Viewpoint from Oman

"Globalisation presents a set of interesting opportunities and challenges for budding entrepreneurs."

The challenges for enterprise
The irreversible and steadfast progress of globalisation presents a set of interesting opportunities and challenges for budding entrepreneurs. Technological advancements in particular have presented many new commercial opportunities for bright young business people. My view of the future challenges is as a citizen of a country rich in oil and gas reserves. In such countries, the sudden influx of wealth through government owned hydrocarbon companies has led to burgeoning public sector employment. Coupled with protectionist regulations regarding the native workforce, this has created a dependency on the government and dulled entrepreneurial spirit. It has become imperative to initiate programmes that create a competitive workforce and deliver attractive local opportunities. As a budding entrepreneur in such an environment, certain opportunities and challenges can be identified over the next decade: 01
Social challenges There is still a widespread belief in the value of a secure public sector or blue chip company career. This can stifle entrepreneurism. Educational challenges The lack of strong links between industry and academia creates low awareness among the new generation of potential entrepreneurs of the practical needs of the local economy and hence enterprising opportunities. Environmental challenges A lack of comprehensive start-up support initiatives is a serious barrier in some developing countries. Regulatory challenges In specific industries, such as the ICT sector where government regulatory bodies exist, often new ideas are stifled until regulations are introduced to accommodate these ideas, so entrepreneurs suffer. Economic challenges Cash flow management is vital to all companies including start-ups. In many sectors there is a discrepancy in payables (immediate to foreign vendors) and receivables (30 – 60 days net to local clients). This necessitates interaction with banks for operational cash flow which can be a barrier for many budding entrepreneurs in developing countries, where banks rely primarily on fixed assets in their evaluation of the business. 02
Given these challenges, relevant measures to encourage enterprise cannot be formulated without the collaborative involvement of; senior policy makers; financial institutions; the chamber of commerce and industry; academic institutions; a diverse sample of the new generation of entrepreneurs; and, representatives of government regulatory bodies for specific industry sectors. The success of such a forum would have serious positive ramifications on encouraging a much larger enterprise culture in the home country, propelling it forward in our global village. Failure to respond to the internal and external shortcomings, amplified by the increasing competitiveness of globalisation, would lead to the demise of a nation and the exodus of its most important asset – the talented entrepreneurial human resource.
Dr Firas al-Abduwani
HTC (Hussam Technology Company),
Oman


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