Recent research by Bayt.com and YouGov has divulged a compelling statistic: more than 60% of UAE professionals have a penchant for self-employment. The survey comprised 1,800 respondents from a variety of countries, including Saudi Arabia, Lebanon, Morocco, Jordan, and Kuwait, between February 15 and March 2. Astonishingly, 56% of professionals are considering starting a business, and 24% have already attempted to do so. According to the state news agency Wam, the number of small and medium-sized enterprises (SMEs) in the UAE surged to 557,000 by the end of 2022.
Reasons for Favoring Self-Employment
The study further disclosed that 49% of respondents cited personal fulfillment as the topmost reason for opting for self-employment. 47% want to cherry-pick their own work-life balance. 43% revealed that they desired to give back to the community, and 41% longed to be their boss.
The UAE Government’s SME Support Initiatives
Abdulla bin Touq, the Minister of Economy, hopes to increase the number of SMEs to one million by the end of 2030. SMEs constitute 63.5% of the non-oil economy. The government has unveiled the Entrepreneurial Nation 2.0 initiative, which aims to foster more than 8,000 small and medium-sized businesses and start-ups by 2030, focusing on technology. The program also aims to establish 20 unicorns, i.e., start-ups with a valuation of $1 billion and above, by 2031.
Challenges Encountered by Entrepreneurs
The survey identified financing as the principal concern for entrepreneurs in the UAE when establishing a business. Following this, respondents noted that establishing the right contacts and the unpredictability of profit or income were key barriers. The hospitality, recreation, and entertainment, IT, internet and e-commerce, real estate and property development, and consumer goods and fast-moving consumer goods industries were the most favored entrepreneurial sectors in the UAE.
A Positive Image of Entrepreneurs in the Region
A remarkable 85% of UAE respondents believe that entrepreneurs are opportunity-driven. 86% of respondents revealed that business owners help create new job opportunities.
Advice for Aspiring Entrepreneurs
The study revealed that 46% of respondents advised budding entrepreneurs not to be afraid of failure, followed by 32% who emphasized the importance of innovation in achieving success.
Self-Employment versus Employment
Although more than 60% of UAE professionals prefer self-employment, 26% of respondents would instead seek employment with a company than start their business. Learning new skills (53%), a steady income (47%), and job security (36%) were the top reasons for seeking employment with a company.
Entrepreneurial Growth Ambitions
The survey disclosed that a third of respondents in the UAE harbor ambitions to expand their business further in their country of residence, with 23% aiming to become a major international group. With the intention of growing their businesses, 63% of UAE respondents plan to hire staff in the next year.
Key Success Factors in Entrepreneurship
According to the survey, 32% of respondents believe that innovation is the most critical factor in entrepreneurial success. 22% of respondents identified access to funding as a key element, and 20% believe that employing the right people is essential to success in entrepreneurship. Therefore, entrepreneurs must be mindful of these factors as they strive to establish their businesses and expand their operations.
In conclusion, the survey conducted by Bayt.com and YouGov has demonstrated that self-employment is a popular choice among UAE professionals. Personal fulfillment, work-life balance, and the desire to be one’s boss are among the top reasons for preferring self-employment. Entrepreneurs in the UAE face numerous challenges, with financing being the most significant obstacle. Nevertheless, the UAE government’s initiatives and support for SMEs can aid entrepreneurs in establishing and expanding their businesses. Ultimately, innovation, access to funding, and employing the right people are the key success factors in entrepreneurship, and entrepreneurs should keep them in mind while pursuing their goals.
Google News | Telegram