The rise of small firms in DubaiAuthor businessconsultantsdubai
Big investments like public limited companies, worth millions of dollars are not only difficult to setup but it is also not wise for governments to rely on them as a source of business in the country. What is needed to create a better business environment is to encourage small and medium firms to setup and operate in Dubai. These small firms will become the backbone of the economy.
The whole world has shifted its focus toward encouragement and development of small and medium enterprises because the effect that they create is much larger. Banks also have teams dedicated towards small and medium businesses to cover the growing sector with their products and services. Even though larger a large business setup in Dubai looks like the entity you’d want but it is not the one you need. The size does not matter as long as it better results can be produced using the help of smaller businesses.
Reasons behind encouraging small and medium firms
Let’s look at some of the reasons why small and medium enterprises should be supported.
A government is always worried about the growing demand of employment opportunities as time goes on and the population grows. Even though a large business setup in Dubai creates employment, a number of small firms that have an aggregate size equal to one large firm will not only provide more employment opportunities but will also create a more specialized work force that can deal with multiple situations.
b. Ease in setup
Small businesses are not only easy to setup but the investors and businessmen who own small businesses can be convinced to setup their branches or operations in a place that you want because they are given an opportunity to expand become bigger. Also, regulatory actions and exemptions from certain rules to support small businesses are easier.
c. Business environment
The higher the number of firms seen in the market, the better business environment and convincing power the government has. A better business environment and improving conditions is what business owners would like to see to make their final decision.
d. Value for customers
Customers always want better and updated products. In a competitive environment where multiple small and medium enterprises are providing products, they will have to continuously improve quality of products and services to maintain market share and survive in the competition as a profitable firm. This means that the customers will get better products and services and their standard of living will improve.
e. Ease in regulation
As the size of the firms is not too big, the government will always have a better position when it comes to bargaining if required when the government wants to regulate the industry. Small businesses have to comply because they are not big enough to influence the authorities.
The rise of small businesses is what made Dubai become the business hub envisioned by the leadership of the emirate. It is highly important that the trend continues as the results of the relevant strategies are already clear and has impressed the whole world.
Business setup consultants in Dubai have helped many small businesses setup their operations and get through the registration and company formation stages smoothly. Services of the business setup consultants in Dubai include pro services, visa process, trade mark registration and many such services that all businesses require to run in a country. Consultancies like Trademark registration are well known for their success in the market and have been providing the above mentioned services for quite some time now.