Challenges Associated with Entrepreneurship in UAE

This paper discusses the challenges faced by young entrepreneurs and family businesses while operating in Abu Dhabi, UAE. It explores the Mohammed Bin Rashid Al Maktoum Global initiative and its impact on entrepreneurship in the country. The paper also includes a literature review on the gap in literacy and economic capability, challenges associated with the development of new businesses, and entrepreneurship. The methodology includes an analytical research design, data collection from both primary and secondary sources, and data analysis techniques.

Running head: CHALLENGES ASSOCIATED WITH ENTREPRENEURSHIP
Challenges Associated with Entrepreneurship
Name of the Student
Name of the University
Author Notes

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CHALLENGES ASSOCIATED WITH ENTREPRENEURSHIP
Table of Contents
Challenges associated with Entrepreneurship in UAE, Mohammed Bin Rashid Al Maktoum
Global initiative...............................................................................................................................3
1. Introduction..............................................................................................................................3
2. Background...........................................................................................................................3
3. Rationale...............................................................................................................................4
4. Aim of the Study...................................................................................................................4
5. Objectives of the research.....................................................................................................5
6. Research Questions...............................................................................................................5
7. Literature Review.................................................................................................................5
7.3 Gap in literacy and the economic capability of individuals..............................................5
7.2 Challenges associated with the development of new businesses.......................................6
7.3 Entrepreneurship................................................................................................................7
8. Methodology.................................................................................................................9
8.1 Research Philosophy..........................................................................................................9
8.2 Research Design................................................................................................................9
8.3 Data collection method....................................................................................................10
8.4 Sampling methods and sample size.................................................................................10
8.5 Data Analysis Technique.................................................................................................10
8.6 Ethical considerations......................................................................................................11

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CHALLENGES ASSOCIATED WITH ENTREPRENEURSHIP
8.7 Limitations of the study...................................................................................................11
8.8Proposed Timeline of the study........................................................................................11
References......................................................................................................................................13

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Challenges associated with Entrepreneurship in UAE, Mohammed Bin Rashid Al
Maktoum Global initiative
1. Introduction
Entrepreneurship is an aspect that gives rise to new businesses globally. It can be said that the
propensity of individuals to cater to idea generation of business development. The latter helps in
bolstering the capability of the economy of the country where there is rise of business activities.
The aim of the paper is to propose and present some of the main challenges that are faced by
young Entrepreneurs and family businesses while they operate and establish business operations
while operating in Abu Dhabi where there is an evident education and wealth gap which leads to
unequal development of Entrepreneurship (Burns, 2016). The paper will help in evaluation of the
challenges and opportunities that have been will be faced while the initiative is being carried out.
The viability of the same will be established with the objectives and the scope of the issue will be
enumerated with the help of a literature review after which the proposed timeline will be
provided.
2. Background
It can be said that the Arab communities have been well struck by development of issues such as
poverty, unequal spread of education that leads to illiteracy in one section of the economy, wide
spread diseases and violence. The occurrence of the latter helps in gaining increased gap between
successful and not so successful business initiatives. Mohammed Bin Rashid Al Maktoum
Global initiatives aim to develop an understanding regarding the development of ideas
generation and support that helps in the supporting young entrepreneurs (Mazumder,, 2016). The
latter is an initiative that also helps in bolstering the efficacy of the economy of the nation. The

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aim of the initiative to help in development of ideas that can help in the sustainability of the
initiatives of the development of employment opportunities and development of the economy of
the country. The research is being conducted in order identify the challenges and opportunities
that will be faced by family business and entrepreneurship. Furthermore, the study will
enumerate how the organisations and individuals will be beneficial to the individuals who
constitute the Arab Communities and the Arab Economy as a whole (Fargues, 2013). The
proposal that is being presented is the initial part of the main research that will be presented later.
3. Rationale
Unemployment and unequal distribution of wealth has been recognised as one of the biggest
problems that is associated with the development of the economy of a country (Okun, 2015).
Thus, it can be said that generation of employment opportunities for individuals in the country
can help in mitigation of the issues to an extent. The main purpose of the paper would be to
identify the challenges faced by the aforementioned initiative in providing opportunities and
bolstering the capability of development of the youth of the country through Entrepreneurship.
Furthermore, the problems associated with equal opportunities are associated within the intrinsic
framework of the country as a result of which the aim of the paper will help in identifying the
effectiveness of the initiative in terms of development of the ideas associated with generation of
income from the part of the family businesses which would help in the development of the
economy as a whole.
4. Aim of the Study
The aim of the study is to determine the challenges that are faced by family businesses and
Entrepreneurship ideas in the country of United Arab Emirates.

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5. Objectives of the research
Following are the objectives of the research that must be fulfilled in order to sustain the aim of
the research;
a) To identify and evaluate the scope of the initiative that has been taken up by the
Mohammed Bin Rashid Al Maktoum Global program.
b) To identify the potential number of businesses that are family-based and of nature similar
to that of start-ups.
c) To develop understanding regarding the problems, challenges and the opportunities that
are faced by the organisation while the above initiative is being carried out in the
aforementioned state.
6. Research Questions
a) What is the scope of the initiative that has been taken up by the Mohammed Bin Rashid
Al Maktoum Global program?
b) What are the potential number of businesses that are family-based and of nature similar to
that of start-ups?
c) What are the problems, challenges and opportunities that are being faced by the
organisation while the Mohammed Bin Rashid Al Maktoum Global initiative is being
carried out in the said state?
7. Literature Review
7.3 Gap in literacy and the economic capability of individuals
A country that is deemed to be developed is not only perceived as developed for the economic
development and the high valuation of the currency of the country. The level of literacy that

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exists in the country, the level of employment that exists in the country backed up by the
blooming industries and domestic businesses and infrastructure determines whether the country
is actually developed or not. In countries such as the UAE, China and India, there exists high
gaps between the rich and the poor (Kunt et al., 2015). It has been found out that the latter is the
effect of corruption, lack of proper planning and management that that has been catered to by the
government of the country. It can be said that a country is developed only if there is equal
distribution of wealth and opportunities in the state or country (Semyonov, Epstein, &
Maskileyson, 2013). It should be the aim of the government of every country to identify the
potential methods through which the issues can regarding the unequal distribution of wealth can
be mitigated. Higher amounts should be invested to research and development in order to
identify the measures that can be adopted in order to gain understanding regarding the
availability of solutions (Larsson et al., 2013). The truth is that the same exists in even the most
developed nations as wells. Even if there might exist good infrastructure and facilities in the
country, the aforementioned issues are neglected in most of the countries. The problem is seen to
be prevalent in nations that occupy big geographical locations (Marx, Stoker & Suril, 2013).
There are various state bodies that exist in the individual states of big nations and this gives rise
to the development of activities such as neglect and intention. The latter can be deemed to be the
result of coinciding values of the state authorities and regulatory bodies. Hence, gap in education
and income level of the consumers is deemed as a form of corruption that is hidden and which
hinders the capacity of economic development of a country.
7.2 Challenges associated with the development of new businesses
In countries in which the per capita income is high, it is common for the individuals to start
businesses of their own (Papanicola, Woskie & Jha, 2018). While it is easy to do the same

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backed up by the level of income or financial capability, it becomes difficult for individuals in
nations that have low levels of per capita income. This is the base of the problem is the latter and
there are also issues that can be associated to the later stages of development of the business. If
the issues associated with the financial issues are mitigated, there are several other issues that can
be faced by the business. While one might have the financial backing, they might not necessarily
have the educational qualifications of the competency to manage a business effectively. It has
been found that one of the main reason reasons behind that lack of sustainability of new business
ideas. Planning is one of the most crucial stages of development of a business and thus the same
should be catered to the development of the business plan (Qiu et al., 2014). The main aim of the
latter is to shape the direction that the business would towards once it has been established.
Hence, it is a stage that must be carried out in order to ensure that the main aim of the business is
being carried out successfully. Planning is a crucial stage of management and thus must be
present within the operations of a business while they are aiming to gain sustainability in the
short and the long run (Bizikova et al., 2013). Planning is an important aspect of management as
it helps in forecasting the measures that are associated with the performance of the business in
the long run. The issues regarding the development of the operations of the business are
determined in the planning phase of the business. Thus, the objective of the business can be
satisfied as a result of the ideas associated with the business.
7.3 Entrepreneurship
Entrepreneurship is the process of developing and sustaining a business idea (Hjorth, Holt &
Steyaert, 2015). The entrepreneurial ideas are reflected through the development of a successful
business. Entrepreneurship generally gives rise in small businesses. The success and growth of
the latter depends on the viability of the idea which ultimately formulates the unique selling

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proposition of the business. There have been various studies that focus on the growth of
Entrepreneurship and the rise of Entrepreneurs. The Entrepreneurs behind the success of
organisations such as Facebook, Apple, Go Pro and others are heavily discussed and rightfully so
(Alstyne, Parker & Choudary, 2016). One can take immediate lessons from the latter as the
journeys as successful Entrepreneurs have been successful and there were serious hurdles that
the latter had to overcome after which they have been placed in the current stature that they are
operating in. Entrepreneurship has been defined as the capacity of an Entrepreneur to develop the
business idea into a full-fledged business. Entrepreneurship is the ability of individual to
transform basic ideas into brands that masses can relate to (Drucker, 2014). Even if there exists a
huge number of work that revolve around the development of greatness of well-known
Entrepreneurs, there has been little to no research focussing on the Entrepreneurs who are
struggling. This has resulted in lack of knowledge regarding how businesses are managed in
struggling stages. At the modern age, Entrepreneurs are coming from all directions possible.
With the increase in innovation regarding product development and technology, people are
witnessing an increase in the development and proposal for new businesses (Domenico, Daniel
& Nunan, 2014). It can be said that the main technique that can be employed by Entrepreneurs in
order to gain success in while operating and carrying put business as usual, the Entrepreneurs
should pay due attention to the needs of the customers rather than focussing solely on the needs
for generation of profits. Carrying out research before entering a domain also determines the
success of the latter in gaining success in the nature of operations of the business.

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8. Methodology
8.1 Research Philosophy
The philosophy of the research must be analysed in order to gain in depth understanding of the
ideas regarding the development of the philosophies that are associated with the research. They
are, the philosophy of positivism, realism and interpretivism. Positivism is a research philosophy
that helps in gaining in depth knowledge about a certain aspect of a study (Vaioleti, 2006). While
positivism deals with the depth of the knowledge, interpretivism deals with the development of
the activities such as the functions and management of the same. Realism is an approach that is
associated with the development of activities (Rossi & Sleat, 2014). In this study, the aim of the
research will be evaluated using the theory of positivism which would help in the investigation
of the issues in a critical manner. Positivism is an aspect that is developed from experiences that
are deemed to be sensory in nature (Villa, 2016). Thus, the other two possible research
philosophies have been omitted from acceptance as the latter depends on the perceptions of
individual which might vary highly.
8.2 Research Design
The design of the research can be of three type. It can either be analytical, it can be explanatory
and it can also be exploratory. Analytical research design is used to evaluate and gain
understanding regarding a particular study in a descriptive manner (Creswell & Poth, 2017). On
the other hand, an exploratory research design is used to develop understanding regarding the
primary stages of the research that is being conducted. The research that is explanatory in nature
is used to link or justify the relationship that exist between the variables that are being considered
while carrying out a research. The research design that is being used for the following research is
an analytical research design.

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8.3 Data collection method
The viability of the study will be carried out and completed by using both secondary and primary
sources. Secondary data will be obtained from the help online and printed sources while the
primary sources of data will be obtained with the help of interviews and surveys. Both sources of
data will be critically evaluated will be evaluated in order to gain understanding regarding the
main aim and scope of the study.
8.4 Sampling methods and sample size
Simple random sampling will be the method that will be used in order to develop proper
understanding of the study. Apart from the said technique, sampling techniques such as
probabilistic and non-probabilistic sampling would be used to gain deep understanding regarding
the study. Managerial and executive level employees who are associated to the Mohammed Bin
Rashid Al Maktoum Global program will be critically evaluated in order to gain deep
understanding regarding the issue that is being catered to in the research apart from survey that
will be conducted in over 100 home based and small scale businesses in the United Arab
Emirates.
8.5 Data Analysis Technique
The analysis of the data that will be carried out in order to interpret the data from the surveys and
the interviews would be in the form of percentages, ratios and numeric data that has been
collected. The latter would be compiled with the help of charts and graphs along with
presentation in pictorial formats. The qualitative data that has been obtained in the following
research will be evaluated with the help of thematic approach and the interviews will be
compared after they are written down (McKenzie, Adams & Janowicz, 2013).

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8.6 Ethical considerations
While the research will be carried out the privacy of the individuals participating in the research
will not be forced to participate in the research and would not be forced to share information
against their will. Furthermore, no inappropriate sources will be used to gain information in order
to satisfy the purpose of the research.
8.7 Limitations of the study
Although it is expected that most of the objectives of the research will be fulfilled, there are
some types of data that might not be interpreted effectively. The data that is being dealt with in
the following study is highly secretive and all participants might not be willing to participate in
the same apart from the challenge that is associated with location of 150 family based and small
scale organisation that fall in the country of the United Arab Emirates.
8.8Proposed Timeline of the study
Activities 1st to
6th
Month
7th
to 12th
Month
13th
to 19th
Month
20th
to 23th
Month
24th
to 30nd
Month
32nd
to 35th
Month
36th
Month
Topic Selection 
Data collected
with the help of
secondary sources
 
Layout
Creation

Literature
review
  
Data Analysis
and interpretation
  

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Findings of the
data
 
Concluding of
the study

Formation
draft
 
Final work
Submission

Fig: Gantt chart
(Source: As created by the author)

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