Amid a worldwide economic downturn, the UAE is bucking the trend, with small business activity in 2009 especially robust.
A study produced by the Global Entrepreneurship Monitor classified the country among "innovation-driven economies", characterised by "their production of new and unique goods and services that are created via sophisticated, and often pioneering, methods".
The results highlight what some experts say is an alternative to Emiratising the private sector, with many nationals seizing the opportunity to be self-employed.
The report, released last week by a research consortium that was launched a decade ago by the London Business School and Babson College in Massachusetts, studied the amount of small-business activity and the atmosphere for entrepreneurs in 54 countries by conducting 180,000 interviews.
"We are actually seeing a divergence, where most of the increase in business start-up activity is coming from Emiratis as opposed to the expatriate population," said Declan McCrohan, assistant professor at the College of Business Sciences in Zayed University, and the head of the report's UAE team.
Over the last two years, the Emirates saw a 38 per cent increase in start-ups, despite study findings that, due to the economy, the number of people around the world who thought there were good business and entrepreneurial opportunities declined in most countries.
The country also had the highest proportion of individuals who owned new businesses, and the second-highest proportion of people involved in setting up a new business. In addition to the UAE, the study group names the US, Britain, France, Germany, Hong Kong, Spain, Italy, Israel, the Netherlands and Switzerland as innovation-driven economies.
Among innovation-based economies, the UAE saw the highest start-up activity, the highest proportion of people involved in setting up new businesses and the highest percentage of respondents who think entrepreneurship is a good career choice.
UAE respondents had little fear of failure according to the study, with the second-lowest number at 26 per cent; the highest percentage of respondents with entrepreneurial intentions at 36 per cent; and the second-highest among those who thought entrepreneurship was a good career choice, at 70 per cent.
The country also had the highest percentage of new business owners with high growth aspirations, which the report said is an important group for policy makers as they contribute significantly to new employment opportunities.
The benefits of the proliferation of small businesses were clear, said Suresh Kumar, the group director of Emirates NBD and the chief executive of Emirates Financial Services.
"At the macro level, the small-to-medium enterprise sector is known to create the highest level of employment. It has been in many parts of the world the fastest-growing sector of the economy," said Mr Kumar. "It's very positive [and] brings in new dynamism and creativity if it is well-regulated and well-supported."
The report identified commercial and physical infrastructure and a dynamic internal market as the country's biggest advantages, citing weak points as the relative lack of funding programmes, educational programmes that incorporate small business creation and management, and national research programmes that can be converted to commercial opportunities.
"We are definitely finding that the UAE is very good in terms of business creation compared to other countries in the survey," said Dr McCrohan.
One reason was the inverse relationship between unemployment, which increased during the downturn, and entrepreneurship. "When unemployment starts to increase, people are almost forced into entrepreneurship. They've never been game enough to quit their job and start their business," he said.
Small businesses were more likely to be created by Emiratis since expatriates usually had to leave the country after being unemployed for a month, he added.
Organisations that provide funds for entrepreneurs such as the Khalifa Fund and the Mohammed bin Rashid Foundation had particularly contributed to Emirati entrepreneurship, Dr McCrohan said.
The Abu Dhabi Council for Economic Development launched an entrepreneurial awareness campaign - Akoum - in November.
The main objective of the campaign was to contribute to the development of an entrepreneurial culture in Abu Dhabi by enhancing awareness about entrepreneurship and inspiring the youth of Abu Dhabi.
"The public sector will not be able to create the jobs for Emiratis to keep unemployment down," Dr McCrohan said. "If we can get Emiratis out of the public sector and start their own businesses it can have a bigger effect than the whole Emiratisation process."
"For many UAE nationals this is the best way to employ themselves," Mr Kumar said. "You create self-employment on a scale which is then much better than increasing bureaucracy. Then the discipline of the market will come into place. People will no longer be relying on cronyism and contacts."
kshaheen@thenational.ae
Copa del Rey final
Sevilla v Barcelona, Saturday, 11.30pm (UAE), match on Bein Sports
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
Timeline
1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line
1962
250 GTO is unveiled
1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company
1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens
1976
First automatic Ferrari, the 400 Automatic, is made
1987
F40 launched
1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent
2002
The Enzo model is announced
2010
Ferrari World opens in Abu Dhabi
2011
First four-wheel drive Ferrari, the FF, is unveiled
2013
LaFerrari, the first Ferrari hybrid, arrives
2014
Fiat Chrysler announces the split of Ferrari from the parent company
2015
Ferrari launches on Wall Street
2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
VERSTAPPEN'S FIRSTS
Youngest F1 driver (17 years 3 days Japan 2014)
Youngest driver to start an F1 race (17 years 166 days – Australia 2015)
Youngest F1 driver to score points (17 years 180 days - Malaysia 2015)
Youngest driver to lead an F1 race (18 years 228 days – Spain 2016)
Youngest driver to set an F1 fastest lap (19 years 44 days – Brazil 2016)
Youngest on F1 podium finish (18 years 228 days – Spain 2016)
Youngest F1 winner (18 years 228 days – Spain 2016)
Youngest multiple F1 race winner (Mexico 2017/18)
Youngest F1 driver to win the same race (Mexico 2017/18)
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A
FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Company%20Profile
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
