It is acknowledged that the SME sector is the bedrock of any economy. It adds significantly to new economic growth and is a major source of innovation and entrepreneurial talent. Knowing its size and characteristics are fundamental to understanding the business dynamics of any city, and the economy at large.
The Extracts you read below are representative of any economy in General, in this case we have cited some basic data to illustrate, more data for other economies can be accessed as desired
The survey reflects that SMEs in Dubai are highly export-oriented with 51% of the SMEs indicating that they have some part of their revenues coming from regional and international markets (as compared to 44% in EU-27 and 18% in New Zealand)18. Moreover, a high proportion of SMEs (60% of the SME exporters) have more than 20% of their sales revenues emanating from international markets. From a sectoral perspective, Trading SMEs are inherently more export oriented as compared to Manufacturing and Service SMEs (68% of Trading SMEs indicated that they have revenues from international markets/customers, as compared to 53% and 37% of Manufacturing and Services SMEs, respectively).
The survey reflects that export-orientation is the highest amongst Medium-sized firms, followed by Small and Micro enterprises (66% of the Medium firms indicated that they earn revenues from international markets as compared to 55% and 39% of the Small and Micro firms, respectively).
GCC, Asia-Pacific and Africa are the key international markets / export destinations for SMEs in Dubai.
Approximately three-fourths of the SME exporters in Dubai are currently exporting to other countries without having a physical presence in these markets. Another, 18% businesses have either set up offices or have entered into strategic alliances in other countries (compared with 5% of SMEs in Europe).
Furthermore, typically SMEs in Dubai are found to have a high focus on developing business from international markets / operations (41% of the exporting SMEs indicated that they have a dedicated employee for international business and 56% of the SME exporters indicated that they have a defined strategy/ plan for international markets).
The biggest challenge for the development of SMEs in UAE is the availability of finance. Finance is an essential component for the development as well as running smooth operations of any company. Availability of financing for businesses is a need which UAE should meet to ensure the growth of SMEs and to fully benefit from them.
A Key factor for SME in the region is representing their brand and visibility to other business which simply means making other businesses aware that they exist and increasing their business visibility and potential.
This can be further broken down into
SMEs act as pillars and foundations for the growing economy like a house is built on the pillars; similarly, an economy can prosper and flourish if there is a strong base of SMEs in the country.
However, the challenge in setting this base is poor connectivity and networking. The businesses are not closely knitted and connected together which could provide the support to the new and upcoming SMEs. Thus, hampering the overall process of SMEs development.
Another factor which acts as an obstacle to the growth of the SMEs is the lack of management skills of the entrepreneurs. As the businesses grow in size, broad skills set are required to manage the operations and the employees. Many managers specialize in a certain field but don’t have the full range of skills.
Entrepreneurs usually do not have such management capacity to tackle issues of various sorts. They have a hard time to come up with innovative strategies to further grow the business and increase organizational performance.
These are some of the major factors which are barriers to growth of the SMEs in general as many SME do not have the bandwidth to specialize in a certain field , this is where external companies who have the skill sets can add value to the development of the SME economy which in turn adds to the bedrock of the local economy
For this reason, we have developed the SME Digital Marketing Program to help address these and other challenges. It’s a free consultation for the program where any business owner register online with us to get a preliminary consultation meeting and support.
10. We offer clear insight based on 30 years of multinational marketing experience in Business process , Marketing excellence , Business Transformation and Sales insights and practices to drive a plan suitable for your business . One size never fits all , once you have met with us you will come out of the meeting with a clearer vision to drive your business and increase productivity .
Call or mail us at the Star Quadrant
Phone: +971506454098, +971569793793 – DUBAI
Every business needs a core marketing plan, layer this with a well thought out digital marketing plan and you have a great go to market strategy.