Entrepreneur Middle East
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DECEMBER 2015 | www.entrepreneur.com/me | UAE AED20 9 7 7 2 3 1 1 5 4 1 0 0 8 > Business learning curves 13 points of reference that you can put to work for your enterprise The second annual pan-Arab Enterprise Agility Awards, Entrepreneur of the Year Enterprise Agility Awards 2015 The Recap Running the show K. Rajaram The CEO of Al Nabooda Automobiles draws on four decades of in-market experience to get things done (right)
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december 2015 Entrepreneur 3 CONTENTS december 2015 22 The Recap The 2015 Enterprise Agility Forum The second annual Entrepreneur Industry Intel event, the 2015 Enterprise Agility Forum presented by du, and 13 points of reference that you can put to work for your enterprise gleaned from our morning of panel discussions. 72 ‘TREPONOMICS: PRO The Diderot effect Olympian and entrepreneur James Clear talks about the vicious cycle that ensues when you spend a bit, then spend a bit more, and then spend even more. 54 SKILLSET Innovation happens outside of the classroom Three things entrepreneurs can teach MBAs, and guess what? It all involves hands- on experience in the market. 38 SKILLSET Promoting SMEs as key drivers of innovation and engines for global trade and growth Marc Proksch analyzes some external and internal factors to consider for your company’s success. 14 EDITOR’S NOTE By Fida Z. Chaaban 30 The Recap Enterprise Agility Achievers 2015 The second annual pan-Arab Enterprise Agility Awards, Entrepreneur of the Year presented by du 16 innovator: Running the show K. Rajaram The CEO of Al Nabooda Automobiles draws on four decades of in-market experience to get things done (right). 16 Running the show: K. Rajaram, CEO of Al Nabooda Automobiles 36 Enterprise Agility Awards: Ambareen Musa accepting the Woman Entrepreneur of the Year award
Entrepreneur december 2015 4 CONTENTS december 2015 Enterprise Agility Forum 2015 22 67 Startup Weekend Dubai runs a 54-hour educational experience for ‘treps 70 ‘TREPONOMICS: ESQUIRE GUY The compliment sandwich Ross McCammon lays down the law: you must soften a rejection with a positive message, and this is how you do it (right). 42 MARKETING The recipe for a viral marketing campaign Bayt.com’s Lama Ataya explains how having a piece of content go viral is the closest thing to the Internet’s version of winning the lottery. 84 MONEY: ASK THE MONEY GUY Critical points to note for continued access to capital Dr. Abdelhakim Hammach, the Managing Director of Riyadh Valley Company, discusses how to overcome fundraising challenges for your startup. 76 START IT UP: Q + A Moving pretty darn quick CamelShip co-founders Sari Issa and Fares Nimri came up with their idea after they noticed a gap they could bridge in what they describe as the “e-commerce space.” 78 START UP FINANCE More money means more opportunity Sarah Appleton’s startup, Mini Exchange, got funded in Dubai and now she is using those funds to scale the business. 82 START UP FINANCE Capital injections for two Middle East startups The founders of Carpool Arabia and TaskSpotting share their tips on getting funded, and what they’ll be doing with their new found funds. 68 CULTURE: LIFE Business book rundown Amal Chaaban reviews a few business books for you before you hit the bestseller aisle. It’s true that not all executive material is created equally.
Entrepreneur december 2015 6 CONTENTS december 2015 U.K.-based entrepreneur Roja Dove crafts haute fragrance for the MENA bespoke client 60 60 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. 50 DESIGN Business is booming A discourse on design with entrepreneur Hazem Aljesr. The Cities founder makes MENA’s creatives a priority with his enterprise. 58 TRAVEL At your beck and call The St. Regis Abu Dhabi is always at the ready for your visit to UAE’s capital. 62 TECH 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. 90 WEBSITE TO WATCH Finance goes digi Fintech companies are transforming the banking experience by driving the sector into the next generation of banking. 50 Cities Store Dubai 62 #TamTalksTech: The new iPad Pro
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Entrepreneur december 2015 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 PUBLISHER Nehme Abouzeid MANAGING EDITOR Aby Sam Thomas CREATIVE LEAD Odette Kahwagi ONLINE LIAISON Kareem Chehayeb COLUMNIST Pamella de Leon COLUMNIST Tamara Clarke COLUMNIST Shoug Al Nafisi 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 © 2015. 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.entrepreneur.com/me Access fresh content daily on our website! MIDDLE EAST Printed by Raidy Emirates Printing Group LLC www.raidy.com EntMagazineME @EntMagazineME | @Fida Entrepreneur-me EntrepreneurMiddleEast EntMagazineME EntMagazineME EntMagazineME MIDDLE EAST Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock. Sarah Appleton Lama Ataya Amal Chaaban James Clear Ross McCammon Dr. Abdelhakim Hammach Sean McKeon Marc Proksch Soukaina Rachidi Alexander Rauser May Rostom Mark Sephton 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!
Entrepreneur december 2015 12 L ately, probably due to the large number of events En- trepreneur Middle East par- ticipated in this year, I’ve been asked a lot about my moderating or speaking engagements. This fall alone, I took part (alongside many others from our hyperactive entrepreneurial ecosystem) in more events than I can list here, and they all had to do with entrepreneurship and leadership. On November 20, I had the great pleasure of moderating for one of MENA’s biggest ecosystem heroes, Ronaldo Mouchawar, the founder and CEO of souq.com at Endeavor Jor- dan’s DealMakers 2015. (As an aside, it was a terrific event and the premise is that it connects worthwhile En- deavor Jordan entrepreneurs with potential investors for “speed dating” sessions- they pitch hard, and then they move onto the next table.) After the session, I was asked if I was “paid” to moderate. The question actually was posed thus: “So why do you do this, anyway? You’re always speaking… Are they paying you? Like, all the events you speak at, do they pay you to do this?” No, no one is paying me. (Full disclosure: there are non-monetary stipulations when I moderate or speak at an event- we ask that Entrepreneur Middle East is partnered in some official capacity, and that our logo is present.) So, the reason that both Aby Sam Thomas (our Managing Editor) and I speak or moderate at different events across the region is because we don’t see ourselves as a media outlet. We see ourselves as part and parcel of the entrepreneurial ecosystem in this region. During these types of conver- sations, I often remind people that we too stage events, and how can we ex- pect the ecosystem’s pillars to come out and take time out of their sched- ules to speak to our entrepreneurs, if we aren’t doing that very same thing? Yes, it does take a tremendous amount of preparation, and yes, it means we often work long hours to make up for the time that we spend at events as speakers (especially when we have to travel for an event). But that is what it takes to work at this magazine, because we don’t see ourselves as just a magazine. If we did, we would not have, from day one, been actively engaged on the ground with entrepreneurs and the very significant people who facilitate entrepreneurship in this region- be it through programs, mentorship or funding. If we did see ourselves as just a magazine, we wouldn’t be tweeting with our startups night and day, and we wouldn’t be heavily engaged with entities like Endeavor. To work at this magazine, you have to believe in what we’re doing, and that means that you are committed to being more than just a magazine. You are committed to the ecosystem, all the way. I think that our Director, Wissam Younane, summed it up nicely during his address at our 2015 Enterprise Agility Awards in Dubai when he, inspired by H.H. Sheikh Mohammed bin Rashid Al Maktoum’s com- mentary on the Arab world, said: “Entrepreneurship isn’t just on our agenda, it is our agenda.” And like you, entrepreneurs, that means we have a single-minded focus on doing our part for the ecosystem, and keep- ing the collective give-and-get energy going. I’ll see you all at the next event! Fida Z. Chaaban Editor in Chief @fida | @fidazchaaban editor@bncpublishing.net EDITOR’S NOTE Check out the full coverage of the 2015 Enterprise Agility Forum presented by du in this edition and on Twitter and Instagram by visiting the hashtag #AgilityForum You get what you give Ecosystem karma
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december 2015 Entrepreneur 17 Rajaram is calm and composed as he responds to my queries on the Volkswagen story (he lighted up a cigar during our conversation, and casually took a puff of it every now and then), and while I was a tad worried if my barrage of questions on the topic would ruffle his demeanor, I soon realize that this shouldn’t have been a concern at all- the man sitting opposite me is a seasoned businessman with more than 40 years of experience in his trade, and from his perspective, issues like these are just storms that one has to simply –and slowly- navigate smartly through. “Hope springs eternal, in the human heart,” Rajaram declares. “I am sure that things will turn out to be okay, and things will go on. Because, at the end of the day, do not ever forget, we still have very good products. There’s no taking away from that fact.” His pride (and faith) in the Volkswagen brand not withstanding, when I asked Rajaram if he had any points of advice for the Volkswagen leadership team in how they move forward with the situation in front of them, he highlighted a pertinent point about the company maintaining its relationships with its partners around the world. “I just want them to make sure that they now comfort the dealers,” he notes. “You see, that’s another thing that everybody hasn’t looked at- its dealer network. Because it is the dealer network that has put in billions, worldwide, to run their brands. They also owe it to them, to come out and give us the confidence that, you know, they are going to take care of it, everything is going to be okay, and we need that to happen. Because I can’t even hazard a guess how much people around the world have spent in building showrooms, workshops, etc. across the world- and they all did it because of their faith in Volkswagen.” For its part, Al Nabooda Automobiles has certainly >>> Running the show K. Rajaram The CEO of Al Nabooda Automobiles draws on four decades of in-market experience to get things done (right) By Aby Sam Thomas innovator I n the year since he was awarded the Lifetime Achievement Award at Entrepreneur Middle East’s 2014 Indian Innovator Awards, Al Nabooda Automobiles CEO K. Rajaram has seen his UAE-based enterprise go through quite a few choppy scenarios this year from a business point of view. Not only did he have to weather through a plateauing of the Middle East luxury goods market in 2015, Rajaram was, like most of us, also taken unawares by the unfolding of the Volkswagen emissions-cheating scandal in September. Now, while Al Nabooda is the exclusive distributor of the German carmaker’s brands like Volkswagen, Audi and Porsche in Dubai and the Northern Emirates, the company has not been directly affected by the crisis, since Al Nabooda doesn’t sell diesel cars here, as Volkswagen offers only petrol cars in its portfolio for this region. “We’ve not had a problem in the showroom or in attrition, but people do come and ask questions- which have to be answered,” Rajaram says. “You have to give them the satisfaction… We have informed them that this has got nothing to do with us. We don’t sell diesel cars. We are a petrol-driven economy. And the customers are well aware of the fact of the quality of Volkswagen- it doesn’t change the way the car drives or how it feels on the road… But time will tell what is going to happen now, because, essentially, the decisions that Volkswagen as a group takes in the next six months are going to have a telling effect for all of us- you must not forget, it was the world’s largest car company. And now, they have to redefine and redesign themselves.” Images by Xtremepics
Entrepreneur december 2015 18 invested a lot in its business- the company’s website proudly declares that it has spent “over US$1 billion in several phases and ventures” of the organization. It opened the world’s largest Volkswagen showroom in 1999, the world’s largest Volkswagen service center in 2005, and the world’s largest Audi terminal in 2012, and it continues to be the world’s largest Porsche dealer, an accolade that it has been holding on to for more than eight years now. “In 1995, when we started off, we used to sell 300-odd cars in a year,” Rajaram remembers. “Last year, I think we did 9,000. That’s been our growth. The way we set ourselves up is not just to excel locally, but to excel in the international sphere. That is why whatever we have built, we have created it to international standards, and we at Al Nabooda are extremely proud of the fact that we have a lot of firsts- and first not [just] on a regional basis, but on a worldwide basis. We set up the world’s largest Volkswagen workshop first- that was way back in 1998. And I think a lot of people laughed at me when I did that- today that workshop is full. Because when I built that workshop, we used to sell 500- 600 Volkswagens. Today, we sell 6,000 Volkswagens. We are the world’s largest Porsche dealer- that’s a thing that we have held for eight years now. We are now in the process of building the world’s largest Audi workshop. We have the world’s largest showroom. Therefore, our entire emphasis has been [on] not just being regionally excellent, but being excellent worldwide. And to our credit, Volkswagen have sent their German dealers down to us, to see what we have built, what we have created and how we run our business.” While it may be easy to be swept away by the sheer scale of the Al Nabooda enterprise now, one shouldn’t think that setting this company up was a walk in the park either- there were, for sure, several obstacles along the way, and as the one running the show, Rajaram had to have made tough and critical decisions throughout as well. So what was his formula to lead and navigate his company through the business landscape of the region? “The only way you get past hurdles is by having faith in yourself,” Rajaram replies. “People will come and tell you a million things. You know, when you are sitting in this office, this room, you have your customers who tell you one bit, you have your staff who tell you one bit, you have your managers… At the end of the day, your gut tells you what is right. And the most important issues never waver from it. Once you have decided that this is the path you are going to choose, just stick to it. Because one of the worst things that can happen in business is when you start changing your mind halfway through, because then, you do nothing right and you’re always in the state of confusion… When I took over the company, we had 68 employees. We now have 1,500, and I owe a livelihood to 1,500 people. So every decision I sit here and make, I have to make on many counts: my board, my owners, my shareholders, their interests. I [also] have to look after the interests of the people who work for me. And based on all this, you make decisions, and once you have made the decision, never look back.” That’s an inspirational statement all right, but I can’t help but be cynical and ask Rajaram what’s the way to go when one’s gut is, well, just wrong, and results in an incorrect decision being made in business. Rajaram agrees that things like that can sometimes happen, and notes the importance of having a Plan B in case such a scenario arises. But perhaps more importantly, the Al Nabooda CEO highlights the need for leadership to take charge when things do go wrong: “You have to take responsibility,” he says. “You can’t sit in a board meeting and try to push blame on other people. All that you can [do is] turn around and tell stakeholders that yes, this was not a right decision and we’re going to change it; we are going to make dead sure that we are going to recover what we lost. That’s all- and that’s all the stakeholders want to hear… In life, everyone makes mistakes. Nobody is perfect; I don’t think anybody can sit down and say, ‘I’ve run a business for 40 years without making a single mistake.’ If that’s the case, then he has done nothing with his business. But if you have to grow from [an establishment selling] 300 cars to 9,000 cars, then you have to have had made some mistakes on your way. The important thing is what you’ve learned from them.” When it comes to running a business, Rajaram is also emphatic on the importance of taking care of one’s people- regardless of whether you are a startup, or a multinational. “Our people are everything to the business,” he declares. “Without them, the business is zero.” And ensuring the welfare of one’s employees is not merely a pragmatic detail, he notes- there are cost factors to be taken into consideration as well. “The cost of training a person in the present environment is huge,” he explains. “If the person is unhappy and he goes away, all the cost you have spent on his training is gone; it is irrecoverable. Somebody else is going to make use of it, when he leaves me and goes and joins somebody else.” Rajaram also notes how the efforts a company’s management makes in securing the welfare of its employees can go a long way: “Creating a working environment, and looking >>> innovator K. Rajaram, CEO, Al Nabooda Automobiles
Entrepreneur december 2015 20 after the people who work for you, also gives them a feeling of belonging.” Rajaram recalls how, long before the UAE made it mandatory for employers to provide their employees with health insurance, Al Nabooda went about insuring all of its staff, a move that he believes brought about rich dividends for the company in the long run. “My people feel that the company went out and did something for them- all of those who did this when it became law, the people feel, what the hell, the government gave you instructions, you went and did it; you are not giving me anything. This is why we have taken pride in the fact that people have worked with us for so long, and we’ve grown over the years, and we are very happy.” (Incidentally, in an impromptu speech at the Indian Innovator Awards last year, Rajaram made it a point to thank his team at Al Nabooda, who made his dream of “not selling cars, but experiences, come true.”) This feeling of kinship that Rajaram strives so hard to instill in his company’s employees is perhaps a reflection of his own feelings toward the Al Nabooda enterprise, and the family behind the same. A chance meeting in the nineties with Khalid Khalifa Al Nabooda, Managing Director of Al Nabooda Automobiles’ parent company, Khalifa Juma Al Nabooda Group, is how Rajaram became a part of this organization, and now, more than 20 years later, his passion and dedication to both the business and the Al Nabooda family remain as strong as ever. “This company and the family are a part of me,” he says. “I may not be a Nabooda, but I have always been made to feel like I am a part of the family. I’ve been very close to the whole family, for many, many years now and I think we run the business in a fashion where we all have ownership of it.” Rajaram also doesn’t shy away from singing praises of the UAE and its governing leadership for making the country a fertile environment for doing business. “Look at where they have taken this country in the last 25-30 years!” he exclaims. “How many countries in the world can even come close to what they have achieved? The whole world -and especially this region- looks at the UAE as a role model.” And his thoughts on Dubai Expo 2020? “I am really looking forward to 2020, because I think great things are going to happen to this country at that time. I think the world is really going to see us for what we are.” Speaking of role models, Rajaram can easily be counted as one of the most inspirational figures in the region’s business arena, be it among peers in the industry, or even up and coming newbies who are in universities now. So when I asked him for any advice he had for the entrepreneurs of the region, Rajaram –in what was perhaps a nod to the current business climate he was seeing with his enterprise- urged them to tread with caution. “Because, the thing is, in business, there are factors you control, and there are factors you don’t control. You don’t control the Chinese devaluing the yuan. You don’t control somebody attacking somebody somewhere. These are things you don’t control. But unfortunately, those are the factors that are ruling the world today. So, when you are sitting here as a businessman, you have got two components of problems you are looking at: one is your own problems internally and how you can handle them, and two, the external problems you have absolutely no control over. So this is where you have to tread with extreme caution. Because if you overstretch yourself and a problem were to hit, you are in deep trouble.” So what should be the modus operandi for new businesses? “Scale it up slowly. Test the markets. See what’s happening. And then start growing.” As for making one’s way to achieving success, Rajaram simply says one just needs to stick with whatever it is one is doing. “Where you are is [based on] a series of experiences you have got and it can be different for different people.” However, Rajaram quickly also adds, “But one thing I always say: never discount being at the right place at the right time, because that’s just pure luck.” On Al Nabooda and future plans “We’ve had our infrastructure plans in place, and most of them are on their way [to completion] now. We are going to complete the new Audi workshop, the new setup in DIC and after that, we will then sit and evaluate what we need to do. We had budgeted for a certain growth in the years to come, but next year will tell us which way we are headed and what is going to happen. This year has been fraught with difficulty, and I am sure it is not only for us, and not only for the automobile industry, but for various industries… To a large extent, we have got our infrastructure mapped out. Now we just have to do all the fine-tuning and processes have to change, be- cause we have become so large that we also have to learn how to govern ourselves.” On the UAE’s SME sector “In terms of SMEs and what H.H. Sheikh Mohammed bin Rashid Al Maktoum [UAE Vice President, Prime Minister and Ruler of Dubai] has done to help entrepreneurs, I think it is tremendous the amount that has been done by the government, making it as easy as possible [to start a business]. Of course, that also leads to the fact that there’s enormous competition. But then, at the end of the day, what makes you strong is competition, and how you handle it.” On being safe with financial matters “Do not over borrow. Because the easiest thing is [to say] money is [at an interest rate of] 2-3%, let’s go and borrow- but that doesn’t work out in the long run. We have run this company for 40 years: we have not borrowed one dirham from the bank. Everything we have built and created has been with self- generated funds. Our company does not carry one dirham of debt.” On the value of human capital “My first foray into business was in shipping, which is a people-intensive business. Because you are giving somebody an asset which costs 40-50 million dollars, and it is in his hands. He is the master of his ship. Either you have good people and you trust them, or you are in deep trouble. Because each of those ships to run, it costs 15-20,000 dollars a day. So even when they do nothing, they are burning 20,000 dollars of your money and that is where you realize it is very, very important having the right people, because, let’s see, he’s sitting in Paramaribo in South America; you’re sitting in your headquarters in Bombay: what control do you have? If the guy who’s on the ship, the master and the chief engineer, are those who are running everything, you need to have people whom you trust and rely on.” THE EXECUTIVE SUMMARY K. Rajaram on business, people, money, and more K. Rajaram, CEO, Al Nabooda Automobiles and Wissam Younane- Indian Innovator Awards 2014 innovator
Entrepreneur december 2015 22 E ntrepreneurs and entrepreneurial ecosystem pillars came together at the Westin Mina Al Seyahi in Dubai, UAE on November 22, 2015 for the second annual Enterprise Agility Forum presented by du, which featured some of the region’s most prominent lead- ers sharing their insights with the 200 attendees of the half-day conference. The Enterprise Agility Forum, the fifth event staged under the Entrepreneur Industry Intel banner, began with open- ing remarks by Entrepreneur Middle East Editor-in-Chief Fida Chaaban, and was co- moderated by her and Entrepreneur Middle East Managing Editor Aby Sam Thomas. Chaaban addressed the assembly first by discussing the importance of pulling in the outliers of MENA’s entrepreneurial ecosystem, and encouraging the forum’s attendees to be as interactive as possible in the half-day knowledge-exchange, not just through networking, but also with real- time social media. Two fireside chat format conversations, the voices of entrepreneurship, were held to respectively deeper explore investments and business models. The first of these took place with Ramez Mohamed, CEO of Flat6Labs, who pointed out the importance of entrepreneurs really having an accurate idea of their local competition, and on startups structuring business models that have the potential to scale across the region and beyond. The second fireside chat took place with Sonia Weymuller, co-founder of VentureSouq. Weymuller, who spoke on angel investing in the region, explained what entrepreneurs need to know when trying to capitalize on this particular fund- ing opportunity. Both fireside chats were followed by question and answer segments with the audience. The first of the Talking Series brought forward ideas under the title of Size Doesn’t Matter: Your small enterprise can operate like a multinational, which had as its panelists Chris Bartlett, General The Entrepreneurial Continuum in Perspective Industry Intel event An Enterprise Agility Forum 2015 Entrepreneur december 2015 22
december 2015 Entrepreneur 23 Manager, Small, Midmarket Solutions and Partners, Middle East and Africa for the Microsoft Corporation, Talal El- Khalil, General Manager and Senior Vice President, PepsiCo MENA, Frida Kleimert Knibbs, Head of Channel and Commercial Sales for Cisco UAE, and Jose Valles, Vice President- Enterprise, Commerce, New Business and Innovation, du. The second discussion for the day brought forward tenets of CSR versus social entrepreneur- ship, and how even startups can undertake sustainable initiatives. Under the title of Seeing the Bigger Picture: CSR, social enterprise and your business, the panel was headlined by Lina Hourani, Director of Al Ahli Holding Group CSR division, Loulou Khazen Baz, founder and CEO of Nabbesh, Joshua Rajkumar, co-founder and Chief Operating Officer, The Sustainability Platform, and Soushiant Zanganehpour, founder and Director, Tribeca Impact Part- ners. The third and final panel of the event revolved around financial literary, funding and strategic steps toward seeking capital injections under the title of Calculating Trajectory: Capital injection routes to (vi- ably) scale your enterprise with panelists Marwan Mohammed Al-Suwaidi, Director of Finance, Khalifa Fund for Enterprise Development, Sam Quawasmi, co-founder and Managing Director, Eureeca, and Essa Ali Bin Salem Al Zaabi, Senior Vice Presi- dent of Support Services, Dubai Chamber of Commerce and Industry. The 2015 Enterprise Agility Forum pre- sented by du was conducted with the sup- port of the Dubai Chamber of Commerce and Industry and Tejar Dubai, together with Platinum Allies Egyptian Steel, EPG Hotels & Resorts, AxiTrader, Gold Allies Medeor Hospital and Skyline University College, Silver Ally Select Property Group, and Ecosystem Allies Wamda, MEC, and The Venture. >>> december 2015 Entrepreneur 23 PLATINUM ALLY ECOSYSTEM ALLIES SILVER ALLY GOLD ALLY GOLD ALLY PLATINUM ALLY PLATINUM ALLY SUPPORTED BY
Entrepreneur december 2015 24 I n the past, small compa- nies used to try to emulate the business practices of corporate giants like Virgin, Google, and Ap- ple. Nowadays, the tables have turned. More and more entrepreneurs are looking to one another for inspira- tion, and they’re not the only ones. According to many of the panelists at Entrepreneur Middle East’s 2015 Enterprise Agility Forum presented by du, an increasing number of multinational corporations are trying to learn how startups are driving innovation, promoting happier workplaces and inte- grating CSR efforts into their business models. Throughout the event, it was interesting to see how one question seemed to be posed over and over again. What is the question, you ask? What should a startup avoid when… Or in other words, what are multinationals doing wrong or inefficiently and how can startups do it faster and better? With that in mind, I have identified some things that startups need to avoid if you want your business to maintain an edge on big corporations, and a few other salient points gleaned from the speakers at the second annual edition of the Enterprise Agility Forum. 1. Don’t think that size and impact are directly proportionate Can a startup be like a multina- tional? Absolutely. In fact, be- ing a startup in the Conceptual Age is ideal, because they are agile in almost every respect. One of the biggest drawbacks of being a multinational is bureaucracy and endless red tape. Usually in a MNC, by the time a decision on anything has gone through the appropri- ate channels to be approved by the necessary people, it has already become irrelevant. However, in a startup, this isn’t the case. Not only does the lean structure of a startup allow entrepreneurs to be “closer” to their customers, it also allows them to be more aware and responsive to sudden changes in consumer behavior. This thus allows entrepreneurs to continuously engage in an on- going cycle of idea adaption and implementation, which is key when it comes to promoting in- novation, growth and customer satisfaction. The size of a startup is not the only thing that allows a startup to be “closer” to its customer. Internet, smartphones and other technologies have also al- lowed startups to scale globally and compete with established international brands in ways that were never possible before. In the age of the Internet, the size of a company no longer defines its impact; a fact that has got both startups and MNCs thinking about how they conduct business. And this is precisely why corporate execu- tives like Talal El-Khalil, the General Manager and Senior Vice President of PepsiCo in the MENA region, are looking to operate their enterprises more like SMEs. 2. Don’t underestimate the power of your startup’s “personality” One of the greatest things about being an entrepreneur is the creative license that comes with the position. In fact, the unique narratives, presenta- tion and customer service of startups are the very things that make them stand out in a crowded business ecosystem. In a digital world where consum- ers are constantly bombarded with information, a business’ personality often becomes the only determining factor when a consumer has to choose between two similar products or services, thereby making the preservation of a company’s persona and ethos a key part of its survival. So, what does a startup’s personality entail? It includes everything from why you started your business, to how you source your materials, to who your partners are, to how you bring value to your custom- ers and the market. As the old saying goes, show me who your friends are and I’ll show you who you are. This goes for people and businesses. For Frida Kleimert-Knibbs, Head of Channel and Commercial Sales for Cisco in the UAE, choosing your partners and maintaining positive business relation- ships is vital when it comes to reaffirming your business’ personality and promoting your strategic growth. Ultimately, entrepreneurs should always . Business learning curves 13 points of reference that you can put to work for your enterprise By Soukaina Rachidi Enterprise Agility Forum 2015 The Entrepreneurial Continuum in Perspective Industry Intel event An Ramez Mohamed, CEO, Flat6Labs @ramezm Fida Chaaban, Editor-in-Chief, Entrepreneur Middle East @fida Christopher Bartlett, General Manager, Small, Midmarket Solutions and Partners, Middle East and Africa, Microsoft Corporation
december 2015 Entrepreneur 25 strive to establish a startup with a strong personality and culture of sustainable and ethi- cal business practices that can grow with the company. 3. Don’t underestimate the value of your team In a world where customers are overwhelmed by choice, a startup’s personality is often the only thing that sets it apart from the rest. So, how can you create a startup personality that will attract customers to your product or service? Make sure you have a great team. According to Ramez Mohamed, the CEO of Flat6Labs, your team is the most important aspect of your startup. Why is that? Because consumers don’t want to deal with faceless con- glomerates anymore. We live in an age where we are bombarded on a daily basis with informa- tion, which makes it difficult to create a meaningful connec- tion with anyone, let alone a company. Subsequently, unless your startup and your team can leave a lasting impression on consumers, they simply won’t survive. In addition to bringing valu- able skill sets to the table, team members also need to add value through their ethics and personality. After all, what’s the point of having a brilliant coder or accountant, if they can’t think creatively or they don’t value the importance of social responsibility? To survive in the current startup ecosystem, hiring a team of “generalists” is way more important than hiring a team of specialists. You want to hire the engineer who is also a painter or the interior designer who is also a math professor, because they represent the versatility and the ingenuity that successful startups thrive on. While most people measure ROI in financial terms, I believe that, in the fu- ture, it will be measured by the “return” that the “right” people bring to your team. So, make sure you choose team mem- bers who will bring the best financial, ethical and creative “dividends” for your company. 4. Don’t think you’re too small to make a difference When most people think about CSR, they usually think about big companies, which makes sense because the C in CSR does stand for corporate. While this acronym has come to be the blanket term used by the business community to refer to all the goodwill exercises ex- ecuted by companies, I believe that it needs to be amended. My biggest grievance with the C in CSR is that it doesn’t reflect the amazing social impact that countless SMEs are having across the globe. Once upon a time, unless you were a charity, NGO or MNC, implementing a social program didn’t seem fi- nancially feasible or necessary. However, a new generation of entrepreneurs and corpo- rate executives are changing that perception. The founder and CEO of Nabbesh, Loulou Khazen Baz, recently launched Fursati with Qatar-based NGO Silatech. Fursati is a campaign to connect Palestinian youth with dedicated freelance op- portunities online. Not only is Fursati allowing Khazen Baz to leverage her company’s marketplace, it’s also benefiting the disenfranchised Palestinian youth in Gaza and West Bank: a perfect example of the mutu- ally beneficial relationships that businesses are capable of establishing, if they are willing to do so. 5. Teaming up is beneficial for everyone- your business and their business Many people believe that corporate success must come at the expense of communities or the environment, but this is simply not true. In fact, many corporate executives, like Lina Hourani, the Director of Al Ahli Holding Group’s CSR division, are trying to play an active role in counteracting this mentality. The Global Business Opportu- nities program, a program that helps Al Ahli Group identify business opportunities and develop entrepreneurs, is yet another great example of how the attitude towards social responsibility is changing in the corporate world. CSR (or Business Social Responsibility as I would like it be referred to henceforth) should be the mo- dus operandi of every business, no matter what the size. Luck- ily for us, just like production and revenue, social respon- sibility is also scalable. With that in mind, I believe that it is our responsibility to start nurturing cultures of “scalable compassion” in our business ecosystems. 6. Don’t be afraid to introduce new cultures of thinking If you were to ask an entrepre- neur in the MENA region today what their two biggest fears were, they would probably say the inability to find funding, and the difficulty in getting people to adopt their service or product. Unfortunately, skepticism, as I have discussed before, is rampant in Arab culture. For some reason, Arab consumers have an inher- ent distrust of “homegrown” solutions to pressing regional problems. Consequently, Arab entrepreneurs with innovative ideas often struggle to survive in MENA markets. >>> Essa Ali Bin Salem Al Zaabi, Senior Vice President of Support Services, Dubai Chamber of Commerce and Industry @EssaAlzaabi Joshua Rajkumar, Chief Operating Officer, The Sustainability Platform @joshrajkumar Sam Quawasmi, Managing Director and co-founder, Eureeca @eureecasam Talal El-Khalil, General Manager and Senior Vice President, PepsiCo MENA @talalelkhalil Lina Hourani, Director of Al Ahli Holding Group CSR division @CSRalahligroup
Entrepreneur december 2015 26 Enterprise Agility Forum 2015 The Entrepreneurial Continuum in Perspective Industry Intel event An Entrepreneur december 2015 26
december 2015 Entrepreneur 27 However, there’s an important element of idea and process innovation that entrepreneurs often overlook. You can’t in- troduce new ideas to consum- ers without creating a culture around them. Consumers have to understand why your idea is important and how it adds value to their lives. For instance, by consistently creating quality blog content and interacting with their audience, not only can entre- preneurs establish a “culture of need” around their product or service, they can also build a loyal following for it. But before we can start to chip away at the culture of skepticism that negatively impacts entrepreneurship in the Arab world, we also have to focus on nurturing more resilient entrepreneurs. According to Essa Ali Bin Salem Al Zaabi, Senior Vice President of Support Services at the Dubai Chamber of Com- merce and Industry, SMEs represent 95% of the Dubai Chamber’s members. However, do they make up 95% of the force that is driving Dubai’s economy? Probably not. If Arab countries, like the UAE, want to promote a culture that produces and accepts entrepreneurship, we have to start teaching our communi- ties about the importance of the ecosystem. 7. Build an entrepreneur- ial culture into existing learning framework If we want to nurture an entrepreneurial culture in a country, then Marwan Mohammed Al Suwaidi, the Director of Finance at the Khalifa Fund for Enterprise Development, believes that courses on entrepreneurship must be integrated into the UAE’s educational system. In order to promote meaning- ful and long-lasting change in the MENA region, both our citizens and entrepreneurs need to learn how to promote cultures of change to adapt to the ever-evolving demands of the Conceptual Age. 8. Be a trendsetter in the entrepreneurial ecosystem While it is undeniable that the global startup ecosystem is becoming more and more com- petitive by the day, entrepre- neurs should always resist the urge to jump on the “popular- ity bandwagon” to make a liv- ing. Regrettably, the business ecosystem in the Arab world is greatly affected by “entrepre- neurial group think.” In other words, if somebody opened a gourmet hot dog shop today that took off, five or six similar shops are soon seen to surface in the following months. Another example of a “sexy” entrepreneurial trend that’s taken off recently is “so- cial enterprise.” Soushiant Zanganehpour, founder and Director of Tribeca Impact Partners, dislikes the term, because he feels that it is often misused or overused by many startups. Think about it, why does this category even exist? Although it means well, it does unintentionally perpetuate the idea that only a certain kind of business can have a positive impact on society. At the end of the day, a social enterprise is a business just like any other. Perhaps it is time for us to retire this category from our “entrepreneurial lexicon” and make BSR, leadership and responsible governance the ethos of all businesses. By replacing the label of “social enterprise” with “impact-driv- en,” we can encourage more startups and corporations in the MENA region to engage in business and social activities that benefit local and global communities and work forces. 9. Don’t expand for the sake of expanding Almost every entrepreneur starts a business with the goal of growing. That being said, a startup’s growth should never be haphazard or without cause. According to Joshua Rajkumar, co-founder and Chief Operating Officer of The Sustainability Platform, it is important for a business to manage its growth and to make sure that it is not expanding for the sake of expanding. It is also vital for a startup to understand their product or service and their existing and desired customer base, so they can define what growth means for them. For some startups, growth might take on a more local character. For others, it might be more international. Regardless of how or where a startup grows, it is crucial for an entrepreneur to set the scope and their long-term ob- jectives, so they can plan their budget and future fundraising rounds accordingly. 10. You can leverage technology to take your business regional (or global) Chris Bartlett, the General Manager of Small, Midmarket Solutions and Partners of the Microsoft Corporation in the MENA region, strongly >>> Jose Valles, Vice President Enterprise, Commerce. New Business and Innovation, du @josevalles49 Sonia Weymuller, co-founder, VentureSouq @VentureSouq Marwan Mohammed Al Suwaidi, Director of Finance, Khalifa Fund for Enterprise Development Aby Sam Thomas, Managing Editor, Entrepreneur Middle East @thisisaby
Entrepreneur december 2015 28 believes that technology has played a key role in allowing business to scale and operate in new markets. So now, startups no longer need to have the resources of a MNC to oper- ate like one. Having said that, it is necessary for a startup to manage all aspects of their company’s growth as they scale. Not only do entrepreneurs have to be able to scale their busi- ness activity, they also have to be able to scale all of the talent, communications and resources needed to keep their operations running smoothly. 11. Capitalize on your small size as it is correlated with agility Drawing on his experience as long-term executive in the product and develop- ment business, Jose Valles, Vice President- Enterprise, Commerce, New Business and Innovation at du, believes that one of the greatest advantages that a startup has over a larger corporation is its ability to take and implement decisions quickly. So, if you’re a startup and you’re considering expan- sion, make sure you keep two things in mind. Firstly, you shouldn’t expand just because you think you should- expand when the right opportunity pre- sents itself. Secondly, whether you’re expanding into another neighborhood, district, city or country, make sure that you can effectively scale your decision- making process, so you can maintain the quality and agility of your business. 12. Don’t put all your financial eggs in one basket Once upon a time, there was only one way that people fi- nanced an entrepreneurial ven- ture: a bank loan. Nowadays, young entrepreneurs are look- ing for new ways to fund their startups, and one reason is that many founders already have student loans, car loans and more, and they just can’t bear the thought of taking on one more loan. Consequently, more and more young entrepreneurs are seeking investments from family members and friends. Some are even turning to online crowdfunding platforms to campaign for money. Personal- ly, I think that crowdfunding is a very interesting way to raise money because such platforms encourage entrepreneurs to do several things. Firstly, the campaign profiles and videos introduce entrepreneurs to the pitching process and allows them to hone their skills in that. Secondly, giving perks to campaign investors allows entrepreneurs to build a com- munity of loyal brand ambassa- dors and get valuable feedback on their product or service. Last but not least, crowdfund- ing allows first-time entrepre- neurs to build credibility, by allowing them to show future investors how they have raised, handled, and spent money in the past. According to Sam Quwasmi, Managing Director and co-founder of Dubai-based crowdinvesting platform Euree- ca, equity crowdfunding is com- monly misunderstood by many entrepreneurs, but it can be a very valuable way to raise funds for a startup. If you’re confident in your startup idea, you know how much equity you’re willing to give up and you’re looking to build a community of truly “invested” brand ambassadors, equity crowdfunding might just be the thing for you. 13. Remember, potential investors are looking for a few key markers Regardless of who you’re pitch- ing or what fundraising stage you’re in, there are three things you need to show any potential investor, says Sonia Weymul- ler, co-founder of VentureSouq. You must be able to show them your past spending, a complete understanding of your future expenditures, and a thorough understanding of your current competition. If you can do that, the last thing you have to do is to make sure that your startup’s valuation isn’t unreasonably high. High valuations can scare away potential investors, thus jeopardizing future funding prospects, and that’s a definite no-no for any venture looking to scale up. Frida Kleimert Knibbs, Head of Channel and Commercial Sales, Cisco UAE @FridaKleimert Soushiant Zanganehpour, founder and Director, Tribeca Impact Partners @soushiant Loulou Khazen Baz, founder and CEO, Nabbesh @loulsk Enterprise Agility Forum 2015 The Entrepreneurial Continuum in Perspective Industry Intel event An
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Entrepreneur december 2015 30 Enterprise Agility Awards 2015 ECOSYSTEM ALLIES SILVER ALLY GOLD ALLY GOLD ALLY PLATINUM ALLY PLATINUM ALLY PLATINUM ALLY SUPPORTED BY a production by
december 2015 Entrepreneur 31 Wissam Younane addressing the assembly on behalf of BNC Publishing The winners of the 2015 Enterprise Agility Awards with Wissam Younane december 2015 Entrepreneur 31 O n the occasion of the second annual Enterprise Agility Awards, Entre- preneur of the Year presented by du, BNC Publishing as part of the Entrepreneur MENA franchise, awarded businesses and individuals across multiple categories on November 18, 2015 at The Westin Mina Al Seyahi in Dubai, UAE. The relevant En- terprise Agility Achievers have established themselves as clear industry innovators who have made significant contributions to the Middle East business arena, and set the benchmark for corporations operating across the region. A total of 18 awards were presented, with all of the win- ners having set themselves apart from their peers in the region by showcasing a commitment to excellence and thereby rais- ing the bar of their respective industries. “We are honored to be the vehicle that gets the MENA region’s pillars of busi- ness recognized. As part of our commitment to the continued support of the diverse business community, this regional event included award-winners from several different countries who are both impactful, and action- oriented,” said Wissam Younane, Director, BNC Publishing on behalf of Entrepreneur. “Over the past two years, I’ve seen the concept of entrepreneurship in the regional media go from zero to one hundred in trajectory- and I can comfortably say that it is proof that we at Entrepreneur are doing our jobs right. We’re not acting like a media outlet- instead we’re acting on what we truly believe in: we are a part of the entrepreneurial ecosystem in this region. We will continue to be at every event big or small, and give of our time and of our resources to get these entrepre- neurs recognized for what they are: the keys to sustainable, booming economies.” On behalf of Dubai Chamber of Commerce and Industry, Essa Ali Bin Salem Al-Zaabi presented the trophies to the 2015 Agility Achievers. Organized by Entrepreneur MENA, the 2015 Enterprise Agility Awards recognized and honored enterprise leader and individuals who have distinguished themselves and shown sector significance and outstanding business conduct across a variety of industries that are key drivers of respective Middle East’s economies. “His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in a recent interview was firm in his declaration when he said that ‘the Arab world is not on his agenda, it is his agenda.’ For us, we have a similar guiding princi- pal: entrepreneurship is not just on our agenda, it is our agenda,” continued Younane during his address to the assembly of guests. The Enterprise Agility Awards, Entrepreneur of the Year seeks to acknowledge agility across a variety of industries including retail, healthcare, con- struction, hospitality, aviation, education, banking, and energy, amongst other key drivers of the Middle East’s economy. “Entrepreneurs are proactive. Entrepreneurs are progressive. We’re keeping up with you, and in some ways we’re growing as you grow. To tonight’s Enterprise Agility Achievers- you are giv- ing our region goals to set, and standards to strive toward,” said Younane in closing, thanking the award winners for elevating standards of quality perfor- mance across sectors. >>>
Entrepreneur december 2015 32 Enterprise Agility Awards 2015 Responsible Leadership H.H. Sheikh Maktoum Bin Hasher Al Maktoum International Achievement Sunil Vaswani Sustainability Innovation H.H Sheikh Abdul Aziz Bin Ali Al Nuaimi Woman Entrepreneur of the Year Ambareen Musa Lifetime Achievement Bader Abdullah Al-Darwish Young Entrepreneur of the Year Jihad Kawas Tech Startup of the Year Fetchr Online Startup of the Year Pricena Startup Brand Penetration compareit4me Entrepreneurial Ecosystem Development Tamkeen of the Kingdom of Bahrain Fastest Growing Enterprise Careem Digital Influencer of the Year Muna AbuSulayman Social Entrepreneur of the Year Khalid Alkhudair SME Banking Innovation ADCB Islamic Banking Innovation Emirates Islamic Tech Innovation OneM Emerging Emirati Entrepreneur Mansoor Al Bastaki Communications Innovation Plan B Entrepreneur december 2015 32 H.H. Sheikh Abdul Aziz Bin Ali Al Nuaimi accepting the Sustainability Innovation award Careem co-founders accepting the Fastest Growing Enterprise of 2015 award Fetchr accepting the Tech Startup of the Year award OneM accepting the Technology Innovation award H.H. Sheikh Maktoum Bin Hasher Al Maktoum accepting the Responsible Leadership award
december 2015 Entrepreneur 33 december 2015 Entrepreneur 33 Lifetime Achievement award-winner, Bader Abdullah Al-Darwish, accepted on his behalf by Ziad Asmar Stephen Marney, Master of Ceremonies, addressing the assembly Ambareen Musa accepting the Woman Entrepreneur of the Year award Emirates Islamic accepting the Islamic Banking Innovation award
Entrepreneur december 2015 34 Enterprise Agility Awards 2015 Entrepreneur december 2015 34 Young Entrepreneur of the Year, Jihad Kawas, accepted on his behalf Pricena accepting the Online Startup of the Year award Plan B accepting the Communications Innovation award compareit4me accepting the Startup Brand Penetration award ADCB accepting the SME Banking Innovation award Sunil Vaswani accepting the International Achievement award H.H. Sheikh Maktoum Bin Hasher Al Maktoum addressing the assembly Khalid Alkhudair accepting the Social Entrepreneur of the Year award
december 2015 Entrepreneur 35 35 december 2015 Entrepreneur Mansoor Al Bastaki accepting the Emerging Emirati Entrepreneur award presented by Essa Ali Bin Salem Al-Zaabi, Senior Vice-President, Institutional Support Sector, Dubai Chamber of Commerce and Industry, and General Coordinator of Tejar Dubai Tamkeen of the Kingdom of Bahrain accepting the Entrepreneurial Ecosystem Development award H.H. Sheikh Abdul Aziz Bin Ali Al Nuaimi addressing the assembly Muna AbuSulayman accepting the Digital Influencer of the Year award Dr. R. Seetharaman addressing the assembly
Entrepreneur december 2015 36 Enterprise Agility Awards 2015 “This is probably one of the toughest things to discuss, as it is all about admitting where I went wrong in my startup journey. If you are an entrepreneur, you would know how hard it is to realize that you could have done things differently. But the real story is that no matter who you are, you will make mistakes, but the important thing is to, hopefully, learn from them.” Entrepreneur december 2015 36 The souqalmal.com team with founder and CEO Ambareen Musa at the 2015 Enterprise Agility Awards As the founder and CEO of souqalmal. com, a comparison site that allows users to compare more than 2800 retail banking, telecoms, insurance and education products offered by various providers in the UAE and in Saudi Arabia, this enterprising individual and her 27-member team has, in effect, changed the way things are done in the personal finance space of this region. By virtue of the way Ambareen Musa has led and run her business, she has clearly set herself up to be a role model for others to follow. Here, she shares five mistakes she made early on (and what she learned in the process). Listen up, ‘treps! 1. Not hiring early enough “We were a very small team for quite a while and only started hiring properly post our second round of investment. To be fair, that was the time when we had the funds to do so, but hiring early on poises the company for a much faster growth. The hardest part was to trust someone else with what I believed was the core of my business. In the early stages, a lot of the growth revolves around the founder, but trying to do it all alone was not necessary. This meant that I had no time off or a break when I needed it. My father, who had started three businesses over the years, had warned me that having your own business is a 24/7 thing– and now I understand that.” 2. Not firing early enough “Once you have a team in place, it is critical to keep the culture and the environment very positive, upbeat and motivating. Having the wrong person on the team can ruin this very important aspect of the business– one aspect that you will find is probably the biggest asset you have. However, when you realize that things are not working out with a certain employee, it is very hard to call it quits.” 3. Growing without a co-founder or mentor “Being an entrepreneur can be very lonely at times. Very often I find myself debating pros and cons in my head, as it is very hard to put the burden on other team members who already have enough on their plate. A co-founder helps you see things from a different angle, and is there to support you in good and bad times, as you are in it together. Having a co-founder also helps in building a strong team around you, as there are two of you looking out for more people to join. Building a startup from the ground up is already a tough journey to embark on– and it is better to have someone on your side on this ride. Being two, allows you to have a break once in a while and come back with a fresh mind without stressing that there is no one taking care of the business while you are away– a golden moment.” 4. Ignoring your intuition “This might sound fluffy, but from experience, when my gut feel is saying no, I find out soon enough that I should have listened to it. Remember that you probably have the best understanding of what your business needs and the type of people you need around you to make things happen. Not only have I lost time, but I’ve also spent precious dollars in decisions made against my gut feel, and these decisions would range from who to hire to which partners to bring on board. There is a reason you amongst all others have decided to take the leap– trust your gut feel and run with it.” 5. Underestimating the funding process and time “Funding is on every startup’s agenda; it’s what keeps the salaries and expenses going while you build an amazing business that would eventually turn profitable. Three years ago, I was a novice when it came to raising money. Little did I know about the process, the due diligence, the pitching etc.– I had planned my product launches around when I thought the money would be coming in, and I can tell you that nothing of that plan got executed on time as the fund raising took a lot longer than I anticipated. There are different factors that can affect the timeline of fund raising for your business, from extent of the due diligence process, time of the year (holiday periods are usually slower), to how many investors and who you are bringing on board.” WOMaN ENTREPRENEUR OF THE YEAR Ambareen Musa The founder and CEO of souqalmal.com shares what she learned from her early mistakes as an entrepreneur
Entrepreneur december 2015 38 Promoting SMEs as key drivers of innovation and engines for global trade and growth Some external and internal factors to consider for your company’s success By Marc Proksch TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO Marc Proksch (third from right) speaking on an SME innovation panel at Global Trade Development Week in Dubai, UAE I nnovation has a wide range of meanings, and it is not necessarily linked to high technology. In the case of SMEs, innovation may re- quire changes in organiza- tional structure and culture and refer to changes in process and management and the kind of services rendered rather than to new products. It also relates to improving efficiencies in supply chains, marketing and advertising, and business operation models. Innovation, as a concept, also applies to social entrepreneur- ship and responsible business practices. Innovations for existing SMEs are usually incremental rather than radical. Radical innovations are pushed by new startups commercializing new ideas. It’s important to remem- ber that innovation rarely occurs in isolation; it’s a highly interactive process of collabo- ration across a growing and diverse network of stakehold- ers, institutions, and users. Why is a strategy for innova- tion needed? Simply because it allows SMEs to optimize strengths and minimize weak- nesses relative to competitors. A single set of recommenda- tions is not appropriate for all SMEs, as anyone will attest, because their attributes and environments vary consider- ably but there is a wide range of innovation options that can serve different purposes at dif- ferent times. While no one option is right for all SMEs, innova- tion in products, processes, or services of varying type and degree can be appropriate for different SMEs in different industry sectors or product lifecycle stages. An important set of innovations relates to services SMEs can provide in addition to the product they deliver (e.g. maintenance and provision of spare parts). Six questions that help to address the SME innovation conundrum 1. What type of climate is needed for innovation to happen? There’s a tremendous need for an entrepreneurial spirit and mentality based on risk-taking, coupled with an enabling environment. It’s important to remember that not every culture is innovation-minded. 2. Where is your country’s competitive advantage? Countries need to determine where they have competi- tive advantages. Innovation needs to be focused in certain sectors, including services. The main drivers are spread of private sector driven global value chains (GVCs) and gov- ernment-driven foreign trade agreements, such as Trans- Pacific Partnership (TPP). Supplier SMEs may need to undertake innovation as their customer Transportation net- work companies (TNCs) inno- vate and adopt new standards and product specifications. 3. What constitutes an enabling environment? One that has a high ranking on ease of doing business, high level of education and skills development, available finance in the form of venture capital, government policies that support innovation and entrepreneurship and champion the free flow of information and ideas, etc. Also, a market economy environment characterized by a high level of competition/ rivalry. A proper competition policy must be in place for SMEs to thrive. >>>
Entrepreneur december 2015 40 Qatar Science and Technology Park 4. What types of frame- works and schemas should be in place? Countries need to possess the necessary infrastructure to promote innovation-based SMEs. Provision of business services is also important. Business development services help effective access to laws (national and FTAs), account- ing, taxation, regulations, market intelligence, training, business development, finan- cial sources etc. 5. Is your country’s established policy set up to foster SME growth? Possible policy options include establishment of high tech- nology zones and incubator programs, strengthening of national and subnational in- novation systems, investment promotion agencies’ strategies towards attracting high tech- nology foreign direct invest- ment (FDI); strengthening le- gal and regulatory framework, including intellectual property regulations and competition/ anti-monopoly laws. Sectors where barriers to entry are low are more competitive, and therefore more innovative. 6. Is the establishment synergistic? National Innovation System (NIS) refers to the complex and interactive web of knowl- edge flows and relationships among industry, government and academia and making them work systematically to sustain innovation and science and technology development efforts. The innovative perfor- mance of a country depends to a large extent on how these NIS actors relate to each other as elements of a collective system of knowledge and tech- nology creation and use. Is your SME committed in the right way? Innovative SMEs are aware of the capacities of the competition, and they have a good understanding of market needs. However, this requires investment of scarce resources, and this also refers to investment in employee skills and training. SMEs are flexible, so the capacity for innovation rests with product customization, customer in- timacy, and exploiting market niches. They do not depend on scale. Linking SMEs to high technology FDI is next step. This requires strengthening SME capacity in terms opera- tions, management, financing and meeting standards through accessing, adopting and adapting suitable technolo- gies. Technology refers both to hardware (physical assets) and software (knowledge and skills). SMEs that engage in R&D have higher chance to be innovative. Creative adaptation of technologies for new uses The creation of dedicated ar- eas, like Science and Technol- ogy Industrial Parks (STIPs) is an indicator of an enabling environment for business growth and inception. Good examples from Asia are China’s SPARK and TORCH programs. The TORCH Program created Innovation Clusters by creat- ing national STIPs, Software Parks, and Productivity Pro- motion Centers. In this region, the Qatar Science and Tech- nology Park is a good example. Another key part of China’s cluster strategy was collabo- ration between research and business, as well as between large enterprises and tech- based small and medium en- terprises. It did so by building a national network of a 1,000+ Productivity Promotion Cent- ers. They provide consulting, promotion, product testing, hiring, training and incubation services to startups. While the Innovation Clus- ters designated specific areas of the countries where high tech was to occur, it’s the Technology Business Incuba- tors (TBIs) located inside these clusters where the startup companies physically reside. Much like incubators world- wide, they provide startups with office space, free rent, access to university technol- ogy transfer, etc. By 2011, there were a total of 1034 Tech- nology Business Incubators across China, including 336 as TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO
december 2015 Entrepreneur 41 Marc Proksch has Master’s Degrees from the Free University of Amsterdam in political science, international relations and from the London School of Economics in international political economy. After working in the private sector in the U.K. as a research analyst at a management consultancy, he joined the United Nations in 1990 in the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok. From 2000 until 2010, Proksch worked in ESCAP’s Trade Policy Section of the Trade and Investment Division. Proksch is currently Chief of the Business and Development Sec- tion in the Trade and Investment Division and manages the work of the Section in the areas of development of SMEs, promotion and facilitation of investment for development, and the promotion of responsible business practices. Nissan’s 2016 eighth gen Maxima ‘Treps choice For those who are seeking both an interesting and a high performance road experience, you’ll probably want to pay close attention to the eighth generation Nissan Maxima. The 2016 edition, amped up and sportier than ever, looks good, feels good, and yes, is even a pretty peaceful ride for your traffic-heavy commutes to and from the office. How can sitting in traffic be made peaceful? The Active Noise Cancellation System keeps the cabin comfortably insulated from the road rush, and setting a positive mood is made easier when you choose the vehicle’s ambient lighting option, paired with upgraded premium leather seating with diamond-quilted inserts. You’re sitting pretty, feeling good, and now it’s time to put that 2016 Maxima’s 300 horsepower to work- that’s 85.7 horsepower/liter, to be precise. Get the most bang for your buck with its 3.5-liter VQ-series V6 engine, and performance-oriented Xtronic transmission that’s all about stronger acceleration. For those who like to feel in control, you’ll appreciate the brand new D-Step shifting logic. Start your engines, ‘treps! www.nissan-me.com Huawei headquarters National Incubators, hosting nearly 60,000 companies. (20% of the National Incuba- tors were privately-run and their percentage is steadily increasing.) In recent years, Business Incubators have developed into diverse models. For example, the Ministry of Education and the Ministry of Science and Technology teamed up to put 45 incuba- tors in universities. There are close to 100 specialized incu- bators for companies founded by returned overseas Chinese scientists and engineers. There are a dozen sector-specific incubators (a Biomedicine Incubator in Shanghai, An Advanced Material Incubator in Beijing, a Marine Technol- ogy Incubator in Tianjin, etc.) These incubators are mostly clustered in the eastern coastal regions, and disproportionate- ly target TMT (Technology Me- dia and Telecom) and Biotech. Some of the startups coming out of these incubators have become large international companies including Lenovo, Huawei, and Suntech Power. A few focus areas for SMEs to be innovative There is a need for supply chain management, access to technology, investment in R&D, and financial management, including working capital re- quirements. Execute analysis of your SME market potential and the existing competitors. SMEs should also consider branding, as it’s very important. Adop- tion of RBC is also a priority. Clustering may help overcome R&D, marketing, information and financial bottlenecks by pooling resources and access to business development services. The weakest link in an SME’s chain is often access to finance. It often starts with SME capacity to prepare solid busi- ness plans, but here, online opportunities for funding exist, such as crowding and equity crowdfunding. Support can also be gained through seed funding (such as InnoFund) and venture guide funds to as- sist and guide VC firms.
Entrepreneur december 2015 42 TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO image stills © youtube By Lama Ataya Spreading the news The recipe for a viral marketing campaign T he Internet is a giant blank marketing canvas for brands savvy enough to cut through the noise and find new ways to get consumers to listen up and join the conversation. And while coveted by all, viral content is no easy feat. In fact, while highly sharable content can give your business a lift, creating a viral video, on the other hand, is far from easy. Having a piece of content go viral is the closest description to some sort of Internet version of the lottery; it’s extremely difficult to achieve and very hard to replicate. The new frontier of marketing is in creating branded content that isn’t designed to be overtly promotional, but instead can stand on its own merits. A successful branding campaign needs to carry and communicate the brand’s core values and, as such, has exponential marketing impact. When creating content, it’s vital to always keep your brand purpose and consumer needs top-of- mind. Social listening helps to inform the future, but is less useful as a way to measure an existing program. What makes content go viral? Of all the millions of videos posted online every day, how do some videos or other pieces of content rise above the fray? In other words, what makes a video or ad or any type of content go viral? Look at every successful campaign and you will find that there are four important characteristics associated with viral content. 1. Choose informative and inspiring content People are always searching for new information and better ways to do things. If your content is interesting and informative enough, it is also highly sharable; and if you want to get people’s attention, contribute something worthy of their time and emotional investment. A great way to get the viral edge you want is to look for stories that can inspire your readership. Audiences love an inspirational story, and the more inspirational it is, the more your audience will want to share it with others. 2. Opt for quantity vs. quality Yes, they both matter, but quality content doesn’t necessarily imply expensive production. So it’s OK if you don’t allocate a huge budget to produce your content- some of the most popular videos online were filmed with a personal camera at home. What distinguishes many of the most successful channels on YouTube, for instance, is that they upload new videos regularly, which keeps their audience interested and engaged. Think of it like a friendship- you’ll be much more engaged if you’re talking every day, not just once every six months. 3. Make your content timely If you want your content to make the jump to virality, it might be time to brush up on your current events. By hooking into an existing Internet theme or popular topic, you increase the odds your content will be viewed and shared by those already interested in the topic. This can be anything from a current world event, to a pop culture topic dominating the news. If you speak the same language as your audience and present interest in the same topics, they’ll be more likely to share your content. 4. Make your content engaging One of the keys to virality is engagement. Engaging with an audience leads to interest, repeated visits and ultimately, conversions. Adding an engagement portion to your videos, like answering viewer questions, can give your content a boost and make it more sharable. After all, everyone likes to be heard! How we went viral with our #WhatsYourStory campaign To celebrate our many successes and the successes of people we supported,
december 2015 Entrepreneur 43 Bayt.com decided to highlight inspiring and successful stories of various professionals from across the Middle East. We wanted to spread the positive message of how dedication and hard work go a long way. This idea of sharing a message of passion, dedication and hard work culminated in two videos that went viral straight away. One of the videos was by Jordanian band Tarab 3al 7atab, and the other by Kuwaiti rappers Sons of Yusuf. Entitled What’s Your Story?, the campaign was simple: as a career site, we knew that having a successful career was all about hard work, passion and creativity. We knew we were going to invest in a project that was the first of its kind in the region, and we would settle for nothing less than virality. So the question was: how should we share this idea and make a difference while engaging audiences across the Arab world? We decided very early on in the campaign process that we cared more about acting as a publisher to build a strong affinity message aligned with Bayt.com’s core values of being a Middle Eastern company focused on empowering people to lead better lives. We focused on creating content consistent with our brand story, while ensuring that the content is also entertaining and inspiring in its own right in order to enhance brand status without ever mentioning any of our products. The #WhatsYourStory campaign was created in-house and utilized a wide array of channels to reach the audiences we were targeting. 1. Print advertising We highlighted success stories from people around the region, with different ideas used depending on the target audience of the publication, highlighting the nature of personal success. >>> Three lessons from the #WhatsYourStory campaign Create a content plan that outlines every tweet, Facebook update, and Instagram post. Make sure you know what you’re launching, and when. Create reply templates for all your community managers so they know how to engage before the campaign is launched. Create a publishing schedule so you can see what content is going live, and when. The key is to plan your marketing according to your content and KPIs. Lesson one Tie your brand to an emotional message If strong emotional activation is the key to viral success, how can brands best craft highly emotional messages with their content? First, think carefully about how your company, product or service is related to a topic or topics that taps into deep-seated human emotions within your target audience. The goal is to find the link to an issue that plagues your consumers and relates directly to your brand or product. At the same time, you must make sure that the topic you choose also positively reflects the position of your brand. Using the example of #WhatsYourStory campaign, it is clear that its viral success was the result of its ability to tap into an emotional connection to work and self-actualization. We created a positive emotional reaction by inspiring success through their campaign. Their content delivered the message: “Each one of us has a story to share and all stories are worth sharing and telling- let us help you share your story.” Lesson two Take into account the public good Consider that one of the best ways to create an emotionally compelling piece of viral content that also works well with your brand is to tie your brand to a message for the public good. Brainstorm how your brand might be able to create content that does a public good or that creates awareness, but at the same time activates strong emotional drivers. In our campaign, Bayt com not only made sure to share stories of successful people who were able to realize their dreams, but also encouraged everyone else to dream and work and find their passion. Lesson three Target the people who will share your content Companies are already placing ads on the pages of Facebook users and are reaching out to Twitter and Instagram users who have a large following base. Brands have to recognize that the ability to find these archetypal sharers online is just as important as the ability to traditionally reach certain demographic groups. Before and during the #WhatsYourStory campaign, Bayt.com reached out to dozens of online influencers and shared their stories. TV personalities, social media gurus, YouTube celebrities, etc. were all contacted to help the brand spread its message throughout the campaign.
Entrepreneur december 2015 44 TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO infographic © bayt.com A young entrepreneur in a warehouse can’t find the right people He realizes that millions of people can’t find a job Decides to create Bayt.com so employers and job seekers can connect Convinces his sister and his friend to head sales and marketing Finds a tech guru and gets website started Raises $1.5 million from a friend’s father October, 2000 Bayt.com goes live for all! The Middle East isn’t online yet... Bayt.com launches TV ad campaign First check! (From co-founder’s father, but still a check) December 2000 Bayt.com has first 15,000 members 2000-2002 Bayt.com opens 9 offices in the Middle East June 2002 Hello, profitability! More than $100,000 a month in revenue November 2005 Bayt.com has 1 million members May 2008 Launch of first ever Middle East Virtual Job Fair, attracting 31,000 visitors October 2010 Launch of Talentera, a corporate recruitment solution January 2011 Bayt.com crowned as one of top 10 companies to work for in MENA March 2012 Bayt.com relaunches with whole new design April 2012 Bayt.com goes social with Bayt.com People October 2015 22 million members and growing strong... #1 career site in the Middle East October 2014 Listed in top 28 Global Growth companies by World Economic forum December 2014 Creation of the Bayt.com mobile app, entering into the wireless era Bayt.com Find Your Job Onlineً مرحبا 1 2 3 22m TOP 28 January, 2000 EUREKA! December 2002 Bayt.com accepts award for the "Best Recruitment Site in the Arab World" (Rabea) (Mona) (Dany) (Akram) Bayt.com/WhatsYourStory #WhatsYourStory What’s Your Story? Here’s Ours. The Story of Bayt.com
december 2015 Entrepreneur 45 Lama Ataya heads the Marketing department at Bayt.com and within that role is also responsible for communications, content, community experi- ence, and corporate social responsibility. Entitled What’s Your Story?, the campaign was simple: as a career site, we knew that having a successful career was all about hard work, passion and creativity. We knew we were going to invest in a project that was the first of its kind in the region, and we would settle for nothing less than virality. image stills © youtube 2. Music videos Two songs, one by Jordanian band and Arabs Got Talent semi-finalists Tarab 3al 7atab, and the other by Kuwaiti rappers Sons of Yusuf, were created for this campaign. Both songs highlighted the personal stories of the singers and their own feelings towards work and “writing their own story.” 3. Social media We engaged with many successful people to get their stories and share them on our social media accounts. We also hosted a very successful tweet-up with Tarab 3al 7atab, which resulted in two trending hashtags relating to the campaign. The campaign ran from September 2015 to December 2015 and resulted in over four million video impressions across all channels and two trending hashtags (#WhatsYourStory / ). Six tips for companies who want to create viral content 1. Think “Branded Entertainment” Going viral is not about being promotional; it’s about creating a campaign that stands on its own and that people would like, share and enjoy, regardless of the brand. 2. Establish your brand characteristics Is your brand funny? Cool? Serious? Helpful? You need to establish your brand values and characteristics in order to create winning content that still resonates well with your brand and audience. 3. Determine your content marketing goals and KPIs Never create content for the sake of creating content. You must understand what you want your content to solve. Your content must have measurable key performance indicators (KPIs) that you can use to track your success. KPIs can include traffic, sales leads, convert leads into customers, etc. 4. Involve your community in your content Interact with your community by featuring their content and featuring them in your content. Get success stories from them and highlight them. The secret is to treat them as partners, as opposed to fans or users. 5. Plan it all out during the entire campaign Create a content plan that outlines every tweet, Facebook update, and Instagram post. Make sure you know what you’re launching, and when. Create reply templates for all your community managers so they know how to engage before the campaign is launched. Create a publishing schedule so you can see what content is going live, and when. The key is to plan your marketing according to your content and KPIs. 6. Measure and tweak Measure your efforts to see what was successful and to quickly change and tweak to make things even better. This will help you both during the campaign, as well as after the campaign is over. The new frontier of marketing is in creating branded content that isn’t designed to be overtly promotional, but instead can stand on its own merits. A successful branding campaign needs to carry and communicate the brand’s core values and, as such, has exponential marketing impact. When creating content, it’s vital to always keep your brand purpose and consumer needs top-of-mind. Social listening helps to inform the future, but is less useful as a way to measure an existing program. In our campaign, we went ahead with this very-new form of marketing because we know that branded content is exploding– fueled by technology, an ever-increasing number of channels in the media landscape, and some fundamental changes in consumer behavior. And as brands are entering a new era of marketing that is much more ambiguous, subtle, and not nearly as intrusive as it has been in the past, there is ample opportunity for those who understand that viral content is a byproduct of engaging with the audience, touching their hearts, and contributing tangibly to their world.
Entrepreneur december 2015 48 Four productivity hacks to power through Q4 By Shoug Al Nafisi Rewire that engine! business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE TREP TALK ME THE BUSINESS Vaniday UAE THE ‘TREP Co-founder Vera Futorjanski Q What makes Vaniday stand out among its regional and local competition? A “The market of online beauty and/or wellness is very fragmented, and we can now see a few small players entering the market, which demonstrates the potential growth of the sector. However, there are no major global players offering the vast choice of beauty and wellness services that Vaniday offers. We are not limited to a country, a continent or a particular service, but depending on the needs of each market, we offer a wide choice of specialized services in this sector and aim to reach customers all around the world, forging a reputation as the go-to online platform for the beauty sector.” www.vaniday.ae C alling on a higher power to make it through until the end of the year? ‘Treps, these four hacks will make this leg of the all-important last quarter a breeze. Get cracking! 1. Set the scene Ever wonder how people read at cafés? Knowing that it’s become quite difficult to focus at will, cafés con- tinue to be the default spot for quick meetings or even weekend reads. Other than good coffee, they house an ambience that allows you to focus in whichever way you like. Ambient sound (or white noise) is an effective tool for cultivating creativity, and might also just be your key to getting things done, double-time! I like making my own sound with Noisli. 2. Go outside-in The mul- tisensory experience of the outdoors is considered quite impactful when it comes to creativity, productivity, and happiness. If you can’t spend much time outdoors, work- ing from areas with natural light and windows facing natural elements can actu- ally go a long way. It’s proven that introducing greenery into your work environment can also improve your mood, and your output. 3. Take down the com- petition Simply put, distractions kill your vibe. You can get more done in less time and with less effort put into trying to refocus. One proven way is to cre- ate a routine of turning off alerts as soon as you get to your office, and until you get done what you’ve come to do (emergencies are just that– don’t count on unlikely circumstances). Other hacks include scheduling time to check emails, and declutter- ing your virtual and physical workspace. 4. Put the pedal to the metal High performance requires training mentally, physically and emotionally. Other than relaxation and destressing, meditation teaches the discipline to focus attention and energy where it’s needed. Physical exercise will enhance that ability and take it even further. Find the right exercise routine to commit to, and hit some milestones. You’ll want to keep fueling the fire!
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Entrepreneur december 2015 50 Cities founder makes MENA’s creatives a priority By Aby Sam Thomas A discourse on design with entrepreneur Hazem Aljesr Business is booming business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE Cities Store, Dubai Cities Store, Dubai F or an entrepreneur, being able to follow one’s passion is an ex- citing proposition by itself, but what makes the experience feel a lot more exhilarating is when one is able to capitalize on that interest by filling a gap in the mar- ket. That’s why Hazem Aljesr considers himself to be lucky with the enterprise he set up in 2008, the Cities Design, Art & Lifestyle Store. Born in Lebanon and then raised in Saudi Arabia, Aljesr went to the U.S. and then the U.K. for his higher education, and on his return to the King- dom in 2006, he, along with two other co-founders, set up a graphic design company called Zoom Creative. Follow- ing that company’s success, he then launched Cities with its first location in Riyadh- ac- cording to Aljesr, the store was set up to address a very particular need he saw in the market. “When I returned to Riyadh, I saw that there wasn’t a lot of variety available in terms of design and interior décor; it was very centered on traditional and classic styles,” Aljesr remembers. “So I created a store that I would want to shop at. We took the name Cities, because we want people to feel that they can shop [from] all the cities of the world from one place. As such, Cities focuses on encouraging a new approach to design and interior décor; it’s a fusion of styles, quite eclectic and unique.” Aljesr’s first store for Cities in Riyadh attracted a lot of attention, following which he moved on to a dedicated space at Harvey Nichols in the city, and now, he’s back to his standalone roots with a larger, freestanding store in the Saudi capital. “It’s in a very popu- lar shopping location, and I think that the location and our existing reputation will help us to succeed and continue to ex-
december 2015 Entrepreneur 51 1. Do your research “Having a good idea isn’t enough, you have to make sure that there is room for it in the market, that it is viable, that you can create it from a financial standpoint, and it has a reasonable chance of success.” 2. Focus on human capital “Surround yourself with a strong team that you can depend on and then delegate. Don’t get bogged down trying to micromanage all the tiny details by yourself, and don’t be afraid to ask for help.” 3. Remain steadfast in the face of adversity “When things get tough, trust yourself and believe in yourself. Don’t listen solely to the negative critics, but don’t surround yourself with sycophants either. Be realistic and take logical risks.” 4. The more you know, the more likely you are to succeed “Never stop learning, researching, exploring, innovating and expanding. The world is changing so quickly; your business has to change along with it. Be adaptable and keep an open mind to changes.” 5. Don’t forget your supporters “Show your team and your customers that you value them. Your business won’t succeed without hard-working employees who feel invested in their jobs, and it won’t succeed if you don’t show your customers that you appreciate them. Listen to your employees and listen to your customers. Address their concerns, and use their input to keep improving.” Tips for ‘treps Hazem Aljesr’s five points of advice for an enterprise that stays the course “We look for items that are unique, well-crafted, and fit with our concept. When we find a designer that we like whose work does well, we want to build on that, especially if it’s a designer who does bring new items with some regularity. We make contact with individuals, design firms, art galleries, and small independent artists.” “In some areas, it’s developing very well; while in other areas, there is still a lot of progress to be made. There are also many barriers to be surmounted. For example, in Lebanon, many designers complain about having to alter their manufacturing process or material selection, because the technology and resources cannot be gotten to help them create the designs they have envisioned. In other areas, it’s a matter of educating the public and helping them understand why design matters.” Hazem Aljesr, Owner and Managing Director, Cities pand,” he says. “We also have a strong presence on social media, and we are always in- volving the Cities name in new ideas and initiatives to further extend our influence and gain more interest. We have moved slowly and steadily upwards, and I feel that we are aimed at continuing along that path. Hopefully, we will be able to open up additional Cities loca- tions in the near future.” Aljesr has already made some headway on his expan- sion plans for Cities- it opened its first Dubai outlet in 2014, and Aljesr reveals that the company is set to open a new store in the Emirate at Dubai Mall in February 2016. Abu Dhabi is also on the cards, as is the rest of the Middle East- but for now, Aljesr wants to focus his efforts on Cities’ existing outlets. “If we have a few Cities’ locations in the region that are doing very well, we can continue to build our name and brand, and have a solid foundation to branch out from,” he explains. “We’ve looked at other locations in the Middle East, but so much is dependent on the response to the growing design sec- tor in the region. We want to encourage that, but the result must be financially viable for us as well. With time, as things continue to change, more areas may become possible for regional expansion, but right now, it’s really a game of wait and see.” But given that the design sec- tor in the region is –arguably- a rather crowded space, how has Cities managed to break through and make its pres- ence felt? “Well, I think the Cities concept sets us apart in a number of respects, but what really seems to make an impact is our store display,” Aljesr replies. “We work really hard to create a store display that makes an impression and also offers inspiration, and we focus on combining diverse items to show our customers how these pieces can be used in their own space. So, even though they might be unfamiliar with some of the brands and designers, the dynamic displays draw them in. We also change the store display quite regularly, usually about once a month, so with every visit, customers feel like it’s a new store.” As the owner and Managing Director of Cities, Aljesr has made his passion for design an integral part of how the store involves itself with the creative space of the region. Besides participating in several fairs and exhibitions to showcase its extensive inventory, Cities has also sponsored many art- and design-related events in the region. At the same time, Aljesr claims that Cities’ in- store presentations also act as a source of inspiration and a resource for people interested in this sector, while also pro- viding a platform for up-and- coming artists and designers to share their creations. “We have undertaken all of these initiatives not just because we want to stand out, but also be- cause our goal is to encourage all forms of creativity in the region,” Aljesr says. “We want art and design in the region to succeed and grow, [and] so >>>
Entrepreneur december 2015 52 business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE “We work really hard to create a store display that makes an impres- sion and also offers inspiration, and we focus on combining diverse items to show our customers how these pieces can be used in their own space. So, even though they might be unfamiliar with some of the brands and designers, the dynamic displays draw them in. We also change the store display quite regularly, usu- ally about once a month, so with every visit, customers feel like it’s a new store.” “We also have a strong presence on social media, and we are always involving the Cities name in new ideas and initiatives to further extend our influence and gain more interest. We have moved slowly and steadily upwards, and I feel that we are aimed at continuing along that path. Hopefully, we will be able to open up additional Cities locations in the near future.” “Undo, Move, Construct, Repeat” by Nayef Francis at Cities Dubai Cities Store, Dubai many of our efforts are aimed at encouraging individuals and enterprises in order to help them succeed.” Aljesr’s work to encourage and scale up this domain is particularly noteworthy given the disjointed nature of the sector here. “The design scene in MENA is quite variable,” he explains. “In some areas, it’s developing very well; while in other areas, there is still a lot of progress to be made. There are also many barriers to be surmounted. For example, in Lebanon, many designers complain about having to alter their manufacturing process or material selection, because the technology and resources cannot be gotten to help them create the designs they have envisioned. In other areas, it’s a matter of educating the pub- lic and helping them under- stand why design matters.” But that’s not to say that Aljesr’s outlook for this sector is all dry and dreary. “What is really wonderful is that I’ve noticed is the deep level of support that exists in so many areas in the region,” he says. “There is a lot of camaraderie, and designers are very sup- portive and encouraging of one another, and many cities throughout the region are be- coming more focused on design and taking steps to bring it to the forefront. We’ve seen a huge increase in involvement and in the number of initia- tives and events that are being created to encourage design, especially for the younger gen- erations. That is very reassur- ing, and we’re glad to be a part of all of this at such an exciting time.” Aljesr points out that Cities also features a lot of Mid- dle East names as part of its repertoire. “A number of the designers whose works are on display [at Cities] are from the region,” he notes. “We carry a large selection of items from Orient 499, a Lebanese-based atelier, and of course from Nada Debs. We are also very excited to carry the Wisada floor cushions created by Saudi designer Ayah Al Bitar. We also carry items from Lebanese designer Georges Amatoury, both from his design collection and from his Ardeco Gallery, Corinne Martin, who creates paintings that are influenced by Middle East popular culture items from the past done in a pop art style, and of course, Khaled El Mays, Nayef Francis, and Hawini. We recently held an installation of works by Nayef Francis at our Dubai location, and Khaled El Mays and Hawini designs are avail- able at Cities and have also been featured in our exhibits for Design Days Dubai 2014 and at the Beirut Art Fair in September of this year.” But this is not to say that it’s an easy task picking the designers whose works are featured at Cities- Aljesr makes it clear that there’s a lot of research happening in the background to find the creations of such talents. “It takes a lot of work to stay abreast of everything that is going on, because there are so many designers creating, and they have a lot of pressure to produce new pieces to remain
december 2015 Entrepreneur 53 “It’s definitely not a job for one person! Making the initial decision and investing was the easy part. It was really the little things that caused the greatest difficulties. The paperwork, the waiting for approval for things, the lack of set deadlines for things to occur to move the process forward; those things were frustrating, because there was a lot of uncertainty, and it made the planning process difficult to adhere to because there were so many factors that were reliant on other entities. We succeeded with patience and perseverance. Some things that surprised me were the cultural issues that caused a bit of frustration. Even though I’m Saudi, I’ve spent a lot of time abroad, and I found it somewhat problematic at first dealing with the approach to business. The Americans and the Brits are all about taking initiative; they don’t wait for you to map out the steps of how you want something done. You say, ‘Do this,’ and they figure out the best way to do it, and get it done. But here, there is a lot of deference given. It’s nice, but you have to be very explicit in how you want things done, and I found that difference in attitude to be a bit of an adjustment for me. I think that starting with the Saudi market has made things easier for me now. I learned a lot from the experience, and I got a good solid team in place, and together we figured out how to surmount the difficulties. So, starting in Dubai, there weren’t really any surprises. I’ve learned how the process works, and now I think we are ready for just about anything. The differences [between the two markets are] in some ways are vast, in others, minimal. In the Riyadh market, they know us now so they know what to expect. Our job is to meet that standard, but also we have a lot of pressure to continually have something new to share. There is a deeper desire for novelty; what’s new that can’t be found anywhere else. In comparison, in Dubai, there has been more exposure to the design sector, so the tastes are sometimes a bit more daring; people are more drawn to truly unusual and innovative items. They are also just learning about Cities, so we are trying to make a strong impression.” Starting up in Saudi Arabia According to Hazem Aljesr, the challenges of setting up shop in the Kingdom prep you for the rest of the GCC “We’ve looked at other locations in the Middle East, but so much is dependent on the response to the growing design sector in the region. We want to encourage that, but the result must be financially viable for us as well. With time, as things continue to change, more areas may become possible for re- gional expansion, but right now, it’s really a game of wait and see.” Cities Store, Riyadh Cities Store, Dubai relevant in the market,” he explains. “We look for items that are unique, well-crafted, and fit with our concept. When we find a designer that we like whose work does well, we want to build on that, especially if it’s a designer who does bring new items with some regular- ity. We make contact with individuals, design firms, art galleries, and small independ- ent artists. We also rely on design companies which offer pieces from a number of dif- ferent designers all under one company name; they may have dedicated designers or col- laborate on specific items with designers who aren’t affiliated with any specific company. This affords us a varied base to draw upon, but we are always on the lookout for new names and new creations. Some of our most successful pieces were discovered by chance, so we try to keep our eyes and minds open to many different sources.” And this is the approach Aljesr wants to continue us- ing as Cities compounds its presence and plans for further growth in this sector. “It’s not an easy area to maintain a presence in; it requires exten- sive investment, and it’s a slow path to turn it all around,” he says. “Building a brand and a concept takes time; you have to grow your customer base, and maintain it by constantly sharing something new. It often feels like two steps forward, one step back. Right now, the progress is incremen- tal, but we are already seeing signs that we will continue to benefit from our vision.” Aljesr also has hopes to expand Cities beyond the Middle East region. “My desire is to bring Cities to the people,” he says. “I think that we have a unique concept, and we are evolving and grow- ing. Cities’ concept and its focus on encouraging self-ex- pression and variety in design and décor are very relevant, and it’s also an approach that holds appeal on a global level as well.” Aljesr admits that he has his eyes on entering the European market, but adds that he is in no hurry to do so either. “I think that the Cities concept would fit well with the European lifestyle, but first, we have a lot of work to do to strengthen the name and bet- ter define ourselves. Right now, Cities speaks to a customer base that either identifies with our mindset and philosophy or is inspired by it. So, I think the appeal is great. However, the European market is vast, so we would need to find some niche to fill in order to succeed there. Hopefully, the way will become clearer as we continue to grow and progress.”
Entrepreneur december 2015 54 TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO A cross the Middle East and beyond, today’s young entrepre- neurs are opting out of expensive business school degrees and choosing careers in startups. For many considering the two options, the advantages of a traditional MBA are clear: the brand of a university, higher average salaries, and access to a network of future corporate leaders. You might ask then, where’s the problem? In my opinion, the benefits of business school are not immediately use- ful to an entrepreneur working to get his or her business off the ground. Instead of molding startups to fit corporate jargon, entrepreneurs must be flexible, resourceful, and decisive each and every day. Three things entrepreneurs can teach MBAs By Sean McKeon Innovation happens outside of the classroom mark zuckerberg image © bangkok happiness / shutterstock Mark Zuckerberg With this in mind, here are three things entrepreneurs can teach MBAs: 1. Innovation happens out- side of the classroom Startup ecosystems, both inside and outside of the Middle East, are formed by creative entrepreneurs, investors and innovators. For startups, meetings and idea exchanges often hap- pen spontaneously through personal connections and shared interests. Course cur- riculums and reading lists may be valuable for academ- ics, but these resources do little to attract customers and grow revenues. Bill Gates and Mark Zuckerberg famously went so far as to drop out university and pursue their ideas full time, but we should not forget that Microsoft and Facebook are exceptions. Universities play a role in creating suc- cessful startup hubs- look no further than San Francisco where Stanford and Berkeley provide extensive support for rising entrepreneurs. But college campuses are merely one part in the larger ecosys- tem that brings together innovators from all back- grounds. We must remember that disruptive products and services are created far from the formalities of university lecture halls. 2. Formulas and frame- works do not apply to startups The corporate world is full of pre-determined hierarchies, often created to manage the sheer size of many companies. Roles are clearly defined and newly-minted MBAs are thrown into jobs that perfectly match busi- ness school formulas and frameworks. For startup founders and employees, daily challenges are less predictable and not as easily delegated. Instead, >>>
Entrepreneur december 2015 56 entrepreneurs are forced to be Jacks and Jills of all trades. This growing reality is even changing the way many business schools teach future graduates. As one example, the University of Oxford has incorporated a mandatory Entrepreneur- ship Project into its MBA course, giving students a brief taste of startup life. Oxford, like many business schools, is recognizing the need for new graduates who can walk the entrepreneur walk instead of just talking the corporate talk. As larger numbers of MBA graduates choose startups and technol- ogy careers after business school, an entrepreneurial mindset is quickly becoming an essential factor for suc- cess. 3. Resiliency is the key to success Research from Wamda shows MENA entrepreneurs often lack necessary skills for strategic planning, financial literacy, and busi- ness development. This gap in fundamentals is typi- cally filled through trusted relationships with investors and advisors in the local ecosystem- but even this mentorship is not enough to create a successful business. Many startups fail despite relationships with successful VCs or angel investors, often leaving founders to ask: why? To answer this ques- tion, Angela Lee Duckworth, in her popular TED Talk, identified the importance of grit. At a basic level, she defines grit as the ability to sustain interest and ef- fort toward very long-term goals. For entrepreneurs this concept isn’t anything new- one’s daily life as a founder requires immediate sacrifice with the hope of future suc- cess. Fortunately for many MBAs, the corporate world provides a protective barrier from the all-too-real fear of failure faced by startups. However, this same protec- tion creates a challenge for business graduates who become first-time founders. Business school degree or not, entrepreneurs who possess high levels of determination will succeed despite the daily challenges of startup life. This is not to say that busi- ness school can’t provide a valuable foundation for would-be entrepreneurs. Several startup unicorns, including Warby Parker and Cloudfare, have MBA found- ers calling the shots. It’s no secret that graduates of top business schools often find investors and advisors in their school’s alumni base. But a deeper look at suc- cessful startups proves that true learning comes through doing and persisting despite unexpected challenges. Business school can’t teach you about the struggles of bootstrapping a business; it can’t prepare you for the sleepless nights and the pressure to be successful. For examples of resilience in practice, look no further than Cairo, Amman, and Dubai, where entrepreneurs overcome extreme challenges each day. In the future, MBA graduates will be looking more and more towards entrepreneurs in these cities for an education in starting a successful business. THE BUSINESS Jim Will Fix It THE ‘TREP Co-founder Colin Thomas Q What were the biggest lessons from your endeavors? A “Don’t activate until your research is as solid as it can be- we spent six months in daily research to prove our business model would work. If you are underfunded, rework your idea (and not your sales projections) to sit comfortably within your budget with double the contingency you thought you needed. Employ an accountant from day one. This is advice we were given before we set up, and we ignored it as we thought our money was better spent elsewhere. As a result, we had more sleepless nights than were necessary and lacked a clear picture of our financial position. We soon rectified our mistake.” www.jimwillfixit.ae TREP TALK ME Sean McKeon is a recent MBA graduate from the University of Oxford and a passionate supporter of entrepreneur- ship in emerging markets. Talk to him on Twitter @fseanmckeon. bill gates image © frederic legrand / shutterstock Bill Gates Jim Will Fix It co-founders Colin Thomas and Daniel Garner TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO
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Entrepreneur december 2015 58 The St. Regis Abu Dhabi is always at the ready for your visit to UAE’s capital At your beck and call “ business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE GM Moustafa Sakr The St. Regis Abu Dhabi The St. Regis Bar - Library The Al Hosen Suite Bedroom W hatever the business traveller wants, they get. There is no standard business travel- ler, so equally, there should be no standard amenities,” says the General Manager of one of the UAE’s finest hotels, The St. Regis Abu Dhabi. Moustafa Sakr adds that the property’s “percentage of business [clientele] does fluctuate depending on the season and what’s going on in town, however, year-round they make up 40-50% of our guests,” giving the hotel ample experience in a variety of business visitor needs, and catering to what are often specialized accommodation desires. “The success of the St. Regis brand is a result of our commitment to deliver- ing an unrivalled setting and bespoke service to each and every guest, from arrival to departure. We need to be true to the St. Regis legacy and to our core values that provide the framework for everything we do. Most importantly, we need to understand luxury. Luxury should never be in- timidating– it should be welcoming, warm, discreet, and timeless.” In addition to putting into place the art of anticipating guest requests and adapting to specific requirements, Sakr says that at The St. Regis Abu Dhabi the top-of-mind constant question is always, “What does the cus- tomer want?” And if you’re the customer who is already a global St. Regis patron, then you’ll find those hallmark hospitality values in place here, too. “If I compare The St. Regis Abu Dhabi to the original St. Regis New York, we share a lot through the St. Regis legacy. Our ser- vice culture, which is at the heart of the St. Regis brand, and core values are the same. We have a shared history and shared brand rituals, and you’ll see that the language we use is similar,” he explains. In terms of how the brand’s resort culture has translated, Sakr says that the St. Regis Saadiyat Island really upholds the company’s ethos in that regard as well, adding that outside of MENA, The St. Regis Bali is a haven of tranquillity. It just might be time to check in!
december 2015 Entrepreneur 59 RECOMMENDED BY THE GM The Club Lounge images courtesy St. Regis abu dhabi The Al Manhal Suite Entrance Hall The Crystal Lounge EXEC STAY “As a luxury city property we have the high-speed Wi-Fi and technology facilities that one would expect, but our approach is to adapt to the needs of the individual business traveller. Empowering our butlers to be one step ahead, and to be able to an- ticipate and exceed an individual’s expectations is central to our ap- proach. All [of] our guests receive personalized butler service– so their butler is their personal concierge. Beyond our butler team, every one of our staff -including me- is responsible for personal- izing a guest’s experience.” CONFERENCE CAPABILITIES “Meetings and conferences are an important part of our business operation. As a new hotel, we have great technology available to en- sure each is a seamless event. The hotel features a grand ballroom, Al Muhaif, which, depending on the meeting style, can accommodate up to 1,000 people. We have quite a big number of large conferences, and we have a team of dedicated event specialists to handle every imaginable detail. We also employ in-house IT specialists and A/V technicians to ensure everything runs smoothly. In addition, we partner with an A/V specialist company as required. We also have five more boardrooms of var- ious sizes, and we have two library spaces that are regularly used as a Majlis. I believe the key to success in the Middle East is privacy, and often a Majlis cannot be enforced by the hotel operator as it’s where our guests feel comfortable. With this in mind, we will create a Majlis wherever the guest needs it- and often this means creating a Majlis in one of our top suites.” CONNECTIVITY “The other thing that have proven to really appeal to our business travelers is our Starwood WhatsApp service: ‘Let’s Chat.’ It allows our guests to message their butler via What- sApp, and our policy is to respond within 60 seconds. It’s great seeing the different ways guests make use of this service; the other day I saw one of our butlers in the gym taking an in-room dining order from a guest training. They had sent for the butler to take the order via What- sApp so their meal would be ready when they finished working out- that’s what we’re there for.” MUNCH “As the General Manager of a St. Regis, I guess most people would ex- pect me to select a fine dining op- tion, but my per- sonal favourite is Cabana Beach Bar & Grill. It’s located right on the beach at our Nation Riviera Beach Club. They do a fantastic quinoa salad with seared salmon, plenty of avocado, fennel and roasted peppers.” DOWNTIME “Being [situated] on the Corniche, we have a great city location but we also provide lots of options when it’s time to relax– we have our fabulous Nation Riviera Beach Club, great restaurants and bars, and our 3,200 sq. m. multi-award winning Remede Spa.”
Entrepreneur december 2015 60 business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE Tom Ford U.K.-based entrepreneur crafts haute fragrance for the MENA bespoke client By Fida Chaaban The legacy of Roja Dove Roja Dove in Dubai, UAE during his Middle East fall tour B efore you sit down with the elegant and well- spoken Roja Dove, think about where you might have seen his highly sought after creations. Just prior to his recent Middle East tour, I had the pleasure of experiencing a fine Roja Dove scent at one of the best hotels in the GCC during my stay there for a conference: the Rosewood Abu Dhabi’s executive suite was fitted out with ancillaries like the Roja Dove Vetiver Shower Gel, the Body Milk, and the Bar Soap. I’d also seen Dove’s collected works at Paris Gallery, as part of an ornate instillation. This month, just in time for holiday shopping, saw the House launch a dedicated Roja Dove boutique at No. 51 Burlington Arcade in London, England, while here in the Middle East, his products are available at the best retailers region-wide. What you can count on during a conversation with this entrepreneur is an interesting analysis of the luxury consumer and the luxury industry as a whole. Over the course of his career and the now-global growth of his eponymous venture, Dove has worked with the best and brightest of luxury and then taken that considerable sector expertise and put it to very
december 2015 Entrepreneur 61 Editor’s pick Holiday gifting by Roja Dove Roja Dove’s sublime selection comes outfitted for the luxury fan. The bottles, crystal presented with etched typog- raphy in an original font developed for the brand, are embellished with gold screen-printed accents (a delicate pro- cess that takes three days to complete). Once you get past the collection’s pristine packing, you’ll be captivated by the arresting fragrance. FOR HIM Roja Dove Danger Pour Homme with notes of lavender, vetiver, and musk FOR HER Roja Dove Innuendo with notes of jasmine, sandalwood, and rose Warming it up right MISSONI AW15 Gents, you can pull off prints… but only when and if they are executed properly. Better fashion Houses like Missoni are ready to get you (well) dressed and ready for winter in the Middle East. It’s chilly in the evenings, and the AW15 collection can be the solution you’ve been looking for when running from the office straight to the office holiday bash. Wardrobe investments are just that, you want to be sure that your pieces aren’t the one-off wear: this collection, an interesting deviation from Missoni’s famed zigzags, can carry you right into next spring. www.boutiqueone.com/Missoni Missoni AW15 Missoni AW15 Missoni AW15 good use- for his own legacy brand. “Whether I’m in Dubai or Paris or New York, the selection of fragrance was more or less the same, and there was no choice. I think at this moment in time, there’s a huge backlash in the industry. I think many of the big brands are suddenly starting to be seen as very ordinary because they are so readily available, and I think that the Internet has altered retail globally and those products are sold [online] very much based on price. We have a new wave occurring in perfumery and now, without question, we’re starting to see creativity [injected] back into the equation, so you have a lot of smaller brands -and that doesn’t mean they are good- but it does mean there is choice. When I made the decision to launch commercial perfumery, in addition to my bespoke, it was due to seeing the plethora of clients who demanded something different.” Echoing the opinion of many luxury sector professionals, Dove agrees that being everywhere and catering to everyone isn’t a luxury sentiment. So those seeking a personal expression of taste gravitate to Dove’s work, and they’re willing to spend to convey their preferences, be it through a bespoke fragrance, a good tailored suit or the latest high-end vehicle made to client specifications. “I have two distinct client types; they aren’t mutually exclusive but primarily it is two demographic segments: first, an ultra- rich consumer who understands what quality is and who really is looking for something very unusual and driven by legitimacy and authenticity. My second client segment, who I absolutely adore, isn’t necessarily very wealthy, and maybe just love what I make, and have to bust the bank a bit to buy my perfumes.” Part of this entrepreneur’s strategy is the taste education of clients via direct training of his sales staff- and that in itself is quite rare. Master perfumers generally don’t travel country to country explaining the motivations behind note selection or composition- instead, a rather impersonal product knowledge kit is sent out to those consumer-facing brand representatives. If you think about companies across sectors, whenever the founder is directly engaged in the training and promotion of respective products and services, it is often one of the most effective methods of market penetration. And perhaps, Roja Dove’s hands-on approach to his conveying the deep sentiment behind his business, and the exacting developmental process behind his collections, is something most entrepreneurs need to put to work, regardless of what type of client you are aiming to onboard. www.rojadove.com
Entrepreneur december 2015 62 Samsung Gear S2 Sport Samsung Gear S2 Classic TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX #TAMTALKSTECH Techies come with different interests and the gifts you choose for them should be just as varied. As the festive season approaches, we’ve curated a list of must-have items for the geek in your life. For the power player Samsung Gear S2 Samsung rounded out its smartwatch with a new circular design and rotating bezel fea- turing Home and Back buttons- features that make the Gear S2 stand out from the pack. Apps are optimized for the 1.2 inch circular screen, and can be viewed in stunning clarity as the device boasts 360 x 360 resolution. Gear S2 allows you to stay connected at a glance with calendar, email, news and text notifications, all delivered directly to your wrist. It’s outfit- ted for fitness monitoring too, and comes with NFC technology enabling mobile payments (so you can head out sans wallet). Gear S2 comes in two good- looking formats: the Sport and the Classic, which includes a leather band. So, whatever your power player’s style, there’s a watch face and band to suit their tastes. Don’t worry about wrapping this one up- it comes attractively packaged. Samsung Gear S2 Sport image credit samsung
december 2015 Entrepreneur 63 For the gadget aficionado iPad Pro iPad Pro is the largest, most powerful iPad made to date- and this alone makes it an ideal gift for the gadget- lover in your life. It has a whopping 12.9 inch retina display with 5.6 million pixels and runs the new 64 bit A9X chip (rivaling the performance of most PCs). It’s thin, light-weight, and offers up to 10 hours of battery life. The iPad Pro enables creativity by supporting Apple’s new Smart Keyboard and Apple Pencil, the accessory that makes draw- ing and sketching by hand possible on the device, and it also features a built-in lightning connector for easy pairing and charging. Available in 32GB with Wi-Fi and a Wi-Fi + Cellular 128GB version, the iPad Pro is currently on the market in three handsome metallic finishes: Silver, Gold, and Space Gray. For the nature lover Parrot Flower Power Whether you’ve got a green thumb or not, Parrot makes it easy to care for your house plants with Flower Power. (Yep, there’s actually an app for that.) Flower Power consists of a sensor that measures the four crucial elements of plant growth. Through the app you can stay up-to-date regarding soil moisture, fertilizer, ambient temperature, and even light intensity. The app will even send notifications to your phone or tablet letting you know exactly what the plant needs. Do you know someone in need of a smart gardening assistant? Parrot Flower Power could be it. The new 12.9 inch retina display iPad Pro Parrot Flower Power iPad Pro image credit apple, parrot
Entrepreneur december 2015 64 For the fitness fanatic Ebikes Stealth B-52 FUJIFILM X-T10 50 mm Stealth B-52 electric bike #TAMTALKSTECH 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. For the shutterbug FUJIFILM X-T10 TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX image credit fujifilm, ebikes EBikes UAE, the region’s first electric bike specialist, is offering a new ecofriendly, fun and totally tech-ed out mode of transportation. The company has joined the ranks of other IoT pioneers by offering bicycles with a digital component. Impress the fitness fan on your list with a Stealth B-52 electric bike. It’s a hybrid vehicle that blends traditional pedal power with 5.2KW of pure electric thrust thanks to an advanced lithium rechargeable battery that requires only two hours to recharge using a standard output. It also has a Brushless DC motor, an advanced nine-speed sequential gearbox and Magura hydraulic disc brakes. Perhaps its most notable feature is the DC-1 Stealth Monitoring System and display: it’s multilingual and provides you with everything from ongoing range calculations based on real-time data to low battery alerts. With the push of a button, riders have a choice of throttle maps and a plethora of other details to ensure a smooth tech- enabled ride. The shutterbug in your life can shoot like a pro with the new FUJIFILM X-T10. It has a compact, light body with a retro feel that makes it easy to handle. X-T10 can be outfitted with any of the 18 FUJINON interchangeable lenses for X series cameras. It features a 16 MP sensor and built-in Wi-Fi allowing for immediate photo sharing. X-T10 is also equipped with a new AF system that offers both the conventional 49-point Single Point mode plus Zone and Wide modes that track subject movement across a wider area, greatly improving your ability to capture moving subjects. Not up for manual shooting? No worries. X-T10 has Advanced SR Auto mode which automatically selects the optimal shooting settings from 58 presets. This could very well be the smartest gift you’ve ever given.
december 2015 Entrepreneur 67 in pictures Startup Weekend Dubai runs a 54-hour educational experience for ‘treps Ready, set, go! Aya Sadder, Lead Organizer, Startup Weekend Dubai Third place winner Wa9faat.com Second place winner Fitness Buddies First place winner MyCars MEET THE JUDGES Joshua Rajkumar Co-founder, The Sustainability Platform Chantalle Dumonceaux Co-founder, WOMENA Muhammed Mekki Founding Partner, AstroLabs Hervé Collignon Founder, HOOKS Strategy & Innovation Emad Ghanem Regional Manager Middle East and Gulf Region, SOTI Inc. Images by Backer Jamous S tartup Weekend Dubai 2015, a 54-hour annual event, was staged at AstroLabs head- quarters in Jumeirah Lake Towers from November 19-21. Organized in over 150 countries, more than 250 cities ran the Startup Weekend Global Startup Battle simultaneously last month. In the UAE alone, 103 entrants took part and 44 of those entrepreneurs even rose to the challenge of a 60-second warm up pitch on day one. Supported by Platinum partner SOTI, Gold partners AstroLabs, Bird & Bird, SnappCard and Uber, and Silver partners Carpool Arabia, Flat6Labs, DotShabaka, Stationary Inc., The Sustainability Platform, Vaniday, Ven- tureFin, and WOMENA, the event’s “overall objective is to teach entrepreneurs the basics of how to get their business off of the ground through a structured process. It exposes them to mentors and facilitators who volunteer their time throughout the weekend to help the startups achieve the best possible results in an educational environ- ment,” explains Aya Sadder, Lead Organizer, Startup Weekend Dubai. The first place winner, MyCars, is a model that allows users to find cars to rent in differ- ent cities and included team members Ben Pullen, Benjamin de Terssac, Finney Thomas, Heloise Andrade, and Zahed Mirza. Sec- ond place winner Fitness Buddies, a model based on matching users with other users for workouts, was made up of team members Amit Vaghasiya, Darreen Al- hiyari, Hina Gulzar, Jiahao Liu, Richard Humberstone, and Andrew Broekel- mann. Third place win- ner Wa9faat.com, created by Ahmed AbuSaad and Abdulhadi Hafez, facilitates access to Arabic recipes via referral. The B2B prizewin- ner of the event, VVIP, was made of up team members Andrey Simeonov, Danni Lu, Saber Ghaith, and Sajad Ahmed. StartupWeekendDubai
Entrepreneur december 2015 68 READ BETWEEN THE LINES BUSINESS BOOK RUNDOWN By Amal Chaaban J ust because an author demonstrates great sales doesn’t mean their business advice is applicable in the boardroom or even good for practical application otherwise. Our reviewer takes a look at some of the titles getting hype recently and gives you the executive summary. Before you hit the business bestseller aisle, read these reviews to see which of these known books are actually worth your while. How to Stand Out Dr. Rob Yeung CULTURE business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS The Daily Edge David Horsager In a world where people strive to be more than ordinary in everything they do, how do you stand out? How do you make yourself the most memorable person with the most salient pitch out there? What tools do you use that you already have, and what tools can you develop further? Dr. Yeung has executed a study of how people stand out, then written a book that can assist even the shyest wallflower in getting noticed. There are tasks and ideas that push you out of your comfort zone, which include not telling people who are anxious to calm down. Using separate chapters, How to Stand Out breaks down different methods that can be applied depending on your persona. This is an excellent book for entrepreneurs trying to shed light on a new venture, people in consumer-facing positions like sales, and pretty much anyone who is looking for a confidence boost to get to the next goal level. Imagine a typical day in your office or one of the multitude of offices around you. Examine that day. Are you efficient? Are you getting the things done you need to do to make an impact? If your answer is sometimes, no or maybe, then you need this book. David Horsager has written a how-to guide on streamlining your efficiency in the office, and to aid you in achiev- ing things daily that actually do have an impact on your overall position. At its most basic, The Daily Edge is about workflow and productivity but if you take the time to go deeper and really implement the truly practical hints on a regular basis, you will see a change. Horsager even provides the web ad- dresses for various YouTube videos to help you implement his concepts. Use this book when you need a reworking of your time management to increase efficiency and get things done (despite distractions).
december 2015 Entrepreneur 69 5 Gears: How to Be Present and Productive When There is Never Enough Time Jeremie Kubicek & Steve Cockram The Negotiation Book: Your Definitive Guide to Successful Negotiating Steve Gates In a world full of constant distractions and time-consuming tasks, the authors believe we are experiencing not only technological advances but cultural upheaval. They have taken the view that as humankind grow busier, our abilities to have meaningful relationships (business and personal) have broken down somewhat. 5 Gears asks the reader to do some very difficult self-examination on many critical levels based on the premise that having hard skills and a good IQ are no longer enough to be successful. On some levels they are correct, however the reader will only get the absolute most out of this book if they are as honest as possible in the self-assessments. This is an excellent resource if you feel like you are not able to be both present and productive, due to the feeling of overwhelming busyness. There is perhaps no more impor- tant skill in business than the art of negotiation. A good negotiator can sculpt favourable deals, advantageous employment contracts, or even diffuse difficult situations using finely-honed skills. Steve Gates has released a sec- ond edition of his book, updated for a world that has changed in expecta- tions but still wants the best bottom line for their dollar. He does this by explaining how negotiation is both an art and a science that when practiced correctly, can get the most out of a situation be it for a finite contract or an ongoing long-term partnership. Your Definitive Guide to Successful Negotiating uses the term “Complete Skilled Negotiator” instead of just “Successful Negotiator” in referring to someone who has both the abilities and the approach. Everyone can pick this book up as it will prove useful in both professional and personal situ- ations- after all, we will all have to wrangle terms at some point. SMEs are once again the focal point at another upcoming MENA event, and for good reason. The Sharakah Forum in Muscat, Oman will take place from December 14-15 at the Al Bandar Hotel, Shangri La Barr Al Jissah Resort and Spa. Sharakah, incorporated back in 1998 by a royal decree to support SMEs, have chosen to title this year’s forum as The Role of Media in Supporting SME Development. From broadcast to digital, the program will host an array of media-related discussions. Some of the panelists include CNN Emerging Markets Producer, Vicky Brown, LinkedIn Head of MENA Growth Markets, Ghassan Talhouk, and Entrepreneur Middle East Managing Editor, Aby Sam Thomas. Registration is now open. forum.sharakah.om Oman’s Sharakah Forum to focus on the role of media in supporting SMEs Muscat, Oman muscat image © Philip Lange / shutterstock
Entrepreneur december 2015 70 The Esquire Guy on softening a rejection with a positive message By Ross McCammon The compliment sandwich TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO No always means more than no. When you reject a request, you’re also rejecting the requester. Triangulate. Take the pressure off you and your employee and place your rejection in the context of what’s right for the company. Every rejection should be accompanied by “empathic assertion.” Establish a connection, then say no. For example … Do this: “Melinda! It sounds like you’ve thought a lot about this. Your points are valid, but I just can’t see your vision right now. So I’m afraid the answer is no.” Not this: “Melinda! No.” “Nah” is a little flip. “No way” is a little casual. “Negative!” is a little much. “I Can’t Go For That (No Can Do)” is a Hall and Oates song. Saying no is most effective when you offer up an alternative way forward. Saying no is least effective when you preface it with, “Are you kidding?” Saying no is really confusing when you nod your head. KEY TECHNICAL MATTERS A straight no makes you cal- lous. Saying a lot of things that aren’t no but add up to no makes you squirrelly. Saying yes when you’re thinking no makes you a liar. Any of those is a bad idea. The right way to say no is to combine all three approaches into a kind of super no- a negative accompanied by a whole bunch of positives. FIRST, A LITTLE EMPATHY A no means more than just a rejec- tion of a request; it means a rejection of the requester. It means a rejec- tion of the requester’s belief in the rightness of his or her cause. (And disagreements over belief always get dicey.) Take one of the most common yes/ no questions in business: the request for a raise. On the face of it, what that moment represents for you, the employer, is an awkward conversa- tion in your office. But what that question represents for the employee is days and days of thought and anxiety and practicing the question with a mirror and maybe a couple of Xanax. The question is just the last step in a very long process. A quick no way belittles that process. Which is why the no should be a minor part of the answer. Your response should be commensurate with the effort it took to ask the question. Your response should be empathetic. “You want to make a connection, then say something positive that val- ues the person making the request, then say something empathic, then say no,” says Dr. Linda D. Tillman, an Atlanta-based clinical psychologist. Tillman calls it ‘empathic assertion.’ Here’s how Tillman tells us she would reject a request for a raise: “Sam, your work on the McDonald project was outstanding [POSITIV- ITY]. I can certainly understand that you would like more money at this point in your work with us [EMPA- THY]. However, we won’t be able to consider raises for anyone until after the fiscal year is over [DENIAL].” A slightly more efficient approach: “Sam, two words: McDonald project [POSITIVITY]. I feel you on this [EMPATHY]. But until next year, I got nothing to give [DENIAL]. Share a Twix? [CANDY].” HOW TO Make a no seem LIKE A YES It helps to look at requests -for a raise or otherwise- as an alter- nate vision for your business. You might (or might not) like the look of that vision. But it’s a vision that needs to be accepted or rejected. If you establish that kind of context, saying no doesn’t seem obstinate; it seems honest, thoughtful and responsible. You’re establishing that you’re both trying to do what’s right for the company. You’re establish- ing a principle. And principles are helpful- not in an abstract way, but
december 2015 Entrepreneur 71 NO: A RECENT HISTORY 2001 “I never allowed one advertisement on the air that I didn’t like… Image mattered. I was convinced it was my job.” - Jack Welch 2004 “When an issue comes up, we don’t say we’re going to study it for two and a half years. We just say, ‘Southwest Airlines doesn’t do that. Maybe somebody else does, but we don’t.’ It greatly facilitates the operation of the company.” - Herb Kelleher 2006 “No.” Mark Zuckerberg to Viacom’s offer to buy Facebook. 2012 “I don’t know how many times I have to state to you, Mr. Jay, that I never let commercial considerations get in the way.” Rupert Murdoch testifying before a British parliamentary panel on phone hacking, after initially refusing to testify. 2012 “Celebrities who ring up and say, ‘Could we have a freebie? Could we have an upgrade?’… will pay the same as everybody else.” - Sir Richard Branson Take one of the most common yes/no questions in business: the request for a raise. On the face of it, what that moment represents for you, the employer, is an awkward conversation in your office. But what that question represents for the employee is days and days of thought and anxiety and practicing the question with a mirror and maybe a couple of Xanax. The question is just the last step in a very long process. in a practical way. They help you triangulate a little. Advocating for the company takes the pressure off both you and the person making the request, and places the pressure on the larger enterprise. You’re saying, “You might be right, and I might be making a mistake, but I don’t see how this is going to work for the company.” “If the employee is making a case for more money, it’s the employee’s job to create a new vision for the employer,” says Jim Camp, CEO of the Camp Negotiation Institute and author of No: The Only Negotiat- ing System You Need for Work and Home. “But if the employer doesn’t see it, it’s a very easy thing to say, ‘I just don’t see what you see, and I can’t go in that direction.’” Because: the company. WHY PEOPLE DON’T NECESSAR- ILY WANT TO HEAR YES When investors ask you for some- thing, they’re not asking you to accede, necessarily. They’ve chosen a path, but if you have a better one, then they want to hear it. “No investor should want you to say, ‘Oh sure, we’ll do whatever you want,’” says Jared Klett, co-founder of Blip, which hosts and distributes web-based TV shows. “If you say, ‘I hear you, but I really believe this is the right way,’ nine times out of 10 the investor will respect that, and they’ll want to invest more. If they don’t, then you probably don’t want them as an investor.” With an investor, no is just part of a negotiation. It’s their job to test you. It’s your job to push back. No one worthy of your partnership -not an investor, not an employee, not a co-founder- necessarily wants you to say yes. They want you to make things better. OR YOU COULD JUST GO WITH NO Everything so far has assumed that you value the person making the request, that all the mitigation and explanation and empathic asser- tion is worthwhile because you have reason to invest in the relationship. But what if you don’t? Says Klett: “Everyone -even sub- ordinates- should be put on a level playing field. But if they really push you, then you play the ‘this is how it is’ card.” That card, of course, is simply no. And it’s a powerful card. It’s bleak. And sometimes it’s necessary. No is an opportunity here, too. It’s an opportunity to end things -maybe even the relationship- but still, it’s an opportunity. However it’s deliv- ered, no indicates where you stand and where the person making the request stands with you. When you say no, you equip the other person with your appraisal. Which is a lot. Instead of getting what they asked for, they got something arguably more valuable: enough information to know if they should cut out or stay in. You’re giving them power, really. Which is all anyone wants. They might be disappointed by your answer, but they’re better off than they were before. No can be a gener- ous thing. See this article in its entirety at Entrepreneur.com
Entrepreneur december 2015 72 The Diderot effect Why we want the things we don’t need- and what to do about it By James Clear TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO T he famous French philosopher Denis Diderot lived nearly his entire life in poverty, but that all changed in 1765. Diderot was 52 years old and his daughter was about to be married, but he could not afford to provide a dowry. Despite his lack of wealth, Diderot’s name was well-known because he was the co-founder and writer of Ency- clopédie, one of the most comprehensive encyclopedias of the time. denis diderot image creative commons French philosopher Denis Diderot Like many others, I have fallen vic- tim to the Diderot Effect. I recently bought a new car and I ended up purchasing all sorts of additional things to go inside it. I bought a tire pressure gauge, a car charger for my cell phone, an extra umbrella, a first aid kit, a pocket knife, a flash- light, emergency blankets, and even a seatbelt cutting tool. Allow me to point out that I owned my previous car for nearly 10 years and at no point did I feel that any of the previously mentioned items were worth purchasing. And yet, after getting my shiny new car, I found myself falling into the same consumption spiral as Diderot. When Catherine the Great, the emperor of Russia, heard of Diderot’s financial troubles she offered to buy his library from him for £1000 GBP, which is ap- proximately US$50,000 in 2015 dollars. Suddenly, Diderot had money to spare. Shortly after this lucky sale, Diderot acquired a new scarlet robe. That’s when everything went wrong. THE DIDEROT EFFECT Diderot’s scarlet robe was beautiful. So beautiful, in fact, that he immediately noticed how out of place it seemed when surrounded by the rest of his common possessions. In his words, there was “no more coordination, no more unity, no more beauty” between his robe and the rest of his items. The philosopher soon felt the urge to buy some new things to match the beauty of his robe. He replaced his old rug with a new one from Damascus. He deco- rated his home with beautiful sculptures and a better kitchen table. He bought a new mirror to place above the mantle and his “straw chair was relegated to the antechamber by a leather chair.” These reactive purchases have become known as the Diderot Effect. The Diderot Effect states that obtaining a new posses- sion often creates a spiral of consumption which leads you to acquire more new things. As a result, we end up buying things that our previous selves never needed to feel happy or fulfilled.
Entrepreneur december 2015 74 TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO 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. Diderot’s scarlet robe was beauti- ful. So beautiful, in fact, that he immediately noticed how out of place it seemed when surrounded by the rest of his common pos- sessions. In his words, there was “no more coordination, no more unity, no more beauty” between his robe and the rest of his items. The philosopher soon felt the urge to buy some new things to match the beauty of his robe. Life has a natural tendency to become filled with more. We are rarely looking to downgrade, to simplify, to eliminate, to reduce. Our natural inclination is always to accumulate, to add, to upgrade, and to build upon. In the words of sociology profes- sor Juliet Schor, “the pressure to upgrade our stock of stuff is relentlessly unidirectional, always ascending.” Image Credit: The Overspent American cover Amazon.com WHY WE WANT THINGS WE DON’T NEED Like many others, I have fallen victim to the Diderot Effect. I recently bought a new car and I ended up purchasing all sorts of additional things to go inside it. I bought a tire pressure gauge, a car charger for my cell phone, an extra umbrella, a first aid kit, a pocket knife, a flashlight, emergency blankets, and even a seatbelt cutting tool. Allow me to point out that I owned my previous car for nearly 10 years and at no point did I feel that any of the previ- ously mentioned items were worth purchasing. And yet, after getting my shiny new car, I found myself falling into the same consumption spiral as Diderot. You can spot similar behaviors in many other areas of life: • You buy a new dress and now you have to get shoes and ear- rings to match. • You buy a CrossFit member- ship and soon you’re paying for foam rollers, knee sleeves, wrist wraps, and paleo meal plans. • You buy your kid a new doll and find yourself purchasing more accessories than you ever knew existed for dolls. • You buy a new couch and suddenly you’re questioning the layout of your entire living room. Those chairs? That coffee table? That rug? They all gotta go. Life has a natural tendency to become filled with more. We are rarely looking to downgrade, to simplify, to eliminate, to reduce. Our natural inclination is always to accumulate, to add, to upgrade, and to build upon. In the words of sociology professor Juliet Schor, “the pressure to upgrade our stock of stuff is re- lentlessly unidirectional, always ascending.” MASTERING THE DIDEROT EFFECT The Diderot Effect tells us that your life is only going to have more things fighting to get in it, so you need to understand how to curate, eliminate, and focus on the things that matter. REDUCE EXPOSURE Nearly every habit is initiated by a trigger or cue. One of the quickest ways to reduce the power of the Diderot Effect is to avoid the habit triggers that cause it in the first place. Unsubscribe from commercial emails. Meet friends at the park rather than the mall. BUY ITEMS THAT FIT YOUR CURRENT SYSTEM You don’t have to start from scratch each time you buy something new. When you purchase new clothes, look for items that work well with your current wardrobe. When you upgrade to new electronics, get things that play nicely with your current pieces so you can avoid buying new chargers, adapters, or cables. SET SELF-IMPOSED LIMITS Live a carefully constrained life by creating limitations for you to operate within. Juliet Schor provides a great example with this quote: “Imagine the following. A community group in your town organizes parents to sign a pledge agreeing to spend no more than $50 on athletic shoes for their children. The staff at your child’s day-care center requests a $75 limit on spend- ing for birthday parties. The local school board rallies com- munity support behind a switch to school uniforms. The PTA gets 80% of parents to agree to limit their children’s television watching to no more than one hour per day. Do you wish someone in your community or at your chil- dren’s school would take the lead in these or similar efforts? I think millions of American parents do. Television, shoes, clothes, birthday parties, athletic uniforms-these are areas where many parents feel pressured into allowing their children to consume at a level beyond what they think is best, want to spend, or can comfortably afford.” Juliet Schor, The Overspent American BUY ONE, GIVE ONE Each time you make a new purchase, give something away. Get a new TV? Give your old one away rather than moving it to another room. The idea is to prevent your number of items from growing. Always be curating your life to include only the things that bring you joy and happiness. GO ONE MONTH WITHOUT BUYING SOMETHING NEW Don’t allow yourself to buy any new items for one month. Instead of buying a new lawn mower, rent one from a neighbor. Get your new shirt from the thrift store rather than the department store. The more we restrict ourselves, the more resourceful we become. LET GO OF WANTING THINGS There will never be a level where you will be done wanting things. There is always something to upgrade to. Get a new Honda? You can upgrade to a Mercedes. Get a new Mercedes? You can upgrade to a Bentley. Get a new Bentley? Have you thought about buying a private plane? Realize that wanting is just an option your mind provides, not an order you have to follow. HOW TO OVERCOME THE CONSUMPTION TENDENCY Our natural tendency is to con- sume more, not less. Given this tendency, I believe that taking active steps to reduce the flow of unquestioned consumption makes our lives better. Personally, my goal is not to reduce life to the fewest amount of things, but to fill it with the optimal amount of things. I hope this article will help you consider how to do the same. In Diderot’s words, “Let my example teach you a lesson. Poverty has its freedoms; opu- lence has its obstacles.”
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Entrepreneur december 2015 76 Startup CamelShip gets your packages delivered (affordably) By Kareem Chehayeb Moving pretty darn quick IN BRIEF CamelShip co-founders Sari Issa and Fares Nimri Which city in the MENA region harbors the best entrepreneurial ecosystem? “Undoubtedly Dubai. We were delighted by the talent and infrastructure of the UAE. We are thankful for Dubai Silicon Oasis and DTEC for supporting startups like CamelShip.” What advice would you give to a young and aspiring entrepreneur hoping to make it big in the region? “Find a gap in the market, and be the first mover in that market. Make products that customers want to use. You should have passion for the product you’re about to create.” ecosystem | who’s got VC | Q&A | STARTUP FINANCE start it up S hipping and courier services in the MENA region have been on the up and up for quite some time now. Gone are the days when your parcels are in courier purgatory, where you’re unsure whether what- ever you’re sending will make it in the next week (or month). That said, there’s still a hurdle for the industry: e-commerce. While the region’s e-commerce industry is growing, it could always use an extra push here and there. For courier busi- nesses trying to maximize their customer base in the UAE, this is where CamelShip comes in. Former MiddleEat co- founder, Sari Issa, and former member of Aramex’s Amman- based GSO operations team, Fares Nimri, built CamelShip after they noticed a gap they could “bridge” in what they describe as the “e-commerce space.” Their solution? An online platform that makes “shipping cheaper and easier.” The duo come from different educational backgrounds that equipped each of them with unique skillsets: CamelShip CEO Issa holds a BA in Digital Branding from the University of the Creative Arts in the U.K., and COO Nimri holds an MBA from Carnegie Mellon. So how does CamelShip work? It’s quite simple. Whether you’re shipping from Dubai, Abu Dhabi, or Sharjah, you select the city where you want to send your package, select the dimensions, and then you can access advanta- geous rates from CamelShip’s three partners. At the mo- ment they’re partnered up with Aramex, SkyNet, and the UAE’s Parzel Express. Issa and Nimri describe them as “top- performing couriers in the e- commerce sector.” Choose the courier of your preference, and you no longer suffer the “pain of booking low-cost express delivery.” They also offer daily discounts for packages heading out to Europe, India, and Paki- stan. (Speaking of discounts, if you live in the UAE, take note of this offer: you receive 25% off your first shipment by typ- ing in “ENT25” as a discount code.) The co-founders say that CamelShip always kept customers involved during product development, even at its earliest stages. They used their target audience’s feedback to “optimize the user experi- ence.” Smart move. Despite not having any angel inves- tors, Nimri and Issa applied what they learned from the Lean Launchpad course, which they claim “has tremendously cut down costs.” Other than limited capital, they faced some technical challenges, namely connecting and integrating the different APIs of the partnered courier businesses into their system. They gave credit to their development team, calling them extremely hard-working, who were able to work around that obstacle and rise to the challenge. And how many people are on staff in total? CamelShip currently has a small team of five individuals who are currently covering all of the bases. We can’t have a conversation about an e-commerce startup without discussing payments. The duo confirm that users can pay with both cash and credit cards, and also men- tion that they will be launch- ing PayPal as a third payment option very soon. Given that they’re based in the UAE, and that 75% of their customers are expats living in Dubai, I was curious to know about the most popular payment method. Unfortunately, Nimri and Issa said that they haven’t “noticed any deviations from the norm of paying with cash.” I guess even in the MENA region’s e-commerce hub, cash is still king for now. When it comes to marketing, CamelShip focuses on “pay-per-click marketing using search engine marketing.” They also focus heavily on SEO (search engine optimization) and social media. Facebook is their favorite social media platform because “of the higher click-through rate (CTR)” and because it also “serves as a customer service platform.” Going forward, Camel- Ship hopes to expand to new markets in the MENA region, something that the duo is quite excited about. Considering that 75% of their users are Dubai-based expats, with the remaining 25% comprising of mostly expats in Abu Dhabi and Sharjah, I think it’s safe to say they could be looking into another GCC country with a multinational population. What about mobile and tablet apps? Negative, but that’s okay because the duo take into con- sideration that 80% of their customers are using CamelShip from mobile devices. The co- founders explain, “We strictly design [our website] respon- sively for mobile first.” CamelShip is a full-time pri- ority for Fares Nimri and Sari Issa. So even though they won’t be active in other endeavors anytime soon, you’ll be sure to find them at startup events in the MENA region. Both credit ArabNet, STEP, and other conferences as contributors to their “vision and network- ing” in the region. See why it pays to participate in the entrepreneurial ecosystem? It’s exposure for your business both to other entrepreneurs, and potentially, a place to meet startup-friendly press.
Entrepreneur december 2015 78 start it up More money means more opportunity My startup got funded in Dubai, and now I’m scaling the business L ike most entrepreneurs, thoughts of how I could scale my venture was constantly on my mind. How could I grow Mini Exchange into a business that could expand to other mar- kets in an innovative way? At the beginning, it was just me and my agency in London. I would work round the clock - I still do actually- by signing brands to the site, and working off of my dining room table. We then got picked up by ArabNet, and were fortunate enough to be chosen as one of the winners in Beirut just five months after we launched. The team was getting bigger; we brought customer service in-house and data analysts for uploading products, social media, and digital marketing. By Sarah Appleton ecosystem | who’s got VC | Q&A | STARTUP FINANCE Mini Exchange founder Sarah Appleton receiving the E-commerce Agility Achiever Award from the “Green Sheikh” H.H. Abdul Aziz bin Ali Al Nuaimi at the 2014 Enterprise Agility Awards presented by du We launched 18 months ago with just 500 products, and now have over 30,000 products across 120 product categories. We have also just completed our seed round of funding of US$1.1 million, which has definitely been my biggest achievement to date. This raise will allow us to achieve our next stage of growth. The path Digital marketing was key for us. I knew that I wasn’t very familiar with it, but that meant I had to learn fast and also find a team that wasn’t just an agency taking a proportion of my spend. I identified Mini Ex- change’s priorities: I needed a team that was driven by data, that was driven by analyzing the trends and the results we were getting, and acting on these metrics and then going at it again, day-on-day, week-on-week. I found this in an amazing team with whom I’ve been working with over the past 12 months, Daphne Digital. They are solely driven by numbers, and we have all of the latest e-commerce tracking codes in the site and track every data point. I highly recommend this to every startup out there. Get as much data as you can from very early on, as it will prove to be very helpful in the long run. The funds A year into business, we knew that we needed to raise money to allow us to jump to the next stage. We were outgrowing the dining room table (quite literally!), and I needed to bring tech in- house and hire some other team members. Fundraising is not easy, it’s not fun, and it doesn’t happen overnight! Here are my tips on fund- raising that I gleaned from my raise: 1. Start fundraising early Fundraising takes longer than you think, and you don’t want to get to a stage where you’re desperate for cash. Prepare early, take your time, and don’t panic if it doesn’t happen in the first two months. 2. Keep at it Fundraising is not easy, and it takes time to prepare for it in many ways. It takes time meet potential investors, and to build good relationships with potential investors. >>>
Entrepreneur december 2015 80 www.miniexchange.com Sarah Appleton founded Mini Exchange at the start of 2014. Previously, she had a successful career in finance, spending four years at Deloitte in Mergers & Acquisitions advisory, first in London and then in Dubai. After two years in the Gulf, Appleton left the finance world, recognizing the potential of the early-stage e-commerce market and the Mini Exchange business model. Appleton and Mini Exchange have been recipients of many awards in the last year, including ArabNet’s Start-Up Demo Award, a listing as one of the 50 Most Influential Brits in the UAE, Small Business CEO of the Year Award in the Middle East CEO Awards, and also as finalists in three of the categories in the Gulf Capital SME Awards. Fundraising takes longer than you think, and you don’t want to get to a stage where you’re desperate for cash. Prepare early, take your time, and don’t panic if it doesn’t happen in the first two months. start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE There are lots of ups and downs, lots of positive conversations, and there are also people that will turn you down. Don’t get dis- heartened, and keep going. If you have a good product, you will find the right people to invest in your business. 3. Get a great pitch deck together The way you present your company is key. Investors want to see that you’ve taken time to prepare your pitch deck. Don’t underestimate the power of first impres- sions. For the same reason good design matters for your product, it matters for your presentation. Investors are just as impressionable as your average consumer. Properly designed slides send a signal that you know how to build and present a good product. 4. Find the right investors There is a lot of money out there, but in my opinion, it’s key to find the right money. By the right money, I’m referring to the people that will back your business, and that will support you. As one of my lead investors said to me once, “It’s lonely at the top; we’re here to help you.” You need people that recog- nize that it’s not all smooth sailing, and that there will be bumps in the road. Get the right backers from day one that will support you, add value, and understand your challenges as an entre- preneur. 5. Be gracious when some- one says “no” It can be frustrating to hear someone say no to your business- after all you’ve put everything into making this venture happen. You’ll prob- ably hear no more often than you’ll hear yes throughout your fundraising process. As tempting as it is to turn your back on an investor that rejects you, you have a lot more to gain by being gra- cious. Because this is almost certainly not the last round of funding you’re going to raise, or the last startup you’re going to launch. The future Mini Exchange aims to become MENA’s number one online destination for buying and selling mum and children focused brands. We’re already well on the way to achieving this and have a very clear direction ahead. We are aiming to more than double the num- ber of products on the site in the next 12 months, sign over 100 sellers to the site, launch our mobile app and an Arabic version of the site, and expand our marketing efforts even further afield. We have a long and excit- ing road ahead- as far as I’m concerned this is just the beginning. I love my day job, I love Mini Exchange and all that we’re trying to create, and I love being part of the startup ecosystem in Dubai. The life of a startup is a fun and exhilarating one, full of good moments and challeng- ing ones as well. Launching my business was the best de- cision I ever made, and one I doubt I’ll ever regret.
Your Gateway to the World of Entrepreneurship Take your business ideas to promising new heights and develop your skills to become a successful entrepreneur in Dubai. Tejar Dubai is an initiative by Dubai Chamber which aims at qualifying and enabling creative Emirati youth to enter the world of entrepreneurship through three key pillars: assess, assist and attain. This program aims to raise competitiveness of national small and medium enterprises (SME) in Dubai. tejardubai.ae π«é°ùàdGh äÉeƒ∏©ŸG ø`e ójõŸ :≈`∏Y Éfƒ``©HÉ`J @TejarDubai Initiative by
Entrepreneur december 2015 82 1. Don’t be bogged down by the naysayers. “Never take a negative answer personally.” 2. Know your investors. “Don’t waste your time with people who have no interest in investing in your startup. Just move on to the next investor.” 3. Keep a realistic vision. “If you plan to do crowdfund- ing, don’t over-estimate the appetite your friends and family have toward investing in your startup.” 4. Online pitches can work. “Don’t listen to people who tell you never to apply online to a VC- it actually works sometimes.” Tips for MENA startups when pitching to investors Carpool Arabia co-founder and Chief Driver Benjamin de Terssac start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE Capital injections for two Middle East startups Carpool Arabia and TaskSpotting share their tips on getting funded D espite the dry and dreary outlook often attributed to funding startups in the MENA startup ecosystem, two regional enterprises –Carpool Arabia and TaskSpotting- made headlines recently when they each secured substantial investments into growing their businesses. We talked to both startups to figure out how they went about winning this latest round of funding, and what one can expect from them in the future. Carpool Arabia co-founders Benjamin de Terssac (left) and Guillaume Arnaud Carpool Arabia www.carpoolarabia.com This Dubai-based ride- sharing company announced in late September that it had raised US$350,000 in its seed-round invest- ment, which follows the initial $70,000 co-founders Benjamin de Terssac and Guillaume Arnaud had put in to get the startup off the ground in February. French venture capital firm Kima Ventures and Dubai-based media company Mediaquest have led this new round of investment, with both companies claiming to be impressed by Carpool Arabia’s business potential, with the startup having seen number of users increase by 21% month-on-month since its launch. THE PROCESS When asked about Carpool Arabia’s methodology when choosing its investors, de Terssac candidly admits that it wasn’t a walk in the park, saying, “Choosing is maybe a luxury you have in Silicon Valley, but here, it’s more about who is crazy enough to invest in an early stage tech venture, rather than buying another apartment in Dubai Marina.” According to de Terssac, the timeline for the entire process started with a wait of three days to get the offer, a month to sign the term sheet, and then four more months to get all of the paperwork in place. WHAT HAPPENS NEXT With the funding they have secured from Mediaquest and Kima Ventures, de Terssac says that the stake will be used to launch the Carpool Arabia app before the end of the year, and also to roll out a marketing campaign that will advertise the startup’s services across Dubai.
december 2015 Entrepreneur 83 Tips for MENA startups when pitching to investors TaskSpotting co-founder and CEO Karim Aly 1. Tell a story. “People (even investors) are hard- wired to listen to stories. They can powerfully grab and hold someone’s at- tention far better than any other delivery. Use it to your advantage.” 2. Keep it incredibly simple. “Until a six-year-old (literally) can comprehend the fundamentals of your busi- ness model, then you’re not ready to share it with anyone outside your team yet.” 3. Slides are the prop, not the narrative. “A slide should have less than 10 words on it, use big fonts and include great visuals. Don’t rely on the slides to tell the story, otherwise there’s no point for you to be in the room!” 4. Build trust. “Stress your strengths, acknowledge your gaps and tell them how you plan to fill them before they ask you. This will take you much further than pretending that they don’t exist or wait- ing for someone else to bring them up.” TaskSpotting founders left to right Head of Operations Walid Sherif, CEO Karim Aly, Head of Business Development Dirk Stevens TaskSpotting www.taskspottingapp.com This MENA app which crowdsources market re- search announced in early October that it had closed its Series A funding round with an investment of US$1.2 million led by MENA Ven- ture Investments (MVI) and a Saudi corporate that hasn’t been named. Co-founder Karim Aly, who had boot- strapped the company to its launch at ArabNet’s Digital Summit in 2014, claims to have a well-aligned, mutu- ally beneficial relationship with MVI, with the focus being on more than just the money. “As a startup, there’s no denying that the money is very valuable, but if your story is compelling enough, you’ll find that there are a lot of people out there willing to write a check,” he says. “The thing is, there’s so much more that a startup needs in terms of adding value beyond money. We were particular about find- ing a group of investors that ticked all the conventional boxes, but that we also had great chemistry with. We wanted to find partners who genuinely shared our vision and were committed to helping us build a great com- pany- and we were fortunate to find them.” THE PROCESS “The whole process was unusually fast by regional standards- it took us about three months from initial discussions to closing,” Aly says. “What really helped close this quickly was that we had got to know our investors ahead of any fundraising efforts. This meant that we had already built the trust and rapport with one another to allow the formalities of closing the transaction to be very streamlined.” WHAT HAPPENS NEXT At the moment, Aly says that TaskSpotting is focused on growing the business, and delivering on the plans they have put in place for the same. “Right now, it’s all about scale for us,” he says. “We are building out the team, and expanding into new markets. Naturally, with rapid scale also comes a need to manage it with more efficient and robust infrastructure, so technology is another major area we will be investing in.”
Entrepreneur december 2015 84 money ask the money guy | vc viewpoint | your money | ECON Critical points to note for continued access to capital How to overcome fundraising challenges for your startup By Dr. Abdelhakim Hammach B y nature, entrepreneurs are very enthusiastic, optimistic, and risk-taking individuals. However, these same positive attributes can sometimes lead them blindly to failure, as many get so captivated by their business model, products, or services that they fail to see potential risks or limitations to their potential targeted market. Entrepreneur december 2015 84
december 2015 Entrepreneur 85 Most venture capitalists have cer- tain investment criteria and invest- ment strategy that determine which companies they will include in their portfolio. These criteria may be based on the nature of industry, the company’s products and services, geographic location, internal rates of return (IRR), stage of develop- ment or amount of capital required. Some entrepreneurs succeed in attracting the VCs to invest in their venture; however they fail to close the deal during the negotiations. Many entrepreneurs take on an adversary attitude during the negotiations, because they be- lieve that VCs are out to take advantage of them. The key factors that lead to the collapse of knowledge- based startups include: > Inexperience and a weak management team > Failure to plan > Failure to evolve > Inability to raise funding These factors are interlinked and operate in a manner that generates a vicious cycle, which ultimately leads to the failure of the startup. This article provides a brief description of the challenges associated with the last fac- tor, i.e. fundraising, with an aim to inform potential en- trepreneurs and raise their awareness of such challeng- es, and help equip them with key insight to help them plan for success. Most venture capitalists have certain investment criteria and investment strategy that determine which companies they will include in their portfolio. These criteria may be based on the nature of industry, the company’s products and services, geographic loca- tion, internal rates of return (IRR), stage of develop- ment or amount of capital required. While the average venture capital firm will see thousands of business plans per year, it will only consider a few dozen candidates and may actually close only six deals or less per year. However, most entrepre- neurs blindly target any VC firms, without any con- sideration to the strategic focus of such firms. This results in unproductive use of time, resources, and not to mention the anxiety and stress that comes along with the numerous rejec- tions. Therefore, to improve your chances of funding, you must target the right investors. For, your com- pany’s stage of development will determine the kind of venture capital investor you’ll approach, and the structure of the financing you’ll receive. Accordingly, before starting the search for capital, it’s important to: 1. Identify which stage of business development and what type of financing you require. 2. Take the time to research the venture capital industry to match the characteristics of the proposed investment with the investment strategy and criteria of the VC firm. 3. Be prepared before com- munications or interactions with any potential investors, since you will never get a second chance to make the first impression. There are several factors that can help entrepreneurs overcome the tough chal- lenges typically associated with launching and growing a successful business. The most important of these are also critical for continuous access to capital, particular- ity during the early stages of the firm when it is most vul- nerable to expenses and lack of funding. For this reason, entrepreneurs must prepare a solid business case and a strong team before meeting with potential investors. Investors will use every op- portunity of communication and interaction with you >>>
Entrepreneur december 2015 86 Dr. Abdelhakim Hammach is the Managing Director of Riyadh Valley Company (RVC). Dr. Hammach is a senior executive with over 20 years of leadership and management experience in R&D, venture capital investing, and strategy consulting for global organizations in USA, Europe and the MENA region. Before his current role at RVC, he was a senior strategy consultant with Accenture, where he advised leading global organizations in the U.S. and Europe on issues of growth strategy. Before joining Accenture, Dr. Hammach was a Venture Capital Investment Consultant with Aurora Funds in the North Carolina’s Research Triangle Park, USA. Prior to this, Dr. Hammach was a Principal Scientist with Boehringer Ingelheim Pharmaceuticals (BIPI) in Connecticut, USA. Dr. Hammach has served as a judge to the Duke Startup Challenge on many occasions, and he has also been actively involved in mentoring entrepreneurs both in the U.S. and in the MENA region. Dr. Hammach served as a Postdoctoral fellow at the chemistry department of the University of Pennsylvania after having earned a Ph.D. in Chemistry from the University of Vermont. He also holds a MBA from Duke University, and a B.S. in Chemistry from the University Moulay Ismail of Meknes Morocco. He is an inventor with 18 U.S. patents and has coauthored numerous articles in leading international journals. money ask the money guy | vc viewpoint | your money | ECON There are several factors that can help entrepreneurs overcome the tough challenges typically associated with launching and growing a successful business. The most important of these are also critical for continuous access to capital, particularity during the early stages of the firm when it is most vulnerable to expenses and lack of funding. Find a competent attorney and try to negotiate a winning deal for both par- ties. If you are in the fortu- nate position of having more than one VC firm interested in funding you, you will probably get a better valuation than if you were to have only one investor. The key to your success in the fundraising process will hinge on the aforementioned criteria and how confident you engage the VCs. You must balance your confidence with a healthy dose of realism so as not to appear as unaware of potential risks to your new venture. to evaluate you, your capa- bilities, and your motiva- tion. Therefore, if you come across as unprepared or una- ware of potential risks and challenges of your venture, investors will dismiss you. Keep in mind that angel in- vestors or venture capitalist are considering the follow- ing criteria when you are presenting your business plan to or discussing it with them: > Management and its cred- ibility (leadership, intellec- tual honesty, vision, motiva- tion, historical success and failures, etc.) > A validated market need > Compelling strategy (and preferably with unfair com- petitive advantage), reason- able deals details (funds deployed thus far, use of funds, valuation, etc.) The key to your success in the fundraising process will hinge on the aforementioned criteria and how confident you engage the VCs. You must balance your confi- dence with a healthy dose of realism so as not to appear as unaware of potential risks to your new venture. While passion and dedication will help you, overselling your idea by dismissing any chal- lenging questions will hurt your efforts. If your VCs are interested in your business plan, expect some tough questions from them. If they lose interest in you, they will go easy on you, and there won’t be a second meeting. Similarly, if you try to hide any information or downplay past business failures, your potential investors will learn about these during the due dili- gence phase, and they will not fund you. Past business failure is not necessarily a deal killer so long as you are able to demonstrate that you have learned from it, and you now know how to avoid such failure in the future. Some entrepreneurs suc- ceed in attracting the VCs to invest in their venture; how- ever they fail to close the deal during the negotiations. Many entrepreneurs take on an adversary attitude during the negotiations, because they believe that VCs are out to take advantage of them. If you find an investor willing to invest in you, don’t waste this unique opportunity, and understand that VCs are also required to protect their interest. Find a competent attorney and try to negoti- ate a winning deal for both parties. If you are in the fortunate position of having more than one VC firm in- terested in funding you, you will probably get a better valuation than if you were to have only one investor. Use this to develop a better term sheet from both by using the BATNA (Better Alternative To a Non-negotiated Deal) framework. However, don’t overplay this to the point where both firms would walk away from you.
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Entrepreneur december 2015 88 Startup Tawlat targets UAE’s frequent diners-out Emirati ‘trep Hamad Ali Al Marri certified graduate sponsored by dubai chamber in the spirit of facilitating emirati achievement via entrepreneurship start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE Hamad Ali Al Marri “I do work for a local airline and the job is not demanding as it seems. I do have time on layovers or when I’m off to be involved as much as needed from me. And also, having Tariq as a full-timer to manage the company, and Thani supporting the company is a great help.” T ariq Abdelhaq and I started the company together; he’s the CEO and I’m the COO. After a while my best friend Thani Al Qasem joined us as well,” explains Tawlat co-founder Hamad Ali Al Marri. Despite the many online booking platforms in existence, Al Marri says that after un- dertaking market research, there was a need for Tawlat, as it provides both real-time booking and electronic redemption voucher oppor- tunities with the startup’s network of F&B outlets. “We started by researching similar competitors locally and internationally; also, we spent a great deal of time with diners, restaurant managers and owners to identify if our solution will meet their requirements,” Al Marri says. Visiting Tawlat’s website indicates that the startup has already onboard- ed outlets on its platform, each with varying point lev- els that are later redeemable for dining experiences. The 10-member team is now targeting dine-in F&B outlets to give Tawlat us- ers more options to book at, and collect points at, and they are in a stage of “constant improvement. Our mobiles apps will be ready by the end of 2015 and in 2016 we will introduce new features.” Currently, in addition to working with his co-founders on Tawlat, Al Marri is also a full-time pilot for a commercial car- rier, but he says that he has ample time to devote to his entrepreneurial endeavor. “I do work for a local airline and the job is not demanding as it seems. I do have time on layovers or when I’m off to be involved as much as needed from me. And also, having Tariq as a full-timer to manage the company, and Thani supporting the com- pany is a great help.” While Al Marri sees Tawlat as a startup in terms of growth in the market, he doesn’t see his business that way in terms of “structure and the milestones we have reached so far,” adding that they will be seeking investors in the near future to facilitate the venture’s expansion and development. Still on the subject of capital injections, he says that the country’s support for entrepreneurship under the direction of UAE lead- ers is terrific, but access to funding is still a barrier to entry for would-be founders. “They are doing a great job, but there is always room for improvement. Being an entrepreneur is a hard job, and it has a lot of risks and compromise, and the hardest part is funding your projects. I recommend being more flexible regarding funding options and conditions,” says the entrepreneur, echo- ing the opinions of many founders who are facing the same challenges in terms of capital. And as for those of you considering visiting Te- jar Dubai for advice on your business plans, Al Marri has a few words of encourage- ment: “Simply go for it, they will help you!”
december 2015 Entrepreneur 89 Tejar Dubai is a development program committed to nurturing potential UAE nationals into becoming entrepreneurs. Launched in 2013, 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 TejarDubai ‘TREP TALK Q+A Become an emerging Emirati entrepreneur Tejar Dubai is here to help you realize your enterprise potential How does Tawlat work? “Bookings are free to the din- ing public and can be made any time of the day, any day of the week. There is also an iOS and Android app, so diners can search for and book a table in real-time anywhere they might be. Tawlat is directly linked to the cloud reservation manage- ment system at all of the res- taurants that have an available table on tawlat.com. So, when a patron searches for a table, the results reflect real-time availability of that restaurant for that particular time. After a patron makes their reservation, the booking information is communicated directly with the restaurant’s electronic booking dashboard providing instant confirmation.” Why did you feel Tawlat was needed in the UAE? “When it comes to dining out, the average diner eats in res- taurants at least four times per month in the UAE, and Tawlat helps its users to save time via a convenient and quick search engine. More importantly, it is also saving them money by enrolling in our free and unique loyalty program. Tawlat offers special offers and promo- tions, which can be booked directly via our platforms.” How do you stay motivated? “I stay motivated by focusing on the big picture. It’s not easy. To be honest, there is a lot of things that will happen that you don’t expect and you need to realize them as soon as pos- sible. You need to stay focused and remember why you are doing all this in the first place. Surround yourself with people who are trying to do something similar to keep you going.” What process did you go through with Tejar Dubai? “I heard about Tejar Dubai from a friend, and she recom- mended that I should give it a go. They were easy to contact and they showed a great [level of] interest. Within a week I had a meeting with them, and they liked the idea and recommend- ed to be part of their initiative. After a few months of prepar- ing, we had chance to meet the panel of judges to get our final approval. Tejar Dubai helped us finalize our financials and business plan. We were also provided with workshops to help us understand the market and legalities better. Also, they were helpful in introducing and building good connections with other private and government entities to help us reach our goals. It’s a great opportunity for me to be part of something that appreciates what we do, and is willing to support us to reach our goals.”
Entrepreneur december 2015 90 Five fintech startups to watch By Alexander Rauser Finance goes digi Alexander Rauser has over 15 years of experience in the digital media industry with both a creative and a technical background. He studied media engineering in Germany with a double major in online and offline media. After heading the digital division of a Dubai- based agency for five years, he fulfilled his long ambition to found Prototype Interactive in 2010, an interactive agency specializing in digital solutions for web, mobile and social media. The company is now considered as one of the top digital agencies in the country working with international and regional brands. Talk to him on Twitter at @ARauser. TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX T raditional financial institu- tions, out of date systems and lots of money are at stake with the revolution in financial tech. Fintech companies are transforming the banking experience by offering easy payment processes, oppor- tunities to save consumers’ money, ways to promote financial services such as investments and planning, and ultimate- ly by driving the industry into the next generation of banking. The financial industry has been so lim- ited by process and tradition that it has fallen behind in terms of innovation and digital development, leaving opportuni- ties for less-established fintech startup businesses to seize opportunities in the marketplace. As a result, huge financial institutions are being left behind, while startups that provide helpful, personal- ized services are driving more and more users to their apps and/or websites everyday. Let’s look at some of the top fintech startups to watch in 2015 and the ser- vices each company offers: 1. BillGuard BillGuard started its journey as a ser- vice to help users identify hidden fees charged from their banks. It has since then grown into a fraud monitor and spend tracker where users are pushed warnings to their devices when suspi- cious activity occurs. So far, BillGuard has flagged over US$50 million in suspi- cious transactions for its users. www.billguard.com 2. Wealthfront Wealthfront is one of the larger influenc- ers in the automated financial advisory space and has $1 billion under the man- agement of its proprietary algorithms. Wealthfront’s competition is Betterment, Personal Capital and Intelligent Portfo- lios from Charles Schwab. Its success is attributed to the fact that the company attracts millennial investors who don’t buy into some of the more traditional opinions. Wealthfront just raised an ad- ditional $64 million in their latest round of funding. www.wealthfront.com 3. Currency Cloud This fintech startup is gaining market share in the international payments space, an area that is currently 85% controlled by banks. The London-based company is popular amongst smaller businesses due to the agile nature of the platform: the features are added and adapted quickly, a feat that traditional banks are failing to achieve. Currency Cloud has just received $10 million in the latest round of funding and almost acquires half a billion in payments per month. www.currencycloud.com 4. Square Square basically did what every fintech company dreams of. Square removed the hassle and expense of processing credit card payments for businesses by creating a simple, tech-driven answer. Square will send you a free credit card reader. All business owners have to do is download the app and start using it for payments. How do they make their money? Through higher transaction fees, but these don’t seem to turn users away, as they are more interested in flexibility and free- dom. Square is valued at $6 billion. www.squareup.com 5. Venmo Venmo has revolutionized the digital wallet world by developing a method of paying your friends back with an easy-to-use social app that is free from transaction fees. The company began as a startup, but was acquired by online financial king PayPal in 2013. The com- pany reports zero revenue, however, it is helping promote the name of its bigger partner PayPal, now bringing in $7.9 bil- lion a year. www.venmo.com
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