Results of UAE's first entrepreneurship study announced

The Mohammed bin Rashid Establishment for Young Business Leaders announced today the findings of the UAE's first Global Entrepreneurship Monitor (GEM) Report - GEM-UAE 2006 - aimed at mapping out the country's entrepreneurial landscape. Marking its debut in the Arab world, the study was sponsored by the Establishment and was developed in collaboration with Zayed University. It is considered one of the most comprehensive exercises ever conducted on businesses in the Arab world.The report has placed the UAE in an advanced position on the "Entrepreneurial Environment Scoreboard" rating the most supportive environments for entrepreneurial activities. The UAE came third after the US and Singapore. However, it called for further efforts to create more understanding of the grass root level of entrepreneurial activities in the UAE. Compiled by Prof. Kenneth J. Preiss of Zayed University (Abu Dhabi) and Prof. Declan McCrohan of Zayed University (Dubai), the report was based on a national survey that included 2,000 national respondents from across the seven emirates. Key respondents included 36 experts knowledgeable about key influential factors that have an impact on entrepreneurial activities in the country. It also includes over-sampling of 1,000 randomly selected nationals from different parts of the country. Abdul Baset Al Janahi, CEO of the Mohammed Bin Rashid Establishment for Young Business Leaders, said: "We are glad to see the culmination of this collective effort that maps out the entrepreneurship environment in the UAE. The study contains rich information and statistics that clearly identify existing and potential opportunities and the challenges for small and medium size investments in the country." Al Janahi said the report concurs with the UAE Government Strategy and Dubai's Strategic Plan. Both national action programmes have placed a significant emphasis on the importance of promoting and developing entrepreneurship among UAE nationals."In his speech yesterday, H.H. Sheikh Mohammed Bin Rashid Al Maktoum, the UAE Vice President and Prime Minister, and Ruler of Dubai, stressed the need to encourage entrepreneurs in the country. He urged the financial institutions to provide adequate support to spur the growth of small and start up businesses so they can contribute to the national economy. We believe the GEM report will help set a clear roadmap towards achieving this strategic objective," Al Janahi added.Prof. Kenneth J. Preiss said: "Zayed University is delighted to have been involved in this major study. We hope that the results will assist in developing public policy about entrepreneurship, inform investors in entrepreneurial ventures and open the way for those seeking to start a business enterprise and how best to go about it." The GEM study focuses on three main objectives: measuring differences in the level of entrepreneurial activity between countries, identifying factors leading to appropriate levels of entrepreneurship within a country and suggesting policies that may enhance the national level of entrepreneurship.Aiming to fill the gap between entrepreneurial propensity and actual activity in the UAE, GEM-UAE 2006 puts great emphasis on the role of education in encouraging entrepreneurship within the country. The study highlights that as education levels increase, the fear of failure as an entrepreneur diminishes. More than 50 per cent of the individuals included in the study confirmed that they would fear failure in starting up a new business. They said they did not have the knowledge and skills to start up a business, underscoring the role of education in promoting better awareness of basic skills needed to launch and operate a private business. The study demonstrated that lack of knowledge stood as one of the key impediments of entrepreneurship in the UAE. The report forecasts that 60 to 180 new business ventures could be launched in the UAE within the coming three years, with a potential to generate between 200 and 1,000 job opportunities each over the coming years.From a social perspective, over 90 per cent of the respondents saw the successful entrepreneur as holding a high status and respect within the community. Around 70 per cent said creating a new business venture in the UAE was a desirable career choice.The study proposed that more efforts are needed to raise awareness levels of entrepreneurship and its contribution to the local economy. It also suggested that promoting entrepreneurship should be included in the high school, under graduate and post postgraduate curriculum. The report also urged banks and other financial institutions to increase their involvement by offering necessary funds to the SMEs sector. The Global Entrepreneurship Monitor (GEM) research programme was formed in 1997. Its aim was to create an international consortium of specialist scholars to collect data on an annual basis from member nations around the globe about the level of entrepreneurial activity and economic prosperity.Babson College in Wellesley Massachusetts, USA, and London Business School are the two principal academic institutions in the GEM consortium. Source WAM