Several issues can affect managing and organizing any small businesses in the UAE. The major issue that influences SME’s is related highly to the culture, especially if the owners of the businesses were women. For example, the women businesses owners might not be able to travel freely anytime they want regarding meeting and dealing with the suppliers. They will have to convince either their brother, father or husband to travel with them, which might stands as an obstacle on their way to success. Other challenge is that some people will not see them as a respected leader as much as if they were men. Regardless to the gender, if the owner of the SME’s did not have enough information about other employees culture, they will not be able to communicate effectively. According to Rajiv Oza; “the values of the Promoter or owner are the expected values or culture of the organization. And this perhaps is one of the most important aspects restricting the growth of SMEs as there is a dire need for change in the organization culture to match the challenges of business”. In order for a SME’s to succeed, they should not be ethnocentric, they should consider other cultures that might have other better opportunities to increase the productivity and the overall performance (Oza, 2010). Dubai is a hugely divers area with different nationalities. According to Dr. Alvin Chan the owners should concentrate in values, ethics and beliefs in order to have guidance and rules that will help the employees on dealing with each other (Chan, 2009). On the other hand, an advantage of having a collectivism culture in the UAE, SME’s owners might get help from their families in times of crises. This will motivate the Emiratis to start up their own business because they will know that they would be supported by their families. In addition to that, the government supports youth by having Mohammed bin Rashid Establishment for Young Business Leaders as financial help. They stated in their website that a good planning will result in having successful business (Mohammed Bin Rashid Establishment for SME development, 2007). Our culture is used on outsourcing whatever is missing so that it will create a solid base of knowledge and experience to help improving our country’s economy.
Chan, D. A. (2009). The Challenges of Human Resource Management. Retrieved from Zero million: http://www.zeromillion.com/business/hrm.html
Mohammed Bin Rashid Establishment for SME development. (2007). Retrieved from Government of Dubbai: http://www.sme.ae/
Oza, R. (2010, October 1). HR Challenges in SMEs. Retrieved from people matters: http://peoplematters.in/articles/focus-areas-13/hr-challenges-in-smes