Started with the implementation of the ‘new idea’ the concept of entrepreneurship has brought a new understanding to the way of doing business. Though now generally being considered as starting up your own business, entrepreneurship has been adopted by majority of the world. It has also brought a healthy competition which brings not only advantages but also challenges to the business world. These advantages and challenges do vary from market to market and region to region.
Entrepreneurship provides the high motivation level to the entrepreneur for doing business. It gives the feelings of self control to the entrepreneur which allows him to make decisions for his own interests. The resulted profits are also enjoyed by him-self. It also provides him the flexibility of scheduling his tasks and actions as per his own priorities like the family oriented entrepreneurs manage to spend quality time with their families. Entrepreneur does find an open ground of opportunities to create and implement his idea(s) according to his own thoughts to directly and fully enjoy the outputs by him-self.
On the other hand entrepreneurship also results into high level of risk as the entrepreneur has to sacrifice his regular monthly salary to try for profits which can not only be lesser than the sacrificed salary but even can result into losses. In entrepreneurship the starting business completely depends on the entrepreneur as the initial investment usually does not allow to include human resource for all jobs and roles, therefore, entrepreneur’s personal capabilities like his managerial, administrative and marketing skills do have a main role to play. Even if with the initial capital he manages to hire required staff still the risk of hiring the capable staff prevails. Furthermore there are chances of lacking organized work schedules as the things are completely dependent on the entrepreneur.
Though there are pros and cons of entrepreneurship but still the concept has really been travelled and spread to all over the world. Entrepreneurship has also reached to the middle east region. One of the major problems of middle east is the increasing levels of unemployment, therefore, they are encouraging entrepreneurship. Entrepreneurship in form of SMEs is being considered as a major tool to control unemployment. Unemployed not only becomes self-employed but as an entrepreneur also generates employment which leads to control the unemployment to good extent, therefore, part of unemployment can be controlled through small and medium enterprises (SMEs).
Each region does have some opportunities and challenges similarly there are advantages and challenges for entrepreneurs in the middle east. The need of entrepreneurship has been identified in middle east region therefore attractions have been introduced to encourage the entrepreneurs which result into advantages for entrepreneurs in the middle east like reduction in legal requirements for registration of business which makes the initial steps easy. Generally the legal requirements of countries have been a big hindrance in starting up a new business but a few middle east countries have reduced the legal requirements. As only a few countries have focused on this, therefore, more is still required. The requirement for minimum capital is being reduced to the lowest by middle east countries which definitely facilitates the startups with low capital and encourages to start business. The region is also giving tax relaxations and reliefs which is one of the advantages rarely available to business community and is therefore biggest attraction for entrepreneurs. Government is supporting the entrepreneurship and investing huge amounts in educating people on entrepreneurship because of the fact that the increasing unemployment in middle east can be managed through self employment and entrepreneurship is the most advanced and accepted way for that matter. Information Technology sector has really been the biggest sector enjoying government focus and major funding with reference to entrepreneurship. Strong existence of Private sector with its role of not only funding the new start ups but also providing mentoring is definitely an advantage for entrepreneurs in the middle east which not only encourages the new entrepreneurs but also reduces the risk of failure.
Entrepreneurs are facing lot of challenges in the middle east like lack of access to credit which results into difficulties in managing the initial capital or the capital required or for expanding the business. Credit plays a vital role for business capital but limited availability of this option creates a challenging environment for entrepreneurs. Inconsistent state of the middle east economy has been one of the major challenges for the entrepreneurs as due to state of economy the investors are reluctant to invest. The regulatory environment of middle east countries does also make the entrepreneurship more challenging. Though governments have been trying to facilitate but still the red tape in most of the countries of middles east is still one of the challenges faced by entrepreneurs in those countries.
Lack of information on relevant details is also an obstacle for entrepreneurs in middle east. Lack of knowledge on concerned form of business and less understanding of the concept of entrepreneurship is creating challenging environment for the entrepreneurs. Governments have been taking initiatives in this regards. Guidelines are being provided and governments are also funding the entrepreneurship study programs and training programs through universities but the focus has been mainly to young entrepreneurs.
One major challenge being faced by the entrepreneurs, rather potential entrepreneurs is lack of statistical data. Potential entrepreneurs may require detail information with reference to different aspects of country, society, people or government. These details are required for decision making particularly at the time of evaluating the feasibility of implementing an idea. As decision of converting that idea into business may depend on availability of such information but the non-availability results into rejection of the plan of starting the enterprise under-consideration. This eventually results into loss of opportunity of employment generation in the concerned country.
Another major challenge is the lack of transparency regarding business legislation. As the investor and businessman requires security of investment and thus requires transparency in business related legislation. But lack of transparency keeps the entrepreneurs in the phase of high risk and sometime results into discouragement.
People of middle east are looking for democratic change over monarchy. Middle east is experiencing a cultural change and currently is in the phase of democratic transition. This transition not only creates a resistance to invest but also creates uncertain environment for existing business which eventually results into a challenging environment for entrepreneurs.
Biggest challenge for new entrepreneurs is the corporate dominations by the existing and already established companies. These entrepreneurs having less capital have to really compete in quality and price to survive. One who succeeds to face this challenge does eventually enjoy the benefits of entrepreneurship.
Woman entrepreneurs have been facing the challenge of cultural discouragement. Middle east countries are now accepting and encouraging women entrepreneurship and western support is also increasing in this regard. Number of woman entrepreneurs is increasing in the middle east.
Though there are challenges to be faced by entrepreneurs in the middle east but the region does have a great potential for entrepreneurs. Governments are taking initiative to not only encourage the local entrepreneurs but also targeting the investors from other regions. This will help in controlling the unemployment and will eventually benefit the middles east economy.