Dr Katerina Nicolopoulou from Strathclyde UAE along with colleague Professor Nada Kakabadse have spent the last nine months talking to entrepreneurs across Dubai about the unique opportunities and challenges offered by the city.
They found Dubai, the most populous emirate in the United Arab Emirates, is a rising star for entrepreneurs from across the globe. Its rapidly growing economy is indicative of a market in a state of constant flux, both an opportunity as well as a challenge for SMEs and start-ups.
These include the apparent benefit of beneficial tax regime, in combination with numerous other indirect fees as well as various cultural hurdles for new arrivals to the city.
Their research showed that overall barriers to entering the market are low, but there are complex rules, regulations and access to funds to contend with. The market is highly competitive and can be expensive.
A number of recurring themes emerge when talking to determined entrepreneurs in Dubai. Very often individuals put their success down to having an 'international' education.
One interviewee commented: "My parents had the wisdom to send me to international schools. This experience shaped my views and enticed me to embrace diversity. The English language is an important basic requirement, followed by having a good understanding of world affairs. This covers the economy, politics, and experience of working with various nationalities, cultures and organizations. I have lived in the UAE, US, UK and Australia. Being self-reflective also helps you adapt quickly and make sound decisions."
This experience plays a crucial role in preparing entrepreneurs for the day-to-day cultural existence they have to face in Dubai. Individual success often begins with the experience of working in a large corporation, which can eventually lead to the desire to break free into a creative, entrepreneurial path.
These same entrepreneurs grow and flourish when placed into a dynamic and free-trading environment. Such settings provide the 'in-at-the-deep-end' culture which inspires a determined approach to calculative risk-taking and heightened future ambitions.
Another study participant noted: "I consider myself a risk-taker and I want to achieve. I think through different opportunities and, if they don't really work out in my head or from research, I drop the idea. My first was a point-of-sale booking system in a cloud-based computing environment, which had huge potential. However, the figures didn't work out because people don't reserve over here."
Throughout the study, a consistent picture emerges of how the most successful businessmen and women in Dubai understand that vision and ambition are essential characteristics of the entrepreneurial mix. When it comes to excelling beyond traditional work environments, one young entrepreneur describes what drove them to success. "My father was a trader, and always tried to keep us away from staying in jobs for too long. Later, when I worked in the executive office, my boss taught me how to be ambitious and think big without allowing mental limitations to restrict my aspirations."
Another important starting point for Dubai entrepreneurs is the absolute necessity of financial independence. Most define this as having enough funding to sustain their start-ups for a minimum one-and-a-half years.
One entrepreneur commented: "Survival is one of the biggest challenges I face. This business environment is harsh and there is no support for expatriate businesses. There are lot of entrepreneurs in the UAE, but you find many people have brought their wealth from other places. Others take a chance and make their investment work for them."
Another one added, "The sustainability of projects is important, but there is no business development assistance. Costs in Dubai are really high and, government fees aside, the mall we operate in has various charges."
Networking is another mandatory requirement for those intent on establishing themselves in the country, but activities must have a functional focus to prove worthwhile, and deliver an effective return on investment.
Ultimately, like all entrepreneurs, business in Dubai is primarily about making one's own luck and being good at what you do. In other words, entrepreneurs wanting to get ahead have to take chances as they arise.
The research that Nada and Katerina have carried out to date indicates that while there is an open environment for entrepreneurs to establish themselves and thrive in Dubai, there are also two essential cultures which must be understood in order to succeed. One is local, highly traditional and family-oriented. The other values individualism more and is somehow culturally akin with the business climate of the United States.
On the whole, entrepreneurial efforts are respected. Adaptability, tolerance, hard work, open-mindedness, strong communication skills as well as an appreciation of different cultures can add huge value to entrepreneurial ambitions in Dubai.
Another research interviewee aptly summarized this concept: "A lot of Europeans, Arabs and Asians are making Dubai their home. It is such a cosmopolitan place and you become exposed to many different cultures. You have to learn about these because it becomes your work and personal environment. Different cultures respect each other here. It is not just about infrastructure, it has to become part of your vision and mentality."
The present research is part of a bigger project on cosmopolitanism, global elites and entrepreneurship, which was conducted during September- December 2013, with the support of Stanton Chase – Middle East. Konstantina Sakellariou and Panos Manolopoulos of Stanton Chase have supported the research which aims to provide interesting insights for contemporary relevant issues on entrepreneurship.