 in Tanzania, John was 160 cm tall and weighed around 50 Kgs. On October 20, 1968, the Summer Olympics were being held in Mexico City. John created an impression, one that would last far beyond that day. It would travel through history.

I’m writing about it for you to read and, I am certain, that for many more generations to come, John Stephen Akhwari still will be a sensation.

John participated in the marathon where 74 people had started the race. Of the 74 who did, only 57 managed to complete the race. Yes, John was indeed one of the 57 who did, and I wish I could say that he came first in the race. But he didn’t!

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John did not come first. He did complete the race, and that in itself was a huge feat. Of the 57 that finished the race, John actually came in last. And if that wasn’t enough, there’s more. He came in over an hour and a half later than the person, who the judges had thought was the last man to cross the finish line.

If that was not enough, there’s still more.

John was so late, that the winners’ ceremony was completed and the medals were awarded to the respective winners. Many spectators had left and were leaving when suddenly they were informed about a man who seemed to be heading towards the stadium.

John had got injured along the way,

If you were with me some years ago, you would have seen me make a similar promise one sunny afternoon, sitting in my room looking out the window. I wrote two sentences on a piece of paper that I remain true to, and teach my students to do the same. The first sentence read, “I will always win.”

It wasn’t because I was better than anyone, not because I was smarter than anyone, and certainly wasn’t because I had more resources than anyone. It was all because of the second sentence that I followed it with, which read, “Because I will never quit.”

I will keep standing long after everyone has left the game. I will be standing and working on my goals and my vision right to the last breath.

That’s the commitment I’ve made to myself. In my mind, I am Rocky

❘ Leadership

Balboa, the last man standing when it comes to fighting for that world title belt- my dream.

Commitment One of the highest paid and well deserving actors to this day, an icon of success and an inspiration of many, in one of his interviews, said that he could beat anyone if they came up against him on a treadmill.

He said it with a smile, but went on to say that it wasn’t because he was the fittest person in the world, but purely because he would outlast any challenger, for the simple fact that, he was so committed to never giving up.

You know this inspirational actor as Will Smith.

A British politician, known for his leadership around World War II, gave a famous speech on October 29, 1941. This segment of which I believe rings a bell in the ears of many past, present and future successful people.

He said, “Never give in. Never give in. Never, never, never, never -- in nothing, great or small, large or petty -- never give in, except to convictions of honour and good sense. Never yield to force. Never yield to the apparently overwhelming might of the enemy.”

You know this figure as Sir Winston Churchill.

Mental toughness Everyone around you will want to achieve their goals and dreams, but unfortunately they give up when the going gets tough. When the going gets tough, the tough must fight back. When the going gets tough, you must remember that the game of life is not a game of convenience. If it was, everyone would win and be successful. It is a game of mental toughness.

Every winner has made the promise, be it in private or in public, and that is to never ever, ever, ever give up,

If you want to be a winner, if you want to be successful, if you want to be a leader, if you want to be an inspiration to the people around you, your fellow colleagues, your business, your family, friends, society or the world at large, you need to make The Promise - to never, ever give up. no matter what. They have locked in on their target, and will not stop until they get to it. They might be delayed, they might be challenged beyond their beliefs, they might be forced to take alternative routes, but whatever happens they are committed to their promise, and will never break it.

Whatever you choose to do in life, make a promise to stick to it all the way. Make a commitment to never give yourself the option of giving up. If failure was not an option and success is your only option, then you are forced to succeed. Every winner I have come across in life has had to outlast, outrun and outwit the challenges they faced. They had the tenacity to see themselves through the finish line of any race they chose to start.

Winners have one exit strategy, and it is to achieve what they set out to do. If you want to be a winner,

if you want to be successful, if you want to be a leader, if you want to be an inspiration to the people around you, your fellow colleagues, your business, your family, friends, society or the world at large, you need to make The Promise - to never, ever give up.

Moving forward, whenever you are faced with a challenge, I want you to think of the examples I have shared with you. I want you to remember my promise, Will Smith’s commitment, Winston Churchill’s emphasis on never giving in and John’s painful marathon. John might have finished fashionably late, but at the end of it all, had done it. John had crossed the finish line. An uncrowned king on that day, but an inspirational figure who will be talked about, for generations to come. He made a promise to his country, but more importantly, he made one to himself.

When John was asked why he kept going despite the pain, he said, “My country didn’t send me 5000 miles away to Mexico City to start the race, my country sent me 5000 miles away to finish the race.”

Make the promise to never quit whatever you’re into and whatever you choose to pursue, always set out to finish the race. I look forward to hearing about the promise you have chosen to see all the way through to the end.

Until we meet in person, Get Inspired, Get Informed and Get Going!

Kevin Abdulrahman is considered to be Asia’s most sought after motivational and leadership speaker who has athletes, celebrities, CEOs, executives, government entities models, musicians, private companies, public organizations, royalties, schools, sports teams and universities as his clientele. He is sought after to consult, coach, train, work with and speak to groups, helping them take their results to the next level. Kevin Abdulrahman is also the creator of training programs in the fields of self improvement, motivation, leadership and public speaking. Visit Kevin’s website KevinAbdulrahman.com or contact the management team on lubna.allaham@kevinabdulrahman.com

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How to be direct with people and still connect Effective communication is more than exchanging words. It is about connecting the real meaning of messages with people, explains Anesh Jagtiani.

I

recently held a session on how to communicate at a higher level.

When we communicate, are we merely exchanging words, or, are we trying to connect?

Let me give you an example.

During an analyst conference call in July 2004, concerning a massive corporate merger, a CEO had repeatedly been telling Wall Street that as much as US$80 million in cost savings could be achieved by combining the two companies.

Finally, an analyst asked this prominent CEO to expand upon his US$80 million savings claim.

According to the transcript of the call, here was this man’s answer: “I’ll try to answer you, but you can’t put a lot of faith in what I’m going to say. I know in one meeting I said if we look at this a year from now it will be clear, or should be clear, you know, what is and what we can

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do and what’s attainable and how quickly, and I still think that’s true.

God knows, I would hope that’s true.”

Having heard that explanation, do you understand how the US$80 million in cost savings will be achieved? Analysts didn’t understand either. In fact, they took this confused response as a sign of cold feet and that the proposed merger might not be approved by their boards.

The stock of this executive’s firm, which had surged when the merger was announced, was quickly sold off.

This caused the stock price to sink eight per cent in one day, decreasing the value of his firm by an estimated US$1.5 billion.

Of course, I doubt that we would make a billion dollar mistake when we communicate.

So, the essence of good

❘ Motivation

communication lies in exchanging meaning and not just words, to connect with people.

Here are five traits of leaders who connect, not just communicate: Open - They are open and feel free to express themselves.

Direct - They are direct and come to the point.

Sincere - They are sincere and there is no acting involved.

Respectful - They respect the other person’s point of view.

Interested in making good things happen - They want a win-win situation that benefits both parties.

The challenges of being direct These traits might be fairly understandable and known traits.

When I asked the participants of the session as to which one of the above five they found most challenging in order to connect with people, their answer was – being direct. I found that quite interesting, as the fear of being direct rides on another fear that of being disliked by being direct, or the fear of hurting one’s feelings.

So the real question is, how can we be direct with people and still connect with them?

Let’s consider a scenario. You are sitting in a staff meeting with 10 people discussing budget reports.

One of your colleagues, Jack, says about you, “Roger was supposed to finish the report yesterday. Typical of him not to honour his commitments.”

Now that’s way below the belt.

You want to be direct. The clichéd style of being direct would be to sandwich it. First, say something positive, then, what concerns you, and then, end with a positive.

So, when you meet Jack after the meeting, and want to use the clichéd style of being direct, it would sound something like this: “Hi Jack. Great participation in the meeting. I didn’t like what you said. By the way, nice haircut!”

The fear of being direct rides on another fear - that of being disliked by being direct, or the fear of hurting one’s feelings.

So the real question is, how can we be direct with people and still connect with them?

This approach is manipulative because as soon as people start with something positive, they are already anticipating when the word “BUT” is going to surface. So starting with something positive would make people defensive.

Or, Roger can be direct and still connect.

“Jack, you made a comment that it was typical of me not to honour commitments. This comment really concerned me. What was the reason for that comment?”

Here, you are doing two things: You address the behaviour – “This comment really concerned me.” This is far better than saying-- “I didn’t like what YOU said,” as you are then attacking his identity and not his behaviour.

You end with a question - “What was the reason you said that for?”

This fosters a need to understand instead of passing a judgement.

And it also gives you a chance to improve, as there could be a hidden truth in the comment. Addressing

behaviour as opposed to the identity of a person is neutral. It makes a person less defensive and enables you to connect.

Other examples: “Roger. I thought we agreed that you would be in the office at 9:00 am every morning. You have been coming at 9:30 am for the last two weeks. What happened?”

“Chris. I noticed that you missed the meeting you had agreed to attend. I was wondering what happened? Did you run into a problem of some kind?”

If one really fears being direct, let’s consider the below: If you don’t stand for something, you will fall for anything. Just say it.

If you fear confrontation (if you want to call it that), make a script before you talk with the person and practice it (make sure you are not reading the script when you are in front of the person, unless you are interviewing him or her about deep-rooted psychological problems).

The bottom line is, if you want to compliment a person, do only that. If the behaviour of a person concerns you, speak your mind and let your thoughts stand on its own feet as opposed to sandwiching it. They will respect you more for speaking your mind. It may be an uncomfortable process. But the end result is that they will respect you for it.

Effective communication is more than exchanging words. It is about connecting the real meaning of messages with people, leading to stronger human relationships.

Anesh Jagtiani is the CEO of Empowering Leaders Group (M. E). He is a professional speaker and trainer.

His leadership programme helps managers motivate and retain their top people, improve their effectiveness in communication and maximise the bottomline of companies. He can be reached at anesh@elgme.com or www.elgme.com.

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Letters ❘

Letters to the Editor Dear Sir/Madam,

Dear Sir/Madam,

Keep up the good work! The aim of any profitable venture is about working on the business and not in your business. What better tool can we get than The Intelligent SME. There is quite a bit of information to share and learn from this magazine. Besides, the events that are conducted are not only extremely useful but also prove to be a good platform to connect with different people.

Look forward to the next one !

Today I was introduced for the first time to the SME publication by one of my colleagues. Fortunately I had time to read through the magazine and the covered topics. I would like to truly congratulate you on such good publication. The fact that the magazine addresses diverse topics and involves many marketing and business professionals gives it weight and credibility. I am also impressed with the efforts you are putting in organising professional seminars and informal meetings. In my view this should be done by all publishers!

Yours sincerely, Trupti N. Rele

Yours sincerely, Amal Noureldin

Dear Sir/Madam,

Dear Sir/Madam,

I’d like to congratulate you on your magazine.

The article titled ‘Stop de-motivating your employees’ has really identified a problem that is rampant in this part of world. Of course, we are all working for monetary gains at the end of the day, but as the article said, a supportive work environment, especially from superiors goes a long way in improving our performance.Please keep up the good work and publish more articles like these in the future.

Good work on the magazine. I particularly like the column on social media by Farrukh Naeem, especially since I attended his seminar as well.

The article is very precise, and insightful that it helped me create an identity for my business in Facebook.I hope you will retain this column, because I’m sure it would help all the people who aren’t tech-savvy, just like me. Do add more insightful articles in the magazine like these, which actually focus on practical aspects.

Yours sincerely, Priya Sharma

Yours sincerely, Joseph Allen

If you want to air your views, write to: The Editor, The Intelligent SME, P.O. Box 89735, Dubai, UAE, Tel: +971 4 2659704 Fax : +971 4 2690566, 2651708 E-mail: editor@spiholding.net

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Marketplace Advertising FULL PAGE AD: AED 5000 HALF PAGE AD: AED 2500 QUARTER PAGE AD: AED 1500 * Conditions

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3. A time frame of 30 days will be required to develop the app.

Lifestyle ❘

What’s in

Sail away with Richard Mille

T

he new RM 028 Saint-Tropez from Richard Mille comes as a limited edition of just 10 pieces, its blue-andwhite colour palette recalling Saint-Tropez’ glamorous destination and the French Riviera. The classic white and blue colourscheme takes direct inspiration from the world of yachting.

Honda emphasises on safety with 2012 Accord

T

he new 2012 Accord sedan has been launched with an additional feature. The 2012 Accord now packs safety features such as 6 airbags, active head restrains (front), vehicle stability assist for poor traction conditions, anti-lock brakes and an improved body structure.

All the grades of Accord are fitted with these features as standard, thus reflecting Honda safety philosophy of safety for everyone.

The RM 028 round titanium case comes on a white rubber strap and features navy-blue numbers for the first quarter. The elegant white-blue colour scheme is similarly applied to outline the date box at 7. The RM 028 Saint-Tropez boasts the same automatic-winding skeleton movement of the original model, an integrated variable geometry rotor and a water resistance of 300m.

Furthermore, the distinctive chrome grille, sharp character lines, sporty alloy wheels design gives the Accord a powerful on-road presence.

A zone styling approach separates operation-related instruments (top) and information-related instruments (lower). Steering wheel mounted cruise control and audio controls are standard on all grades of Accord. A tilt and telescopic steering column and 8-way full power driver’s seat adjustment ensures the driver’s comfortable driving position.

The upscale instrumental panel is outfitted with the new technology features like Navigation System, i-Dual Zone Automatic Airconditioner, Bluetooth Hands Free Telephone (HFT) and rear view camera. Accord Sedan is equipped with a 178-horsepower, 2.4-liter, i-VTEC, 4-cylinder engine and 271-horsepower 3.5-liter, i-VTEC V6 engine with variable cylinder management technology.

Swipe home on N9

T

he new Nokia N9 has an innovative design where the home key is replaced by a simple gesture: a swipe. The 8-megapixel Carl Zeiss autofocus sensor, wide-angle lens, HD-quality video capture and large lens aperture enable great camera performance. The Nokia N9 comes with free turn-by-turn drive and walk navigation with voice guidance in Maps.

Users can watch videos in 16:9 widescreen format with Dolby Digital Plus decoding and Dolby Headphone post-processing technology. The Nokia N9 will be available in three colours – black, cyan, and magenta, with storage options to accommodate plenty of content: 16GB and 64GB.

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Lifestyle ❘

What’s in

Network away with Nokia E6

N

okia has launched the new Nokia E6 smart phone which features both touch and type alongside strong social networking functionality. The E6 has been developed to become the essential smart device for anyone looking for seamless social connectivity and engagement.

H

arman House has launched the new JBL ‘On-Air’ Wireless AirPlay speaker dock. The new docking device gives users the advantage of playing music from their iTunes library on a Mac or a PC, and from an iPhone, iPad or iPod touch device over existing WiFi network. The JBL ‘On-Air’ speaker dock features an LED colour display. The dock also comes with a remote control for easy navigation.

This latest addition to the Nokia lineup of feature-rich smart phones is packed full of applications to keep even the most active users satisfied with its selection of social networking functionality. Nokia E6 users will also be treated to great local applications to keep them up to date with local news and events as well as updates from their favourite media providers. The Nokia E6 offers Microsoft messaging experience, including access to Microsoft Exchange, Microsoft Communicator Mobile and Microsoft SharePoint.

The speaker streams internet radio stations through a computer’s iTunes application, and features an RDSequipped FM tuner with 10 station presets and dual alarms. The JBL ‘On-Air’ wireless speaker dock is priced at AED1,499, and is now available at all Harman House retail store locations throughout the GCC.

To satisfy the instant messaging needs of today’s smart phone user, the “What’s App” is also available for download on the Nokia E6 through the Ovi store. For the first time in the UAE, consumers can now purchase any of the broad range applications from the Ovi Store and directly bill them to their Etisalat account.

‘On-air’ with JBL

Go sporty with Graham Chronofighter

T

he new Graham Chronofighter RAC Trigger has an automatic movement and a 46mm stainless steel case. This Graham model has a column wheel chronograph caliber and a power reserve of up to 48 hours.

One of the premiere sports watches around, the Graham Chronofighter RAC Trigger, has a steel casing, with a fast action start and stop lever and a rubber reset pusher. The Graham Chronofighter RAC Trigger is also water resistant of up to 50m, and has a black rubber strap made up of calfskin, further accentuated by yellow stitching.

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inspiration series seminar

Power Your Business Online

Gregory Bolle [Vice President-Strategy,BPG Maxus]

Farrukh Naeem [Digital Strategist and Social Media Consultant]

The Inspiration series, featured two specific sessions on ‘SEO and Social media,’ and ‘What do SMEs in Dubai Need’ as part of the networking platform of The Intelligent SME. The session on SEO and social media featured experts Gregory Bolle, vice president – strategy of BPG Maxus and Farrukh Naeem, digital strategist, social media consultant. Bolle focused on the need for a company to use search engine optimisation to better their online business presence, by using paid search, organic search and paid inclusion into online directories. He emphasised that SEO was a marketing revolution for small and medium enterprises as it enhanced brand experience like no other tool.

Naeem spoke on social media, explaining the need for social media, and how to engage a brand with users on websites such as Facebook, blogs and so on. He also gave tips on what one should look for while structuring a campaign using social media websites.

inspiration series seminar

“What do SMEs in Dubai need?”

Shantanu A.P. [CEO, SPI Group]

Alexandar Williams [Director- Strategy & Policy, Dubai SME]

Alexandar Williams, director of policy and strategy, Dubai SME, gave an informative talk on “What do SMEs in Dubai Need?” He spoke on the current market scenario of small and medium enterprises, the forecast for the market, challenges that this sector faces currently and how these can be remedied. He also spoke about the prerogative of Dubai SME, an agency of Dubai Department of Economic Development, and how the organisation was structuring a strategy in order to facilitate the 72,000 SMEs in Dubai.

If you would like to give your business the unfair advantage by participating in the Inspiration series, just SMS your name to 055 9023185 / e-mail: events@spiholding.net

Celebration Series

Business meets Glamour

Designers Mehwish Afzal and Nona Hekmat displayed their designs at the closing party of the season, the Fashion Club Party, at Sanctuary Nightclub, Atlantis, as part of the Celebration Series, an informal platform of The Intelligent SME. Mehwish Afzal displayed her exclusive Ramadan collection titled “A La Mode,� an ensemble of jalabiyas made of silk and sensual fabrics embellished by crystal work and fine embroidery. Mehwish Afzal is the creator of Maisha Creations, a Dubai-based fashion line that has been seen at many events such as Dubai Fashion Fiesta 2010, Miss Velvet Fashion Shows 2010-2011 and more.

The second designer, Nona Hekmat showcased her latest collection of couture cocktail dresses that combined a sense of fun, fashion and colour with winning designs, meant for women of power and sensuality. Her collection Eye Candy was appealing to the eye and had many admirers.

The Fashion Club Party has been a collaborative event supported by Sanctuary, Du, RAK Bank, the corporate partners, Swiss Arabian group, UAE Exchange, styling partners Top Ten Saloon, and Wassup Dubai, the media partners. DJs Philip Jo, Paul Hamilton and Ali Mak played foot stomping music.

Supplied image

Nona Hekmat, Mehwish Afzal [top]

Photos by: Bobby Singh

Bobby Singh A photographer by profession, Bobby has cultivated his interest in photography over the years as part of his travails in India and UAE. Bobby believes in photography being a lucrative profession, affordable for all.

He specialises in fashion photography.

Styling Partners

Mix Business with glamour! Join the Fashion Club Parties and network with industry peers and top decision makers by participating in the Celebration series.

To register, just SMS your name to 055 9023185 / e-mail: events@spiholding.net

Upcoming events ❘

Events Calendar September-October FLOWERS – TSVETY 2011 Date: August 30 - September 2, 2011 Venue: All Russian Exhibition Centre International Exhibition of flowers, plants, equipment and materials for ornamental gardening and flower business.

Website: www.flowers-expo.ru ETHICAL FASHION SHOW – PARIS 2011 Date: September 1-4, 2011 Venue: Carrousel du Louvre, Paris Ethical Fashion Show brings together designers who care about the environment and culture’s skills.

From chic to traditional fashion, including street wear, there’s something to suit all tastes.

Website: www.ethicalfashionshow.com ASIA FRUIT LOGISTICA 2011 Date: September 1-3, 2011 Venue: Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong International Trade Fair for Fruit and Vegetable Marketing in Asia.

Website: www.gp-events.com AUTO MOTOR SHOW LJUBLJANA 2011 Date: September 2-4, 2011 Venue: Ljubljana Exhibition and Convention Centre, Slovenia Car, motorbike and car audio and tuning event in Slovenia, attracts thousands of visitors every year. Presentations of new cars, motorbikes, quads, car audio products, and all kind of accessories exhibited.

Website: www.automotorshow.si/english IFA BERLIN 2011 Date: September 2-7, 2011 Venue: Messeegelande Berlin, Germany The global trade show for consumer electronics and home appliances,

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presents the latest products and innovations.

Website: www1.messe-berlin.de FATEX 2011 Date: September 4-6, 2011 Venue: Port de Versailles, Paris Fatex is a mine of know-how covering the fields of textile and clothing, fashion accessories and home furnishings.

Website: www.fatex.fr WIRELESS CHINA 2011 Date: September 5-6, 2011 Venue: The Landmark Hotel and Towers, Chaoyang district, Beijing A prime opportunity to explore some of the most promising wireless solutions currently available and get an insight into the latest trends and developments.

Website: www.wirelesschina-summit.com CHINA INTERNATIONAL FOOTWEAR FAIR 2011 Date: September 6-8, 2011 Venue: Shanghai New International Expo Centre, Pudong New Area, Shanghai Held annually, in Shanghai, the China International Footwear Fair (CIFF) provides the platform for entering China’s fast-growing domestic retail market for footwear products, leather garment, travelware, handbags and fashion accessories.

Website: www.aplf.com GLOBAL EVENT SUMMIT 2011 Date: September 7-9, 2011 Venue: Waldorf Astoria 5-star Resort Hotel, United Kingdom The Global Event Summit will bring together the leaders of the world’s exhibition organisers and venues to talk business and grow a global network of contacts to develop new opportunities.

Website: www.globaleventsummit.com

CEDIA EXPO 2011 Date: September 7-10, 2011 Venue: Indiana Convention Centre, Indianapolis, USA Tradeshow in the residential electronic systems industry, providing latest technologies, training on latest products, and strategies to profit.

Website: www.cedia.net IZMIR INTERNATIONAL FAIR 2011 Date: September 8-18, 2011 Venue: Culture Park Fair Ground, Montro, Turkey A multi-product exhibition displaying a wide range of products and services in food products, technology, automotive, furniture, decoration, household appliances, construction machinery and so on.

Website: www.izfas.com.tr MAISON & OBJET INDOOROUTDOOR 2011 Date: September 9-13, 2011 Venue: Paris Nord Villepinte Exhibition Centre An international trade show for the outdoor and indoor decoration.

Website: www.maison-objet.com DOMOTEX MIDDLE EAST 2011 Date: September 12-14, 2011 Venue: Dubai International Convention and Exhibition Centre Middle East’s largest trade fair profile that encompasses the total spectrum of carpets and floor coverings.

Website: www.domotex-middle-east.com LIGHT MIDDLE EAST 2011 Date: September 12-14, 2011 Venue: Dubai International Convention and Exhibition Centre Middle East international trade event for urban, architectural and retail lighting solutions.

Website: www.lightme.net

Upcoming events ❘

Events Calendar September-October TRANSEC WORLD EXPO 2011 Date: September 13-14, 2011 Venue: Olympia Exhibition Centre, London An event which gathers the world’s leading experts from the areas of aviation, air cargo, maritime, and supply chain security, along with government officials, the military, security services, law enforcement, industry, and academic circles together to deliberate on the challenges faced and to drive the adoption of operational countermeasures.

Website: www.transec.com OMAN VETERINARY AND LIVESTOCK EXPO Date: September 13-15, 2011 Venue: Muscat International Exhibition Centre An exhibition that focuses on all aspects of the livestock industry and serves to educate breeders in new technologies, as well as new trends in the industry.

Website: www.ovetexpo.com ABU DHABI INTERNATIONAL HUNTING & EQUESTRIAN EXHIBITION 2011 Date: September 14-17, 2011 Venue: ADNEC, Abu Dhabi The Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX) will feature camel auctions, saluki beauty contests, art competitions and traditional hunting and equestrian activities. Apart from the fascinating exhibition experience, visitors will also have the opportunity to purchase the latest camping, hunting, equestrian and weaponry equipment from over 500 brands.

Website: www.adihex.net PRIVATE LABEL MIDDLE EAST 2011 Date: September 18-20, 2011 Venue: Dubai World Trade Centre, Sheikh Zayed Road

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PLME-Dubai will see a convergence of exhibitors, opinion formers, decision makers and solution providers from right across the world representing the latest developments in the private label and contract manufacturing industry.

Website: www.privatelabelmiddleeast.com PAPER ARABIA 2011 Date: September 18-20, 2011 Venue: Dubai International Convention and Exhibition Centre A must attend event for the paper, tissue and allied products manufacturers, suppliers, traders, printers, advertising companies, packaging companies from the Middle East, North East Africa and other neighbouring countries.

Website: www.paperarabia.com INTERNAL AUDIT AND RISK ASSURANCE Date: September 25-29, 2011 Venue: Dusit Thani Hotel, Dubai Reassessing the role of internal audit and risk assurance to enable and support business goals; the event is a pioneering forum that will address the most pressing concerns specific to the GCC region. It will provide a platform for industry leaders to share innovative strategies and solution that will transform internal audit and risk assurance.

Website: www.iirme.com MATERIALS HANDLING & LOGISTICS MIDDLE EAST Date: September 25-27, 2011 Venue: Dubai International Convention and Exhibition Centre The exhibition reflects trends and developments within the logistics and materials handling industries and receives strong interest from manufacturers, suppliers, agencies and government institutions from across the region.

Website: www.materials-handling-dubai.com

MENA GRAINS SUMMIT 2011 Date: September 26-27, 2011 Venue: Point Hotel Barbaros, Istanbul, Turkey Bringing together MENA government and private buyers with the global export and production market, this MENA Grains Summit 2011 will provide an unrivalled platform for leading importers, traders, supply and export professionals to share their challenges and exchange innovative ideas with over 120+ industry peers.

Website: www.iirme.com/grains IPM DUBAI 2011 Date: September 26-28, 2011 Venue: Airport Expo, Dubai The only dedicated trade show for horticultural industry in the Middle East. Additionally various supporting programs and live demonstrations which illustrate trends and developments of horticultural technology sector and floristry enhance IPM DUBAI’s function as an information platform.

Website: www.ipm-dubai.net IFRS FOR SMEs: TRAIN THE TRAINER Date: September 27-29, 2011 Venue: The Address – Dubai Mall, Dubai The IFRS Foundation, ASCA and Dubai SME, an agency under the Dubai Department of Economic Development, are jointly organising the first-ever Train-the-Trainer training workshop on IFRS for SMEs in Dubai. The session will be conducted by two master trainers from the International Accounting Standards Board, UK. CHIC LADY SHOW 2011 Date: September 27 - October 1, 2011 Venue: ADNEC, Abu Dhabi The Chic Lady Show will showcase latest design collections with

Upcoming events ❘

Events Calendar September-October featured runway shows and brands in women’s wear, accessories, perfumes, nutrition products, jewellery and much more.

Website: www.chiclady.al-hader.com CITYSCAPE GLOBAL 2011 Date: September 27-29, 2011 Venue: Dubai International Convention and Exhibition Centre Cityscape Global 2011 marks the 10th edition of the essential business-to-business networking exhibition and conferences for emerging real estate markets globally. Cityscape Global brings together real estate investors, developers, financiers, architects, consultants and all other real estate professionals involved in the investment, development and construction of real estate.

Website: www.cityscapeglobal.com MIDDLE EAST SME FORUM 2011 Date: October 3-4, 2011 Venue: Park Rotana, Abu Dhabi A Forum that will host entrepreneurs, commercial banks, government support institutions, private equity firms and management consultants together to highlight the awareness and significance of entrepreneurship towards boosting economic growth in the region.

Website: www.fleminggulf.com 17TH ANNUAL MAINTENANCE MANAGEMENT CONFERENCE Date: September 26-27, 2011 Venue: Dusit Thani Hotel, Dubai An event for maintenance professionals that will offer an opportunity to learn and network with international and regional experts and practitioners. Hear about tried and tested methods to increase efficiency and reduce cost, while improving your maintenance strategies, talent management and risk management skills.

Website: www.iirme.com

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RETAIL CITY Date: September 27-28, 2011 Venue: Dubai International Exhibition and Convention Centre The essential learning and networking event for retailers, franchise operators, retail developers, investors, financiers and professional service providers in the Middle East.

Website: www.cityscapeglobal.com SEAFOOD EXPO & SEAFOOD PROCESSING EXPO 2011 Date: September 27-29, 2011 Venue: Jumeirah International, Dubai The Seafood Expo & Seafood Processing Expo is an international trade exhibition, targeted at a very specific sector of the market, which is focused on the Seafood & Seafood Processing industry. However, it is not just for buyers, producers and exporters of produce, it is also for any associated product or industry, such as packaging, labelling or transportation.

GLOBAL REAL ESTATE SUMMIT Date: September 27-29, 2011 Venue: Dubai International Exhibition and Convention Centre Seminars on various aspects of the real estate industry in the MENA region, presided by industry experts who will present relevant, topical reports and analyses.

Website: www.cityscapeglobal.com IT PROJECT MANAGEMENT - PROCESS, TOOLS AND TECHNIQUES Date: October 2-6, 2011 Venue: Al Bustan Rotana Hotel, Dubai This comprehensive and highly interactive course provides you with proven techniques, tools and processes for conducting successful IT projects. The course content

draws upon current research as well as the extensive experience of the facilitator’s involvement in managing projects.

Website: www.tcqtriangle.com GITEX TECHNOLOGY WEEK Date: October 9-13, 2011 Venue: Dubai International Convention and Exhibition Centre GITEX delivers a leading platform for industry innovation and an impressive track record of attracting the biggest names in the IT sector, connecting over 3,500 domestic and international IT vendors with more than 136,000 ICT professionals.

Website: www.gitex.com POWER + WATER MIDDLE EAST 2011 Date: October 16-18, 2011 Venue: ADNEC, Abu Dhabi Power + Water Middle East has firmly established itself as the meeting place for industry professionals wishing to network with, and source solutions from, local and international companies offering solutions to the power generation, water and nuclear energy industries.

Witness the latest technological advancements in the Power Generation, Electricity, Energy, Water, Nuclear Energy sectors and to learn how they can assist your business Website: www.powerandwaterme.com INTERNATIONAL JEWELLERY AND WATCH SHOW ABU DHABI Date: October 17-21, 2011 Venue: ADNEC, Abu Dhabi Jewellery And Watch Show is a unique exhibition with an extensive showcase of exquisite jewellery and timepieces from all over the world, and is aimed at the region’s most affluent consumers.

Website: www.jws.ae

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6/16/11 5:36 PM

Column ❘

Neglect clients at your own peril Utpal Bhattacharya argues why a good customer retention strategy is a must for small businesses to flourish.

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hat, probably, pleases a customer most, when he is out to purchase a good or a service, is a confident assurance from a seller to him that he has made the best choice from what was available. Smiles exchanged, and sometimes shaking of hands between the two parties, are great gestures for continuity of business transactions in future. But then begins the phase of the test of this relationship, as the purchaser experiences the quality of the product, while the seller lives (or not) up to the promise of assurances he had given. This is the phase, which decides, in most cases, if a customer will do further business with a seller or not.

Often a seller fails to retain a buyer, either because the quality of the product sold is not good enough or his after-sales service is pathetic.

And this happens quite regularly with small businesses. Those that are exceptions, generally, make it to the big league, over a period of time.

I have been regularly writing about the funding difficulty of SMEs in the UAE. While funding is the one most important challenge that SMEs face, there are a host of other areas that need the attention of entrepreneurs, including management of pre-sales, communication and post-sale processes. But, as it happens, most small business owners are just too pressured and forced to only focus on selling to meet the demands of cash flow, trying to survive the next month. This approach, however, helps nobody, and businesses ultimately fold up, as customers are hardly ever satisfied.

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It is common sense that for small businesses to do well, customer retention should be a priority. Of course, new customer acquisition is important from revenue point of view, but without a plan for customer retention, a small business is going nowhere. In fact, depending on the nature of a business, customer acquisition could be six to seven times costlier than customer retention. And so, a small business, with its limited resources, should bet a significant part of its future growth on its existing customers.

I can give a few examples, here, of not-too-smart tactics employed by owners of some companies that I have known in the past. A small business owner, who had signed a large contract to deliver an event far beyond his capacity, had to close his shop soon after the shoddy event.

The reason being not only he could not deliver the event to this new client as per the latter’s expectations, but in the following up to this large event, this business owner had

neglected his smaller clients, who refused to give him a second chance.

Another example is of a bright group of people who sat up a consultancy to advise both technical and financial requirements of a wide range of industries. Being experts and ex-bankers, these individuals were well known in the market they were servicing. So, orders came thick and fast. In a short time, the consultancy was over its brim with business, and yet it was not afraid of taking new orders. The problem started when they were unable to deliver projects on time. The quality of their work also suffered, as they were rushing up to finish jobs. Guess, what happened next? The business had a slow death, as frustrated clients left, and then partners fought and separated: they failed to realise that they were running before they had learnt to walk.

Setting up a small business is never easy. But once you are on, make sure that you give due importance to setting up processes and planning in advance, as continuity of profitability in a company depends on a large number of factors. A successful entrepreneur will have to understand and consider those factors, and not just worry about booking sales, which is meaningless if a customer is not satisfied. My last word in this edition is the well known English proverb: “A bird in the hand is worth two in the bush.” And so, neglect customer retention only at your own peril.