Luisa Alemany, Associate Professor of Management Practice at London Business School talks about the various courses and new initiatives the school is offering in the Middle East to further develop the vibrant startup ecosystem in the region
What does London Business School have to offer to budding entrepreneurs in the Middle East?
LBS started its entrepreneurial focus exactly 25 years ago, so we do have experience in the field. We have a great team of faculty doing research and advancing knowledge on topics like early-stage funding, female entrepreneurs, issues on founding teams, corporate venture capital, crowdfunding or accelerators, to mention a few. We have over 20 courses related to entrepreneurship and private capital. Finally, we have an incubator supporting new ventures for over a decade in London. All that is what we bring to the table with our presence in Dubai. All that experience and lots of excitement is what we bring to the region
How is entrepreneurship different than doing a business?
In a regular business, the managers have access to resources. In entrepreneurship, first, you identify an opportunity, solve a problem or make things easier for the consumer. Then you have to evaluate and execute without controlling the resources. Lack of resources is a big difference. It means you have to convince people to join you and follow your dream and also to fundraise when you don’t have any track record yet.
What do students learn differently in entrepreneurship stream than a MBA stream?
They learn about opportunity identification, validation, testing, lean startup and early-stage funding. They also learn about the issues encountered by entrepreneurship founders, how to manage high growth and, if their focus is sustainability or social ventures, how to move forward. Finally, it is not only about starting a business. It is about the entrepreneurial mindset that can be applied in any business or organisation. This is very important. It relates to the way employees in organisations look at challenges, at the future and use creativity to make this world a bit better.
What are your thoughts about the startup ecosystem in the Middle East?
The startup ecosystem as well as the venture ecosystem in ME is boiling. You can feel the energy, the alignment of the different components. There is so much potential, but there are challenges. For example, it is difficult for startup founders to recruit people, as there are many opportunities in the normal business world. Additionally, the ecosystem is young, and there is still a lack of exits and role models. But it is happening as we speak. I am very bullish on the startup ecosystem in ME. This is why LBS presence in the region has a focus on the entrepreneurial ecosystem, and we are now launching a ME LBS Business Angels (MELBA) group and a startup competition (2nd edition, October 2023 for the finals), to be a key player and support both those that are starting up and fundraising and need tools and knowledge and those that want to invest in startups in the region.
Raising money remains a biggest task for startups, in your view, what steps startups should take before venturing out for funding, especially in the initial stage?
Get feedback from customers and from potential investors. Talk to everyone you can and try to test your assumptions asap. You have an idea, and a plan, but having some metrics that prove the willingness to pay for your product or service, having some customers or a big company already testing it, helps a lot to understand better your value proposition and to convince potential investors.
