Entrepreneur Middle East
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DECEMBER 2014 Entrepreneur 1 Business learning curves Ten things that SMEs should know about entrepreneurship 9 772311 541008 > ENTERPRISE AGILITY AWARDS 2014 The inaugural Enterprise Agility Awards, Entrepreneur of the Year DECEMBER 2014 | ENTREPRENEURMIDDLEEAST.COM | UAE AED20 HRH Prince Khaled bin Alwaleed bin Talal Forging a KBW Investments framework
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DECEMBER 2014 Entrepreneur 3 HRH Prince Khaled bin Alwaleed bin Talal CONTENTS DECEMBER 2014 18 34 The Recap: Enterprise Agility Achievers 2014 18 INNOVATORS: Come as your are HRH Prince Khaled bin Alwaleed bin Talal Forging a KBW Investments framework 34 The Recap Enterprise Agility Achievers 2014 The inaugural Pan-Arab Enterprise Agility Awards, Entrepreneur of the Year presented by du 28 The Recap Enterprise Agility Forum 2014 The first Entrepreneur Industry Intel event, the Enterprise Agility Forum presented by du, and ten things every SME should know gleaned from our morning of panel discussions. 50 TECH: ONLINE ‘TREP Client clout Director of Phenomena Ahmed Dawood’s social success depends on being engaging and interactive, but you know what’s almost as important? His client roster. 52 SHINY #TamTalksTech Gadgets and doodads that you might’ve missed out on, sourced by a tech aficionado. Yes, it’s okay to want them all… and no, it’s not our fault. 52 #TamTalksTech
Entrepreneur DECEMBER 2014 4 CONTENTS DECEMBER 2014 Parrot brings you MiniDrones- playful, connected robots that are piloted with a smartphone or tablet using the FreeFlight 3 application. 34 58 CUTURE: LIFE Internet intel WCMC-Q’s Sahtak Awalan aims to make health education accessible to all, and they’ve taken to social media to make that happen. 76 START IT UP: Q + A A new way to trade ilOsool aims to change the way illiquid assets are traded in the MENA region. Founder Bdaiwi Tubaishat brings tons of experience to the table, and he’s applying it to his business model. 88 Q + A Business is blooming! Emirati ‘trep Moza Al Huraiz on her brick and mortar startup MOZ Flowers, and what sort of help Tejar Dubai can give you. 78 WACKY IDEA Keeping crafty company Startup ideyna provides e-commerce platform for GCC artisans, and founders Nafisa Rebello and Ekta Saran couldn’t be more proud. 70 STARTUP FINANCE Tips when raising the seed Simon Hudson has been there and done that. This is how CEO and founder of Brndstr got his financial act together. 68 MONEY: ASK THE MONEY GUY Stock-savvy? Before pulling for an AIM- like exchange in the UAE, Ziad Makhzoumi explains why SMEs in MENA need to weigh pros and cons. 78 Keeping crafty company 80 How Gaza Sky Geeks increased women’s leadership in the Gaza startup sector
DECEMBER 2014 Entrepreneur 5 BUSINESS FINANCE SOLUTIONS We are delighted to be recognised for helping SMEs realise their potential. This award further strengthens our resolve to strive for greater excellence across all our products and services. www.fgb.ae FGB wins Enterprise Agility Achiever in the SME Banking sector at Enterprise Agility Awards 2014 It’s rewarding to see efforts get recognised
Entrepreneur DECEMBER 2014 6 CONTENTS DECEMBER 2014 42 TREPONOMICS: SKILLSET Animating your commercial presence Tamara Bullock, Managing Director of Grayling Northern Gulf, shares five foundations of business development for entrepreneurs. 44 MARKETING Millennials in the Middle East Bayt.com’s VP Suhail Al-Masri talks about how upper management and entrepreneurs can master the generation gap. 48 ESQUIRE GUY Handling tears at work Ross McCammon on what to do when the waterworks start at the office. Running away is not an option, and neither is hiding behind your closed office door. 64 SKILLSET Taking your time James Clear, Olympian and entrepreneur, proposes a different way of thinking about productivity, and it makes business sense. 72 ASK A PRO Creating more compelling content Alexander McNabb poses five questions to ask your content before you let it go into the wild. Is it some- thing you’d share? If so, then you’ve checked one box. 56 CULTURE: TRAPPINGS ‘Trep gear The executive selection for the entrepreneur on your list that has everything. Okay, maybe for a little self- reward as well. Five questions to ask your content before you let it go into the wild 43 Sweden commissions its own font 72 Entrepreneur DECEMBER 2014 6
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Entrepreneur DECEMBER 2014 8 SUBSCRIBE Contact subscriptions@bncpublishing.net to receive Entrepreneur Middle East every issue EDITOR IN CHIEF Fida Z. Chaaban editor@bncpublishing.net MANAGING DIRECTOR Walid Zok walid@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net DIRECTOR Wissam Younane wissam@bncpublishing.net SALES DIRECTOR Oliver Amos oliver@bncpublishing.net PUBLISHER Nehme Abouzeid MANAGING EDITOR Aby Sam Thomas CREATIVE LEAD Odette Kahwagi ONLINE LIAISON Kareem Chehayeb COLUMNIST Pamella de Leon PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Entrepreneur Middle East contact sales@bncpublishing.net All rights reserved © 2014. Opinions expressed are solely those of the contributors. Entrepreneur Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Entrepreneur Media Inc. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. www.entrepreneurmiddleeast.com WE’RE HEAVILY INVESTED IN OUR WEB PRESENCE IS DIGITAL MIDDLE EAST Printed by Raidy Emirates Printing Group LLC www.raidy.com EntMagazineME @EntMagazineME | @Fida Entrepreneur-me EntrepreneurMiddleEast EntMagazineME EntMagazineME EntMagazineME MIDDLE EAST Cover photography by The Factory Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock. Tamara Bullock Amal Chaaban Youmna Chagoury Kareem Chehayeb Tamara Clarke James Clear Suhail Algosaibi Simon Hudson Pamella de Leon Ziad Makhzoumi Suhail Al-Masri Ross McCammon Alexander McNabb Iliana Montauk Shoug Al Nafisi Soukaina Rachidi Anthony Russo Erika Widen CONTRIBUTING WRITERS In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. Joining us online means getting relevant business and startup content in real-time, so you’re hearing about the latest developments as soon as we do. We’re looking forward to interacting with our readers on all of our social media and web platforms- like any thriving business, we’re looking to give and take. #TrepTalkME is already happening on all of our digi platforms, and all good conversations go both ways. See you on the web!
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Entrepreneur DECEMBER 2014 12 We’ve gotten tons of pictures via Twitter and Instagram, and here are a few of our favorites. If you see a copy of any edition of Entrepreneur MENA, tweet an image our way or tag us on Instagram. All of our reader images end up getting pinned to our Pinterest Show & Tell board. We’re happy to see our readers interact with us across all mediums- and we talk back! On ISSUU you can access all of our current and past issues complimentary, including Entrepreneur Al Arabiya, our edition for those of you that prefer Arabic-language publications. If you haven’t yet visited our ISSUU account, check out issuu.com/entmagazineme Business efficacy... in real-time It’s not social media if you don’t talk back FEEDBACK
DECEMBER 2014 Entrepreneur 13 Our robust financial performance throughout the years is a testament to our adherence to the tenets of ambition, transparency and integrity in providing outstanding products and superior services. To find out how we can care for your needs, visit www.unb.ae or call 600-566-665. I care about stability and UNB takes care of me With total equity exceeding AED 16 billion* and an impressive financial track record Total Equity in AED Millions UNB Foreign Currency Long-term Ratings Moody’s Fitch Ratings Capital Intelligence A1 A+ A+ 6,705 7,696 10,668 11,931 13,068 14,121 0 5,000 10,000 2007 2008 2009 2010 2011 2012 15,338 2013 15,000 16,521 Sept. 2014 *As at 30th September, 2014 024/COM/R021014/EN
Entrepreneur DECEMBER 2014 14 S elf-promotion is, I think, a conundrum for today’s profes- sionals. Good self-promotion requires careful planning- if you don’t promote your work and achieve- ments, then how will people know that you’re excelling in your field? On the extreme other end of the spectrum, you will find the relentless spammers. Overshare your material, and you begin to reek of desperation, subsequently tainting the reputation of your otherwise good work. A few points to consider when developing and executing your digital footprint: vehicle (opting for suitable mediums), positioning (personal and professional branding), when (frequency and timing of sharing and re-sharing), and voice (narrative themes). There are lots of other fac- tors at play when analyzing the sci- ence of social media –and it really is a science- but the four elements I’ve mentioned act as the primary frames dictating your online persona. Social media can turn ordinary people into global sensations, literally overnight. You’ve got tons of Insta-famous igers who actively cultivated their user base, and then you have tweeps like #AlexFromTarget who didn’t ask to become a bull’s eye of Internet fan- dom. Some of these viral web “celeb- rities” manage to parlay their online popularity into successful and lucra- tive careers as digital influencers. My consistent online presence, combined with the fact that I work for a media outlet, encourages people to tweet their news at me or tag me in their posts. While some of these “sharing moments” are great, other outreach efforts –and I won’t mince words here- border on obnoxious. So where does one draw the line? Ask yourself, “If Fida frequently tweeted her images, articles, and events directly at me, would it annoy me?” The answer is probably yes. If every time someone took a picture of me, and I decided that you needed to see it (which you fully don’t), you would quickly tire of me and begin to dismiss my news. I try never to ignore anyone online, but that doesn’t mean I want to see (and re-see) everything that you do. In my opinion (feel free to write in and tell me that I’m wrong) timeliness and reasonable frequency are two main facets of a healthy digi-presence. Don’t spam, don’t overshare, and don’t aggress the influencers on your timeline. Instead, I suggest that you be an active part of the online community, and people will gradually take an interest in your news of their own accord- they might even help you promote your work without being coerced into doing so. The next bit of my note is specifi- cally for social entrepreneurs: Entre- preneur MENA has partnered with The Venture to help GCC’s social businesses potentially qual- ify for mentor- ship and capital injections. Social entrepreneurs in the GCC, you could win a portion of the global prize pool of USD$1 million. I’m a judge for this region’s leg of the competition, and I encourage any social enterprise to enter before December 15th, 2014. The successful GCC candidates will be sent to Silicon Valley, and be allotted a share of the prize pool based on relevant business projections. Visit www.TheVenture.com to see the full set of rules and regulations, and if you qualify I look forward to learning about your social enterprise. Show the world what you’ve got, ‘treps! EDITOR’S NOTE “Look at me!” The fine line between positive self-promo and desperate pleas for attention Fida Z. Chaaban Editor in Chief @fida editor@bncpublishing.net
DECEMBER 2014 Entrepreneur 15 INDULGE AT Grand Hyatt Doha. Celebrate unparalleled luxury at Grand Hyatt located on the shoreline of the West Bay Lagoon. The hotel features balconies or terraces in all rooms, suites and villas showcasing breath-taking views of the Arabian Gulf. The hotel offers extensive meeting and banquet facilities, a full-service business centre, the renowned Jaula Spa, a 400-metre private beach, indoor or outdoor pools and a broad selection of cuisines at our innovative outlets. For reservations and more information call +974 4448 1234 Hyatt. You’re more than welcome. GRAND HYATT DOHA West Bay Lagoon, P.O. Box 24010 Doha, State of Qatar Facebook.com/GrandHyattDoha | doha.grand.hyatt.com HYATT name, design and related marks are trademarks of Hyatt Corporation. ©2014 Hyatt Corporation. All rights reserved.
Entrepreneur DECEMBER 2014 16 A s U.S. President Barack Obama’s presidency slowly comes to a close, an- other Guantanamo prisoner has been freed. Muhammad al-Zahrani, a Saudi Nation- al, ended his 12-year stay at the controversial prison in late November and will be enlisted in Saudi Arabia’s rehabilitation program. There are only 142 men left in Guantanamo, and the Pentagon finds about half of them threatening enough to prevent transfer. The Re- publicans are obviously not pleased with this, calling President Obama’s actions dangerous and irrespon- sible. With the Republicans on the back of a massive midterm elections victory, many believe that Obama and the Democrats are try- ing to make their final mark before things change; not only is Obama transferring Guantanamo prisoners, but he’s also looking at implementing immigration reform that will burst the Republican bubble. But despite Republican uproar, most Democrats who voted for Obama back in 2008 will consider this to be a minuscule action in com- parison to what he initially promised- shutting down the entire prison. W hat do Ashton Kutcher, Leonardo DiCaprio, Stephen Hawking, and Justin Bieber have in common? They’ve all paid US$250,000 to take a trip into outer space with Sir Richard Branson’s boldest venture yet, Virgin Galactic. That said, they might be thinking twice about taking a small ship 62 miles above planet Earth after a test flight went horribly wrong in the Mojave Desert in California. The plane, Space- ShipTwo, was tested for a 35th time, only for it to catch fire and crash after separat- ing from a jet at 50,000 feet. One person passed away, and another sustained major injuries. Branson, who showed extreme enthusiasm and excitement when unveiling the $500 million dollar air- craft back in 2009, will most likely hold back launching commercial flights in early 2015 as initially planned. At the time of writing, the project, under a jointly owned venture by Branson and Abu Dhabi’s Aabar Investments PJS had yet to release a detailed statement regarding the crash. Virgin Galactic CEO George Whitesides said in a press conference that his thoughts are with the crew’s families and that Sir Richard will visit the site to investigate the crash. Having already made $80 million dollars in reservations, those who want refunds will be disappointed; anonymous sources on CNN said that only a small fraction is refundable. The Virgin Galactic disaster doesn’t bode well for Richard Branson’s space ambitions Mission impossible? Obama administration releaseS seventh prisoner from Guantanamo in 14 days Qatar’s all in the clear for the FIFA World Cup, despite never-ending hullaballoo GUANTANAMO DEMONSTRATION IMAGE © FRONTPAGE / SHUTTERSTOCK | PRESIDENT OBAMA IMAGE © EVERETT COLLECTION / SHUTTERSTOCK | VIRGIN GALACTIC IMAGE © steve mann / shutterstock in the loop C ase closed! Qatar’s given the green light to continue preparing for the 2022 FIFA World Cup, after FIFA’s report concludes that there is no need for a revote regarding the 2022 World Cup bid. Qatar won the vast majority of the votes in all four rounds for the 2022 World Cup, surpassing the United States, South Korea, Japan, and Australia. That said, while FIFA Vice President Jim Boyce said that highly trained professionals conducted the report and that we should now look forward to the tournament, several voices are still refusing to tone down. Brit- ish MP Damien Collins called the report “a whitewash” and claims that the investigation is not as fully independent as FIFA claims it to be. MP Collins has used Parliamentary privilege to make allegations that Qatar have used bribes to host the tournament. Another voice is whistleblower Phaedra Al-Majid, who once worked as international media officer for Qatar’s World Cup bid before leaving in 2010; she claims to have received threats on her children and fears for her safety. Setting all this aside, for better or for worse, it looks like FIFA will move on and start talking about whether to host the World Cup in a toasty Doha summer or reschedule it to winter. Qatar’s Aspire Sports Academy The Virgin Galactic on static display at the Farnborough International Airshow, U.K., July 2012 Below: Demonstrators demanding the closing of Guantanamo during the inauguration of President Barack Obama, Washington, D.C., January 2009
DECEMBER 2014 Entrepreneur 17 UNIVERSITY CITY OF SHARJAH Scholarships available +971 6 5441155 admissions@skylineuniversity.ac.ae INTERNATIONALLY ACCREDITED PROGRAMS IN THE UAE WITH EMPHASIS ON E-Governance Marketing Finance Human Resource Management Strategic Management & Leadership NEW WITH MAJORS IN Public Administration Marketing & Retail Management Finance Information Systems International Business Travel & Tourism Management NEW
Entrepreneur DECEMBER 2014 18 HRH Prince Khaled bin Alwaleed bin Talal INNOVATOR COME AS YOU ARE Forging a KBW Investments framework By Fida Chaaban
DECEMBER 2014 Entrepreneur 19 “H i, we’re right here,” says HRH Prince Khaled bin Alwaleed bin Talal while waving his iPhone 6 Plus at me from the far end of the Meydan Hotel lobby in Dubai. Two things you need to know right off the bat: the first is that he responded to Entrepreneur’s interview request personally with a few members of KBW Investment staff on CC, and the second is that he came downstairs with KBW Investments CEO Ahmed Alkhoshaibi to collect us, calling me from his own mobile phone. Decked out in formal National dress, a quick look at his feet betrays a cool factor- he’s wearing Vans. “It’s 2014,” he says, smiling when I point out his choice of footwear. In a professional capacity, HRH doesn’t like his formal salutation used, and offers up that it’s alright to call him “Abu Jenna or whatever you’re comfortable with.” Comfortable? Hardly. As royal anomalies go, he’s for sure in the 99th percentile and at first I don’t know what to make of the man affectionately dubbed the “Tech Prince”. A document that I downloaded from WikiLeaks -the URL indicates that this “intel” is part of the mass- released Global Intelligence Files- describes 36 year-old Prince Khaled as “business-minded like his father and serious, but also simple and nice,” adding that “he has kept a considerably low-profile in the media, preferring to stay in the background.” Immediately after meeting him, I could verify these statements to be true, especially that the apple doesn’t fall far from the tree. When Abu Jenna does laugh or smile, his expressions are tempered by what I understand (perhaps incorrectly) to be shyness and a measure of reserve. >>> Photography by The Factory
Entrepreneur DECEMBER 2014 20 INNOVATOR TECHNOBUFFALO SCREENSHOT © TECHNOBUFFALO.COM “My worst mistakes were when I failed to ‘Trust, but verify’ as my father always said to do. I was a little too trusting. Let’s just say that the homework I do before I do a deal today is now very thorough. It’s true that you do learn the most from your mistakes.” I need to explain something to you, the reader. When I sit down to inter- view anyone, be it a high profile celeb or a fresh startup founder, I have to put on a “game face”. I have to be bold and probing, and I admit that I create a psychological atmosphere of what can be called “safe sharing”. I preface questions with little anecdotes that put the subject in a frank frame of mind, I share personal informa- tion that I usually never disclose to encourage my interview subjects to do the same, and finally, I cross lines that I would never even toe outside of an interview space. If my subject happens to be a royal like Abu Jenna, I have to force myself to forget that he is who he is. I have to be a little brazen (okay, a lot brazen), and I really have to force my hand. Why? Because no one wants to read the same old regurgitated PR-friendly quotes. Reader, know that Abu Jenna fields all of my personal intrusions like a champ- he has a great sense of humor, and he’s a good sport. If I was on the receiving end of that barrage of leading questions, I have no qualms telling you that I would’ve been indig- nant, and maybe even a bit offended. Director General of Abu Jenna’s private office, Mustafa Al Ansari, and the aforementioned Alkhosaibi both have expressions of sheer incredulity (and sometimes amusement) during the course of my two-and-half-hour conversation with the Prince. At some point, Al Ansari laughingly tells me that I’m “really pushing it.” The result? An honest and surprising discourse with one of the most private royals in the MENA region. Before I ask you to move past his Prince-hood, I have one (hilarious) royal-related factoid to share. Abu Jenna is a partner in TechnoBuffalo.com, a technology enthusiast website. In 2009, Abu Jenna emailed TechnoBuffalo.com founder Jon Rettinger explaining that he wanted to invest in the Internet startup as a passion project because he “really liked what they were doing.” According to a vlog post by Rettinger, he then “Googled Khaled Alwaleed” and found him to be “a Prince in Saudi Arabia!” Once Rettinger confirmed that this was indeed the Khaled Alwaleed, things moved quickly. Abu Jenna laughs as I comment that this story is very similar to the emails I get from a “Nigerian Prince” who wants to transfer me €40 million as part of some far-fetched inheritance payout. I can only imagine what Rettinger’s face must’ve been like, and I would’ve paid cold, hard cash to be a fly on the wall of his California home that day. TechnoBuffalo.com is laden with in- depth product reviews (some executed in compare and contrast style), and reports both mainstream and obscure tech news. It’s pretty comprehensive, Abu Jenna often tweets their vids from his account (@KhaledAlwaleed), and he says that they’ll be Arabizing their content in the near future. Admittedly, it’s hard to forget that Abu Jenna is the “only son of His Royal Highness Prince AlWaleed bin Talal Al Saud” (something the media loves to drop in any and every mention of him), and instead see him as a man directly managing several enterprises, and sitting on the board of others as the majority shareholder. Before we get into the nitty-gritty of his many different business interests, I tell him that attaching the name of HRH Alwaleed bin Talal Al Saud certainly ups the glam factor of practically anything, and that these frequent mentions of Abu Jenna are often prefaced with HRH Alwaleed bin Talal’s name. Abu Jenna emphatically asserts that essentially all he is today stems from that association: “My success is because of this tie to my father. Inherently, and I am very proud of this, the only success that I will ever have is because of being the son of my father. Honestly, if you step back for a second, the person I am today is because of my father; my success came from my father; my success came from the education my father gave me- it came from the practice I’ve had watching my father do business. I see my father twice a week, three times a week, as much as I can. I have an incredible amount of respect for my father and the success he’s achieved in business. I have an appreciation for all that he’s taught me, but it’s not just business. My father is a wonderful grandfather to my children, and that’s something most people don’t see. Our relationship is obviously much deeper than business.” I read Abu Jenna a quote from a Vanity Fair article stating that HRH Alwaleed bin Talal’s tech investment methodology “favors
DECEMBER 2014 Entrepreneur 21 “Inherently, and I am very proud of this, the only success that I will ever have is because of being the son OF my father.” HRH Prince Khaled bin Alwaleed bin Talal and his father HRH Prince Alwaleed bin Talal in Paris high-growth, high-risk technology companies, which he identifies with the help of a small Riyadh-based investment committee.” The Prince says that while the latter is true, the “high-risk” factor isn’t, and points out that HRH Alwaleed bin Talal’s investments are usually astronomical sums in huge companies, not the startup sort the statement suggests. “My father has given me a lot of advice throughout my business career- that’s not to say I always listened. When I was younger, I was naive and I learned the hard way the consequences of not always heeding my father’s advice. Today I’d like to think I’m wiser; before I make an important business decision, 99% of the time I ask myself, ‘What would my father do?’ and it’s usually the right decision. I’m proud to say that I follow his advice.” Now that we’ve addressed all of that, for the rest of this article don’t see him as a man born to extreme privilege and eye-popping wealth. Instead look at Abu Jenna as a self- induced workaholic, PETA-retweeter, Kurt Cobain style sneaker-wearer, tech-freak who quotes Apple CEO Tim Cook, and who spends his free time at home chilling with his family and playing PlayStation. Oh, and he likes to cook. “There is only one thing I don’t want to talk about,” says Abu Jenna, but I never find out what that one thing is since he answers every question candidly with no hesitation whatsoever (to the consternation of both Alkhoshaibi and Al Ansari). To sate the curiosity of those of you out there who want to know more about the fantastical Internet reports, here are some fast facts: Yes, he’s met Michael Jackson, he is indeed a huge proponent of both the Kingdom and of Islam, and he doesn’t eat meat as >>>
Entrepreneur DECEMBER 2014 22 INNOVATOR “I waited two years before I finally invested in Raimondi Cranes, which we just closed this year. In line with that, you need to do your homework before you make a deal. You need to know a company inside and out, and you need to invest in things that matter- companies that have a solid history, but also a clear vision for the future.” Raimondi Cranes at work building a bridge in Nantes, the south of France. The first of two 2014 European KBW Investments acquisitions, HRH Prince Khaled bin Alwaleed bin Talal became Chairman of the company in January of this year. a remedy to a cholesterol issue (thereby eschewing taking prescrip- tion meds). Now that you’ve had your royal intrigue fix, please consider Abu Jenna as just Abu Jenna, and let’s get down to business. KBW Investments, Abu Jenna’s com- pany, is an umbrella entity that acts as the epicenter of his corporate eco- system. Part of this umbrella is Italian mainstay Raimondi Cranes SpA- the Prince gained control of the company in January of this year amidst heavy publicity. Raimondi, a century and a half old, now supplies cranes to Abu Jenna’s other companies creating a circular chain of business, and he refers to Raimondi as the “jewel” of his portfolio. “The way that Ahmed [Alkhoshaibi] structured the company is very innovative- we can actually compete with the best crane com- panies in the world, and beat them about 30% price-wise. It’s pretty much like the Apple model or the Tesla model; they opened their own stores so there’s no middleman. The region is booming, and we can beat anyone’s quote hands down.” Shortly before this interview took place, KBW Investments acquired a 50% stake in Arcadia Engineering making him the Chairman, and that venture in turn will support Dorra Contracting out of Saudi and Qatar, and Next Generation Parking (NGP), yet another KBW en- deavor. They’re trying to create what Abu Jenna refers to as a “full-fledged bouquet of companies that work well together harmoniously.” Basically, it’s a synergistic-style conglomerate that makes cross-selling easy, and not just in the MENA region. A visit to kbw-investments.com can give you an idea of how many pies the Group now has their hands in. “So if there’s a company that needs cranes, then maybe they need architecture, project management, and maybe construc-
DECEMBER 2014 Entrepreneur 23 HRH Khaled bin Alwaleed bin Talal during the Raimondi Cranes acquisition in Italy Photography by The Factory “The way that Ahmed [Alkhoshaibi] structured the company is very innovative- we can actually compete with the best crane companies in the world, and beat them about 30% price-wise.” Above: HRH Prince Khaled bin Alwaleed bin Talal with Editor-in-Chief Fida Chaaban tion.” An article about KBW Invest- ments in The Wall Street Journal says that they have interests in over 20 companies globally. One of these is KSA-based GT Tech, and Abu Jenna is the Chairman. GT Tech recently partnered with SME-centric Sage Middle East to act as the company’s local partner in the Kingdom. At a press conference to announce the partnership during GITEX Tech Week in Dubai, GT Tech CEO Mohammed Al Mutabagani, who Abu Jenna calls “a dear friend”, and Director and Head of Sage Middle East Keith Fenner both confirmed that they realize the chal- lenges of gaining market share in KSA, and they’ve stressed that both sides were committed to being hands-on with Sage business solution software customers. “We see really expensive enterprise software that doesn’t really add any value, as opposed to what Sage offers which is basically the same thing but at a much better price point. We rocked the boat with Oracle, they’re on their feet in Saudi. We’re getting good traction, and it’s a new deal –only two months old- so we’re just getting started,” says Abu Jenna confidently. KSA is widely considered the hardest MENA market to master, and Abu Jenna admits that old habits die hard: “People get used to a certain product, and they hold on to that product with both hands. It’s very hard to come into the market, but we see the value with the prices that we’re offering- we’re at least 65% to 75% cheaper than any other leading enterprise software company. Market penetration is going to be very slow, it’s going to take a long time. I believe that Oracle is [in] the lead, you have SAP and HP, Microsoft in the third and fourth, and we’re a distant fifth.” At this juncture, I ask Abu Jenna if it’s actually possible that Sage’s ‘Ajanib’ will make on- the-ground progress in the Kingdom. He explains that before signing with Sage, it was stipulated that their people had to be on the ground along- side GT Tech’s Saudi staff, and that having “the Saudi front, and the sup- port from the ‘Ajanib’ so to speak is definitely as added-value- they know their products and they’ve all worked in the company for years.” Abu Jenna asserts that dedication to the Kingdom across all levels is integral to gaining ground: “I hear about people who live in Dubai, but come to Saudi. That’s a bunch of B.S.- if you work in Saudi, you live in Saudi, and you give me 100%. I don’t deal very well with people like that honestly. There are a few people, full-time employees of Sage, who are in Saudi all of the time.” Another tech venture of Abu Jenna’s “started in 2004 when I invested in MISC, Mobile Innovative Solutions Company. Back before there were smartphones, people relied on SMS services, and we started a company around that. It’s outdated now, but we were very successful. Now you have push notifications, you have Twitter, so it’s outdated. We can see our financials tapering off slowly, but there are people who still use it -sur- prisingly and sadly- since I invested in this company, but I’d rather see more people deal with smarter phones and be more connected.” Technology as a solution to societal ills is a topic that Abu Jenna warms to, and we touch on how it facilitates areas like citizen journalism, how social media rectifies what he calls the “distor- tion” between the mainstream media and reality, and even how tech and entrepreneurship could be a potential answer to conflict zones. “If you have more ways to infuse studied, positive risk for people, it will create more op- portunities [in the Middle East]. >>>
Entrepreneur DECEMBER 2014 24 INNOVATOR “VCs act like banks here- they’re not looking into investing in people and in the ideas. They’re looking to protect their money and getting a high rate of return with as much collateral as possible.” Photography by The Factory It will reduce all the other garbage they’re doing. Starting your own business is a positive trickle-down effect; you’re feeding your family, you’re contributing to the economy, and you’re employing people. I call for their governments to give people op- portunity to let their curative minds thrive, and focus a lot more on inno- vation- [startup accelerator] Gaza Sky Geeks is a fantastic chance for people to start something and do something from zero.” Abu Jenna singles out Jor- dan’s Oasis500 as a force of good, and he’s toured ArabNet Riyadh for the past three years getting a glimpse of some of the participating startups. As far as money goes, he agrees with the somewhat unpopular industry-insider opinion that venture capital in MENA isn’t real VC. “VCs act like banks here- they’re not looking into investing in people and in the ideas. They’re look- ing to protect their money and getting a high rate of return with as much collateral as possible. That’s not VC.” While he admits that the bulk of the region’s business is in the Kingdom, he says UAE has undeniable commer- cial benefits like ease of starting up, a fact supported by the 2013 Doing Business report co-published annually by The World Bank and the Inter- national Finance Corporation (IFC). “One of the main reasons I chose Dubai is the simplicity of transacting business here, the simplicity of creat- ing companies, and the legitimacy that Dubai, DIFC, and the government give to any business that’s headquartered here. Honestly, with the vision of Sheikh Mohammed bin Rashid [Al Maktoum], and President Khalifa [bin Zayed Al Nahyan] and Sheikh Mo- hammed bin Zayed [Al Nahyan], it’s one of the most active and attractive places to come into the region and do business in the region. We’re not just focused on Dubai, we’re doing a lot in Abu Dhabi that we’ll be announcing in 2015. We’ve been very warmly wel- comed in Dubai: Sheikh Mohammed bin Rashid who I’ve met a few times, and Sheikh Hamdan bin Mohammed bin Rashid [Al Maktoum], and Sheikh Tahnoon [bin Mohammed Al Nahyan], and Sheikh Hazza [bin Zayed bin Sultan Al Nahyan] of course who have all been very supportive.” Abu Jenna doesn’t expand upon their plans for work in Abu Dhabi going forward, but he does say that he’s “interested” in hydroponics and sustainability, mentioning another KBW entity that trades in energy-saving LED lighting for their construction projects. Abu Jenna, in his capacity as Chair- man of Levant Capital, was also a part of the deal that saw the private equity outfit and Citigroup’s VC segment gain a $US100 million stake in Al-Raya For Foodstuff Co Ltd., operators of a popular KSA supermarket chain in February 2012. “That year, it was one of the largest acquisitions. It took about a year and a half to two years; it shouldn’t have taken that long, but dealing with certain partners sometimes is very difficult. When you’re nickel-and-diming, it’s really tough when you’re talking about big numbers.” He seems to relish all types of quick progress, be it in a M&A deal or when talking about infrastructural improvements. Where does he see positive change happening? Abu Jen- na has high praise for Saudi Arabian Minister of Ministry of Commerce and Industry, H.E. Dr. Tawfiq bin Fawzan Al Rabiah for his work: “He’s doing an amazing job! One of the youngest appointed to the Ministry, and you see his blood, his mindset, his younger-
DECEMBER 2014 Entrepreneur 25 “It’s a relationship not unlike many fathers and sons, the same dynamics are there. What’s different is that we also do business together. So not only is he my father, but my mentor in business and also in philanthropy. We’re very open when we talk to each other, there are not the formal boundaries you sometimes see in this part of the world. That sense of openness has enabled me to learn a lot from him.” Below: KBW Investments and Arcadia Engineering signing ceremony in Dubai, UAE in November 2014. HRH Prince Khaled bin Alwaleed bin Talal with Florin Nistor Chinole, founder and partner of Arcadia Engineering. KBW’s 50% acquisition of the company, currently operating in Romania and Brazil, will facilitate expansion into Qatar, Saudi Arabia, and UAE. generation style of thinking, so you’re seeing a lot of transformation in the Ministry of Commerce. And that will translate into giving SMEs and startups and VCs a start in the region. However, you can’t start in one min- isterial sector, it actually has to be a fundamental change, and adopted by other ministries. So you have the Jus- tice and Labor Ministries, these three main ministries, that need to work together to create an SME foundation and an entrepreneurial ecosystem.” From here we discuss the evolution of MENA’s education approach, and also how the region is currently attempting to shift into staffing senior ranks with GCC Nationals, country by country. In terms of Saudization and Emiratiza- tion, he gives the example of Dubai. “Look at the heads of the largest insti- tutions, you have very smart, shrewd businesspeople- foreigners with fine educations running the companies. But right under them, you have Emi- ratis. With all due respect, they [the foreigners] won’t be there for very long- 10 years from now, I guarantee you that you won’t see a lot of foreign- ers heading [UAE] companies. The vi- sion of Sheikh Mohammed bin Rashid is definitely to have Emiratis running things.” Abu Jenna doesn’t think that Saudization should be enforced as a blanket policy per se, but rather adapted sector by sector, and he firmly believes in accountability structures put in place to ensure that if a Saudi isn’t delivering then he or she can be pink-slipped just like everyone else. “I’m for Saudization, and I’m for see- ing Saudis everywhere working, but I want fairness, so if someone isn’t doing their job they should be able to get fired.” He estimates that about 40% of his overall staff are Saudi Na- tionals, and he refuses to hire just to fill a quota- if they don’t demonstrate the necessary skillset, they simply don’t get a position at KBW. He’s not a fan of “yes-men”, and stresses that in the past those same yes-men have led to failure; his current team are encouraged to contradict him and to put the brakes on things when the necessary due diligence hasn’t been done to their comfort. That said, some business mentions of Abu Jenna have become overly-personal, and because of that, “everything now goes through me” in addition to vetting by his team. I didn’t ask Abu Jenna the business- man what it’s like to be Prince Khaled bin Alwaleed bin Talal the royal because they’d become very separate people in my head, but I did ask him what it’s like to have a great many people who assume he doesn’t actu- ally work at his namesake company. “I know that people think that, and I don’t care what people think, hon- estly. About eight years ago, I stopped caring about what people said, and it’s given me more time to focus on my family and my personal life, and my work.” Abu Jenna’s dual identi- ties require very different strategies working in parallel, and to make business a priority that’s the way he’s going to keep it. “It is a high pressure position: the natural continuation of Alwaleed’s legacy is a lot of responsi- bility, and I will never forget that it’s a privilege. I’d like to think that my father has been preparing me since I was born to understand what that responsibility means and entails.” Like father, like son.
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Entrepreneur DECEMBER 2014 28 The Entrepreneurial Continuum in Perspective Industry Intel event An Entrepreneur DECEMBER 2014 28 E ntrepreneurs from all over the MENA region came together at the Jumeirah Beach Hotel on November 4, 2014 for the first Enterprise Agility Forum, which featured some of the best minds in the region’s busi- ness arena sharing their insights with the 300 participants that attended the half day conference. Presented by du, the Enterprise Agility Forum, the inaugural event held un- der the Entrepreneur Middle East Industry Intel banner, began with keynote speaker H.H. Sheikh Maktoum Hasher Al Maktoum, Executive Chairman, SHUAA Capital, who took to the stage to highlight the important role SMEs play in the UAE and the wider Middle East region. According to Sheikh Maktoum, SMEs are responsible for 80% of all employment in the UAE. In his ad- dress, Sheikh Maktoum also shared his tips for entrepreneurs in the region to guaran- tee their success. “When you choose to be an entrepreneur, you choose to sacrifice time you would otherwise spend [on other activities]; you would put all your money in your business,” he said. “Being a successful entrepreneur is a zero-sum game: you’re either all in, or you’re all out.” Sheikh Maktoum’s address set the tone for the three panel discussions planned for the day, which focused on the various challenges that SMEs face in the UAE. The first of the Talking Series looked into the types of capital injection strategies that Dubai SMEs have at their disposal, which had as its panelists Imad Ghan- dour, co-founder and Managing Director, CedarBridge, Ludmila Yamalova, founder and manager, HPL Yamalova & Plewka Legal Consultants, Vikram Shroff, Director, Regal Group, and Ahmed Al Mheiri, Execu- tive Director of Business Development and Enterprise Agility Forum 2014
DECEMBER 2014 Entrepreneur 29 DECEMBER 2014 Entrepreneur 29 GOLD ALLY GOLD ALLY WITH THE SUPPORT OF SILVER ALLY SILVER ALLY SILVER ALLY Property Management, twofour54. Yogesh Mehta, Managing Director of Petrochem Middle East, then spoke at the event as the Voice of Entrepreneurship, in which he discussed his own career as an entrepre- neur and his path to success in the region. “Success comes from great motivation, good discipline, and an intrinsic belief in yourself,” Mehta said. “It’s all about yourself, actually- how you rate yourself, what do you do with yourself, how do you deal with yourself.” The second discussion of the day looked into the feasibility of setting up an AIM-like exchange in Dubai, and the benefits it could bring to SMEs in the region. Experts debating this topic included Ziad Makhzoumi, Group CEO, Fakih IVF, Wassim Mourtada, founder and Managing Director, CrystalPoint Partners, Hans Henrik Christensen, Managing Direc- tor, Silicon Oasis Founders, and Alexandar Williams, Director of strategy and policy, Dubai SME. Ambareen Musa, founder and CEO, SouqAlMal.com, then joined Makhzoumi, Mourtada and Ghandour on the stage to analyze the reasons behind the lack of interest shown by large-scale busi- nesses to develop strategic alliances with MENA-based SMEs, and ways in which startups can try to bridge this divide. Speaking about her own experience build- ing her brand, Musa said, “We had to forge our credibility on our own… The trick to building relationships is to be proactive- show them what you can do for them.” The Enterprise Agility Forum presented by du was conducted with the support of Dubai Chamber of Commerce, Gold Allies Skyline University College and Drake & Scull International, and Silver Allies Bayt.com, Talabat.com, and Raging Tiger. Enterprise Agility Forum 2014 panelists, left to right: Mr. Alexandar Williams, Director of Strategy and Policy, Dubai SME, Mr. Wassim Mourtada, Managing Director and founder, CrystalPoint Partners, Mr. Ziad Makhzoumi, Group CEO, Fakih IVF, Mr. Hans Henrik Christensen, Director of DSOA, Managing Director Silicon Oasis Founders.
Entrepreneur DECEMBER 2014 30 Business learning curves Ten things that SMEs should know about entrepreneurship By Soukaina Rachidi According to the panelists, success is very rare and usually preceded by many failures. however, it’s important for entrepreneurs to understand why they have failed, in order to be able to modify their business plan and head in a new direction. Mr. Yogesh Mehta, Managing Director of Petrochem Middle East Enterprise Agility Forum 2014 The Entrepreneurial Continuum in Perspective Industry Intel event An I had the great fortune of representing Melltoo at Entrepreneur Middle East’s Enterprise Agility Forum, where some of Dubai’s most prominent business leaders came together to talk about SMEs in the GCC. It was fascinating to hear these leaders talk about their experiences and views on the challenges and benefits of SMEs in the region’s financial ecosystem. After listening to the panelists speak, I came up with the following summary of 10 things that I think all SMEs should know about entrepreneurship. 1. Failing does not make you a failure The topic of failure came up repeatedly throughout this event. According to the panel- ists, success is very rare and usually preceded by many failures. However, it’s impor- tant for entrepreneurs to un- derstand why they have failed, in order to be able to modify their business plan and head in a new direction. Having said that, while there is no shame in failing, there are some very serious ramifications for UAE-based entrepreneurs who are unable to repay loans taken out from Emirati banks. Consequently, Imad Ghandour, co-founder and Managing Di- rector of CedarBridge and co- founder of the MENA Private Equity Association, advised all SMEs in the UAE to include a budget for unforeseen financial emergencies to avoid such le- gal penalties. SMEs shouldn’t think of their failures as the end of their entrepreneurial journey, they should think of them as teachable moments that propel your business in a better direction. 2. You’re never too small to fail Some people feel that big cor- porations think that they’re “too big to fail”, but is it pos- sible that SMEs have adopted the same attitude? While it is true that the UAE’s business ecosystem isn’t completely ready to accommodate the legal and financial needs of the growing number of SMEs in the country, that doesn’t necessarily mean that they should always receive special treatment. At the end of the day, a business is a business, no matter how big or small. If entrepreneurs are unwilling or unable to deal with the ob- stacles that come with entre- preneurship, they might want to consider a career change. 3. Not all ideas are good business ideas Not all good business ideas are complicated, and not all complicated business ideas are good. Yogesh Mehta, the Man- aging Director of Petrochem Middle East, put it best when he said that an entrepreneur is someone who adds value to a community with a service or social good. If the business you plan to launch doesn’t bring a new idea, or a fresh perspective on an existing one, I
DECEMBER 2014 Entrepreneur 31 then it is unlikely to succeed. Understanding the needs of your community and local businesses is a key part of be- ing a successful entrepreneur. If there is no need for your product/service, real or artifi- cial, then it’s probably not the best business idea to pursue. 4. Learn about success from successful people According to Vikram Shroff, Director of Regal Group and President of the UAE Chapter of the Entrepreneurs’ Organization, the best way to learn about business success is to associate yourself with successful people. While many SMEs devote a large part of their time network- ing for investment purposes, more entrepreneurs need to pursue the real wealth that the world’s business giants have to offer and that is experience. Not every businessperson is willing to invest in an SME, but there are many who are willing to offer advice or contacts that may be just as important as a capital injec- tion. Although there is no dollar value for mentorship, it is priceless for SMEs, because they can learn valuable les- sons from the successes of the corporate world, all the while circumventing their costly failures. 5. Build your credibility through actions not words Building credibility can be very difficult for SMEs, especially in the UAE, since they don’t have the same access to resources that more established companies do. Ironically, many of the resources that entrepreneurs need to grow to establish their credibility, such as loans from banks, capital injections etc., are not easily available because they don’t have cred- ibility. How can entrepreneurs in the UAE break this cycle? According to Ambareen Musa, CEO of Souqalmal, a big part of building credibility in the business world relies on the way that entrepreneurs have used previous rounds of funding from investors. If an SME has a history of poor cash flow management, VCs and banks will be hesitant to invest in them. For many entrepreneurs, establishing their credibility becomes an exercise in creativity, as they are unable to take advantage of the same resources that bigger companies do. However, as long as SMEs demonstrate responsible cash flow manage- ment, entrepreneurial tenacity and continuous growth, their credibility can be established quite organically. 6. Plan and manage your cash flow carefully One of the biggest problems that entrepreneurs face according to Alexandar Wil- liams, Director of Strategy and Policy at Dubai SME, are cash flow issues. Overzealous spending and bloated business costs are common causes for failure among entrepreneurs, however these issues are usually symptoms of a bigger problem: poor planning. Plan- ning is an integral part of be- ing successful in the business world, regardless of whether you are the CEO of a multi-bil- lion dollar company or a little enterprise. Understanding the costs of launching, maintain- ing and expanding a company is essential, especially when SMEs are in the process of estimating how much fund- ing they will need, because it allows them to pinpoint how many investors they need to secure in order to move for- ward with their business plan. 7. Understand your business culture Another issue that is often neglected when it comes to getting funding from investors is the need to understand the culture of investment where a business is based. Every country has a different business culture, value and pace. For example, if an entrepreneur is a part of the “Insh’Allah” business culture, then they want to make sure that they manage their cash flow in such a way that allows them to accommodate the potential capital delays that come with the “Insh’Allah” business mentality. By understanding the cultural context of investors, SMEs can ultimately plan their cash flow more effectively, thus creating a financial buffer for any issues that may arise while they are waiting for their next capital injection. Being in tune with local business culture can also help SMEs network and establish credibility more quickly, which will ultimately allow entrepreneurs more access to resources that will help them grow in their local market. 8. Entrepreneurship is more than a theory Ziad Makhzoumi, Group CEO of Fakih IVF, put it best when he said that “entrepreneurship is a spirit, an attitude, not a theory.” When it comes to business, nothing can beat the real experience, even an Ivy an entrepreneur is someone who adds value to a community with a service or social good. If the business you plan to launch doesn’t bring a new idea, or a fresh perspective on an existing one, then it is unlikely to succeed. According to Vikram Shroff, Director of Regal Group and President of the UAE Chapter of the Entrepreneurs’ Organization, the best way to learn about business success is to associate yourself with successful people. Mr. Wassim Mourtada, Managing Director and founder, CrystalPoint Partners Ms. Fida Chaaban, Editor-in-Chief, Entrepreneur Middle East and Entrepreneur Qatar Above, left to right: Mr. Imad Ghandour, Managing Director and co-founder, CedarBridge, Mr. Ziad Makhzoumi, Group CEO, Fakih IVF, Ms. Ambareen Musa, CEO and founder, Souqalmal.com
Entrepreneur DECEMBER 2014 32 League education. While it is important for entrepreneurs to understand the theories and mechanics of business, these theories can never replace the invaluable experience that an entrepreneur gains “working on the ground.” In a world where technology is pervasive in every aspect of life, it’s important for entrepreneurs to understand how quickly the internet and globalization are causing the theories they have learned to be obsolete. The rules of the “game” are changing daily, and the suc- cessful entrepreneurs are not the most pedantic, they’re the ones who are willing to throw out the rule book and go against their theoretical knowledge when a new or a better way of doing something comes about. 9. Sacrifice is the name of the game If you’re unwilling to pour all your heart and resources into your business, then perhaps entrepreneurship is not for you. During the forum, H.H. Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital, discussed entrepreneurs considering business vs. money. When an entrepreneur’s efforts are based on growth rather than profit margins, it becomes much easier for them to make material sacrifices to achieve the success that they strive for. After all, what’s the point of driving a Mercedes if your business is in the red? Being an entrepreneur doesn’t mean that a person has to give up all of their creature comforts. However, if pursuing a lavish lifestyle becomes more important to an entrepreneur than investing in their business, they are unlikely to become successful. 10. Investing in quality human capital is essential The UAE’s business ecosystem is a very interesting place because it attracts the best and the brightest professionals of every field from all around the world. That being said, the price tag for these professionals isn’t always cheap, but should that stop SMEs from hiring the best? Not necessarily. SMEs need to look at quality employees as a long-term investment, because their individual experience will add immeasurable value to a company’s day to day operations. While many entrepreneurs complain about their inability to offer attractive salaries to experienced professionals, they are forgetting one crucial point. High salaries aren’t the only way to attract talented professionals. Entrepreneurs can also use various incentives including commissions, end of year bonuses, equity, and so on to attract and retain talent. Enterprise Agility Forum 2014 The Entrepreneurial Continuum in Perspective Industry Intel event An When an entrepreneur’s efforts are based on growth rather than profit margins, it becomes much easier for them to make material sacrifices to achieve the success that they strive for. While public market conditions are challenging at present, it doesn’t mean that the market is closed or that time shouldn’t be spent preparing to float when the markets are more active. His Highness Sheikh Maktoum Hasher Al Maktoum, Executive Chairman, SHUAA Capital Mr. Wissam Younane and Mr. Rabih Najm, Directors, BNC Publishing
DECEMBER 2014 Entrepreneur 33 His Highness Sheikh Maktoum Hasher Al Maktoum, Executive Chairman, SHUAA Capital Ms. Ambareen Musa, CEO and founder, Souqalmal.com Ms. Ludmila Yamalova, Manager and founder, HPL Yamalova & Plewka Legal Consultants Mr. Ahmed Al Mheiri, Executive Director of Business Development and Property Management, twofour54 Mr. Imad Ghandour, Managing Director and co-founder, CedarBridge Mr. Vikram Shroff, Director, Regal Group
Entrepreneur DECEMBER 2014 34 Enterprise Agility Awards 2014 with the support of SILVER ALLY GOLD ALLY Entrepreneur DECEMBER 2014 34
DECEMBER 2014 Entrepreneur 35 BNC Publishing Director Mr. Wissam Younane O n the occasion of the first annual pan- Arab Enterprise Agility Awards, BNC Publishing, as part of the Entrepreneur MENA franchise, awarded businesses across multiple categories on November 4th, 2014 at the Jumeirah Beach Hotel in Dubai, United Arab Emirates. The relevant Enter- prise Agility Achievers have established themselves as clear industry innovators who have made significant con- tributions to the Middle East business arena, and set the benchmark for corporations operating across the region. A total of 19 awards were presented, with all of the winners having set them- selves apart from their peers in the region by showcasing a commitment to excellence and thereby raising the bar of their respective industries. With the “Green Sheikh” H.H. Abdul Aziz bin Ali Al Nuaimi as the chief guest for the evening’s proceedings, the ceremony began with a welcome address by Mr. Ziad Makhzoumi, Fakih IVF Group CEO. On behalf of Entre- preneur Middle East, Mr. Wissam Younane, Director of BNC Publishing, addressed the assembly, lauding the entrepreneurial spirit of the business leaders present: “Every entrepreneur envi- sions the pinnacle of industry achievement. Every CEO, you the CEOs in attendance here tonight, see your respective companies setting a fresh sector level of business acu- men. Well you have, and we at Entrepreneur MENA applaud you, and we will continue to shed light on the commer- cial dexterity that you have applied to make your specific industries stand up and take notice and yes, emulate your exceptional work. Through Entrepreneur MENA’s medi- ums, print, web and social media, we act as the vehicle to convey these bold business tactics to the right audience- entrepreneurs and individuals across all levels of industry, so that they too can feel the rush of commercial victory.” In closing, Younane discussed his own experiences as a “fresh out of the gate entre- preneur”, commended the Agility Achievers for setting an example for MENA’s busi- ness community, and thanked BNC Publishing commercial partners for their continuous support. The 2014 Enterprise Agility Achievers with the “Green Sheikh” H.H. Abdul Aziz bin Ali Al Nuaimi DECEMBER 2014 Entrepreneur 35
Entrepreneur DECEMBER 2014 36 Entrepreneur DECEMBER 2014 36 Lifetime Achievement Yusuffali M.A. Emerging Emirati Entrepreneur Randa El Himyari Retail Paris Gallery Group of Companies Islamic Bank of the Year Dubai Islamic Bank SME Banking Agility Achiever First Gulf Bank Startup of the Year Jawabkom Construction Agility Achiever Drake & Scull Energy Agility Achiever DOW Legal Agility Achiever Al Naqeeb & Partners Human Capital Development EUROTECH International Healthcare Agility Achiever Burjeel Group VPS Real Estate Agility Achiever Asteco Property Management Education Agility Achiever Skyline University College Fastest Growth SellAnyCar Property Agility Achiever Portal PropertyFinder E-commerce Agility Achiever Mini Exchange Transport Solution Carpool Arabia Digital Campaign Integration Brndstr Entrepreneur of the Year Bader Al-Darwish Dubai Islamic Bank CEO Dr. Adnan Chilwan Paris Gallery Group of Companies CEO Mr. Mohammed Abdul Rahim Al Fahim BNC Publishing Director Mr. Rabih Najm Enterprise Agility Awards 2014
DECEMBER 2014 Entrepreneur 37 DECEMBER 2014 Entrepreneur 37 Potential Nursery founder Ms. Randa El Himyari First Gulf Bank Head of Business Solutions Mr. Sai Aroor Master of Ceremonies Mr. Stephen Marney
Entrepreneur DECEMBER 2014 38 Entrepreneur DECEMBER 2014 38 Dow Commercial Leader for Oil and Gas Middle East and Africa Mr. Adriano Gentilucci Asteco Property Management Managing Director Mr. John Stevens Al Naqeeb & Partners Managing Partner Ms. Faten Al Naqeeb Ms. Fida Chaaban, Editor-in-Chief, Entrepreneur Middle East and Entrepreneur Qatar BNC Publishing Sales Director Oliver Amos Enterprise Agility Awards 2014
DECEMBER 2014 Entrepreneur 39 DECEMBER 2014 Entrepreneur 39 Jawabkom co-founder and CEO Mr. Raed Malhas Drake & Scull International Chief Financial Officer Mr. Mukhtar Safi Mr. Walid Zok, Managing Director, BNC Publishing
Entrepreneur DECEMBER 2014 40 Entrepreneur DECEMBER 2014 40 Mini Exchange founder and CEO Ms. Sarah Appleton VPS Healthcare Managing Director Dr. Shamsheer Vayalil EUROTECH International CEO Mr. Fady Jawad Brndstr founder and CEO Mr. Simon Hudson Enterprise Agility Awards 2014
DECEMBER 2014 Entrepreneur 41 DECEMBER 2014 Entrepreneur 41 SellAnyCar founder and CEO Mr. Saygin Yalcin Carpool Arabia founder Mr. Benjamin de Terssac PropertyFinder founder and CEO Mr. Michael Lahyani Skyline University College Director & Chair of the Executive Council Mr. Nitin Anand accepting on behalf of Dr. Kamal Puri Founder, President and Chairman Mr. Ziad Makhzoumi, Group CEO, Fakih IVF
Entrepreneur DECEMBER 2014 42 Tamara Bullock, Managing Director, Grayling Northern Gulf Five foundations of business development for entrepreneurs By Tamara Bullock Animating your commercial presence TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO T he best feeling in busi- ness is when you start your own company, develop it to the size that suits your own needs and make oth- ers believe in its success just like you do. I cannot exactly call myself an entrepreneur but after developing two markets for Grayling from scratch -Serbia and Qatar- I can certainly claim to know a humble bit about being entrepreneurial. Concept, financing, business plan- they all matter and are a condition sine qua non for a successful self-created business. How- ever, what gives us a drive to develop and expand business is its good reputation on the market. Here are a few, hope- fully useful, recommendations on how to build a positive reputation in a competitive business environment: 1. Introduce communication and marketing as a core business function It is never too early to make this step in the process of the business establishment. Marketing your business and its products or services is equally important as actually delivering them to end users. At the beginning your business will be one of many- the end goal is to become the best of many. 2. Seek expert advice Understandably so, your budgets are minimal, but bad communications or market- ing advice could be far more expensive than the right strategic advice given by a communications professional who has done it before. The scale of tactical communica- tion projects should and can be determined by your budget and the envisaged scale of business. 3. Choose the right people to work with and keep them involved Good reputation comes from within. As one of the pioneers of entrepreneurship, YouTube co-founder Chad Hurley said recently in Doha that the right team with a similar ambition and work ethics is a key to a successful startup. However, such a team will only follow your business idea if they are fully engaged in its evolution, and if they have the ability to convey the business message to external stakeholders with the same passion that you do. 4. Talk to customers and other stakeholders in a transparent and honest fashion In desire to sell the product or service we all tend to over- promise and extend the reach of our offering beyond what’s possible. If you are employing three people, refrain from presenting the virtual team of 15 people. That mathematics could sound impressive during the first presentation but is not helpful or sustainable on a long run. And remember, each private business is not a sprint, but rather a marathon.
DECEMBER 2014 Entrepreneur 43 SWEDEN SANS SCREENSHOT © soderhavet.com Sweden commissions its own font Typography taking over It’s very important to be clear about the composition of the statement that describes your core business. In communications and PR business we call that the “key message”. It should be simple and understandable to your senior family members. 5. Staying on-message It’s very important to be clear about the composition of the statement that describes your core business. In communica- tions and PR business we call that the “key message”. It should be simple and understandable to your senior family members. Only if that is the case, then you can be sure that your message is the right one, and when it is repeated in a consistent manner it will penetrate down to right audiences. Remember, the key message is a repetitive category, and the goal is for it to stick with stakeholders. At the end of the day, it is all about your own passion for your startup and how you project it on others. Communication brings your business to life, it shapes its reputation, and affects your employees, customers, and regu- lators. Online or offline (through traditional media channels), it is simply a constituent part of your business plan. Tamara Bullock is the Managing Director of Grayling Northern Gulf. One of Grayling’s most experienced and senior public rela- tions and public affairs consultants in the Middle East, Bullock started her career as a journalist. Between 2002 and 2007, Tamara has managed Grayling’s offices in Russia, Serbia, Croatia and Slovenia, serving as a C-suite corporate communications and public affairs advisor to major multinational companies including Coca Cola, Tetra Pak, Holcim, IBM, Samsung, SAP, Visa Inc. and others. In 2007 and 2008, she served as Communications Advisor to Serbia’s Deputy Prime Minister, Bozidar Djelic, re- sponsible for the country’s European Union integrations and financial regulatory reform. On behalf of the Cabinet, she acted as a Spokesperson and oversaw relationships with leading domestic and foreign media. In 2011, Bullock rejoined Grayling at the helm of its Qatar operation with responsibility for Bahrain and Kuwait as well. During the past three years she was a lead consultant at the Qatar Foundation, director of the opening campaign for the Hamad International Airport and is a Board member of the American Chamber of Commerce in Qatar. I t’s just an accepted fact: Comic Sans is cringe-worthy, while Helvetica is consid- ered alright. Typefaces are a big deal in personifying an identity for a company, a brand, and hey… even a country. Sweden has commissioned Stockholm design agency Söderhavet to create the Sweden Sans font. According to Söderhavet’s website, the “nation branding” project was developed to “replace the fragmented identities of Sweden” with a consistent brand identity that would represent the country’s international promotions. Designed by font designer Stefan Hattenbach, the font was created with the purpose that it would be individual yet still work well with other typefaces, as well as capture Scandinavian concepts (Matter). Inspired by the flag and vintage Swedish signs (Daily Mail), the font was designed as a “classic sans serif with a Scandinavian heritage” and will appear on government ministries and agencies. Sweden is being lavished with nationalist love these days- star foot- baller Zlatan Ibrahimovic narrates the national anthem in a car commercial with a “Made By Sweden” tagline.
Entrepreneur DECEMBER 2014 44 T he number of millennials, or those born between 1980 and 2000, is on the rise in every industry in the Middle East. If your company isn’t actively re- cruiting and developing these young talents, then it will soon begin to do so as recent studies have estimated that millennials will comprise half of the global workforce as early as 2015. By 2025, millennials will make up 75% of all workers. But as the number of millennials entering the workforce is increasing, so is unemploy- ment. In fact, unemployment in the Middle East and North Africa (MENA) region –a predominantly young place– has become the highest in the world, and it is largely a youth phenomenon. The share of youth (ages 15 to 24) in total unemployment at least doubles the total rate. Moreover, at about 25%, the youth unemployment rate in the MENA ex- ceeds that of any other region in the world. Understanding MENA Millennials Millennials who are about to enter the MENA workforce will fundamentally change how business is conducted in the future. HR practices and policies designed to attract, develop and retain this vast cohort must change in order to reflect this generation’s work (and life) expectations. By all accounts, millennials are unlike preceding generations. They view the world differently and have redefined the meaning of success, person- ally and professionally. In fact, the February 2014 Bayt.com Millennials in the MENA sur- vey, shows that the top three priorities for Millennials in the MENA are: financial sta- bility and independence (78%), good health (76%), and a successful career (76%). They find the rising cost of living (59%), the lack of financial stability (57%) and the lack of work-life balance (47%) to be the main causes of stress in their daily life. A misinterpretation of the priorities of Mil- lennials in the MENA has led to a misunder- standing among the different generations co- existing in today’s workplace. For example, only 29% of those aged 35 and above feel that they can learn a lot from their younger colleagues, compared to 58% of millenni- als who feel they have much to learn from their older colleagues. On the other hand, a whopping 75% of millennials believe older colleagues do not take full advantage of tech- nology available, compared to 61% of older professionals who think the same about millennials at their workplace. However, today, business leaders are increasingly realizing the Millennial genera- tion’s unique abilities and perspective, and employers are looking for ways to harness their strengths. Adjusting to the Needs of Millennial Talent Despite the challenges millennials experi- ence in today’s job market, the bad times will not hamper this generation’s optimism. Among the young adults surveyed in the Bayt.com Millennials in the MENA survey, 91% said they are comfortable working with older generations, while 78% would be will- ing to sacrifice their personal life in order to further their career. When asked what com- promises they would make for a better salary and perks, 74% would move to another country, 61% would work longer hours, and 57% would live away from their family. However, young adults are concerned about their future career prospects. A third (32%) of millennials responding to the Bayt.com Millennials in the MENA survey said there was a disconnect between their education and current job profile, while 28% confirmed a lack of relevant training, a number that could reflect millennials’ awareness of the fast-paced change inherent Generation GAP Millennials in the Middle East How to understand, foster leadership, and manage your new workforce By Suhail Al-Masri TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO charts © bayt.comv
DECEMBER 2014 Entrepreneur 45 in a knowledge economy. In addition, the survey reflected an increased level of vulner- ability among young adults; 42% suffer from a lack of financial support, 28% feel they do not have the experience required to succeed professionally, while the majority (62%) still rely on income from their family as sup- plementary income. When asked about what would make them change sectors, the majority (52%) would leave their sector for more opportunities to learn on the job, 46% chose more opportu- nities for career growth, while 42% would move jobs for a better salary. Millennials, then, feel vulnerable about their immediate employability and are deeply concerned whether they have the training and skills needed to compete in the long-run. They also want better prospects for professional development and a higher salary. With this in mind and understanding what millennials are looking for from their em- ployers, here are a few steps you can take to attract, develop and retain the best talents among this new generation: Step one Attracting Millennials in the Middle East When trying to attract millennials to your organization, make sure to communicate what the organization does to engage work- ers. Let them know about the organization’s culture, open communication policy, flexible work schedules, training and develop- ment opportunities, etc. Companies are increasingly using technology to deliver this information through video streaming on recruiting websites. Employees are often featured in the videos, letting prospective employees walk with them through their day as they explain how the organizational culture fits with their job. Technology and e-learning opportunities can also be used in onboarding and cross-training programs. According to the Bayt.com Millennials in the MENA survey, a good work-life balance emerges as an important factor for encour- aging loyalty within an organization. Having friends at work is also seen as an important loyalty factor to millennials in the region. It may also be time to consider millennials’ compensation needs. In terms of perks and benefits, millennials in the Middle East are mostly looking for annual/regular bonus (69%), health and medical insurance cover- age for family (61%), housing allowance (57%), and health and medical insurance coverage for self (42%). Compensation packages slightly above industry averages can provide your organiza- tion with a recruitment edge in attracting the best and brightest of the millennial generation. Step two Developing Millennials in the Middle East In addition to the steps taken to attract millennials, here are some tips on how to de- velop millennials into leadership roles: de- velop initiatives that foster mutual support and understanding among the generations. Training on intergenerational dynamics will help build rapport and a stronger sense of community. For millennials, offer soft-skills training like how to assimilate into a new workplace culture, how to work with team members assertively and diplomatically, how to process feedback, how to approach a supervisor for coaching and mentoring, and how to set long-term career goals. Other measures include fostering an ap- preciation of diversity within the organiza- tion. This will help all generations avoid the stereotyping that gets in the way of valuing the skills sets of each employee. These kinds of leadership development opportunities will not only help minimize the mispercep- tions that arise among generations, but will also help prepare the Millennial generation to assume leadership roles when older gen- erations begin to leave the workplace. Step three Retaining Millennials in the Middle East Open and honest communication is highly valued by millennials and they expect it from their leaders, so when focusing on creating a comfortable culture, consider not just the formal surroundings but also the nature and tone of organizational communication. Cre- ating an organizational culture that is flex- ible and relaxed, has open communication, encourages sharing and innovation and offers flexibility is a good step to keeping millenni- als engaged. Millennials want fun and a less formal atmosphere may help foster it. As we saw previously, millennials place a high value on having training and develop- ment opportunities available through their employers and want to acquire new skills and abilities to remain competitive, so it is now more important than ever to reinstate your training budgets. Training and develop- ment opportunities can include on-the-job training, coaching and mentoring. Some organizations have taken coaching and men- toring a step further by instituting reverse mentoring programs, which allow millennials to share their technological knowledge with other generations in the workplace. Suhail Al-Masri is the VP of Sales at Bayt.com. Al-Masri has more than 20 years of experience in sales leadership, consultative sales, account management, marketing management, and opera- tions management. His mission at Bayt.com goes in line with the company’s mission to empower people with the tools and knowledge to build their lifestyles of choice.
Entrepreneur DECEMBER 2014 46 TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX Picture perfect? Instagram launches ads for Canadian users CurrentC bands together to protect e-commerce clients American retailers unite against Apple Pay | MOBILE TECH | | THE FIX | Get ready, get set, go! Lexus Gets Drone-Friendly in the UAE | geek | LEXUS UAE YOUTUBE.COM | INSTAGRAM SCREENSHOT © INSTAGRAM.COM | R emember that time when Facebook went on an ac- quiring spree? Oh, you know, US$1 billion for Instagram in 2012, and in 2014 both Whatsapp ($22 billion) and virtual retail company Oculus VR ($2 billion). Acquisition for everyone! For Instagram, it seems that Facebook wants to get back on track with their profit schemas. Last month, Instagram began to roll out the first Instagram ads in Cana- dian user feeds. Some of the first big names to kick off with promoted posts? Air Canada, Hudson’s Bay, Mercedes-Benz, Sport Chek, Target, and Travel Alberta. Interestingly enough, Facebook communications manager Meg Sinclair asserts that companies with Instagram profiles have users choose to view the promotional posts voluntarily, namely Travel Alberta which has more than 92,000 followers, and Hudson’s Bay and Air Canada who have attracted more than 24,000 users. According to The Star, Facebook aims for the ads to “feel as natural to the Instagram experience”, and that “light users” of the platform might only see a few to zero ads. In other parts of the world, it’s already been “about a year” since Instagram ads appeared in U.S. user feeds, followed by the U.K. and Australia (CBC). Users can hide a campaign by clicking from the three dot icon at the bottom right hand corner and provide feedback. A pple recently introduced Apple Pay, position- ing it as the ultimate e-commerce payment solution. Despite some criticism, Apple Pay won consumer confidence after mentioning the many large merchants have already agreed to bring Apple Pay to their stores. Of course, it’s never that simple in the world of tech. Apple Pay faces some competition with CurrentC- an electronic payment system run by some retail heavyweights in a joint venture, including Best Buy, Walmart, and 7-Eleven. Perhaps these large enterprises have the capital to have an electronic payment system that they find most effective without the additional costs. Walmart and Best Buy have already confirmed that they won’t have Apple Pay available in any of their stores (and that’s a lot of stores). The Cur- rentC app, available as of next year on iOS and Android plat- forms, allows users to pay from their cards, and you can also use store gift cards. CurrentC app users will also benefit from special promotions in coupons, so we can expect a large American user base. With Gap, K-Mart, and even Wendy’s as some of CurrentC’s partners, as well as most major gas stations in the U.S., Apple Pay won’t be strolling into the marketplace as first expected. The ball’s in your court, Apple Pay. F or the launch of their new RC and RC F luxury vehicles in the UAE, Lexus took the UAE’s “Drones for Good” movement to the next level. Under the hashtag #DroneChase, Lexus UAE accounts along with key invitees posted social media campaign teasers. The big reveal? A video showing Lexus executing a race in the mountainous area of Ras Al- Khaimah between their newest sports car and a drone flown by a professional drone operator. The RC F, driven by UAE Race Car Driver Tarek Elgammal with Dubai One TV presenter host of Out & About Layne Redman as his passenger, was tasked with crossing the finishing line first. The YouTube #DroneChase reveal video was recorded both inside the vehicle using a GoPro, and from aerial perspectives using drone camerawork. Elgammal and the Lexus RC F eventually left the US$25,000 drone in the dust, but for the first few legs of the race it was a pretty close call!
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Entrepreneur DECEMBER 2014 48 The Esquire Guy on handling tears at work By Ross McCammon KEY TECHNICAL MATTERS If something you said seems to have instigated tears, immediately stop making the point you were making. Then acknowledge the obvious, if only to mitigate embarrassment, by saying something that validates the crier’s emotions- no matter how seemingly inappropriate. TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO When an employee is crying at work, your main goals are: 1. Discretion -don’t change what you’re doing, only what you’re saying, and don’t call any attention to the employee- and 2. Understanding- with your words and actions, make them feel that it’s normal to be emotional. > Never try to stop someone from crying. > No hugs. Stay professional. > Composure is important. > But there’s a difference between composure and dispassion. > Easy on the dispassion. > But don’t be passionate either. > Don’t try to fix the situation. The problem can’t be fixed right now- only mitigated. > Ask if they would like to talk later. > If they want to talk now, let them. > And listen. > No, really, listen. > ... > OK, you can stop listening now. > Seriously, say something. F irst, the crying isn’t happening because of that thing you just said. The crying is happening because the crier was ready to cry, and that thing you just said -or that thing Kevin in accounting just said or the fact that the Twix got stuck at the end of the vending machine coil- triggered it. You’ll never know what really caused the crying. Even the crier will never fully know. Anyway, it’s irrelevant. You’re not going to fix anything here- not as the crying is happen- ing. But you are going to prove something. You’re going to prove that you can be empathetic and professional at the same time, which is a combination of virtues one should display at all times, not just when things are emotionally intense. Key to this is recognizing just how emotional the work- place can be. “I have a lot of experience in this subject. I’ve managed what seems like serial criers or what appears to be people crying for no reason,” says Sarah Watson, chief strategy officer at ad agency BBH in New York. “It’s a terrible reflection of our society, but it’s true: Our jobs are very deep-seated in our self-identity, our worth, our security, our trajectory, our place in the world. It’s all very much connected. Our dreams, our hopes, our fears. We bring all of ourselves and our neuroses to work, whether we like it or not.” And we bring those neuroses to work now more than ever, says Jodi J. De Luca, a Boulder, Colorado-based clinical psychologist and neuropsychologist. “During the recession, I saw an incredible increase in employees that were sent by their companies [to specialists] for depres- sion and anxiety,” she says. “Economic status dictates the emotional status of the employees. It’s kind of a domino effect. When you stop and think, a majority of us spend the majority of our lives at work. Work becomes a major part of our life experience, and we can’t just shut off all the other things going on in our life, like children, bills, foreclosure. The human thing to do is bring it to work, whether on a subconscious or conscious level, and then sometimes work is the catalyst for that stress. The triggers are there.” When confronting a crier, part of displaying profes- sional empathy is to understand the profoundness of the process- that the tears are one component of a complex physical response to emotion. The good news: The other
DECEMBER 2014 Entrepreneur 49 0 Proceed as normal. 1 Maybe ease up a little on your tone. 2 Change the subject. 5 Ask if they would like to talk tomorrow 4 Ask what you can do to fix the problem. 3 Ask if everything’s all right. 6 Ask if there’s someone you should call. 7 Ask if you’re on one of them prank shows! 8 Apologize for the prank-show thing. 9 Just start crying, too. 10 Call a doctor. CRYING INTENSITY SCALE parts are generally positive. A 2008 study at the University of South Florida found that criers often experience things that make them feel better as they cry, including more measured breathing and improved mood. We treat it as a symptom, but crying is often a good thing, a solution even. What makes this so confusing for a boss is that you’re forced to play contradictory roles: manager and consoler. Managers are good at fixing and encouraging and leading- all to benefit a goal. But consoling involves managing a situation without regard to any other goal besides consola- tion. The consolation is the goal. Your level of consolation should match the level of crying you’re witnessing. There are five levels. (For the purposes of this column, let’s assume you are having a conversation with a subordinate who wasn’t crying when the conversa- tion began. And let’s assume you aren’t firing or even rep- rimanding that subordinate. Let’s assume the crying comes as a surprise to you- and possibly even to them.) Level 1 Quivering and welling up Of the chin and the eyes, respectively. (Note: If the eyes are quivering, then the employee may be experiencing a nutritional imbalance, and you might want to suggest fewer Twix bars.) If Level 1 is reached, continue to make your point and wrap up the conversation quickly, but not awkwardly. But let things play out, says Peter Handal, chairman and CEO of global training company Dale Carnegie Training: “Don’t try to stop someone from crying. Don’t interrupt. Don’t say it’s terrible. Let them cry; it’s cathartic. It’s expressing an emotion, whatever that is: anger, sadness, concern, a whole variety of different reasons that would cause it. It’s there, it’s real, so don’t try to suppress it.” Level 2 Tears If something you said seems to have instigated tears, im- mediately stop making the point you were making. Then acknowledge the obvious, if only to mitigate embarrass- ment, by saying something that validates the crier’s emo- tions- no matter how seemingly inappropriate. (This is not the time for a furrowed brow and a “What the hell is going on, Stan?!”) Acknowledge, validate and assure. Never just acknowl- edge. There’s a huge difference between “You’re clearly up- set, Stan” and “You’re clearly upset, Stan, though I’m not sure I understand why. Know that you can tell me, and I want to help.” The first thing to do is stop being a superior. Be a confidante. That is: Listen. That is: Don’t talk, except to say, “What can I do to help?” But no touching. No hand on the shoulder. That crosses an important line. Level 3 Sobbing Immediate hand on the shoulder. If you’re in an office, close the door. If you’re in a public area of the workplace, move to a more private location. Says Watson: “A crier has done a private, intimate thing in a public place, and people feel a bit embarrassed and awkward and defensive. So give them the space to gather themselves, compose. But then give them space to hear what’s at the root of it. Acknowledge the validity of their feelings; allow them to express themselves. It can go back a lot further than the conversation that we think it has come from.” The key to your reaction is to maintain the dignity of the crying person. Then express empathy. When things are more under control, relate your own experience of having an emotional outburst at work. (“It was 2004, and the vending machine was on the fritz again ...”) Level 4 Flailing and wailing You’re on your own here. Call security maybe? Level 5 Everybody’s crying Now, if this happens often -if there are people crying in the stalls of the restrooms, say- then there’s a bigger problem going on. Possibly a toxic workplace. Says Watson: “That is a symptom of a brutal culture where people aren’t heard, and there’s a feeling of desperation that you’re just pushing people too hard. Endemic crying has got to be symptomatic of something: poor leadership, understaffing, people don’t feel they have a channel to express them- selves.” But if this is a rare thing, it can be handled- with empathy, patience, kindness and discretion. All of which involve silence, which is one of the hardest things for a manager to practice, if only because it seems like the opposite of leadership. It isn’t, of course. It’s a marker of leadership. Whether comforting a crying employee or not, there is no professional act more powerful than to shut up and listen. Have a seat in the next stall over if you have to. See this article in its entirety at Entrepreneur.com
Entrepreneur DECEMBER 2014 50 TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX Client clout Ahmed Dawood’s social success the number of social media users in the Arab world reached 71 million by the end of 2013, and brands are eager to use this medium to communicate with this significant chunk of the region’s population. Ahmed Dawood By Aby Sam Thomas A s someone who was bitten by the entrepreneurial bug in his teenage years (he started a web design company when he was only 15 years of age), Ahmed Da- wood looks to be extremely well-placed in his role as the Director of Phenomena, a UAE-based social media, marketing and PR agency that he founded in 2010. And Dawood has every right to be proud of what he has accomplished- in its four years of existence, Phenomena has been able to make its presence felt as an agency of repute in the region’s digital market- ing domain, boasting of a veritable portfolio of clients that includes international brands like Nikon, Esprit and Caribou Coffee. But the UAE’s attitude towards and interest in social media and other forms of digital marketing today is a far cry from what it used to be when Dawood decided to start Phenomena. “When I moved here [from the U.S.], the role of digital marketing didn’t exist,” he remembers. “There was a need, but companies just didn’t know how to go about it.” And it is with social media that Phenomena found its niche in the market- the company became a medium of sorts through which companies could get expertise from experienced digital media profession- als to drive their efforts in this particular marketing domain. And if its list of cli- ents today is any indication, then Phenomena is clearly good at what it does in this space. “I think our client portfolio sells our brand,” Dawood says. “For an agency, it’s very important to have a strong portfolio. Also, there were only a few other agencies that started about the same time we did, and so, in our industry, we are fairly well established when it comes to our brand presence and brand name. So, we were fairly lucky in that sense; we were an early adopter.” That was a move that worked out well for Phenomena, after all the number of social media users in the Arab world reached 71 million by the end of 2013, and brands are eager to use this medium to communicate with this significant chunk of the region’s population. While social media may not fit into the mold of traditional marketing, it definitely has advantages the other doesn’t have. “If you’re selling [using an ad on] a billboard, you have no idea what your return on investment (ROI) is,” Dawood explains. “We actu- ally know what the ROI is for every post or tweet that goes out. For every adver- tising dollar that we spend, we know exactly where that has gone. If you use that for a billboard, good luck trying to find out what happened there.” But Dawood also discourages his clients from thinking of social media as purely a medium for selling their products or services. “I think a lot of clients tend to hard sell on social media, which is something we constantly have to enlighten them about,” he says. “It’s not about hard selling- we can try doing a little bit of that, but that’s not what social media is for.” Phenomena has stressed on getting the “social” in social media marketing in place for all its clients. For instance, the Nikon Middle East & Africa Facebook page that Phenomena manages is as much about building and nurturing a community of photography enthusiasts in the region, as it is about the brand’s line of products. It’s a tactic that has worked out well for Nikon, if the over seven million likes it has on its Facebook page is any indication. A recent article in the Harvard Business Re- view on Gallop’s State of the American Consumer report had urged brands on social media to be “authentic, responsive and compelling,” and that’s the paradigm
DECEMBER 2014 Entrepreneur 51 PHENOMENA WEBSITE © phenomena.me | SKILLFEED SCREENSHOT © SKILLFEED.COM “ that Phenomena seems to be using for its strategies in this sphere. Of course, it’s one thing for experts to spout social media wisdom, and it’s another thing for brands to get that message. At Phe- nomena, explaining such strategies to clients is a task that falls upon Dawood’s shoulders. “I think the role I play is an important one,” he says. “Because I am the one who goes to the clients on day one, and sells some- thing that they believe in, and hence sign off. So I try to keep the communication gap very, very tiny, because, at the end of the day, they bought my service for me, or because of me.” Dawood adds that Phenomena’s success wouldn’t have been possible had it not been for his small but talented team. “There are six of us in total,” he says. “I’m very lucky to have the talent that I have. There is hardly ever a dull day, because we are constantly having fun on projects. Our clients are fun, and they have fun brands, and so we con- stantly pitching new ideas both for new, prospective clients and our current, existing clients.” Getting to this stage wasn’t an easy ride, and much like any other entre- preneur, Dawood has had his own share of challenges and pitfalls to move past to get Phenomena up and running. According to Da- wood, the biggest challenge he faced when setting up Phenomena was, well, just moving from the idea he had in his head to actually setting the company up. “I think that’s the biggest challenge for an entrepre- neur—just to say, ‘Let’s do this,’” he says. “I think, as an entrepreneur, you just have to take a leap of faith, have trust in God and just do it.” And in Dawood’s case, good things have hap- pened ever since he made that first move, and so, if his phenomenal (pardon the pun) story were any indication, then the rest of us wannabe entrepre- neurs would be wise to get started on our ideas as soon as possible. Onward and upward, ‘treps! Skill mill Shutterstock’s Skillfeed wants to teach you a thing or two W hat do you want to learn today?” This is the optimistic question that greets you when you visit Skillfeed’s website. It’s a “online marketplace for learning” brought to you by the same team behind Shutterstock. With more than 52,000 video tutorials and over 580 instructors, Skillfeed aims to be a place for enthusiasts to nurture their creative and technical skills in motion graphics, audio, business, design, web development and other subjects. And if you’re interested in honing your skills or finally learning how to use a software that you’ve been putting off, their how-to database ranges from Adwords, Final Cut Pro and Excel, to some unusual but useful ones such as copyright laws, Kindle publishing and Virtual Private Network (VPN). Skillfeed is offering a US$19 a month subscription plan for an unlimited access to videos (think of all the Photoshop tutorials you could immerse yourself in!), and in honor of their launch, a free one-week trial. www.skillfeed.com
Entrepreneur DECEMBER 2014 52 TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX #TAMTALKSTECH UP MOVE group clips UP MOVE wristbands UP3 heart rate screen Wearable fitness trackers continue to grow in popularity and there are many choices available, so what makes the new UP3 Wristband stand out? First, its data collection capability has been supercharged with additional sen- sors; one of which estimates body composition, and two others that measure skin and ambient tem- perature. The powerful sensors coupled with an improved algo- rithm allows UP3 to automatically classify your activities for Smart Coach, the UP app that keeps track of your progress. Perhaps the most impressive feature of the UP3 multi-sensor platform is its ability to identify sleep stages; REM, Light and Deep sleep are all tracked with the new gadget. With extensive data collection and detailed output, UP3 is an ideal companion to help you master and meet your health and fitness goals. Step up your game Jawbone introduces UP3 wristband
DECEMBER 2014 Entrepreneur 53 #TAMTALKSTECH BBM introduces new privacy and control features Timed out Sony Xperia C3 Ever worry about your messages being seen by someone other than the intended receiver? BBM allows you to communicate carefree with a lineup of new privacy fea- tures. By setting a timer, you can now control how long messages and pictures you share can be viewed within BBM- it’s all ephemeral and yes, very SnapChat. Once the timer has expired, the message is no longer visible. The sender also receives a notification if BBM detects that the recipient has taken a screenshot of the message. You can also retract messages to remove them from displaying within the BBM chat. How’s that for personal protec- tion? Other features include high quality image transfer, faster sticker selection and a way to see what music your contacts are listening to. Install the latest BBM update in BlackBerry World, Apple App Store or Google Play for better control over your communication. Xperia C3, dubbed the ultimate new smartphone for selfies and social sharing, is a slim, lightweight smartphone putting the “selfie experience” on your priority list. With a wide-angle, 5MP, front-facing PROselfie cam and dedicated selfie apps, you can take and edit your best portraits all by your lonesome. Sony makes it easy for you to do so with features like Smile Shutter and the ability to tap the back cover to snap a photo. They didn’t stop there- Xperia C3 rounds out with an 8MP main camera, 5.5 inch display, a powerful Quad-Core processor, and dual SIM capability. #ForeverAlone doesn’t have to be a bad thing anymore. Priority number one? Sony Mobile Xperia C3 Tamara Clarke, a former software development professional, is the tech and lifestyle enthusiast behind The Global Gazette, one of the most active blogs in the Middle East. The Global Gazette has been welcomed and lauded by some of the most influential tech brands in the region. Clarke’s goal is to inform about technology and how it supports our lifestyles. See her work both in print regional publications and online on her blog where she discusses everything from how a new gadget improves day- to-day life to how to coordinate your smartphone accessories. Visit www.theglobalgazette.com and talk to her on Twitter @GlobalGazette.
Entrepreneur DECEMBER 2014 54 CULTURE business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS C orporate gifting this holiday season? We suggest supporting local entrepreneurs by sending over a lux gourmet basket guaranteed to please your professional associates. “Our main corporate clients love our food hampers as they are unique to the region. Corporate clients can use their own corporate branding on the packaging, as well as using their own promotional items inside the hampers such as calendars, USB sticks or pens,” says Rhian Johnson. The co-founders of UAE-based Heavenly Hampers found their niche in the market, and went with it. “It was much to our surprise that there wasn’t any company in Dubai that offered gourmet hampers of high quality. We realized that there was a gap in the market to provide bespoke hampers, so this is how Heavenly Hampers was born,” explains Johnson. She and co-founder Earl Johnson officially launched their company in January of this year, and they divvy up the workload with Rhian looking after the financials, and Earl concentrating on logistics. The idea was in development for two years to ensure that the quality of products were right for what the duo wanted to offer their clients, and their selection ranges in price from AED295 to 595. “We source from companies primarily from the U.K. that are not readily available in Dubai. One of the famous brands we deal with is Mrs Darlington, an award winning supplier famous for her Lemon Curd in particular, a product that brings our customers back.” They currently offer 22 different hampers that range in selection from “Gourmet Food to Baby Hampers to Pamper Hampers with the flexibility to work with our clients to meet their specific needs. Our aim is to release three new types of unique hamper at the start of 2015! A hamper is a very personal gift that touches people on a personal level, a gift that’s given with great thought plus great emotion, whether it’s a gift to friends, family members, to treat a valued client or even a simple thank you.” Bon appétit! www.heavenly-hampers.com F or the techie on your list this holiday season, we suggest taking a look at Dubai-based Stash. The UAE-based artisans produce a number of different accessories, but we’re big fans of their Happy Bots range. The pins and rings are made of “recycled electronics conserved in epoxy resin. It takes a long time for the eight-step process to convert a remote control to a Happy Bot,” explains 31 year-old Stasha, the entrepreneur behind the company. “Our designer-maker-visionary Tomislav is the inspiration behind the Happy Bot concept that we produce and sell. We’ve been making Happy Bots for about six years now, but in Dubai since March.” Stasha says that they began with recycling sculpture, and gradually the robots got smaller and smaller in scale until Happy Bots jewelry came to be. www.facebook.com/stash.dubai Corporate kudos Heavenly hampers for your professional gift list A.I. inspired accessories Happy Bots re-purpose outdated electronics
DECEMBER 2014 Entrepreneur 55 BALANCE. QUALITY. CONSISTENCY. THE CAPSULE HAS IT ALL! 800 LAVAZZA info@eurocoffee.ae
Entrepreneur DECEMBER 2014 56 CULTURE business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS The executive selection ‘Trep trimmings Keeping up appearances Indulge yourself with a grooming session at 1847 From better goods to boardroom wardrobe bests, each issue we choose a few items that make the approved executive selection list. For our last issue of the year, we present Aston Martin’s range of accessories and writing instruments. Get shopping, ‘treps! This one’s for the gentlemen among you: lean back, kick up your heels and indulge yourself with an “executive grooming” experience at 1847, which bills itself as the first brand of dedicated grooming lounges for men in the Middle East. With a classic, old school feel pervading all of 1847’s five branches in Dubai, this lounge is a great spot to unwind, relax and treat yourself to the variety of signature services offered here, which include tra- ditional shaves, executive pedicures, Thai massages and a whole lot more. We tried it, and we’re onboard! www.1847uae.com The leathers For the entrepreneur on your list that has a discerning eye, Aston Martin’s leather goods make a terrific gift. The durable wallets and card carriers, available at Paris Gallery across the GCC, are made of fine leathers and embellished with sturdy stitching that adds to the overall aesthetic of the pieces. The metals A hallmark pair of cufflinks are essential for the executive wardrobe. The Aston Martin Power Series range is great for office and moves easily into eveningwear.
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Entrepreneur DECEMBER 2014 58 CULTURE business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS Internet intel WCMC-Q’s Sahtak Awalan aims to make health education accessible to all By Shoug Al Nafisi Diabetes discourse Berkeley residents vote in favor of taxing soda Berkeley City Hall L eading the movement on curbing the health concerns of the Gulf, Qatar’s “Your Health First” Sahtak Awalan initiative has been going strong for two years and counting. The Weil Cornell Medical College in Qatar (WCMC-Q) spearheaded the high-profile initiative in association with the Supreme Council of Health and in partnership with the Qatar Foundation, Qatar Petroleum, Oxy Qatar, ExxonMobil Inc., and the Qatar Olympic Committee. As part of a five-year plan, the initiative aims to provide all Qatar foundation schools with healthy lunch meals to ensure the wellbeing of the entire generation. Eyeing Qatar’s National Vision of 2030, the initiative clearly falls in line with the health development of human capital. The program includes healthy lunches, nutrition facts that are displayed in school canteens, and for senior students, calculating the body mass index (BMI) along with the health benefits of certain foods. That said, the initiative successfully sets an example for both the national and international communities. Nationwide approaches have shown promising results, most famously in the U.S. where the Let’s Move! campaign is fighting obesity by implementing a comprehensive strategy that targets school children. WCMC-Q has undoubtedly taken Qatar a step in the right direction with a changed generation, and a great leap towards Qatar’s human development goals. Fancy learning a thing or two? They’ve taken a super social direction- all of the information is readily available online including cool YouTube vids. www.youtube.com/user/SahtakAwalan A sound public health policy or ‘rascal government takin’ away our freedom’? That’s the debate going on in Berkeley, California, whose government looks set to pass the first soda tax in an attempt to reduce obesity and diabetes. Over 75% of voters have voted in favor of this law, known as Measure D, which will tax a cent for every ounce of soda. Will such a small increase in price deter citizens looking for a thirst- quenching sugary beverage? Those in favor have referred to a 2013 Harvard study that concluded that increasing the cost of a 20-ounce soda by 20 cents will decrease sales by about 16%. Berkeley set a nationwide trend of banning smoking in restaurants; will it do the same with Measure D? San Francisco tried to pass a similar measure that would take 2 cents per ounce, but that failed.
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Entrepreneur DECEMBER 2014 60 Broadening business horizons in a saturated market By Anthony Russo Where do we go from here? FRANCHISE I knew that one day I would share my passion for Italian food with the world. I remember shaping cannoli around the handle of a broomstick with my grandmother when I was 12 in our New Jersey kitchen. By the time I was 18, I had earned the Chef distinction. I founded and currently own two restau- rant concepts: Russo’s New York Pizzeria and Russo’s Coal-Fired Italian Kitchen. The first Russo’s New York Pizzeria opened in Houston in 1992, and there are now more than 40 locations throughout the U.S. There are four open in the UAE, and there is currently an agreement inked with a lo- cal UAE franchisee to open 24 additional outlets. I have been asked numer- ous times why I decided to take Russo’s overseas to the Middle East. My response, “Why not?” We have the best tasting New York-style pizza in the fast-casual category and the rest of our menu is filled with culinary delights. Plus, the Russo’s experience is like no other. The UAE appreciates pre- mium brands, and Russo’s is the perfect fit. The pizza industry in the United States is saturated; even though there are special- ties that help differentiate brands, like thin crust or deep dish, U.S. pizza-eaters still have many options when deciding where to grab their next pie. We separate our brands as au- thentic New York pizzerias. When I began weighing the idea of offering franchising opportunities outside of the U.S., I had multiple fac- tors to consider. 1. Would the restaurant concepts work outside the United States? Yes. People love pizza, and (good) pizza is not as easy to find in many places outside the United States. During my international travels, I’ve tried numerous different versions of pizza, some are good and others resemble nothing close to pizza. The UAE market is welcoming to New York-style pizza concepts. When the home market is saturated, it makes sense to broaden horizons. Also, the fast-casual concepts of Russo’s New York Pizzeria and Russo’s Coal-Fired Italian Kitchen are easy to replicate elsewhere. Many other fast casual American restaurants have seen posi- tive results when taking business overseas. 2. Would changes need to be made? The whole world doesn’t enjoy the same foods and flavors. The menu we of- fer in the United States would not be completely compatible with the pal- ate of Middle East diners. Developing in a new market would require us to make alterations to the menus and service. >>>
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Entrepreneur DECEMBER 2014 62 FRANCHISE Figuring out exactly what would need to be changed required thorough re- search- unlike our locations in the U.S., our UAE outlets don’t serve pork or alcohol- but they do offer options such as eggplant pizza and Mediterranean dips, and other flavors comforting and familiar to our Middle East guests. Making small changes to our menu didn’t alter the essence of Russo’s. We made sure that each dish would be crafted with the same attention to freshness and taste. In- stead, the changes allowed us to appeal to the market. Before brands take a busi- ness overseas, they must consider whether or not they are willing to adapt. 3. What are the legal policies? More importantly, would the cost and hassle be worth it? When thinking of develop- ing in a new market, it is important to be well- informed about business policies and regulations. I was not familiar with res- taurant business protocol in the UAE, so I sought help from local experts. Teaming up with experienced busi- ness leaders from the area proved to be a game chang- er. We quickly learned ex- actly what it would take to get the concepts approved and cleared. 4. Once everything is approved, will it be possible to get the restaurants up and running smoothly? I’ve participated in each of our locations’ training sessions and openings, and not only do I enjoy being involved, but it allows me to share my experience and give feedback on how the stores will operate. When it became time to select staff for the first UAE loca- tion, we realized training the new employees would be difficult. There was no example for them to follow. Plus, there was a language barrier. Instead of trying to use training videos, we brought all the new man- agement staff to the United States for training. This allowed them to see how Russo’s New York Pizzeria and Russo’s Coal-Fired Italian Kitchen operate. We have a chef at one of our Houston stores who is fluent in Arabic and played a key role in the training process. Now, we have opened an office in Dubai that provides support and training to the locations. This additional system of support has led the UAE lo- cations to greater success. Training is a crucial step in the process of opening a business. From the begin- ning, it is important to make sure staff objectives and standards are clearly defined, as these individu- als will be the leaders of the restaurant. We had to go the extra step of provid- ing training in the United States to ensure that qual- ity training was given. Business leaders seeking overseas growth oppor- tunities should consider the steps that will need to be made in order for their business to operate smoothly. This could be anything from training to deciding on interior and kitchen design. These details might seem more minute, but they are just as critical as meeting country regulations. Each step of the development and opening processes need to be completed properly, otherwise, there is a higher chance of failure. Our restaurant concepts are strong and provide a dif- ferent experience to diners in the UAE. We are willing to adapt our menu as long as we can maintain the es- sence of Russo’s. Our team is made up of talented and experienced business lead- ers who can help navigate UAE regulations and poli- cies. We always go the extra step to ensure the highest restaurant operation stan- dards are met. When your home market is saturated, broadening your horizons to other markets makes sense. With specific growth markets targeted in the United States, we will continue to broaden our horizons in the UAE includ- ing Kuwait, Iran, Egypt, Lebanon, and as far away as China. You do not have to halt your local growth initia- tives altogether. Instead, you can simultaneously seek additional opportuni- ties outside of your home market, allowing for all potential growth avenues to flourish. Anthony Russo is the founder and CEO of Russo’s Restaurant Group, a restaurant ownership, operator and franchisor group doing business under the widely recognized Russo’s New York Pizzeria and Russo’s Coal Fired Italian Kitchen brands. Russo’s rise to prominence in the restaurant industry began at a very early age. His passion for cooking and creating unique dining experiences for friends and family started to take shape in his very own grandmother’s kitchen. Russo has grown his brands to more than 40 restaurant locations throughout the United States and in the UAE, and has plans to expand in existing markets and new markets.
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Entrepreneur DECEMBER 2014 64 Time Assets vs. Time Debts A different way of thinking about productivity By James Clear TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO Software is a classic example of a time asset. You can write a program one time today, and it will run processes for you over and over again every day afterward. You pay an upfront investment of time and get a payoff each day afterward. L ate in his career, Steve Jobs famously drove his car without a license plate. There were all sorts of theories about why Jobs decided to drive without tags. Some people said he didn’t want to be tracked. Others believed he was trying to make a game of avoiding parking tickets. Jon Callas, a former computer security expert who worked for Apple, revealed a different reason. According to Callas, Steve Jobs discovered a loophole in the California vehicle regis- tration laws. Anyone with a new car had up to six months to get a proper license plate for their new vehicle. During the first six months, however, you could simply drive the vehicle without a license plate. Once he realized this, Jobs arranged a special leasing agreement with his Mercedes dealer so that every six months he would drop off his current car and receive a new Mercedes SL55 AMG to replace it. This meant that he never drove a car older than six months and he never had to go to the Department of Motor Vehicles to get a license plate.1 After hearing the story, many people re- sponded by saying something like, “I guess that’s what you do when you have a lot of money.” And, to be fair, it is true that this license plate strategy isn’t reasonable for most people on the planet. If you look deeper, however, you’ll notice that something else was happening: Steve Jobs was building a Time Asset. Time Assets vs. Time Debts Most productivity strate- gies focus on short-term efficiency: how to manage your to-do list effectively, how to get more done each morning, how to shorten your weekly meetings, and so on. These are all reasonable ideas. We often fail to real- ize, however, that there are certain strategic choices that impact our time on a larger scale. These choices can be categorized as Time Assets or Time Debts, which are two concepts I learned from Patrick McKenzie.2 Time Assets are actions or choices you make today that will save you time in the future. Software is a classic example of a time asset. You can write a program one time today, and it will run pro- cesses for you over and over again every day afterward. You pay an upfront invest- ment of time and get a payoff each day afterward. The car leasing system that Steve Jobs developed is another example of a time asset. It took him some time to find a loophole and arrange a repeatable leasing system, but his process rewarded him with additional time and less hassle every six months. Time Debts are actions or choices you make today that will cost you additional time in the future. Email is a time debt that most people participate in each day. If you send an email now, you are committing to reading the reply or responding with an additional message later. Every email you send creates a small debt that you have to pay back at a later time. This is not to say that all time debts are bad. Perhaps you
DECEMBER 2014 Entrepreneur 65 James Clear writes at JamesClear.com, where he uses behavior science to share ideas for mastering your habits, improving your health, and increasing your creativity. To get useful ideas on improving your mental and physical performance, join his free newsletter JamesClear.com/newsletter, to have James speak at your entrepreneurial event contact him jamesclear.com/contact 1 Mystery solved: Why Steve Jobs’ car never had a license plate by Aayush Arya | October 27, 2011 The Next Web 2 The idea for Time Assets and Time Debts originally came from Patrick McKenzie, a programmer and friend of mine. http://www.kalzumeus.com/2010/03/20/running-a-software-business-on-5-hours-a-week/ Each Time Asset that you create is a system that goes to work for you day in and day out. If your schedule is filled with Time Debts, then it doesn’t matter how hard you work. Your choices will constantly put you in a productivity hole. enjoy serving on your school committee or volunteering with a local organization. However, when you make these commitments, you are also creating a time debt that you will have to pay at some point. Sometimes the debts we commit to are worth sacrificing for, many times they are not. Time Assets in real life I wrote down a short list of time assets and time debts for my business. Here are a few I came up with: Speaking I can create a speaking page on my website that answers common questions and qualifies the right kind of people. This could include a descriptive Frequently Asked Questions section or a better sign up form. The goal of the system is to set clear expectations and answer common questions that I usually have to answer via email. Accounting By setting clear rules for my bookkeeper and accountant, we can develop a system for automatically tagging certain expenses and transactions each month, which minimizes the need for me to manually approve repeated transactions. Scheduling Booking cal- endar appointments, calls, and interviews requires a lot of email. Using software like ScheduleOnce eliminates this problem and lets people choose from a pre-selected list of available times. Time Debts in real life Email The more email I answer, the more email I generate. Comments I like the com- ments on my site and I don’t plan on removing them. (I love hearing from you!) But every time I publish an article with a comments section, I’m creating a time debt that I have to pay back by approving and moderating comments. Interviews At first, I said yes to every interview that came my way. Today, I typi- cally do three to five every week. Saying yes to every interview has become a time debt. Low quality work If you don’t edit your article now, you’ll have to fix the grammar later. If you write sloppy code now, you’ll have to debug it later. If you create a poor product in the beginning, you’ll have to service custom- ers and process refunds later. Every low quality piece of work is a time debt that you have to pay back. To quote Jon Wooden, “If you don’t have time to do it right, when will you have time to do it over?” A system for your time Systems are more important than goals, and Time Assets are a perfect example of why this is true. Each Time Asset that you create is a system that goes to work for you day in and day out. If your sched- ule is filled with Time Debts, then it doesn’t matter how hard you work. Your choices will constantly put you in a productivity hole. However, if you strategically build Time Assets day after day, then you multiply your time exponen- tially. Driving a car without a license plate might seem like an extreme way to save time, but it is also a level of strate- gic thinking that most people never embrace. This isn’t an approach that only works for Steve Jobs. It works for all of us. Time Debts need to be paid. Be careful how you choose them. Time Assets pay you over and over again. Spend more time creating them.
Entrepreneur DECEMBER 2014 66 Keep you coming back for more Sanjit Gill talks loyalty marketing for your business TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO By Pamella de Leon Each industry has its own unique characteristics that will influence the most appropriate model. For example, in industries where frequency of purchase is low, a points based program may not be suitable. A re people still loyal to brands and companies? According to a Middle East research by ICLP, 35% of consumers are willing to pay a higher price for brands they’re loyal to. With that in mind, we can certainly learn a lot from the people who develop corporate loyalty programs. Sanjit Gill, General Manager of ICLP, shares his insights on the benefits of loyalty marketing, surprising factors that encourage brand loyalty, and ICLP’s tactics. Once you have a loyalty program, how do you get your clients to start using it? Gill says that if it’s been properly crafted, they will on- board easily enough. “If you have listened to your customers and have created a loyalty program that delivers on what they tell you they want, getting them to use the program should then be easy. In addition to delivering personalization, choice, and flexibility, ensuring that the program is relevant, available via the ap- propriate channels, or indeed multi-and omni-channel, will keep your customers continually engaged. Invest more time and money into creating the right pro- gram, listen to your customers and evolve to fill the gaps,” says Gill. How is loyalty marketing different from having a loyalty card or having a points or rewards system? The concept of loyalty marketing should also not be confused with having a card or belonging to a point-based program. The card and program are simply one way to execute the loyalty marketing initiatives. Many brands have used it successfully as an element of their loyalty strategy, but ultimately a program is a very proven and successful mechanism to gain data, enhance customer understanding and use it to engage and reward customers for displaying certain behaviors. Looking beyond the program, surprisingly, few companies have truly embraced loyalty across the whole organization where it is thought of as an enterprise-wide initiative, and the collective all look for opportunities to forge customer relation- ships, create brand advocates, increase customer retention and business growth. ICLP also includes customer relationship management in its services. How is loyalty marketing different or related to customer relationship management? Customer relationship management is a much broader organizational strategy that looks at all customer interactions and ensures processes; technologies and practices are seamless, providing an enhanced customer experience. Loyalty marketing, on the other hand, is much more focused and specifically used to enhance the emotional relationship and bonding with the brand. We create a journey for the customer to move them from transactional to attitudinal loyalty through a series of activities that make the customer fall in love with us. In loyalty marketing, we focus on increasing the customer’s share of requirement, whereas broader marketing activities look to increase overall market share. What are the benefits of corporate loyalty programs? The key benefit that organizations will ultimately derive from a loyalty program is an increase in profits. Research shows that loyalty programs affect consumer spending and that loyal customers are willing to make a purchase from the brand in the future, encourage their friends and family to buy from that brand and, as mentioned previously, more than 35% of Middle East customers are willing to pay a premium for products/ services they are loyal to. Especially in retail programs: those that offer discount or cash back vouchers as a reward in their program actually see incremental revenue
DECEMBER 2014 Entrepreneur 67 Gill, who has over 18 years of experience in direct and loyalty mar- keting across both B2C and B2B, explains that loyalty marketing is “about nurturing and retaining customers with the ultimate goal of making your brand ‘the brand of choice’. This principle is the same for any vertical and brands that have got it right, which see rich dividends through brand loyalty and advocacy. It is very important to have specific strategies in place to nurture and grow your customers so there is a sense of belonging and a two-way relation- ship.” Important factors to consider? “Customer service, quality, recognition and brand promise.” In relation to how ICLP Dubai applies these tactics, Gill explains that they “are focused on helping clients in the region develop, launch, and grow their programs. This includes understanding client expecta- tions from loyalty and their customers’ expectations to deliver a strategy that’s right for their business. We use our extensive multi-sector experience to offer our clients world-class thought leadership via full-service capabilities such as program strategy, implemen- tation, ongoing management, data analytics, creative, branding and digital, and partnerships.” however responses to surveys don’t always correlate with actual behavior. A slightly better measure is using a control group and comparing member and non-member transaction behavior that does give a good indication of program influence. We believe a better way is a combination of customer survey with member data. This is done by filtering out all the transactions where customer had no choice, and all transactions where selection was not made by the customer, then probing the buying decision criteria survey. Finally, tying these results back to revenue. Being the brand of choice ICLP creates brand advocates When measuring program success our approach is to take a holistic view of Direct Revenue, Indirect benefits, Direct Costs, and Indirect Costs. Sanjit Gill, ICLP General Manager when these vouchers are redeemed. The voucher can only be used on their next visit, encouraging a return visit, where the customer will spend much more than the value of the voucher. In addition, retaining customers is cheaper than con- tinuously attracting new ones and this combination of increased revenue and lower costs enable higher profit margins to be realized. ICLP generates loyalty programs for a number of industries like aviation, healthcare, banking and FMCG. How are various loyalty programs determined? We need to be clear that not all loyalty program models will work the same for different industries. Each industry has its own unique characteristics that will influence the most appropriate model. For example, in industries where fre- quency of purchase is low, a points based program may not be suitable. In this case, we would need to consider what other opportunities exist for members to earn sufficiently in order for the redemp- tions to be worthwhile. Another example is industries with low margins. Typically, a company should give back between 0.5 and 5% of revenue to members by way of rewards. For industries that can only afford to give back 0.5%, the rewards of- fered to members will be low-value and potentially not rewarding enough to be appreciated. Of course, there are solu- tions to all scenarios, which are looked at during the strategy and business case development phase of any new program. What are the factors that ensure customer loyalty? For customer loyalty to be present, it must be earned through developing a strong understanding of customer be- havior, needs, and wants. You must lis- ten to what your customers say and act accordingly. Personalization is extremely important and it’s surprising how many organizations still don’t use the informa- tion they collect on their customers to enhance their experiences. A recent survey ICLP undertook alongside For- rester Research specifically looked at the factors important to Middle Eastern cus- tomers. Gaps were identified in the areas of personalization, choice, and flexibility where companies were not delivering upon the customers’ expectations. Clos- ing these gaps, as well as using your col- lected data to drive the relationship will help built the trust and satisfaction that is essential to developing loyalty. Apple fans are great examples of loyal customers, if not an almost cult-like fan base. What do you think other companies and brands can learn from them to derive such devotion from their consumers? In Apple’s case, they have created an intense loyalty to their brand, much like car manufacturers such as Porsche, Lam- borghini, and Ferrari and so on. Brand loyalty is an intense emotional connec- tion with everything that it stands for, which in Apple’s case is quality, innova- tion, and passion, for example. You can be a brand loyalist of Apple or Ferrari, yet you may not ever own one. At ICLP, we look specially at generating customer loyalty to drive increased revenues and lower costs. The two are quite different in practice. At a customer-loyalty level, what companies can learn from Apple is to create an overall customer experience that creates stickiness and repeat pur- chase. A consistent experience delivered across all touch-points will strengthen the relationship and keep customers coming back. How can companies do that? We use data collected through purchase transactions, surveys and other interactions to drive a personalized and relevant experience. What metrics does ICLP Dubai use to determine that loyalty programs are on track delivering traction a business is hoping to reach? Any new program strategy is developed with KPIs in mind. These are established at the outset and monitored from launch. When measuring program success our approach is to take a holistic view of Direct Revenue, Indirect Benefits, Direct Costs, and Indirect Costs. Direct Revenue includes looking at uplift in spend (share of wallet, frequency, upsell/cross sell, reduced attrition) and auxiliary revenue. Indirect Benefits include communication effectiveness, brand equity, net book value, and customer satisfaction (NPS and Advocacy). Direct Costs include the cost of operations and rewards, and Indi- rect Costs are dilutionary, displacement, and opportunity costs. Measuring uplift can be done in several ways with varying degrees of robustness. A simple survey can illustrate how the program has in- fluenced a member’s purchase decision,
Entrepreneur DECEMBER 2014 68 Stock-savvy? SMEs in MENA need to weigh pros and cons By Ziad Makhzoumi SPONSORED BY CADILLAC IN THE SPIRIT OF LINKING SUCCESS WITH POTENTIAL INDUSTRY KNOW-HOW money ask the money guy | vc viewpoint | your money While public market conditions are challenging at present, it doesn’t mean that the market is closed or that time shouldn’t be spent preparing to float when the markets are more active. So what are the main advantages and disadvantages of taking this route to market? Dubai International Financial Centre (DIFC) Is it time for an AIM-like exchange IN MENA? The advantage of a secondary market for private companies is that it will give liquidity and open the gates for more companies to come out with an Initial Public Offering (IPO) on the stock market. Share trading of private companies will be available for investors and the share price will be ascertained depending on the company financials and supply and demand factors. It will be for small and medium sized companies similar to the AIM on the London Stock Ex- change where the seller and the buyer can arrive at a strike price as the only two parties involved. The arrange- ment will allow the companies to tap liquidity, without having to fully list on the exchanges. Dubai Financial Market claims to be ready to receive these companies, of- fering an advanced market infrastruc- ture that uses the X-stream stock trading platform, SMARTS, which is used to closely monitor trading, as well as a variety of other services provided by DFM. It is expected that as many as 135 private joint stock companies will join that market with some regional companies seeking the service. The Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) this year will launch separate screens for investors to trade shares currently bought and sold over the counter, according to the federal stock market regulator. After the global financial crisis, many companies preferred to stay outside the market because they believed their valuations were much higher than what the bourses would offer, or because their shareholders want to keep control. Is the AIM the right route to market? Advantages and disadvantages of listing on the Alternative Investment Market While public market conditions are challenging at present, it doesn’t mean that the market is closed or that time shouldn’t be spent preparing to float when the markets are more ac- tive. So what are the main advantages and disadvantages of taking this route to market? Advantages of the Alternative Investment Market > Mergers and acquisitions being easier to pay for Once shares are listed, the opportuni- ty may exist to use the issue of shares to fund an acquisition instead of using cash resources or further borrowings. > Improved opportunities for finance raising This can be undertaken at the time of a flotation or at a later date by way of subsequent share issues. > Regulation being lighter And therefore cheaper, for corporate transactions compared with the Main List. > Greater marketability The existence of a public market al- lows for share transactions that had not previously been possible, and a flotation is likely to increase the shareholder base. > Higher value/improved value Higher multiples being applied to listed companies and improvement through positive share price perfor- mance. > Enhanced corporate image Undertaking a public listing increases the company profile, raising public awareness. > Increased employee participation via share schemes And hence higher morale if employees see improvement in the company’s share price performance.
DECEMBER 2014 Entrepreneur 69 Partnership in April. Compared to YouTube and Groupon which peaked to their billion-dollar valuations in “about a year and a half” (Forbes), it’s certainly not bad. Why is everyone suddenly interested? The workplace communication and collaboration model isn’t unheard of, but unlike its predecessors, it works on “an actually-useful” worthy freemium model and a $7 per month for pre- mium features– of which 73,000 are paying users (Quartz). Besides that, Slack has a simple and powerful “integrations” feature, letting other tools and apps to integrate and func- tion on the Slack platform. This keeps everything your team needs in one place, meaning users can drag from Dropbox, SoundCloud, MailChimp and Github, among others, in one stream. Users can also create “channels” to discuss different topics and add team members depending who needs to be in on the convo, and better still it’s all synchronized and accessible on mobile apps and a Mac app. Team spirit Slack app reaches billion-dollar valuation after less than a year L earn from your mistakes, as they say. Slack founder Stewart Butterfield certainly took that to heart. After hitting a dead end with a gaming project, Butterfield and his team pivoted, deciding instead to focus on their internal communica- tions software and worked on what is now known as Slack. Less than a year after its public launch, the San Francisco-based startup that lets staff communicate and collaborate, has raised US$120 million in funding at a $1.12 billion valuation, led by Kleiner Perkins and Google Ventures on their funding round (Mashable). This comes just eight months since the startup raised $43 million from firms such as Andreessen Horowitz, Aceel Partners and Social+Capital Ziad Makhzoumi is the Group CEO of Fakih IVF. Makhzoumi joined the Fakih Group over a year ago, expanding the business from one center in Dubai to five in the UAE with further planned growth in the MENA region. Prior to this, Makhzoumi was the CFO of Arabtec Holding. During his five-year tenure with Arabtec, Makhzoumi led the successful financial restructuring of the Group. An engineer turned financial executive with stints in management consultancy and private equity, Makhzoumi was voted as 2009 Revolutionary CFO of the Year, distinguished for Excellence in Finance in 2010, and was 2011’s Most Admired CFO in the Middle East. Listed in 2010 by The Wall Street Journal as one of the top 20 influential non-royal decision makers in the UAE, Makhzoumi frequently appears in regional power lists. Makhzoumi was also awarded Middle East Healthcare Sector CEO of the Year 2014. Disadvantages of the Alternative Investment Market > Loss of control Following flotation a large proportion of shares may be held by institutions and not management. > Management time The flotation process is a time- consuming exercise and, once listed, the continuing obligations can seem an onerous task, particularly for the finance director. > Loss of privacy A flotation puts the company in the spotlight and under scrutiny, and this continues throughout a public company’s life. > Reporting requirements Public companies have to report results to a tighter timetable and to International Financial Reporting Standards. > Initial and ongoing costs Although these are much lower than for a Main List flotation. > Shareholders’ expectations Independent shareholders may well be critical of company performance if actual trading results don’t match up to expected levels. > Restrictions on selling existing shares Management will be restricted in its dealings in the company’s shares.
Entrepreneur DECEMBER 2014 70 start it up Wacky idea | who’s got VC | Q&A | STARTUP FINANCE Startup pitching Tips when raising the seed By Simon Hudson Networking is integral to your startup’s success. People look to VCs and investors for help because they know that these people have a strong network. Their LinkedIn connections are powerful, and their phone books are full of influential people. E ach month you hear me talk about my experiences as an entrepreneur spearheading my startup Brndstr Inc. Over the past six months, we’ve covered a lot of the facets of managing a new company, expansion advice, and even how to pitch. I’ve shared my advice and suggestions from firsthand experience. In this piece, I wanted to go back to the very beginning- raising the cold, hard cash! As an entrepreneur with a killer idea, you believe that you have all the makings for success but you’re lacking one crucial thing: the funds. It is common to hear people say I want to raise $X and give away X% -TV shows like Dragons’ Den base their concept around such figures- but how do you get in a position where these negotiations can happen? I have decided to put my suggestions into five points of things that startups may not think about when seeking to raise funds. 1. Who you know is as important as what you know Networking is integral to your startup’s success. People look to VCs and investors for help because they know that these people have a strong network. Their LinkedIn connections are powerful, and their phone books are full of influential people. My advice is that you too can build your own network. If you get yourself out there at events, meet people, mingle with groups that you want to be a part of, you will find that you too will soon have a network. It may not happen overnight, but persistence is key, and pays off in the form of a network- poten- tially leading you to an introduction to an investor. 2. Perfecting your delivery and your pitch Although you may know your idea like the back of your hand, you need to be able to tell potential investors with a very simple descriptive framework. You need to hook the potential investors, and get them interested in learning more. You need to be able to explain to someone what you do in the time it takes to travel in an elevator- believe it or not, it’s known as an “Elevator Pitch”. 3. Element of surprise When speaking and pitching to inves- tors, I always suggest having something that they don’t expect. These guys will see many ideas and business plans- do something that will make them remember you. I have said it many times before but I always personally handwrite a note to anyone I meet. This personal touch goes a long way in a world where everything is digital and online. 4. Failure is only feedback You will almost definitely pitch to some- one who says no. When this happens you need to take the feedback as to why they turned you away, and then build on it. Something I did when I was unsuccessful: I would email the person shortly after with a breakdown on their feedback and discuss ways I would overcome the problems that they pointed out. If the case is the person just simply didn’t get your idea, then they are not right for you anyway.
DECEMBER 2014 Entrepreneur 71 Candid camera… calculator? PhotoMath app solves math problems Simon Hudson is the CEO and Founder of Brndstr.com. Having recently closed a large funding round, Hudson is well versed with the challenges ahead of any startup. Prior to becoming an entrepreneur, Hudson worked as Marketing Director for Trump Towers in Miami and more recently as a senior figure at Groupon Middle East. Over the past two years he has been busy helping to grow, build and develop the Dubai startup circuit. As the Founder of ThinkTank.ae, ex-Chapter Director for Startupgrind.com, moderator of the previous Young Arab Leaders event, and a coach at this year’s Dubai Startup Weekend, in addition to contributing the monthly entrepreneur column for newspaper 7DAYS UAE, Hudson is well positioned to offer help and advice to any budding entrepreneur. 5. Be realistic and fair When you sit down and meet potential investors, you will ultimately need to discuss equity and investment amount. Personally, I would never start by saying how much you need and what you are willing to give away. In your plan and mind, have a range- this means you should be able to quantify the maximum and minimum of what you’re willing to negotiate. You may find that from the meeting, that person has a lot more to offer and is therefore worth hand- ing over that extra equity that you were reluctant to part with. Don’t get caught up on percentages; in my opinion it’s bet- ter to own a little of something than a lot of nothing. Raising money is always a huge topic of conversation in the startup space, and everyone has their own way and ideas on what’s best to do. At the end of the day, you need to make sure you not only have a partner that can fund your idea, but also one that you can work well with. You are building a long-term relationship so make sure you ultimately get on in terms on vision cohesion and even chemistry. Good luck raising the funds, and catch you next month for more ‘trep talk! S tuck on a math equation? In our time, this would have pushed students past all patience, but nowadays kids have it easy. MicroBlink, a London-based company, has released the PhotoMath app that can end all of the frustration. Available for iOS and Windows Phone (an Android version due in 2015), users can scan a math problem or equation in real-time using a smartphone camera. The result? Not only the answer itself, but also the steps involved in solving it. According to the NY Daily News, the app can currently solve problems from a 9th or 10th grade level, and read printed equations (CNET). Theoreti- cally, it’s designed to be an educational tool, aimed to educate users to solve math problems. The catch is, of course, it can be used as a cheat shortcut by students, enabling them to copy answers right away without learning the concept as the app does the grunt work. With great power comes great responsibility, kids! Use it well.
Entrepreneur DECEMBER 2014 72 Five questions to ask your content before you let it go into the wild By Alexander McNabb TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO T he Internet these days is getting pretty busy. There are millions of us out there churning out words and adding them to the growing pile for dumpster diver Google to sift through and select whenever someone has a question. How can you ensure your words count and aren’t just another addition to the heap– especially when you’re creating content with a business objective in mind? Here are five questions to ask your content before you let it go into the wild: 1. What’s the headline? If the headline doesn’t sound great to you, you're starting off on the wrong foot. A headline should encapsulate the very essence of what you’re trying to communicate and it needs to have impact, yet at the same time it can’t lie about what it’s pointing people to– it has to deliver. Ideally, it’ll make sense from an SEO perspective so your work is searchable, but you have to make sure the headline isn’t already overused by other websites, otherwise you’re competing in a race you can’t win. At the other end of the process, don’t forget tags. You’d be shocked at how many (otherwise smart) organizations don’t tag their content effectively. Creating more compelling content
DECEMBER 2014 Entrepreneur 73 Hungary considers taxing online data transfers by the gigabyte Data dollars Content made for your consumers to share is your ultimate goal. You want people talking about you, offering your insights and experience on to others, thereby giving you their effective endorsement. Hungary Prime Minister Viktor Orban 2. How does this change me? What are you offering to tell me that is in some way different, challenging, insightful or informative? How will it improve me? It should really boil down to a single, powerful thing or a small number of things based around the same premise that I can easily digest and get value from. If there’s no value on offer, it’s time to rethink your content and what you’re trying to achieve by creating it. Lists of stuff (yes, like this one!) are all very well, by the way, but you can’t overdo it. We like list posts, we all do– but a list a day is not the well-balanced way. Mix it up and look at different ways to get your point across, different viewpoints and presentations. 3. Will I share it? Content made for your consumers to share is your ultimate goal. You want people talking about you, offering your insights and experience on to others, thereby giving you their effective endorsement. Remember how hard PRs used to try for endorsement in the good old days? Well, you’re still aiming for it, but in the form of sharing. If your content isn’t shareable, it’s back to the drawing board. The one question you need to ask when you’re reviewing any proposed content offering: “Why would I share this?” 4. Is this the best format? Could this be better expressed as a video? An infographic? Even better– could we consider versions of it across a number of formats? Have we got something so good we can discuss it in more depth on video, headline it on Twitter, outline it on Facebook and get to grips with it in a blog post? 5. What’s the call to action here? Whether it’s a standalone opportunistic ‘hit’ or a carefully planned part of a series of communications, your content needs to lead to something measurable so there should be a call to action– whether that be a link to further reading, a related article or even a straight click or call to discuss a product or service related to the content. It could be as simple as a plea to consider a different behaviour, but the point is there should be something at the end that people can do as a result of what they’ve just learned from you, and benefit in some way. Alexander McNabb is a senior consultant at Spot On PR, which focuses on building digital communications and content marketing strategies for brands targeting the Middle East and North Africa region. He consults on publishing, digital media and communication strategies and has worked with government, technology, media and telco enterprises in the region for over 25 years. McNabb is an experienced broadcast presenter, public speaker, conference chair, and workshop leader. He is a regular commentator on marketing, communications, media content and digital as well as emerging technology and communications trends and contributes to radio, television, print and web-based media. In his spare time he writes novels. He blogs at Fake Plastic Souks and at the Spot On blog. H ungary’s economic deficit has pushed the country’s government to take action. Austerity measures that swept Europe during the global economic crisis were met with protests and riots, so it makes sense for Hungary to try something a little different. By “a little different”, we mean really different: a proposed law was tabled to tax internet users per gigabyte of data transfer. While ministers promised that there would be a tax cap of some sort (should the law pass), the proposal was met with protests by the thousands. Activists called this “anti-democratic”, and many others cited that this will impact ordinary Hungarians severely. The European Union (EU) wasn’t pleased to hear about this either. European Commissioner for Digital Agenda Neelie Kroes posted some angry tweets, calling the proposed law a “shame” and urging Hungarian citizens to join the protests. From thousands holding up their smartphones into the night sky, to throwing their old CPUs over to Prime Minister Viktor Orban’s party office, one can safely say that the Hungarian government will not be passing the highly controversial law.
Entrepreneur DECEMBER 2014 74 On the up and up EO’s Accelerator initiative to help UAE startups cross US$1 million in sales money ask the money guy | vc viewpoint | your money | ECON China steadfast despite risks to economic growth Alibaba sells US$9 billion on SINGLES’ Day PRESIDENT XI JINPING IMAGE © KALIVA / SHUTTERSTOCK Chinese President Xi Jinping Alibaba.com’s office in Hangzhou L ooking for ways to boost your business in the UAE? Well, here’s a program that could help. The Entrepreneurs Organization (EO) UAE Chapter has tied up with Impact Hub Dubai to launch its accelerator initiative in the country, which aims to help SMEs with sales between US$250,000 and $999,999 go beyond the $1 million mark in their sales. So, how do they do this? Accelerator helps entrepreneurs achieve this impressive milestone by engaging them in a seven-month-long educational curriculum that includes a series of learning events, mentoring, peer-to-peer learning, and participation in accountability groups. Basically, the program aims to empower entrepreneurs with all the tools and skills they need to scale up their businesses. While the Accelerator is primarily an educational project, there is also a deadline of sorts to keep entrepreneurs focused on the goal they have signed up for. Participants in the Accelerator program are allowed to be a part of the initiative for a maximum period of two years, during which they must reach the $1 million threshold in sales. Once they achieve this goal, the entrepreneurs then graduate from the Accelerator program, and they then also become eligible to apply for full membership in the EO, an internationally renowned organization that boasts of over 10,000 business owners from 46 countries around the world as its members. Facebook.com/eouaeaccel 2 014 hasn’t been a good year for China, and many have been speculating about the potential risks that its economy currently faces. Consumer demand has slowed down, and exports haven’t been as steady as they’d like. The Chinese government released numbers in October revealing that its growth has slowed down 7.3% in Q3 of 2014, which hasn’t been the case since the pinnacle of the global financial crisis. President Xi Jinping reassured attendees of this year’s Asia-Pacific Economic Cooperation (APEC) summit in Beijing that things are only looking good for China long-term. While President Jinping agreed that there are risks that are associated with economic growth, he insisted that the Chinese economy is stable, and that it is still at the forefront of economic growth internationally. China has recently invested heavily into infrastructural development, and had the central bank inject cash into banks to make sure their credit supply is up. The Russian Federation, currently suffering from Western sanctions, might make the most likely bedfellow for China- the two countries recently signed a memorandum of understanding to build what they call a “western gas route” from Russia to China. It only gets better for Chinese e-commerce mammoth, Alibaba. On China’s Singles’ Day, similar to America’s “Black Friday,” Alibaba Holding Group Ltd announced over US$9 billion in sales. Most will see this as a sign of China’s growing economy and the significant change in consumer power, but there is something else. Alibaba made an interesting move by making their financial services arm, Alipay, public. While they’ve acknowledged the additional pressures that they may face going public, we wouldn’t be surprised if they’re simply relishing the new challenge.
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Entrepreneur DECEMBER 2014 76 ilOsool aims to change the way illiquid assets are traded in the MENA region start it up Wacky idea | who’s got VC | Q&A | STARTUP FINANCE A new way to trade By Aby Sam Thomas “If you want to have a startup in Dubai, even just starting it costs a couple of hundreds of thousands, you need a full budget. And without any investors, it makes you think twice about [the venture].” O ne of the mantras that wannabe entrepreneurs are often encouraged to chant before starting up a business is FANAFI: “Find a need, and fill it.” And that seems to have been the principle Bdaiwi Tubaishat followed as he went about setting up his company, ilOsool, an illiquid assets trading platform for the MENA region. Having spent over 11 years in the finance and investment banking sec- tors in Dubai and Jordan, Tubaishat, who’s the found- er and CEO of ilOsool, saw a big need in the market for specialists in illiquid assets investments- for the unini- tiated, illiquid assets refers to those assets that cannot be easily sold or exchanged for cash, such as real estate, private equity and venture capital. “These asset classes are not well served in this region,” Tubaishat says. “People who have such as- sets find it very difficult to market their products, and people who want such as- sets find them very difficult to find as well.” Enter ilOsool. This online platform wants to bridge the gap between deal seekers and market avail- ability by offering a space where illiquid assets can be both priced and traded in a transparent, acces- sible manner. According to Tubaishat, ilOsool has been created to facilitate a liquidity solution that is beneficial for both parties involved in an illiquid asset transaction, thereby avoid- ing the losses that are often associated with these kinds of deals. While ilOsool had a beta launch in July, Tubaishat reveals that the platform is to have its official launch by the end of the year. When asked about the reception ilOsool has achieved so far, Tubaishat is frank in admitting that it has been hard to convince people to sign up for the same. “It’s a new idea for people,” he explains. “At first, you’ll find a resistance from ev- erybody, because there’s no credibility, there’s no track record… But we expected that. When we did our busi- ness plan and put together our SWOT analysis, we had said that this [reluctance] should be expected to hap- pen initially.” “However, having said that, the performance of the site in the first three months was better than our estimates,” Tubaishat declares. “We have around 40 deals listed on our website now, and we have more than 50 people as unique registered inves- tors.” While Tubaishat, who’s also the managing director of Ultra Frontier, a Dubai-based financial consulting firm, used both his and his team’s networks to publicize ilOsool’s of- ferings, he noted that the company’s social media presence has also helped a great deal in increasing its brand recall- for the record, ilOsool has 5000 plus likes on Facebook, and 1500 plus followers on Twitter. Much like other startups in the region, ilOsool has a small team of six people- besides Tubaishat and two other analysts, there are three web developers who are based out of Jordan. While the company has a virtual office in Dubai, the team is mostly based out of Jordan as part of a strategy to cut costs, as ilOsool, for the moment at least, is being funded by Tubaishat alone. While he claims he isn’t actively looking
DECEMBER 2014 Entrepreneur 77 What are illiquid assets? Assets including real estate, private equity and venture capital are not easily sold for two main reasons. First, there is often a lack of potential buyers, and second, clients rarely have access to an established market to help them move their assets and securities. One of the main chal- lenges of illiquid assets is their inability to be converted into liquid assets at a profit; in fact, many are prone to losing a substantial portion of their estimated value, consequently making them higher risk assets. Factors such as political instability, economic crises and general lack of buyers make it more difficult to move illiquid assets when needed. www.ilOsool.com “We cut costs a lot by going to Jordan and building a team there, while I stayed here [in Dubai], where the exposure and network is more prominent.” for investors for ilOsool, Tubaishat says he is open to interest on that front all the same. While becoming an en- trepreneur was something Tubaishat wanted to do ever since he was in high school, he notes that there were quite a few challenges he had to tackle before starting up ilOsool, most significant of which was giving up his steady job for this new enterprise. “That period when you decide [to become an entrepreneur], it’s a very challenging time, and you need a lot of support,” Tubaishat says. “Fortunately, my family supported me, and so did my friends, and I also had ideas coming in from inves- tors with whom I had good relationships with.” Another worry that Tubaishat had when start- ing up ilOsool was the expenses involved in setting up the same. “Dubai is an expensive city,” he explains. “If you want to have a startup in Dubai, even just starting it costs a couple of hundreds of thousands, you need a full budget. And without any investors, it makes you think twice about [the venture].” But Tubaishat managed to get past this particular challenge by going to Jor- dan and building up a team there. “The IT-literate in Jordan is quite high, and you get good quality pro- grammers there,” Tubaishat says. “We cut costs a lot by going to Jordan and building a team there, while I stayed here [in Dubai], where the exposure and network is more promi- nent.” With most of the ground- work for ilOsool now in place, Tubaishat and his team are currently hoping that the website now gets an active, interested audi- ence. While the general feedback about ilOsool and its intentions have been good, Tubaishat notes that people may still be reluctant to join the site, given the novelty of it all. But ilOsool is trying to get past this challenge as well- Tubaishat points toward the free access being offered by the website, its easy sign-up process, and, of course, the social media exposure as well. When asked about the growth prospects he hopes to see for ilOsool, Tubaishat is optimistic, but wants to remain realistic as well. “In the initial phase, my plan is to educate the target market and increase its awareness and acceptance of the concept we are offer- ing,” he says. “The timeline for the first phase is set to one year, during which ilOsool will be consistently supported by its sister company, Ultra Frontier, with regard to deal flow and client referrals.” “Afterwards, and dur- ing phase two, once the company has had enough exposure and its concept has been adopted, we hope to see a substantial growth in the users database of the platform,” Tubaishat adds. “We see a great growth potential for the company, as the service provided is unique, and our technology and model are scalable.”
Entrepreneur DECEMBER 2014 78 start it up Wacky idea | who’s got VC | Q&A | STARTUP FINANCE Keeping crafty company By Pamella de Leon Startup ideyna provides e-commerce platform for GCC artisans Arab boy plushie Earphone holders I n a city that oozes luxury and extravagance in mass production, two individuals set out to “offer something original in the market that wasn’t mass-produced or available at a mall near you.” Nafisa Rebello and Ekta Saran, being avid travelers, would usually bring back “something native and with a story” for each other. They found that novel and creative items were (and are still) difficult to find in their home city of Dubai, UAE. Although they met art- ists who had the talent and skills, they found that many of them lacked the resources, knowledge, and time to set up their own website to promote and sell their handmade prod- ucts. This prompted the pair to start e-commerce platform ideyna: “We saw a wonderful opportunity to do this with handmade products,” says co- founder Rebello. “We wanted to build an online marketplace for unique handmade items that makers could not only sell their work on, but also one that anybody could access at any time, buy and pay for in a convenient way, and have their purchases delivered to them wherever they were.” It wasn’t all fun and games, because even though their ex- citement for ideyna was brew- ing, they underestimated how long it would actually take. “We needed the components to execute it.” For the business to be commercially viable, they needed the right devel- oper to build the platform, a designer to create the look they were after, logistics and of course, identifying artisans to launch with- a process that “took a long and patient two years.” After realizing that e-commerce platforms with a marketplace support were insufficient for their business model, the co-founders devel- oped their own custom plat- form. One of their key goals was making sure that sellers had a user-friendly admin panel to manage their inven- tory and accounts. Besides spending time to test the func- tionality of the website, ideyna also contacted makers and crafters to test the website, set up shop, list items, and even had test users play the role of ordering customers to cement logistics and site reporting ele- ments. Being self-funded, they couldn’t afford the high costs that most banks would ask for a local payment gateway. After officially launching in Febru- ary, their biggest challenge was “getting the word out about ideyna, our crafters, and the wonderful things they sell on the site.” To get potential customers to their website, so- cial media and how-to videos were their marketing tools of choice. Both of the 32 year-old co- founders have backgrounds in television, photography and filmmaking as producers, writ- ers and copywriters. The two peas in a pod used to “literally sit next to each other in class”, and the duo regard their 15 years of friendship as an advantage since honesty isn’t an issue. “It also helps that we both have a terrible poker face. So if something’s wrong, we know right away. Even if we do argue, we tend to talk it out. And most importantly, forgive each other, because at the end of the day, we like each other.” Their social media strategy is product-centric; both co- founders admit they are a “tad introverted. Shouting from rooftops about ourselves has always been a very scary prop- osition,” but telling the stories of ideyna’s crafters is what they find easy. It’s endearing seeing their enthusiasm to showcase the talent of local hand crafters, artists and mak- ers. Their stage-mom persona echoes in their drive to use their skills in photography and video-making. “The idea was to educate people about what goes in the making of it and to showcase the maker’s passion and skill, thereby promoting their work,” explains Rebello. Being believers of the do-it- yourself (DIY) culture, they also produce DIY short vids that teach making things in under a minute. “People have lost that childhood joy of mak- ing things with their hands. We want to reintroduce that joy to our audience.” The market for handmade products is popular, and ideyna commends Etsy for “definitely [being] a huge inspiration.” However, they aim to “create a pool of small businesses that can locally sustain themselves” and by using local resources, skill and talent, they can use their plat- form to support the “maker movement”. They want bigger things for their crafters too: “We want to see that story of a little crafter becoming an independent entrepreneur and support other budding dreamers.” The duo accepts that localizing a concept is “horribly overused”, and ideyna differs by arranging its own shipping locally and internationally. Unlike other online marketplaces, ideyna doesn’t charge a listing fee and
DECEMBER 2014 Entrepreneur 79 Nadia high-low dress Little Blank Book STATS “We launched with eight crafters and around 40 products. Today, we have around 40 crafters and more than 500 handmade items for sale on the website.” BRAND “We knew our brand would be about the celebration of hands. They are a source of endless expression, and therefore the name needed to say all of that. Also, being in a city where even an expat uses words like ‘yallah’ and ‘habibi’ we were keen to have an Arabic word. Brainstorming with a friend one day, we stumbled upon ‘ideyna’, which not only means ‘our hands’, but also suggest a coming together of hands- a community. Bingo! We knew we had it.” LOGO “If you look carefully, it’s actually a label. A take on not being commercial, with a hand-stitch that tells people ‘we were made right here with loving hands’. “ ROI “We see our ROI coming primarily through sales on the website. In order to achieve this we have invested a mix of SEM and content marketing to help drive traffic back to the website and increase our conversion. Our initial workshops and pop-up shop events have been profitable, it’s something that we may do more in the future, but we hold these events more to increase our brand awareness and less of an ROI opportunity. We project a return on our investment in ideyna’s second financial year.” FUNDING “Not at this stage of the business. Once we’ve achieved a healthy sales threshold, there may be an opportunity to scale the business, at which point, we would look for further funding.” BUYING After registering on ideyna.com, buyers can pay for items with credit or debit cards, PayPal, or cash-on-delivery within UAE. Delivery is within two to three working days depending on their location, unless an item was made to order. The platform also has an in-built messaging system for requests on custom-made items and other inquiries, and buyers can also leave seller feedback. SELLING Makers can register on ideyna.com and send a seller request through their account. After sending information about their work, along with photographs, it can be determined whether the seller is right for the platform or if a meeting is needed. If they’re a good fit, access and space is then given for them to personalize. In this way, they can manage their own little business on ideyna. only takes commission on the sale. “We are truly invested in our crafter’s success because we only make money when they do.” With e-commerce being nascent in MENA Rebello re- marked how many artisans still feel the risk of selling online. By offering free listing to their platform, this is also their way of encouraging MENA crafters to sell virtually. By making ideyna a “risk-free, creative and collaborative marketplace,” the duo hopes they encourage mak- ers to join and sell with them. What are the qualifications for selling? Their main condition is that though the materials could be imported from elsewhere, the finished product should be made in the UAE. Organized by The Fash Set and alongside other startups, ideyna recently had their first pop-up event last month. Describing it as their first step “from offline to online”, this is what the ideyna team hopes to do more of in the future. En- couraging crafters-to-audiences greetings, DIY workshops and a growing community, they want to be the “go-to when someone wants to learn about handmade goods, and perhaps how to create them too.” Aptly fitting for their tagline of being the ‘handmade marketplace’, don’t you think?
Entrepreneur DECEMBER 2014 80 A light in the dark How Gaza Sky Geeks increased women’s leadership in the Gaza startup sector By Iliana Montauk start it up Wacky idea | who’s got VC | Q&A | STARTUP FINANCE Gaza’s tech sector is still nascent, and the biggest challenge our founders face is their lack of connection to other countries. This translates to lack of awareness of trends, lack of mentors, difficult access to new markets, etc. GAZA SKY GEEKS WEBSITE Gaza Sky Geeks (GSG) is the first startup accelerator in Gaza. It was founded in 2011 with support from Google and is imple- mented by Mercy Corps, an international humanitarian organiza- tion which provides access in and out of Gaza. GSG conducts outreach to a community that until recently was largely unaware of startups, identifies top talent, creates a pipeline for investors, and connects strong teams to investors. In the past year, largely due to GSG’s work, Gaza startups obtained seed level investment for the first time. Interest in Gaza has spiked: over 600 Gazans applied to the most recent Startup Weekend in June 2014. One of GSG’s biggest successes has been creating an inclusive startup community with 50% women at the co-working space and in the startup pipeline. In this piece, GSG’s director Iliana Montauk describes how the accelerator grew women’s leadership in the nascent tech sector in Gaza. GSG runs the risk of shutting down at the end of this year due to lack of funding. To support their crowdfunding campaign, visit www.gazastarts.com and follow them on Twitter @GazaSkyGeeks. I n April 2014, my team and I at Gaza Sky Geeks launched a new pipeline activity with a grant from Google for Entrepreneurs. Our goal was to increase the number of women startup founders in Gaza. We had seen a high percentage of women’s participation in the startup sector in Gaza since we began our work: often, 30% of the attendees at our events are women. But when we first presented our startups to investors in November 2013, only male-led teams received investment. It was too early to determine whether this was a trend or not, but we had a sense that it was , and we wanted to nip it in the bud. Women’s leadership in the Gazan startup sector: a world of opportunity It’s easy to look at a place like Gaza and pity those of us who work there. It may surprise you to hear that it’s also a place full of opportunity. Women’s leadership in the tech entrepreneurship sector is one of those. Here’s why:
DECEMBER 2014 Entrepreneur 81 in the case of women’s leadership, the closed borders may actually give us the upper hand. The people we work with haven’t been exposed to the low level of women’s leadership elsewhere. 1. Percentage of women’s involvement is already high In some parts of the world, it’s normal to see 15% women’s participation at an event like Startup Weekend. In Gaza, those percentages have already been around 30%. We could settle for that level of participation - it’s already quite high, right? We don’t think so. Rather, we believe that places like Gaza can be global leaders in creating an inclusive tech entrepreneurship community. 2. It’s closed off from the rest of the world For our community who lives in Gaza and for the business success of our startups, Gaza’s closed borders generally pose serious barriers. They separate our entrepreneurs from the startup movement around the world. But in the case of women’s leadership, the closed borders may actually give us the upper hand. The people we work with haven’t been exposed to the low level of women’s leadership elsewhere. Here, we can harness our isolation to incubate a startup sector whose faces reflect the diversity in the broader environment. (We still believe our startups would benefit from having open borders, but since this is something we are unlikely to be able to change, we focus on finding ways to work within these constraints. Whenever the constraint creates an advantage, it is our job to identify it and harness it, as do entrepreneurs around the world.) 3. Women know they are good at math and science (STEM fields) Before moving to Gaza, I lived in Jordan and had a Syrian roommate. She had never heard of the stereotype that women are worse at science, technology, engineering, and math (STEM fields) than men. The same applies to Gazans. Girls generally get the best scores in these fields in high school. “Americans think women are worse at math and science than men?” a Gazan young woman once asked me. “That’s ridiculous. We’re better.” 4. Families are eager for anyone to bring in income At Yahoo’s Change Your World conference in Amman, I learned that some Jordanian communities do not feel comfortable having their daughters work in environments with men. That may apply to some extent to Gazan families, but overall, because unemployment is 50%, any family member who can bring in income is encouraged to do so. Plus, with high percentage of women at Startup Weekends and the Gaza Sky Geeks co-working space, families know that their daughters will be in a safe place. Women’s leadership in the Gazan startup sector: challenges Of course, that does not mean there are no challenges. When my team at Gaza Sky Geeks decided to set a goal to increase the number of women- led teams securing investment or launching their startups successfully without investment, we ran focus groups to find out what barriers women were facing. Here’s what we found: 1. Families play a larger decision-making role for women Whether it’s the husband or the father, families’ opinions matter more when women are making choices than when men are making choices. That matters because of the following points. 2. Startups hold no prestige in Gaza Most Gazans have never heard of a startup. Families would prefer that their daughters, sisters, and wives do something prestigious or at least something their community understands and values. I’ve only lived in Gaza for a year and am still learning local culture, but from what I have discovered, Gazans consider it prestigious to earn income, obtain a degree, or receive a certificate or prize (at the end of a training course or competition). Why someone would want to spend each day at a co-working space without bringing home any immediate income (nor a certificate) is simply confounding. 3. Resources are scarce Families also hesitate to encourage their daughters’ involvement in entrepreneurship because resources are scarce. It costs some people half of a monthly salary (US$200) to transport themselves to our co- working space and back home each day. Why spend the family’s money on something that is not yielding a clear return? >>>
Entrepreneur DECEMBER 2014 82 start it up Wacky idea | who’s got VC | Q&A | STARTUP FINANCE 4. Women have lower confidence than men In our focus groups, women said over and over again that they did not think they had the skills or knowledge necessary to launch a startup. We knew that their skill set was similar to that of men in our pipeline, so we identified this as a lack of confidence. Women said they would eagerly engage in a structured program (training, coaching, milestones, etc.) but outside of that context, they did not know how to move forward. That’s how we decided to launch our solution: Intalqi. Intalqi is “Let’s begin!” in Arabic. Intalqi: The first program to create women startup founders in Gaza Our initial design was simple. To address families’ lack of support for entrepreneurship, we put a few measures into place that gradually improved things: 1. Get families on board by providing status symbols they value We gave women participants small stipends ($100/month for women leaders in the program, small prizes for other women) so that their families could see an immediate, tangible benefit to being an entrepreneur. Women said their families loved this - even if it was not much, it made them believe that their daughters were valued. We also sent families a text message each week describing their daughters’ or wives’ accomplishments. We asked the women which family member should receive those messages. Then we sent them: “Lina just gave one of the best presentations we’ve ever seen!” we wrote, or “Tala’s idea has evolved into one with tremendous potential!” Women said their fathers and husbands loved this, too. Finally, we planned to give certificates and invite families to see the final women’s final pitches. We ended up stretched thin preparing to launch Startup Weekend, and soon after that the Israeli-Gaza 2014 conflict broke out, so we failed to implement this piece. We still believe it would be worthwhile in our next round. 2. Build an alternate community to support women founders We want to get families on board with their daughters’ or wives’ dreams, but we realize families are unlikely to provide serious support until launching a startup in Gaza becomes as prestigious as launching one in Silicon Valley. In the meantime, launching a startup anywhere is hard, and founders are much more likely to be successful if they have a community that supports them. Thus, we decided to create one. Intalqi was composed of 10 “Big Sisters” (women who had already started working on a startup) and 10 “Little Sisters” (women who showed potential but had no experience). Because the Big Sisters felt responsible for their Little Sisters’ success, the Big Sisters felt pressure to forge forward with their own endeavors and serve as role models. Everyone participated in bi-weekly discussions and training, and soon, the Big Sisters and Little Sisters were bringing new friends to our space. Gaza’s tech sector is still nascent, and the biggest challenge our founders face is their lack of connection to other countries. This translates to lack of awareness of trends, lack of mentors, difficult access to new markets, etc. Thus, a core part of the Intalqi community we created were our outside mentors: each Big Sister was paired with a mentor from abroad. This also addressed the challenge of lack of local role models. In general, very few women are leaders in Gaza’s private sector. External role models are needed to discuss basic questions like work-life balance, how to be a business leader with female qualities, continuing one’s career while having a family, receiving respect from male business leaders, etc. 3. Make it clear that women are welcome For our Startup Weekend in June 2014, we consciously targeted women. We designed a logo and color scheme intended to make it clear that women were welcome. Since then, we’ve learned from Google for Entrepreneurs’ other partners -especially UPGlobal, the company that created Startup Weekend- that simply inviting women to events can increase women’s participation immediately. We’ve become big advocates of being thoughtful about the pictures we put on our website, the way we decorate our space, and other symbols that communicate unconscious or conscious messages. We also learned through our own
DECEMBER 2014 Entrepreneur 83 The entrepreneurship training that exists in Gaza is sorely out of date, so rather than replicating it we designed our own. We were the first to bring the Lean Startup methodology to Gaza, the concept of embracing failure, and more. Iliana Montauk is the Director of Gaza Sky Geeks (GSG), the first startup accelerator in Gaza, run by Mercy Corps and launched in collaboration with Google. In Gaza, where she and her team have created an inclusive startup community, half of the startups in their pipeline are led by women. Before arriving to Gaza, Iliana helped launch Wamda’s Research Lab. She has previously worked at Google, Monitor Group (now part of Deloitte Consulting), a startup that failed, and a microfinance nonprofit. She graduated summa cum laude from Harvard in 2006 with a degree in History and Literature of France and the Middle East. GAZA SKY GEEKS TWITTER ACCOUNT © TWITTER.COM | wasselni website experience that it is ok to weight participation towards women to build an environment that is clearly comfortable for women. For our June 2014 Startup Weekend, 30% of the applications we received were from women and 70% from men, but we accepted 50% of each. We worried how this would impact the quality of the event. As you’ll see below, those fears were unnecessary. 4. Give women more (and higher quality) training Because women said they’d continue working on their startups if they could participate in a structured program, we created a structured program. The entrepreneurship training that exists in Gaza is sorely out of date, so rather than replicating it, we designed our own. We were the first to bring the Lean Startup methodology to Gaza, the concept of embracing failure, and more. Mostly, we helped participants identify a market, iterate to create an idea that had large potential, and find a team to launch a prototype of the idea. The result of our work was a dramatic increase in women’s leadership in the startup sector in Gaza. We ran Intalqi for just two months before Startup Weekend. Over 600 people applied to the event, and we chose 150 participants. On the first day, 70 pitched ideas, and half of those were women. The idea that won the most votes was by Nalan al- Sarraj, a Little Sister from Intalqi. At the end of the event, two of the top three teams were ones with women leaders. These days, approximately 70% of the people at our co-working space each day are women. Out of the five most prominent startups in our pipeline, four are led by women or have women co-founders. We’re proud of these achievements, and eager to keep pushing the envelope in this work. We believe Gaza’s nascent and energetic startup movement has the potential to contribute in meaningful and innovative ways to the global tech sector. Women’s inclusivity is an important one of these. Intalqi was made possible with generous funding from Google for Entrepreneurs and implementation by Mercy Corps’ Gaza Sky Geeks and Mercy Corps’ larger team. Special thanks to Nadine Badderedin and Said Hassan Abdalrahim for designing and leading Intalqi with so much thoughtfulness and enthusiasm.
Entrepreneur DECEMBER 2014 84 IN PICTURES du invites SMEs to Business Help Roadshow Ask and ye shall receive I n a bid to extend a hand to UAE businesses, du invited SMEs to its sixth Business Help Roadshow. The Roadshow allows attendees, small and medium enter- prise customers, to seek advice from du’s experts. The Business Help Roadshow brings in telecom specialists to discuss issues on billing, technical and sales for both mobile and fixed services in one-on-one sessions. Held on the 12th of November at Rayhan Rotana Hotel, Al Ghurair, the monthly roadshow aimed to tackle on chal- lenges and even solve problems on the spot. Launched in March 2014, the roadshow has been alternating differ- ent emirates, having previously been held successfully in Dubai, Sharjah, Ras Al-Khaimah and Abu Dhabi.
DECEMBER 2014 Entrepreneur 85 JEDDAH BEIRUT LONDON DUBAI Activate Your Events Tel +971 4 4534033 info360@traffik360.com www.traffik360.com
Entrepreneur DECEMBER 2014 86 Wacky idea | who’s got VC | Q&A | STARTUP FINANCE start it up ‘Trep-tastic! The Entrepreneur Day hosted by the DSOA Below: Shahla Ahmed Abdul Razak Deputy CEO DSOA, Moustafa Mahmoud, CEO, MENA Commerce Winning idea Young Arab Leaders stage RAK Startup Weekend P arking Savior, a mobile app envisioned to help motorists find available parking spaces near their current locations, was declared as the winner of the Ras Al-Khaimah (RAK) Startup Weekend in November, an event that was organized by the UAE chapter of the non-profit, Young Arab Leaders (YAL). The Startup Weekend events, a concept that originated in Seattle, Washington and has since spread to over 200 cities around the world, are 54- hour lock-in events where developers, designers, marketers, product managers and startup enthusiasts come together to share ideas, form teams and launch startups. In the UAE, YAL had held Startup Weekends in Dubai and Al Ain previously, and the Ras Al-Khaimah edition was the latest installment of the event. At the RAK Startup Weekend, the winning team behind Parking Savior, which comprised of Abdulla Mohammed Al Muhairi, Jaber Al Zeyoudi, Faris Abdulla Shaheen, Sheikh Mohammed Faisal Al Qassemi, Forsan Al-Sharabati, Shabeeb Melekalam, and Rashed Humaid Noamani, were awarded with a variety of prizes presented by in5, Elevision Media, White Payments and others. Commenting on the event, Muna Al Gurg, Chairperson, YAL, and Director of Retail, Al Gurg Group, said, “The Young Arab Leaders’ mission is to enable positive change in the Arab World by promoting entrepreneurship. That is why we continue to host and co-sponsor the ‘Startup Weekend’ throughout the UAE, as we see the kind of positive impact it brings our community. The events create a space for people to network, exchange ideas and meet like-minded people.” I t was a battle of ideas when 10 entrepreneurs from all around the Middle East came together in Dubai to compete in the final round of the business plan competition conducted as part of The Entrepreneur Day event hosted by the Dubai Silicon Oasis Authority (DSOA) in November. The finalists, who were selected from a pool of more than 400 applicants for the competition, took to the stage at the event to present their ideas and business plans for their respective startups to a judging panel that consisted of angel investors and venture capitalists. In the end, Irhal, a mobile app catered toward Muslim travelers and tourists, and MENA Commerce, an e-commerce consulting and training firm, emerged victorious in the competition, and were declared the “Best Islamic Economy Startup” and the “Best Business Startup” respectively. Besides being provided with funding, incubation support and a business license from DSOA, the winning startups will also receive office space at the Dubai Technology Entrepreneurship Centre (DTEC). MENA Commerce will, in addition, receive three weeks of hands-on training at the PITME Labs in Silicon Valley. Commending the winners, Shahla Ahmed Abdul Razzak, Deputy CEO, DSOA, said, “I would like to congratulate the winners- they truly deserve this recognition from a platform that we anticipate will grow over the coming years. We have no doubt that this rewarding educational medium will be a stepping stone for these young and visionary business leaders today, and in the years to come.”
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Entrepreneur DECEMBER 2014 88 Everything is coming up roses Emirati ‘trep Moza Al Huraiz says business is blooming certified graduate sponsored by dubai chamber in the spirit of facilitating emirati achievement via entrepreneurship start it up Wacky idea | who’s got VC | Q&A | STARTUP FINANCE M oz Flowers, a brick and mortar startup, doesn’t shy away from using technology to onboard new clients. In fact, their active and inter- active Instagram presence might be just the trick for founder Moza Al Huraiz to continue to gain market share. The founder, to- gether with her small team of four, are well-versed in multitasking: “Aside from being the Director, I also ensure to sketch designs that my team of florists develop, and ensure the durability and shelf life of the flower. Our manager insures that everything sent out is up to standards, and she also maintains our stock of vases as well as flowers. We also have a driver who conveniently as- sists our clients by picking up and delivering their gifts and flowers,” explains the 24 year-old entrepreneur. Al Huraiz, a graduate of the American University in Dubai with a Bachelors in Business Administration and a concentration in Eco- nomics, self-funded Moz Flowers. “Before found- ing Moz, I had my own perfumery lab where I had the chance to create new scents for myself and for my friends. This actually helped in the development of our own soy wax-based candles, which have also been created in my own perfumery lab and sent to production.” Al Huraiz, a certified Tejar Dubai gradu- ate, says that she initially tested out the market by introducing contemporary floral design, and seeing how the public reacted to the new bloom presenta- tions. “To our surprise, people were extremely ready for that change. The idea began with wanting to elevate the downturn of flower shops around the area. Our concept was to advance the flower stores into a new level of retail development in a well- branded floral concept,” says Al Huraiz. While Moz Flowers is now a successful operation, like any startup they faced their own set of challenges that they had to overcome to run smoothly. The founder says that these minor setbacks were something they “jumped through”, acting as a launch pad for the next steps in their business growth.
DECEMBER 2014 Entrepreneur 89 Tejar Dubai is a development program committed to nurturing potential UAE nationals into becoming entrepreneurs. Launched last year under the patronage of H.H. Sheikh Majid bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, the program identifies, develops, and mentors promising UAE nationals to expedite the growth of an embryonic business idea and advance it to the point of being ready for immediate implementation. www.tejardubai.ae @TejarDubai TejarDubai ‘TREP TALK Q+A What do you think is the biggest challenge facing Emirati entrepreneurs? There is a lot of competition es- pecially from foreign businesses and established businesses that have been around for years. We are trying to set ourselves apart by introducing modern, yet sophisticated, designs. Emiratis play an important role in contributing to the economy, we have plans to collaborate with local designers on future projects within Moz. Our long term plans for Moz is to expand further within and into other related areas of business. My advice would be to find something that can stand out between the crowd of contes- tants. An Emirati seeking the help of Tejar [Dubai] should also be confident enough that his or her idea can make it in the real world, and can take all the chal- lenges that it might face. What is Moz Flowers marketing strategy? Initially, we started via word of mouth. Basically for each order we ensured that two costumers were aware of the brand, which is the recipient and costumer. We have accomplished that by tagging every arrangement and bouquet with a store tag with our contact information. Apart from setting up brand aware- ness, it had also eliminated the figuring our process of where that arrangement came from. Our main focus was to market our concept store through so- cial media networks, which not only allows us to interact with our customers, but also serves as a genuine and a constant means of costumer to business communication. How do you stay motivated? What keeps me motivated is the positive reaction and feedback I get from clients. Our major part of business is gift giving, and seeing those smiles on our clients is just the biggest joy of all. When running your own business, you sort of lose track of time. At some point I realized that I have been work- ing for a whole week without a break, but I wouldn’t chose it to be any other way. What process did you go through with Tejar Dubai? Tejar was my guide through this whole process. They were constantly guiding me with their professional advice. Apart from the guidance, they have also put me in contact with various entrepreneurs who can benefit from our area of business and vise versa. Tejar is a place where entrepreneurs like myself go to expand their areas of expertise, in the way that they mentor and connect you with like-minded people to help your business flourish and get noticed. To secure their assistance, Tejar took me through various steps to insure that my business plan was well thought through, and in a way made sense. I started with pitching in my idea, which was already in the process of development, and then I had to present my idea to the judges. The team of judges was from very established businessmen in Dubai who have experience in various business fields. They weren’t hesitant to give their honest opinions on what might and might not succeed.
Entrepreneur DECEMBER 2014 90 Fourth Louvre Abu Dhabi Talking Art Series Launched with Discussion on Leonardo Da Vinci’s La Belle Ferronnière at Manarat Al Saadiyat Cruise control William Ford Jr. is rooting for smart solutions to combat global gridlock By Aby Sam Thomas INNOVATOR H.E. Hisham Al Shirawi, Vice Chairman, Dubai Chamber, presenting a memento to William Clay Ford Jr. William Clay Ford Jr., Executive Chairman, Ford Motor Company, at The Future of Mobility forum I n his first official visit to the UAE, William Clay Ford Jr., Executive Chairman, Ford Motor Company, used his speech at The Future of Mobility forum in Dubai in November to highlight one of the country’s (and indeed the world’s), pressing issues of traffic gridlock. At the event, Ford Jr. noted gridlock as becoming a serious issue for the world to contend with in the near future. “Today, there are about one billion vehicles on the road worldwide,” he said. “But with more people and greater global prosperity, that number is expected to double, and possibly double again, by 2050. This will create global gridlock on a scale that the world has never seen before.” But the future doesn’t have to be a dreary one- Ford Jr. said an out-of- the-box thinking could help solve the world’s mobility issues. “We are building smart cars, and they will continue to get smarter,” he said. “But we also need to build smart roads, smart parking, smart transportation systems and more, and we need to connect them all using wireless telecommunication… To keep traffic moving, we need an integrated transportation network that uses real- time data to optimize mobility on a massive scale.” And such solutions are already in the works, with Ford Jr. highlighting Masdar City’s transportation system as “an incredibly ingenious approach that links different mobility options together.” Ford, for its part, has its own ‘Blueprint for Mobility’ strategy that aims to bring together people and industries to think of solutions for a more sustainable future. But that’s not all- Ford Jr. has bigger ideas in mind for the future of mobility. “What if we could move from solving problems created by vehicles, to vehicles sorting by longstanding societal issues?” he said. “As technology quickly evolves, we must push ourselves to look for new opportunities to solve bigger issues. This is the next challenge before us. We must find ways that mobility can improve the human condition.”
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