Why majority in UAE don't want a boss

A vast majority of residents (66 per cent) in the UAE would like to be entrepreneurs rather than work for someone else. These employees prefer to be their own boss than have someone else monitor and assess them.

A new survey titled ‘Entrepreneurship in the Mena 2015’ conducted by jobs site Bayt.com and market research firm YouGov reveals that 84 per cent of UAE respondents personally know at least one entrepreneur in their country of residence; 96 per cent of whom are believed to have been successful in their endeavour.

In the UAE, both private and public sector employees think of starting their own business. In fact, 70 per cent of all employees are currently thinking of starting their own business, while 16 per cent have tried in the past but cite they have failed or could not do so for different reasons. Only 9 per cent of the workforce in the UAE have never thought of starting their own business.

Perceptions vis-à-vis ease of starting up a business vary, with 18 per cent of UAE respondents indicating they believe that setting up their own business is somewhat easy or even extremely easy, while about half (48 per cent) of general respondents believe to varying extents that entrepreneurship in the UAE is somewhat difficult or very difficult.

The main difficulties cited by those who have started their own business in the UAE include the unavailability of finances (71 per cent); a highly competitive market (38 per cent); strict governmental rules and regulations (30 per cent); and a perceived need for personal connections or ‘wasta’ (29 per cent).

Perception of entrepreneurship in the UAE

More than half of UAE respondents believe that one should gain some experience before starting their own business, while 40 per cent believe that any time is a good time to start a business. In fact, the top three concerns for starting a business in the UAE, according to respondents is procuring finances (65 per cent), uncertainty of profit/income (50 per cent) and a need to establish the ‘right’ network of contacts and connections (41 per cent).

Almost a quarter of UAE respondents (24 per cent) think that hospitality and leisure is the most appealing industry for entrepreneurs in their country, followed by advertising, marketing and public relations (14 per cent); architecture and engineering (13 per cent); communications and information technology (10 per cent); and finance, insurance and real estate (10 per cent).

Close to two thirds of UAE respondents (64 per cent) perceive entrepreneurs as people who think primarily about profit, and 84 per cent of respondent see entrepreneurs as opportunity-driven. 82 per cent of respondents in UAE strongly agree or somewhat agree that entrepreneurs help in creating new jobs, while 69 per cent agree that entrepreneurs truly benefit the society by creating new products and services.

The best pieces of advice offered to budding entrepreneurs by respondents in the MENA region, including the UAE, is to not be afraid of failure (38 per cent); have a great business plan (13 per cent); and have a great and well-researched business idea and marketing plan (both 11 per cent).

Role of education in defining entrepreneurship

Three quarters of respondents in the UAE (75 per cent) agree that the education they have received has helped them develop an entrepreneurial attitude either to a great extent or some extent. Only 9 per cent of respondents disagree with this sentiment.

A good 73 per cent of respondents in the UAE agree – either strongly or moderately – that the education they have received has helped them acquire the necessary skills and know-how to become an entrepreneur. Another 72 per cent believe that their education has helped them understand the role of entrepreneurs in the society, while 71 per cent agree that the education they have received has made them interested in becoming entrepreneurs – either to a great or some extent.

Work style preferences in the UAE

Sixty six per cent of UAE respondents prefer to be their own boss, while 29 per cent would rather seek employment in a company. When it comes to reasons for being self-employed, 52 per cent of UAE respondents do it for personal fulfilment; 46 per cent believe it affords them the freedom to determine their work-life balance; and 41 per cent like the idea of being their own boss.

Of the UAE respondents who prefer to seek employment in a company, more than half (56 per cent) prefer to work for private sector companies, while 44 per cent would rather work for the public sector. The most important factor for choosing to work for pay is regular income (41 per cent). 29 per cent of UAE respondents value the stability of working offered by a company, while 30 per cent think that working for a company gives them the opportunity to learn new skills and techniques.

Throughout the Middle East and North Africa (Mena) region, 70 per cent of respondents that have started their own business have done so over the past five years, while almost 1 in five (18 per cent) has started their business in the last 10 years.

According to Mena professionals who run their own business, the top three reasons for working for themselves are: more income (34 per cent), greater independence in what they want to achieve (31 per cent), and a better work-life balance (28 per cent).

Currently, a third of Mena respondents (33 per cent) who are self-employed are at the start-up stage of their business; 23 per cent said they have an established business that is underperforming, while 22 per cent have a well-established and well-performing business.

“Encouraging entrepreneurship is a huge focus for many countries throughout the Middle East and North Africa region, it bolsters the economy and drives innovation. While people in the UAE are keen to start their own business, financing it is still a key hindrance in achieving their aspiration. This may suggest that the region needs more investors to step in and help entrepreneurs,” said Suhail Masri, Vice-President of Sales, Bayt.com.

Data for the survey was collected online from September 27 to October 4 2015, with 8,164 respondents from the UAE, KSA, Kuwait, Qatar, Oman, Bahrain, Lebanon, Syria, Jordan, Algeria, Egypt, Morocco and Tunisia.

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