Vital for economic growth but facing serious challenges, Middle Eastern small and micro businesses are displaying unwavering entrepreneurial spirit, according to new research commissioned by Regus, the world’s largest provider of flexible workplaces. Even though some might have fallen into business ownership through redundancy, a staggering 78 per cent of Middle Eastern entrepreneurs reported that given the chance they would do it all over again. Globally, this rises to 85%.
This latest Regus research, canvassing over 26,000 business managers and owners in 90 countries, confirms that nimble and flexible Middle Eastern entrepreneurs regard lack of access to credit (75%) as the biggest deterrent to setting up a business today. The state of the economy (70%) and red tape (69%) followed. Nearly two-thirds of Middle Eastern entrepreneurs also cited lack of government support and market domination by large corporations as serious hindrances.
Commenting on the findings, Kory Thompson, Country Manager UAE at Regus says: “Thank goodness for the Unstoppable Entrepreneur! Who knows what state the economy would be in if they decided to play safe and downsize like a lot of their larger and arguably better resourced competitors. Despite the best efforts of the government they still face challenges.
Julius Po, Managing Director of Design Image in Dubai said, “Running my own business was the best decision I’ve made, and becoming a Regus customer three years ago allowed me to keep my overheads low which was a priority for my business. There are always challenges you face in a start-up but Regus played a big part in ensuring my life was made easier – I also have a better work life balance now.”
SMEs are “engines of growth” accounting for up to 99 per cent of businesses and 40 to 50 per cent of GDP. Globally, 50 per cent of all jobs are generated by SMEs, yet, in spite of this, they attract just a tiny proportion of overall investment across the G20. Regus’ Kory Thompson adds: “Entrepreneurial firms will need to remain nimble to navigate choppy waters and succeed. The lack of institutional support means that business owners will continue to increasingly favour flexible working in order to avoid lengthy leases and free up their working capital so they can concentrate on growing their business. Already globally, more than half of entrepreneurs are using flexible working locations for most of the week, compared with 39 per cent for those that do not own their businesses.”
