Small businesses with big potential

More support for small to medium-sized businesses is critical for a sustainable and vibrant economy.

Dubai Internet City is an example of the thriving small to medium business culture in the UAE. Photo: Charles Crowell for The National

Dubai has a long history of entrepreneurial spirit. Before the oil era, its citizens were able to create a viable living in one of the world's harshest environments through diving for pearls and trading goods as far afield as India and east Africa. That spirit is now reflected in the profusion of small to medium-sized enterprises (SMEs) that call the emirate home.
As The National reported yesterday, the most recent report by Dubai SME showed that such enterprises represent 95 per cent of all business establishments in the emirate. The question now is how best to leverage Dubai's natural advantages and make it an international economic hub the latest generation of entrepreneurs who possess smart ideas and the passion to bring them to fruition.
Amid a vibrant but often troubled region, Dubai - and the UAE in general - stand out as an ideal place to do business. It offers stability and security, some of the world's best-connected transport hubs whether by land, sea or air, an enticing approach to taxes and fees in the free zones, an outward-looking populace, access to inexpensive labour and, outside of work, it is a pleasant and cosmopolitan place to live. The already established network of SMEs is another factor that works in its favour. Entrepreneurship rarely operates in a vacuum and is bolstered by the success of others. Platforms like business incubator Afkar.me are making it easier for budding entrepreneurs to enter the market and start up their companies.
But more can and should be done to make it even more enticing. Smart and determined entrepreneurs who find their dreams stymied by unrest or corruption in their countries of origin should be flocking to set up in the UAE. However some find it difficult to secure short-term visas without a formal job offer. This year, the authorities announced a new entrepreneur visa for those who wish to set up a business in the UAE without the need for physical presence, which is an excellent start.
All this offers the prospect of a virtuous circle in which entrepreneurs do business here, creating a culture of enterprise that will inspire Emiratis and lead to yet more SMEs to set up in the UAE, to the benefit of everyone.