Cover Story May: How small businesses make it BIG

8/2/2019 Cover Story May: How small businesses make it BIG

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Qatar toDay M a y 2 0 1 244

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M a y 2 0 1 2 Qatar toDay 45

When Charles Leadbeater, a leading authority on innovation and creativity, elucidated

this basic principle at the recent EO Majlis, he was also talking about the amazing

story o Qatar and its winning World Cup bid o crating ideas or people to invest in

something that is not yet there.

But even with such an inspiring story that makes the perect setting or entrepre-

neurial spurts, why are Qatars small and medium-sized enterprises (SMEs) not making

much o a contribution to the GDP? Though there are some successul entrepreneurial

activities and also active governmental hand-holding, ewer than 40% o the existing

SME enterprises were established ater 2000. The sector only contributes about 15% to

GDP, a minimal gure compared with neighbouring GCC countries.In a country that has no dened path or an SME startup, nor any specic charac-

terisation o an SME, how do you inculcate an entrepreneurial spirit? How vital are

startups when the country has resources to last or decades and a public sector that has

recently hiked its salary or nationals? How can you rationalise a positive entrepre-

neurial interest when a recent study, the Silatech Index shows a high level o interest in

government employment similar to that o other Arab countries?

Qatar Today discusses with experts why it is essential to oster an entrepreneurial

spirit even in countries with high GDP, while we discuss the tools that are made

available to oster an entrepreneurial spirit in the land o plenty.

By Rory Coen and Sindhu Nair

entrepreneurship is aBout GettinG peopLe toBeLieVe in soMethinG Which Doesnt yet exist.


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he overall share o SMEs in the

Middle East and North Arica

(MENA) region is estimated toaccount or 71% o employment

but only 28% o GDP.

In Bahrain, the GDP share o

SMEs is 28% while they are responsible or

73% o all private sector jobs.

In Dubai, SMEs are estimated to make up

95% o the total number o enterprises, 42%

o the workorce and 40% o GDP.

Saudi Arabias SMEs are responsible or

approximately 40% o jobs in the country

and their GDP contribution is estimated

at 28-33%.

By comparison, in the US SMEs contributeclose to 50% o GDP, whereas their share in

the EU is just under 60%. They provide more

than hal o the employment in the US and

more than two-thirds in Europe.

The main challenges associated with Gul

SMEs are ourold. Firstly, they represent a

minor contribution both in terms o work-

orce and turnover. For instance, 87.8% o

Bahraini companies have no more than

10 employees. O the 785,000 commercial

establishments registered in Saudi Ara-

bia (2008 gures), some 764,000 were sole

proprietorships.

Secondly, the average Gul SME is primar-ily engaged in the buying and selling o goods.

About 42% o all Bahraini and Saudi enter-

prises are engaged in trading. Construction

is typically the second most important area o

activity, ollowed by industry.

Thirdly, a typical Gul SME relies very

heavily on expatriate employees. For in-

stance, in Bahrain nationals account or only

14% o SME employment, while the Saudi pri-

vate sector as a whole is 90% reliant on expa-

triates. This limits the size and growth o the

pool o entrepreneurs in the region as well as

the employment contribution o GCC SMEs.

Lastly, typical Gul SMEs are relatively

inecient. Their share o employment is argreater than their share o GDP, highlighting

the limited value added contribution made by

most o them. They tend to have limited ac-

cess to credit and capital and the opportuni-

ties posed by retained prots are modest.

Overcoming these limitations is likely

to require signicant new initiatives in a

number o areas.

The need or local entrepreneurs

Milhan Baig, Head o Valuation Services De-

loitte (Qatar) puts entrepreneuship in con-

text by quoting Baroness Margret Thatcher,the longest serving prime minister o the UK,

rom one o her speeches at the Small Busi-

ness Bureau conerence in 1984: Small rms

can be a seedbed or new ideas and a testing-

ground or new ways o working. They oten

lead the way in new products and new ser-

vices. The reer the society, the more small

businesses there will be. And the more small

businesses there are, the reer and more en-

terprising that society is bound to be.

It could be argued that her recognition and

promotion o SMEs was one o the key actors

contributing to the UKs economic recov-

ery and growth rom the late 1980s and intothe 1990s.

Today, Baig continues, in the more de-

veloped economies, such as the UK, USA, Ja-

pan and much o Europe, SMEs contribute at

least 50% o the countries GDP whereas this

statistic is much lower across the GCC.

And the reason Baig sees a need or en-

trepreneurship activities as opposed to

multinationals, is the need or sustainability

or home-grown enterprises.

Unlike the larger businesses or recruit-

ing oreign-owned businesses into a coun-

The eCONOMICperspeCTIve

T


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The Ernst & Young EOY Award is

considered to be one o the most

prestigious global business award

programme.

It accentuates our rm belie in

its signicance internationally and

is strongly in line with our mandate

at Enterprise Qatar to create a solid

ecosystem or such businesses to

fourish, she says.

Such programmes help to urther

communication and collaboration

between these Qatari entrepreneurswhich could lead, thereore, to the cre-

ation o new joint-ventures and SMEs

that would boost the economy - which

is exactly what we are working very

hard to achieve at EQ.

Furthermore, the EOY Award is

a great opportunity or us to cement

Qatars position on the global industry

map and to showcase our entrepre-

neurship exemplars and learn rom

peers. It is truly an addition to our

track record to what we aim at accom-

plishing to support the burgeoning

entrepreneurial and SMEs sector in

the country.

EQs undamental contribu-

tion is in supporting entrepreneurs

and providing them with the essen-

tials to achieve their ambitious andpromising ideas.

On this occasion I would like to

encourage all aspiring entrepreneurs

in Qatar to put orward their achieve-

ments and visions and take part in next

years Ernst & Young EOY Award.

noora al mannai, chieF executive oFFicer oF enterpriseQatar (eQ), speaks to Qatar todayabout the ernst &young entrepreneur oF the year (eoy) award 2011 andthe key role oF eQ in developing an entrepreneurshipenvironment in Qatar:

AN eCOsysTeM fOrsMe grOwTh

try, SMEs orm part o a more successul

long-term economic strategy. The reason

or this is that local SMEs today will even-

tually grow to become the larger local

rms o tomorrow. This will lead to severalhome-grown employment, scal, trade and

development prospects that are contained

in the local economy with little leakage to

other economies.

According to Chady Zein, a principal

with Booz & Company and a member o

the rms nancial services private equity

practice who advises the regions leading

private equity and venture capital rms,

entrepreneurship will undoubtedly be

one o the key driving orces in the region.

And one o the main drivers is the bulging

youth population.

The MENA region is home to a very

young population with almost hal o it un-

der 25, with growth at about 1.5 times the

worlds average. This has led to one o theworlds youngest workorces, requiring an

additional 75 million jobs to be created by

2020, or an average o eight million jobs per

year. By way o comparison, the US created

approximately 3.5 million jobs or an almost

equivalent population in 2011, says Zein.

The recent political unrest seems to have

anned the need or change too.

We have witnessed (through the Arab

Spring) the importance o boosting the re-

gions economic stability. Politics aside, we

have all seen how lacklustre opportunities

or securing ones income can quickly be-

come a strong driver or change.

In this context, entrepreneurship has

a crucial role to play in securing the re-

gions economic uture and stability. Thechallenge requires addressing all ele-

ments o the entrepreneurship ecosystem.

Moreover, this will also require the active

participation o several stakeholders in-

cluding governments, the private sector,

educational institutions, media and the

nancial sector as well as entrepreneurs

themselves, he stresses.

Steps in the right direction

Qatar has begun to take steps to give start-

ups a push in the right direction. There is

the Freer the society, the more smallbusinesses there will be. and the moresmall businesses there are, the Freerand more enterprising that society is

bound to be.

Baroness

Margret ThaTcher


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Enterprise Qatar (EQ), a governmental body

whose objective is to strengthen the SME

business environment, making it more vi-

able or entrepreneurs to take a prominent

role in Qatars economy and to give SMEs and

entrepreneurs a voice that is heard.

At EQ we work hard to build a sustainable

environment and a solid platorm or SMEs

which will enable entrepreneurs to becomeQatars ambassadors or entrepreneurship

on a regional and global level, says Noora Al

Mannai, Chie Executive Ocer o EQ.

The Qatar Science and Technology Park

(QSTP) has also launched its Executive En-

trepreneurship Certicate Program and

plans to become an incubator or startup

businesses and entrepreneurs, both local and

rom overseas.

Qatar Development Bank (QDB) was

opened to promote and nance SMEs.

The Bedaya Center and Roudha Center are

organisations that will help startups through

mentoring (or more, see detailed interviewsin later pages).

But without more creative ideas, inormal

networks to scope them, and mentors to guide

teams in exploring them, we will continue to

see low rates o new rm ormation in Qatar

and ewer Qataris creating rather than tak-

ing jobs, says Jonathan Ortmans, President

o the Public Forum Institute, a non-partisan

organisation in the US dedicated to ostering

dialogue on important policy issues.

Almost as an answer to this need, Entre-

preneur Organisations (EO) Qatar Chapter

organised the EO Majlis that was aimed as

a networking event to highlight best practices

and highlight success stories or Qataris.

Another step to encourage enterprise was

the Ernst & Young Entrepreneur o the Year

(EOY) award supported by EQ, which helped

spread success stories in a bid to encourage

and inspire young people to ollow the oot-

steps o the nalists.EOY is acknowledged as being pivotal

in the discovery and promotion o talented

entrepreneurs and in putting our very own

on the global stage to represent our coun-

try at the World Awards in Monte Carlo this

June to vie or this coveted title amongst 60

peers representing over 50 countries, says

Al Mannai

(See exclusive interviews with the Qatari

fnalists on the ollowing pages)

Strong entrepreneurial spirit

As a result o these encouraging eorts,

the countrys youth seem to be showing anentrepreneurial interest.

According to a recent Silatech Index analy-

sis conducted by Gallup, Arab countries have

seen a marked decrease in young people plan-

ning to start businesses in recent years. In

2009, 26% o Arab youths aged 15 to 29 could

be labeled as young aspiring entrepreneurs, or

planning to start a business within 12 months.

By 2010, the Arab worlds pool o young aspir-

ing entrepreneurs dropped to 11%, beore set-

tling at 9% in the autumn o 2011. Although

this drop largely occurred in parallel with the

Milhan BaigheaD oF ValUation

Deloitte (Qatar)

24% 26% 25%

11%

36%

8%

33%

9%

QaTari YOUTh eNTrePreNeUrShiPLeVeL LeaD araB WOrLD

Qt ab Mdn

20102009 Spn 2011 Fll 20110%

20%

40%

60%

80%

100%

Gallup/Silatech Index

local smes todaywill eventually

grow to become thelarger local Firms

oF tomorrow.


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global recession, its magnitude and uniormi-

ty across the Arab world has been stark.

However, Qatar stands alone as the only

Arab country in which youth entrepreneur-

ship levels held rm or grew during this pe-

riod, increasing to 33% by the end o 2011

rom 24% in 2009. According to a Gallup poll,

Qatar has uncovered signs o a more robust

entrepreneurial youth culture than any o itsArab neighbours.

The countrys natural resources and high

GDP undoubtedly constitute a comparative

advantage especially i one considers how

they create undamental economic drivers

or a multitude o business opportunities or

entrepreneurs. However, a fourishing entre-

preneurial ecosystem requires nurturing its

essential components, says Zein.

Qataris attitudes toward starting busi-

nesses are improving in tandem with the

establishment o avourable conditions or

entrepreneurship in the country. Two-thirds

o Qataris aged 15 to 29 say they personallyknow someone who would be able to give

them advice about managing a business.

Similarly, 74% o Qatari youths say there is

someone other than their amily members

they trust enough to make a business partner.

The majority o young Qataris also acknowl-

edge having access to training on how to start

a business (58%) and access to money to start

a company (61%).

Passion is the only driver

While there is an improvement in views o

entrepreneurship, the countrys youth still

show a high level o interest in government

employment similar to that o other Arab

countries. Assuming that pay and work con-

ditions are similar, more young Qataris would

preer to work in government (58%) than in

sel-employment (13%), private business

(8%), or the non-prot sector (13%), says the

Silatech/Gallup index. In the Arab world, thesaety o a career in government has generally

been accepted as preerable to entrepreneur-

ship in recent history. Its likely the Qatari

governments status as a preerred employer

is due to its shorter work hours, higher sala-

ries and generous holidays.

The countrys prosperous economic cli-

mate and government benets programmes

have naturally skewed the incentive or work

and entrepreneurship as compared to many

countries. Symbolic o the countrys wealth,

all citizens received a standard 60% salary

increase on already infated salaries in Oc-

tober 2011, in line with the actions o otherGCC governments in the wake o Arab Spring

instability. By virtue o their citizenship, Qa-

taris are essentially guaranteed the comorts

o a middle-class liestyle, thus most would

never need to start a business as a means o

economic survival but are more likely to be

guided into entrepreneurship by nancial

ambition or ideas o passion, says the report.

As Saleh Al-Khulai o the Bedaya Center

remarked, It is only passion that steers the

youth towards start-ups.

chaDyzeiNprincipal, Booz & coMpany

QaTari YOUTh haVeacceSS TO

reSOUrceS NeeDeD TOSTarT BUSiNeSS

% Ys % No

0%

20%

40%

60%

80%

100%

Knowsomeone

who wouldbe able to

give adviceabout

managinga business

Accessto money

they wouldneed tostart a

business

Access totrainingon howto start

a business

Someoneother than

a familymemberthey trustenough

to make abusinesspartner

34% 26% 37% 35%

66% 74% 58% 61%

Gallup/Silatech Index

the challengereQuires addressingall elements oF theentrepreneurshipecosystem.


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anybody was in any doubt about the

enormity o the issues acing the Qa-

tar Nation Vision 2030, then a couple

o early points might ocus the mind.

The engine or the uture knowledge-based economy will be education and

entrepreneurship, yet there are some dis-

turbing pointers which show the latter is cur-

rently on lie-support.

SME lending in the OECD (Organisation or

Economic Cooperation and Development)

was 27% in 2010. In the non-GCC countries

o the Middle East and North Arica (MENA),

13% o SMEs were able to get the lending they

needed. However, in the GCC region this g-

ure dipped to 3% and in Qatar alone to 0.49%

almost negligible.

Abdullah Zaid Al-Talib, Chairman o Qatar

University Wireless Innovations Center (QU-WIC) recently said that i Qatar continues

with this kind o lending, it will be impossible

to establish a culture o entrepreneurship

here. We cannot blame the nancial insti-

tutions, because they have their own private

models, which dont lend themselves to help-

ing the knowledge-based economy, so this is

why systems have to be in place and regula-

tion has to be changed, he said. There are

many organisations which help startups and

SMEs, but the nancial institutions have to

shake themselves up to be aligned with the

knowledge-based economy, and there needs

to be government intervention to change the

policies and regulations that oversee them.

A cultural thing?However, there is a much deeper issue at the

core o the problem. Qatar University Presi-

dent Sheikha Al-Misnad intimated that en-

trepreneurship is as much about culture as

education and learning, where young peoples

amily lie, their way o lie and their dis-

courses within peer groups infuence their

ideologies and actions just as much as what

they learn in the classroom.

I think the values system which we learn

as individuals rom indirect interaction is

more important in developing our risk-taking

and entrepreneurship skills, she said. Edu-

cation can only play a part, but society itselprovides an environment which promotes en-

trepreneurship. Our culture Qatari or Arab

is traditionally about conormity. You have

to give submission to your tribe, your amily,

your state, so entrepreneurship or thinking

outside the box is not something you would

traditionally be proud o or encouraged to do.

Most o your lie youll be respected and en-

couraged as much as you respect the structure

o your society or amily. Entrepreneurship is

a personal trait education can help, but it

cannot change people to be entrepreneurs i

as the debate rages about what entrepreneurship really involves,

thankFully there are some people who preFer to act instead oF

procrastinate. a number oF institutions have been Founded in Qatar

to deal with established and local problems which are preventing

startups and smes From getting oFF the ground. Qatar todayspoke

to three such institutions Qatar development bank (Qdb), the

bedaya center and the roudha center to understand how they are

addressing these deterrents.

eNTrepreNeurshIpIs A MusT,NOT AN OpTION

I

aBDUlaziz aL-KhaLiFaeXecUtiVe Director oF

strategic planning anD

control, Qatar

DeVelopMent Bank (QDB).

al dhameen hasprovided more than

Qr150 millionto over 50 projectssince october 2010.


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Ashra Abu Issa, Chairman o Abu Issa Holding, recently won the

Ernst & Young Qatar Entrepreneur o the Year Award. Takingover his amily business at the young age o 19, and continuing

the legacy o his late ather Abdul Raheem Abu Issa while inus-

ing it with added innovation, Abu Issa has taken the business to

new heights. Abu Issa Holding is recognised as one o the regions

top retailers and distributors o luxury and consumer goods and,

building on this reputation, Abu Issa set trends in the country

by creating his own retail concept stores, Momento, Karisma,

Msaer and Arabesque.

Opting or the business environment was not a choice or Abu

Issa, it was a prerequisite, as it was his responsibility to his am-

ily to continue the tradition. But it was a responsibility that later

became a passion.

What is the one quality that is essential oran entrepreneur?

Sel-motivation is the absolute key to being a successul entre-

preneur. We have to dierentiate here between nancial motiva-

tion and sel-motivation. Much more than nancial motivation,

most entrepreneurs are driven by an overriding purpose to make

a dierence and change peoples lives or the better. So being suc-

cessul and creating a better uture or everyone around me were

my motivations.

What did participation in the Ernst & Young Entrepreneur

o the Year (EOY) Award programme mean or you and your

business? How did the awards help to spread the word o

entrepreneurship?The Ernst & Young EOY is the rst o its kind in Qatar and is

denitely a reerence worldwide. Being recognised by my peers

and representing Qatar internationally is a great honour or me

and the country as only our countries rom the Middle East are

participating. I eel its a huge responsibility on behal o my col-

leagues, my community, and above all my country.

This award will inspire and encourage young entrepreneurs

in Qatar to achieve their dreams and reach or international

recognition.

How has the country helped in setting up businesses?

There is an entrepreneurial spirit in Qatar, encouraged and de-

veloped by the government and the public and private sectors.

To give some examples, the meetings between HE the PrimeMinister and the business community or the creation o a gov-

ernmental organisation acilitating business exchange, such as

Enterprise Qatar (EQ), and the organising o business events and

economic orums.

What are the challenges or an entrepreneur here?

What has been made easier or the new band o

entrepreneurs?

The small size o the local market could be the main challenge an

entrepreneur may ace at rst. Secondly, the open market that

brought in the big international players.

However, these challenges are recompensed by govern-

mental support regarding company setup and a fexible sys-

tem encouraging new entrepreneurs with startups. Qatar has a

solid inrastructure and a straightorward taxation system to

support them.

How important are mentors in the success stories?

Mentors should be those whose work you admire, possess strong

leadership abilities, and be an inspiration to you and others. You

need to gain inspiration rom entrepreneurs outside the country

as well . Young entrepreneurs must learn rom their success sto-

ries but not copy them.

Do you think we have too many tools or SME

development?

The diversity o the tools will serve all entrepreneurs based on

their exact needs.

How sustainable is it to have more than one business?

Having more than one business is a challenge in itsel. Diversi-cation needs to be a part o a strategic direction i you have to

survive in the long term. Experience and market know-how are

a must, but the essential point is to learn how to delegate and to

have qualied sta who will push to expand the business or the

long term.

Any advice to aspiring entrepreneurs?

Do not be limited or discouraged by our small market; look be-

yond and consider the region and even the world as a potential

marketplace. But keep in mind that there is no better base than

our local market in Qatar.

self-MOTIvATION Is TheAbsOluTe esseNTIAl

Locationcourtesy:StR

egisHotel,Doha


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Jassim Al-Mansoori, Chairman o iHo-

rizons, was one o the youngest manag-

ers in Qatar when he was with Qtel. Hispeople skills are revolutionary and he is

an inspirational leader that young and

old look up to.

iHorizons provides advanced business

solutions and IT services to the Arab

world and has clients like Al Jazeera Net-

work and Qatar Financial Centre. It has

regional oces in the UAE, Jordan and

Saudi Arabia.

Perseverance is one essential qual-

ity needed or an entrepreneur. There

are times where they will ace obstacles

and need to hold on and believe in them-

selves and their products and services inorder to succeed, he says.

As a student resh rom college, he

opted or the security o the public sec-

tor, not just or the security it brings but

also or the opportunity to build lasting

relations with the government.

Al-Mansoori remembers the starting

phase where the country gave him a lot

o support.

The country helped me a lot in my

starting phase, oering me a scholarship

and giving me the opportunity to gain a

practical and unique learning experience,

as well as independence. This helped me

to realise my current career goal.

The most challenging part o being a

sel-starter was being the captain o his

own ship, learning rom mistakes and

continuing in what he believed even

when the going got tough. Lack o nan-

cial resources was another deterrent, hesays.

I had to work hard to make money so

I could generate more money to develop

my business and this taught me to think

like a business person.

But the new band o entrepreneurs

will ace ewer challenges than I aced 15

years ago. Enterprise Qatar (EQ), educa-

tional institutions and banks are getting

involved now, helping to develop busi-

ness and entrepreneurial skills among

the youth.

Since 2008, HE the Prime Ministersignalled a new direction in government

support or the SME sector in Qatar,

where many tools have been created or

SME development like creating EQ un-

der the Ministry o Business and Trade

and enabling commercial banks to lend

to SMEs; restructuring QDB to provide

loans; and many other initiatives rom

educational institutions, he says.

Having more than one business can be

successul and sustainable, but only when

proessional people are put in charge and

empowered to make decisions.

With a motivated and dedicated team,I can recognise my own strengths and

weaknesses and operate my businesses

eectively, he says.

On a parting note, he quotes Richard

Branson: Business opportunities are

like buses, there is always another one

coming. So I would advise entrepreneurs

not to let their dreams go to waste, and

just go or it!

(Al Mansoori was one o the fnal-

ists o the E & Y EOY awards)

JusT gO fOr ITthey are not that way inclined.

The QU President argued that entre-

preneurship isnt such a serious concept

in Qatar, where its perceived as a bit on

the side and undened, but the Executive

Director o Strategic Planning and Control

at QDB, Abdulaziz Al-Khalia, knows this

attitude has to change, and QDB is taking a

strong lead in arresting the diculties the

more serious entrepreneurs have.

There is this long debate about whether

entrepreneurs can be manuactured, he

said. To the point, we have to have entre-

preneurship in Qatar, we need entrepre-neurs, our economy depends on it, and at

QDB we dont see it as an option, we see it

as a must.

I cant deny that the 60% salary raise

or public sector employees or the need

or Qataris to work in many aspects - is not

helping to develop a culture o entrepre-

neurship, but I still see a lot o people walk

into my oce on a daily basis; I hear inno-

vative ideas that could turn into big proj-

ects in the near uture.

Our economy is so heavily dependent

on oil and gas that i we want to diversiy,then the SMEs (private sector) will have to

play a huge role. We cant ully depend on

expatriates to develop our private sector,

we must do this ourselves. So whether they

are born or manuactured isnt the issue,

they have to exist and we are going to make

sure they exist by giving them access to the

nance they need, he said.

QDB the guarantor

In 2008, the QDB mandate was changed. It

changed its name rom Qatar Industrial

Development Bank and six more sectors

were added to its portolio. Capital wasraised rom QR200 million to QR10 billion.

With that change a new management

came on board, with our main role being

to complement the private sectors eorts

to diversiy the economy, explained Al-

Khalia. We conducted a study in 2009 to

understand what the main obstacles were

or entrepreneurs, SMEs, the private sec-

tor in getting access to nance. That study

revealed that almost 55% o all SMEs and

private sector organisations in Qatar did

not have an active relationship with a bank


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v


because o collateral requisitions rom the

banks.

We drilled down more to nd that to

get access to nance here you needed to

have at least 100% collateral or have to be

in existence or more than three years (so

you could produce enough nancial data

cash fow statements or the bank to make a

rational call).

So this was obviously a very unentre-

preneurial type o environment, as access

to nance was a major problem at that time.

This is where the Al Dhameen programme

came into eect. We looked internationallyat other development institutions that were

giving nancial support to their private sec-

tors and we ound that partial guarantees

were the most popular orm o assistance

being provided. Qatar is dierent rom any

other country, just as any other country is

dierent rom Qatar, so we designed the Al

Dhameen programme in a way that suited

our culture here.

The programme will guarantee 85% o

the exposure or new startups which is

the highest coverage ratio in the world

and 75% or existing businesses that havebeen operational or at least three years

and have nancial records to support their

business plan. The programme was started

in October 31, 2010 and has the majority o

Qatars nancial institutions as partners. It

has provided more than QR150 million to

over 50 projects since then.

Al Dhameen is theoretically a partner-

ship between QDB and the respective com-

mercial bank, which both provide a lter

or any loan request the rst one being the

customers bank o choice, which will then

reer it to QDB or urther analysis. How-

ever, Al-Khalia explains that its a stream-lined and ecient process which doesnt

Abdulaziz M. Aldelaimi, Chairman o Na-tional Petroleum Services (NPS), is one

o the early entrepreneurs o the coun-

try who, through his experience in the

oil and gas sector, leveraged it to set up

his own business catering or the same

sector. Now NPS is one o the leading

privately-owned GCC service providers

in the region, with over 1,000 employees

rom 40 dierent countries.

For Aldelaimi, truth and honesty are

the key components or an entrepreneur,

and his advice to the new breed o entre-

preneurs is to be disciplined, dedicated

and courageous.He believes that the government has

encouraged new businesses through

word o mouth and that has been crucial

in building relations internationally too.

But that was one o the advantages o

starting early in a small country, which

wouldnt necessarily be the case now.

Even with all the tools or SME devel-

opment, Aldelaimi eels that entrepre-

neurs should go beyond that and think

outside the box to nd solutions that are

typical or their enterprise. Finding -

nancial capital is always the biggest chal-lenge or an entrepreneur, while having a

mentor is important to polish the quali-

ties o a businessman. For Aldelaimi, it

was his ather who took on that role.

(Aldelaimi was one o the fnalists

o the E & Y EOY awards)

ThINkINg OuTsIdeThe bOx

take longer than two working days.

We dont hand out guarantees to any

project; it has to make commercial sense,

so we are in eect protecting the entrepre-

neur, he says. However, we have rejected

ewer than 5% o the cases passed on to usrom the banks. Once the easibility study is

approved, cash fow projections are agreed

upon and the business is ready to start, QDB

provides the guarantee to the bank, which

then dispatches the money to the client.

Its interesting to note that the bank

doesnt transer the whole amount into theclients account, but instead distributes it in


11/15


clbge

A business born out o a hobby, Techno Q

is now providing retail system solutions

and is the rst systems integrator in the

Gul. Always on the alert or expansionprojects in the region, the two riends

behind Techno Q Zeyad Al Jaidah and

Abdulla Alansari have a vision to be the

rst choice or integrated, low-current

systems solutions in the Middle East.

Seeking to emulate the success stories

o Steve Jobs and Jack Welch, the two

entrepreneurs are stimulating compa-

ny and aspire to keep building on their

enterprise.

Each o them has his set o principles,

and it is a marriage o ideas that is the rea-

son behind the true success o Techno Q.

For Al Jaidah, entrepreneurship is al-ways about innovation and risk-taking,

while or Alansari it is the attention to

detail and values. And it is these dierent

ideologies that each o them brings to the

company that make it what it is today.

Jack Welchs philosophy was that a

company should be either No.1 or No.2

in a particular industry, or else leave it

completely. Welchs strategy was later

adopted by other CEOs, says Alansari,

talking about the most inspiring person

in his lie.

For Al Jaidah, with entrepreneurial

blood gushing through him (he comes

rom a amily o entrepreneurs), it wasdecided even beore he nished his stud-

ies, that he would either start his own

business or join the amily one.

I was prepared even to mop the foors

o Jaidah Motors, my brothers company,

he jokes.

Thankully he didnt have to do that

or he met Alansari during his engineer-

ing studies in the US and they decided to

explore the possibilities o opening their

own business in Qatar.

Alansari wanted to start his own busi-

ness too, and his cousins and riends ad-

vised them on many potential businessplans, ranging rom sugar-ree products

to cars, but they nally decided to stick to

their hobby o music systems.

The idea was conceived over a chat,

reminisces Alansari. We wanted to pro-

vide a high-end home theatre experience.

There was no one company that provided

all o this in one product, and this is what

we wanted to give our customer. A good

sound-system and high-end seating with

portable screens. We did something that

was not even available in Dubai and we

provided a good demonstration.

We did that, but our home theatre

system didnt work, so we realised it was

not the best thing to do and decided to do

commercial business too. We did the rst

commercial project or Omar Al Fardan

or his BMW showroom. He wanted a

state-o-the-art showroom or BMW and

we did it or him. We did the installations

ourselves, says Al Jaidah.That was just the start or Techno Q

and since then they have established their

business, although it took them two years

to get into prot.

Being in Qatar was such an advan-

tage. It was a virgin market in eect and

we started at the right time. From 1997,

things started to get bigger here and we

rode along on this wave o success. We

saw exponential growth, says Alansari.

Ask them about the inhibiting actors

or entrepreneurs, and they eel the high

real estate prices are one o them.Mentors are very important, says Al-

ansari. When you are on your own you

learn rom your own mistakes and some-

times mistakes prove costly. But you need

to learn rom these and also open up new

avenues. Maybe our home theatre idea

was not good but that eventually led us

to what we are doing right now, counters

Al Jaidah.

Al Jaidah had his brothers, Saleh Al Jai-

dah and Ibrahim Al Jaidah as his mentors.

There is an intention o encouraging en-

trepreneurs in the country, they eel, but

nothing tangible has been achieved so ar.We are hoping or change, says

Al Jaidah.

Take advantage o a small market and

go orward, advises Al Jaidah.

But think rationally beore you embark,

cautions Alansari.

And both o them join together in say-

ing: Be your own boss and take the step.

(Both Al Jaidah and Alansari were

fnalists o the E & Y EOY awards)

be yOur OwN bOss

Locationcourtesy:StRegisHotel,Doha


12/15

v


segments as and when the client needs it.

We want always to ensure that the cash

fows towards the business itsel and there

are no moral hazards in place, explains

Al-Khalia. The businesses are monitored

on a quarterly basis and both QDB and the

banks do regular site visits. All o this is

to ensure the project is going in the right

direction.

Culture o ailure

Proponents o entrepreneurship are some-

times a little over-zealous about promoting

a culture o ailure to, ironically, driveentrepreneurship and industry growth.

Entrepreneurs think dierently rom ev-

eryone else; this is what makes them stand

out against the crowd. So is this an ideology

which scares the banks, and is it something

that needs to be addressed rom the top

down?

Charles Leadbeater, a leading authority

on innovation and creativity, was speaking

at the EO Majlis in early April and he said

that entrepreneurs thrive on ailure they

see well-designed ailure as a vital part o

entrepreneurship.One way o understanding entrepre-

neurship is through a process o experi-

mentation the better you get at making

these experiments (i.e. testing results and

prototypes) the quicker you learn and the

quicker you build a business. Its better to

ail early rather than late, ail small rather

than big, and ail in a well-intentioned way

rather than hiding it.

Entrepreneurs turn inormation into

insight very quickly and this isnt always

acceptable or banks, he added. Many

ideas would never get o the ground be-

cause market research which is otenwhat banks look or tells them that its

Khalia Al-Misnad, Qatari entrepreneurand President o Entrepreneur Organisa-

tion Qatar, the Qatar division o the glob-

al initiative, was one o the promoters o

the EO Majlis and is one o the many who

have decided to mentor and help other

Qatari youth with a passion or sel-

employment.

EO Majlis achieved the goal we set

when starting out, chiefy to provide a

boost to the community o individuals

and organisations working hard to sup-

port SMEs in Qatar and the region and

encourage entrepreneurial culture. This

is the rst in what we hope will be a long

line o successul and in-

spiring EO Majlis events.

Being in Qatar

There is a lot o govern-

mental support. A lot o or-

ganisations like the Bedaya

Center are trying to pushentrepreneurship. In the

SME sector, QDB and EQ

are also trying to promote

entrepreneurs across all

age levels. Qatar is trying

its best to encourage entre-

preneurial activities.

One quality o an

entrepreneur

I dont think there is

one quality. There are a

multitude o them. The rst would beto cultivate an idea and make it work.

Second would be to have the condence

and the earlessness to take the idea

orward. Thirdly, to recognise an op-

portunity and capture it. Make some-

thing happen rom it. Thats why we

see entrepreneurs who sense

opportunities but who do not know

how to monetise it.

Entrepreneur over public sector

Entreprenuership is embedded in my

genes. I enjoy building on opportunities

and seeing them grow, he says.

MAkINg yOur IdeAswOrk


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clbge

not a runner. So instead o sensing the

opportunity, they make sense o the

opportunity.

Abdullah Zaid Al-Talib, at QUWIC, also

elt that conormity wasnt the best course

o action, I dont think we should over-

burden entrepreneurs with requests or

business plans and paperwork because

they dont like this, he said. I was discuss-

ing with an angel investor rom a US -Arab

background recently and he mentioned

that in the past two years he hasnt looked

at one business plan. He is supporting en-trepreneurs on power-points presenta-

tions and rom the obvious passion that his

clients are showing in ront o him. Obvi-

ously he has experience as well, so he has

a decent perception o opportunity, but he

understands how entrepreneurs operate to

their optimum.

QDB isnt oblivious to this and

understands that ailures do happen, but

it is not araid o the concept and does pro-

vide a back-stop or companies that do get

into trouble. But ultimately its clients will

have to bite the bullet i their business doesgo aground.

Businesses shouldnt ail, but unortu-

nately they do, said Al-Khalia. I it does

ail it doesnt mean that its not liable how-

ever. He starts up a business, he is taking a

risk and he is liable. We are not distributing

wealth or giving ree rides here. When an

entrepreneur walks in to get a loan, he is in-

debted to pay it back.

However, we understand we have a re-

sponsibility and we have a system in place

i a business is in trouble. We give three

attempts to try to save the business, but i

these do not work we declare this business aailure and the entrepreneur will have to re-

pay the loan in ull. With any business there

come rewards and risks.

Al Khalia explained that QDB recogn-

ised a potential partnership opportunity

with Silatech to enhance the entrepreneur-

ial ecosystem urther in Qatar, and this be-

came a reality through the Bedaya Centre.

Bedaya means start in Arabic, and is a

career development-entrepreneurship de-

velopment type o institution that exists to

provide entrepreneurial support.

Building an ecosystem in Qatar is a

tough job and we are certainly not claim-

ing to be the main articulator, but we be-lieve that this collaboration provides a lot

o support and opportunity to the existing

ecosystem.

Bedaya Center: We must celebrate

success stories

Saleh Al-Khulai is young and passionate

two qualities that are rudiments or an en-

trepreneur and one cant help but wonder

when he will kick-start his own enterprise.

But right now, he is doing something equal-

ly invigorating: he is at the helm o this

initiative by QDB and Silatech, the Bedaya

center.From the time we started six months ago

we have had 2,000 youths attend our events,

workshops and counselling sessions, said

Al-Khulai. We had approximately 70

events, including networking events ev-

ery second Sunday, and we organised and

hosted a Global Entrepreneurship Week

with Qatar Science and Technology Park

(QSTP), which is a global event that is held

annually.

Al-Khulai puts the activities o the cen-

tre into two specic areas: one is career

development and the other entrepreneur

development.

We help students with career develop-

ment to know more about their potential

and abilities and nd opportunities that t

their prole. Our entrepreneurship pro-

gramme takes them through the journey

o a business plan and teaches them how to

pitch ideas and connect with nancers. We

will have a matching event with the Qatar

Angels Network on May 15 and that will

kick-start the process.

the bedaya centerhelps students withcareer developmentto realise theirpotential and itsentrepreneurshipprogramme takes themthrough the journeyoF a business plan

saleh aL-KhULaiFiManager, the BeDaya center

continued on page 58


14/15

v


Khalia Saleh Haroon is one o the most

popular entrepreneurs o the country whobelieved in his dream and invested in it.

His ollowers on Twitter are growing each

day and he was also the Entrepreneur

o the Year 2011. He is the creator o the

iLoveQatar (ILQ) website, also the win-

ner o ictQatars Most Promising Startup

award, and is known or turning the web-

site into a brand that people trust. He

helps to support startups and promotes

the importance o deep partnerships

between companies.

An entrepreneur has to be passionate.

You have to believe in your ideas, you have

to be extremely positive and you have to

be determined to see your idea

through.

Haroon is a born entrepre-

neur and isnt cut out or the

routine job.

Id always go or the option o

being a sel-starter. I enjoy the

challenge, I like taking risks, and

I love the eeling o accomplish-

ing something that I started my-sel. Im not the type o person

who wants to limit himsel or

have a typical 9-5 (or in Qatar its

7-3) job. O course Im also the

Head o Interactive and Innova-

tion at Vodaone, but I chose to

work hard in a company that ap-

preciates my eorts and encour-

ages me to do my own thing as

well. I balance work at Vodaone

and ILQ.

Challenges being hereThere are a number o challenges or lo-

cal businesses, says Haroon, but the re-

luctance o companies to go to a local

company or quality services is the most

pressing one.

Companies dont seem to want to use

the services o local businesses because

there is a belie that oreign companies

provide better-quality services. This is

changing dramatically as more and more

companies seek Qatari agencies with local

insights. Another challenge is the laws are

not very clear to set up an e-business.

It took me months beore I understood

what the process was only to be told that

there wasnt a specic licence applicable

to what I wanted to do. I was also surprised

that online businesses had to comply with

the same rules as a bricks-and-mortar

business. Globally, most online businesses

start rom home, he says.

Hiring resources is the next challenge

or Haroon.

Many people look abroad to bring inqualied sta, the problem being that

there arent many people with the right

skills here in Qatar. Even i you did decide

to hire someone locally, theres always the

chance that the company wouldnt give

them an NOC to move.

He, as all other entrepreneurs, is sure

things will change in the near uture or

the better.

The Qatari Dream

Remember how people used to call a u-

ture with potential and endless possibili-ties the American Dream? I think people

are starting to see the Qatari Dream.

Theres so much opportunity in the coun-

try, theres so much that hasnt been done

yet. The new developments mean that

there will be a great deal o commercial

and retail space. There isnt much compe-

tition and the whole country has this en-

trepreneurial spirit right now. With a bit

o motivation you could create something

great here. Its not about simply importing

brands though, its about creating a busi-

ness that starts rom Qatar and that you

can export to the world.

lIvINg A QATArI dreAM


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clbge

But this is only or those entrepreneurs

who have a very solid business plan, and

they orm a very small portion o the cen-

tres student network, stresses Al-Khulai.

A month ago we trained around 100 stu-

dents, and ater our ltering process only a

handul made a dedicated business model

to become bankable entrepreneurs. We

worked with them through our investment

readiness programme, and these ew will be

meeting some Qatari angels on May 15.

Barriers to doing businessEveryone seems to be blaming the legisla-

tion, eels Al-Khulai, but its the cultural

barriers that are the primary stumbling

blocks in entrepreneurial development

here.

We need to celebrate successes. We need

the success stories to inspire others to ac-

cept that the multibillionaire Al Fardan also

started rom nowhere to reach the pinnacle.

We need to know about success stories, but

we also need to hear the startup ailures

too.

Other barriers, according to Al-Khulai,

are the QR200,000 base bank balance toget commercial registration (in the UK its

just QR120) and acquiring a commercial

address. With high property rates, getting a

commercial address is an overhead a start-

up could do without. But the biggest barrier,

he concedes, is the 60% salary rise that pub-

lic sector employees were recently granted.

That is a huge disincentive and will killany motivation or Qataris to enter the pri-

vate sector, he says. Compared to Saudi

Arabia, where unemployment rates are

high, the private sector might be an answer

there, but in Doha, there are no economic

problems. Thankully there are some pas-

sionate people who want to start their own

businesses and thats where we come in. We

are not here to solve any employment crisis

we are here to give passionate youth an

opportunity or sel employment.

Roudha Center: Women in business

Shareea Fadhel and Ayesha Al Mudehki,

the brains behind the Roudha Center, eel

that the proportion o SMEs in Qatar is set

to grow and women will be the driving orce

behind it.

Women in Qatar are the most untapped

resource o the country. It was ound that

42% o women with degrees do not enter

the labour market, nor do they go or higher

education. We also ound out that there was

a strong interest or Qatari women to start

their own businesses but what they lackedwas proper guidance, so this is the gap we

set to ll, says Fadhel.

Since July 2011, when the Roudha Center

was launched, there have been numerous

success stories or the centre.

Our opening marked a turning point or

women, and today it is the only place in the

GCC that supports women entrepreneurs.

Our highlights have been reaching out to

over 2,000 women in the country through

our workshops, events and conerences.

Lamasat Qatariya was one o the events

organised by the centre, and it was the rstexhibition or Qatari designers and busi-

nesswomen. Fadhel sees a marked dier-

ence in perceptions this year and the pas-

sion or startups is evident.

The number o emale business owners

in Qatar is growing, and ranchise oppor-

tunities are a good entry into the private

sector. At Roudha, we are providing sup-

port that will help women exploit these op-

portunities. The next ew years will change

the way Qatar views entrepreneurship, but

2012 will be a fagship year or it, she says

But beore that there have to be some

policy changes to acilitate SME growth, aswell as a push rom the local businesses.

Large organisations and enterprises

should start using SMEs to help them four-

ish and grow, she says. While acilitat-

ing entrepreneurship will be the ocus or

a couple o years, the challenges or the

next generation will be choosing the best

sustainable business model. Passion is

the heart o entrepreneurship i you are

passionate about an idea; then it will be

a success.

the number oFFemale businessowners is growing inQatar and Franchise

opportunities area good entry intothe private sector.roudha supportswomen to exploit theseopportunities.

shareeFa FaDheL anD

ayeshaaL MUDehKi,FoUnDers anD Managing

Directors, roUDha center.

continued rom page 56

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