Entrepreneurship in the Arab World
The Middle East is a region of immense potential for entrepreneurs. This is despite the fact that it is still the least integrated region in the world. To capitalize on this, a number of countries are exploring ways to boost entrepreneurship, while the rest are looking at expanding their existing business. As these efforts are underway, it is important to learn about the best practices for setting up a successful venture in this part of the globe. In this article, we will explore a few of the top tips for starting a business in the Middle East.
There are many factors to consider when launching a startup, but one of the most important is the legal system. Entrepreneurship in the Arab world is often subject to steep collateral requirements, which means that many companies are denied access to loans.
Another key challenge is the lack of transparency in the rules and regulations that govern business. Moreover, the bureaucracy in Arab countries is cumbersome and can take time to get through. If governments are unwilling to accommodate the systems, entrepreneurs can be left with less than optimal outcomes.
While many countries in the Middle East have begun to develop initiatives to promote entrepreneurship, many are missing the mark. However, the most successful initiatives are the ones that create an endogenous ecosystem to support new business ventures. For instance, the Saudi Arabian government has established a sovereign wealth fund with a mandate to foster an entrepreneurship ecosystem that encourages economic diversification.
Several countries in the Arab world have also established public and private incubators. These programs have been designed to support emerging businesses and help them grow and scale. One example is the Fintech Hive that was launched in the United Arab Emirates. It is an initiative that provides a range of services, from stipends to professional advice, to help socially conscious startups launch and thrive.
One of the best things an entrepreneur can do is to innovate. Innovation can be defined as the act of creating a new product, service, or technology that can help improve the efficiency or quality of a business. Research shows that the best and most innovative companies are the ones that use technologies to improve their processes, products, or services. An entrepreneur can take a product or service overseas and market it via a different channel, which opens up new opportunities for sales.
While the Middle East has been a leader in oil exports, many entrepreneurs have found the need to explore other markets in order to find success. Some are trying their luck in the European Union or elsewhere. Others are looking to expand their operations in the Middle East. But, they must make the effort to connect with local businesses in order to build mutually beneficial relationships.
Other ways to improve entrepreneurship in the Middle East include the establishment of regional economic ties. This will help to alleviate some of the non-tariff barriers that stand between entrepreneurs and their customers.