businesses. Our role is as an enabler businesses. Whatever the size or sector What’s the top challenge that SMEs and a facilitator for the development of your SME, you’ll have a solid business face when accessing finance today? of the entrepreneur as a person, their platform behind you.” How can they overcome it? businesses and their organisation. Our “It’s the same story time and time again – a end in mind is to seed, grow and develop Do you agree that the UAE has a much lack of proper financial book keeping. If as many SMEs that can add economic broader definition of SMEs when I was an investor and I wanted to invest value to the Emirate’s economy. This compared to other parts of the world? in your business, my first request would is something very significant, because “We arrived at our definition of an SME be to see evidence of your financial our research shows that 95 per cent of from looking at the definitions used in documentation and accounts if there are all businesses in Dubai are SMEs and 42 different countries. We felt that the any business activities or events. If I was that’s a massive share of the local market. EU model was one of the most relevant bank, it’s only natural that I would want In terms of how we work, we strongly because it looked at the number of to get a clear picture of your financial represent a culture of transparency employees, and included this in its performance that is credibly certified and sharing, and we want businesses definitions, alongside the actual turnover by a third party auditor. So we always to feel very comfortable in their dealings of the business. This is important, because emphasize that it’s vital to get into the habit with us. We’re still quite a new entity you could easily have a trading business, of keeping proper accounts from Day One, where the whole Dubai SME sector for example, which might have a turnover even if you’re just at a project phase and is concerned and it’s really all about of AED 100 million, with only three or four starting-up operations. In other countries, building trust: this is very important. employees. But it wouldn’t share any of the presence of taxation means that you Companies are encouraged to have a the values and challenges of other SMEs have to get into this habit early on. Always two-way dialogue with us; we’re here which might need 45 staff to generate try to do the same here, as well – because to help - don’t think of us as just a that turnover. Needless to say, we also if you don’t, it will mean you would have a one-way street into the Government. adapted the definitional characteristics harder time trying to build your financial We also seek to learn continuously to the economic structure of the Emirate story. Remember this: The financial story is really what your company is all about. from the markets, the businesses, the to reflect realties on the ground. “It was important to us that if we were entrepreneurs, the SME CEOs and “For a company to be featured in the the industries they operate in; so the going to create a really strong template Dubai SME 100 ranking, we require exchange of knowledge is vital for our for SME development, the staffing factor three years’ externally audited financial establishment’s development as well. should be an ‘and’, not an ‘or’.” accounts, because we believe this is the best way to determine the success and We don’t claim to have monopoly of knowledge of entrepreneurship and What would you say about the growing viability of the SME, before anything else.” SME development.” popularity of entrepreneurship at the cost of effective management skills?
What do you believe is the most critical
“It is well documented and discussed in stage in the growth curve of am SME? public discourse that in the UAE and the “At Dubai SME we take the view that if region at large, there’s a general fear of you can survive the first three years, The first thing I should say is that we the risk of failure in starting one’s own you are likely to survive, and perhaps support the Emiratisation of business, business. (This is one reason, for example, break even in 5- 8 years. Statistically, by way of encouraging as many Emiratis why each year so many nationals prefer the first three years are critical, and to see entrepreneurship as a preferred to join the public sector). We therefore within that curve, there is a high stress choice in life, especially the younger promote entrepreneurship in the factor. This is why a number of SME generation. So if you’re an Emirati and colleges and recognize local business organisations offer ‘incubator’ services you own an SME - or you are planning icons and local entrepreneurs who that help protect the new-born SMEs to start a business - there’s a variety of have started and grown a business from the harsh realities it is likely to face, services that we can offer you. These project. To increase the chances of ensuring it’s better-prepared in terms of include waiving of set –up fees, visa success, we guide the entrepreneurs in skillsets and increasing the chances of fees, various subsidies, including their development journeys, giving all survival. At Dubai SME, we operate an introductions to potential investors and the necessary knowledge and tools to incubator that enables and guides the access to government contracts. If you execute their ideas”. local entrepreneur to stand on their feet are a Dubai SME 100 company, you get a “We also try to spread the awareness so that when they graduate within three suite of advanced corporate development that when it comes to building a business, years, they are in a healthy state in the services such as business valuation, it’s advisable to employ people who are open market. financial diagnostics, corporate smarter than you! These people will be “Our aim is to be able to guide & enable governance and risk management to the lifeblood of your business and will the SME “from cradle to global’. We can enable your growth. leverage your success in a way that you give the SME access to a spectrum of Another aspect is the value of being couldn’t have dreamed was possible. So, services that can play a crucial role in this part of a network: the moment you don’t be bound by your own horizons development, responding to the needs join forces with is, your company isn’t and; want to always be the best - employ of individual businesses and providing alone anymore, but can reap all the people who are smart enough to turn a direct channel to the expert help that an SME owner is likely to need.” benefits of being with other like-minded your vision into a reality.” How does Dubai SME give me, an SME owner or director, tangible benefits in my day-to-day running of the business?
June 2013
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