Starting a Small Business in the United Arab Emirates - Essay Example

Name: University: Instructor: Date: Management for the Entrepreneur Abstract As a business hub, the United Arab Emirates (UAE) provides easy access to more than one million consumer markets located in Eastern Europe, West Asia, Africa, Commonwealth of Independent States, and the neighboring countries in Middle East. Undoubtedly, UAE is the main destinations for investors as well as business people in the entire Middle East. The modernized infrastructures as well as government policy support the growth of both large corporations and small businesses. In view of this, UAE’s business opportunities are not only open to its citizens, but as well to foreign investors. Actually, the UAE government persuades the foreign investors to invest in the country for the reason that foreign business presence improves the country’s economy. This report provides research for small business opportunities that can be capitalized in UAE. The report will as well talk about the significance of small business and how it helps society at large, and also provide details why small business opportunities can generally help the economy and business sectors. Introduction Basically, different types of small business opportunities are accessible for individuals seeking the right venture. Even though, people can venture in different types of small business, nearly all small businesses fit into a particular category, rooted in their company size, ownership and legal structure, location of the business, and whether they are brick-and-mortar or virtual businesses (Ernst & Young). In their study, Price Waterhouse Coopers established that the Middle East and North Africa (MENA) region has the highest Entertainment and Media market growth index as compared to the rest of the world. In the MENA region, Price Waterhouse Coopers noted that between 2009 and 2010 the overall spending on advertisement in UAE was the highest thanks to the high business opportunities, particularly in the small businesses in Abu Dhabi as well as Dubai (DMC, 2015). Therefore, this makes UAE a strategic location as well as an attractive market, especially for media companies. Besides that, Dubai has scores of free trade zones; thus promoting commerce and trade by attracting customers from different parts of the world looking for cheaper goods/products. Type of small business opportunities Essentially, there are numerous types of small business opportunities that can be capitalized in UAE as discussed below: Construction: New structures as well as buildings are being constructed in the UAE every day, and so, this provides an opportunity to professionals in the building and construction sector such as engineers. Equally, investors can start small businesses, which sell or produce raw materials utilized in the building and construction. Oil and gas: Undoubtedly, this has been the UAE’s economy backbone for numerous decades, and so, the majority of riches currently revealed in the UAE was brought about by the oil sector. In spite of its exploitation for decades, the oil and gas sector can still provide small business investors an opportunity, by starting through partnership or from scratch and grow big. Job Agencies is another opportunity for small business, considering that UAE is a fast growing economy; therefore, lots of skilled workers are required so as keep industries running. As observed by Martins (2014), UAE is in dire need of construction personnel, IT experts, accountants, engineers, nurses, as well as many others. Night Clubs, Entertainment houses and Bars: people in UAE are always busy, and at the end of the working-day they prefer spending some time together drinking so as to dispose of their daily grind stress. Therefore, the business opportunity here arises from setting up a scene for nightlife entertainment, particularly for expatriates. Travel Agency is another type of small business opportunity and benefits from the fact that UAE is amongst the world’s leading tourist destinations. Annually, millions of tourists visit Dubai, and the place is as well heavily crowded with expatriates from different countries; so, starting a travel agency is a good start for any investor. Retailing and Jewelry Making: Dubai is globally known as the ‘Mecca of Gold’ and so people come from different countries to look for pieces of jewelry. Therefore, one can set-up a business as either as a jewelry merchant, bead maker, or jewelry maker. Environment; UAE growth has resulted in numerous activities like industrialization as well as construction, and this has resulted in enormous environmental damage. In this regard, people now understand the benefits of environment protection; therefore, there subsist different opportunities within the UAE for advocates of green living and businesses offering different environmental protection services like waste recycling. Financial services opportunity is attributed to scores of UAE’s large-scale businesses; so, there is a high demand for specialists offering financial services like auditors, bookkeepers, and accountants. Individuals with a solid background in the abovementioned financial specialties can benefit by starting a business that provides financial services to other businesses operating in the UAE. Foods and snacks as business opportunity can thrive in UAE since the demand foods and snacks are exceedingly high. Therefore, business can make a lot of money by starting a fast foods business in the UAE. Small Business Importance and How It Helps Society At Large Without a doubt, small businesses are beneficial because they are the UAE’s ‘lifeblood’. Averagely, almost 95% of companies in the developed economies are small businesses, and they as well make up 60% of the employment as well as contribute substantial percentages of the GDP in UAE. Besides that, small businesses are the UAE’s innovation seedbed for crucial economic well-being as well as development, and to new technologies’ development, solutions for environmental sustainability, in addition to social development. As observed by Edmiston (79), small businesses promote local economies through bringing innovation and growth to the society. Besides that, small businesses as well assist in stimulating economic growth through offering UAE’s citizens employment opportunities. They also attract new talent capable of inventing new products or espousing new solutions for present ideas. Basically, the key objective of business is developing, producing as well as supplying goods and services to end users, and this must be carried out in a manner the enables the small businesses to make a profit (Bhatia). The business owners’ social skills, accompanied by associations sustained with other business people, suppliers and customers are at all times important for successful running of the business with future consideration. Evidently, companies’ resources are improved through developing ideas and materials, and the produced goods and services have to meet the customers’ demands. Small business help society in numerous ways such as: Supplying products and services needed by the customers, jobs creation for coworkers, distributors, suppliers, and customers. The jobs created by small business help people make money so as to support their families, pay taxes, and buy food. Besides that, the small businesses help society by building up as well as diffusing international standards, such as environmental practices (Norén 4). Small Business Opportunities Can Help the Economy and Business Sectors In General Fundamentally, small businesses are crucial to the UAE economy success, and they do not just offer the future success stories, but as well meet the local needs of such as financial consulting services, hairdressing, and emergency plumber. Besides that, small business serve the larger businesses’ requirements such as catering, printed stationery, photography services, as well as routine maintenance. Starting a small business simply connotes developing the right initiatives, attitudes and skills so as to contribute to the economy. Even though, small businesses do not make a lot of money like large companies, Bhatia (2014) posits that they are important part of as well as key contributor to the economy of the country where they are established. According to Edmiston (77), small businesses create new employment opportunities as well act as the building blocks of the bigger companies. Scores of small businesses as well can adapt and respond swiftly to changing climate of the economy, and this is mainly attributed to the fact that small businesses are customer-oriented. Scores of local customers are always loyal to their preferred small businesses even during the economic crisis, and this loyalty indicated the ability of small business to remain afloat during the economic crisis. In consequence, they are the backbone of the local economies. Besides that, small businesses make less profit as compared to the larger companies; so, they lose almost nothing during tough economic times. Moreover, they offer lots of inputs into large firms’ the supply chain, and without them the competitiveness as well as viability of bigger companies may be compromised. Conclusion In conclusion, it has been argued that starting a small business in the UAE is exceedingly straightforward and easy due to various types of business opportunities. With forward-thinking, progressive policies, foreign investors have been encouraged to invest in UAE by being granted incentives. Furthermore, procedures for starting a small business in UAE have been simplified, and the country is a fertile ground for businesses considering that taxation is insignificant and largely non-existent. Moreover, larger businesses as mentioned above gain from small businesses since scores of large corporations rely on small businesses to finish different business functions by means of outsourcing. Works Cited Bhatia, Rushika. The importance of entrepreneurship. 22 July 2014. 1 July 2015. . DMC. Business Opportunities. 2015. 1 July 2015. . Edmiston, Kelly. "The Role of Small and Large Businesses in Economic Development." Economic Review (2007): 73-97. Ernst & Young. Doing business in United Arab Emirates Country profile. Sharjah, United Arab Emirates: Ernst & Young, 2011. Martins, Ajaero Tony. Starting a Business in Dubai. 2014. 1 July 2015. . Norén, Göran. The role of business in society. Stockholm: Confederation of Swedish Enterprise, 2004. Read More