Discuss about the UAE Entrepreneurial Innovative System.
Entrepreneurship is the process of identifying, designing and launching new business ideas to start a business enterprise (Drucker, 2014). On the other hand, innovation means coming up with new ideas to improve something which is already existing (Goldberg, 2013).Therefore, UAE’s Entrepreneurial Innovative system refers to the act of developing new strategies, ideas, and business activities to supplement the pre-existing businesses in UAE. The government, national institutions, firm capabilities and their behaviors play vital roles to ensure that nationwide and the global economy is improved.
The Role of Government Policy
Providing legislative framework: The UAE government is providing a legal and transparent framework for the businesses in the UAE to facilitate smooth trading in the region (Gebba, 2014). It ensures fairness in local companies as well as statutory or government-linked corporations. There are no restrictions and hindering policies for the firms. This makes the efficient running of businesses which improves the economy.
Setting up national development strategies: These are plans formulated by the UAE government to accomplish certain goals in future. Strategies such as UAE Vision 2021, Abu Dhabi Vision 2030 and Dubai plan 2021 have been set to enable businesses to work towards achieving the visions and plans set. These strategies will help in building up the national and global economies.
Investing in manpower and infrastructure: The UAE government is determined in making better transport, communication, electricity and internet facilities in the region so as to ease work and cost of production of goods and services. Through this activity, companies will be able to expand and set up newer branches due to more profits generated; the government will receive more revenue in the form of tax, subscription, and registration of firms.
Providing a stable environment for businesses: The government of UAE provides a conducive environment for businesses to operate. It is ensuring free-market economy in Dubai with limited regulations, and this gives both local and foreign traders several financial choices. Moreover, subsidies like interest-free government loans, subsidized energy and capital injections have been imposed to facilitate the proper running of businesses (Raboy, Basher, Hossain & Kaitibie, 2013).
Teamwork and inspiration: National institutions such as schools and universities enhance group work and inspire students. These elements make the students better employees when they complete schools. Such workers will be competent in the workplace making business to perform towards their goals which are a recommended work in improving the economy.
Information dissemination: the national institutions are centers of information. They are used to distribute relevant information useful in economic development.
Health and security: Health centers such as Al Corniche Hospital as well as Abu Dhabi GHQ provide medication and security services respectively to residents of Abu Dhabi Emirates.
Firm Capabilities and Behavior
Invention and innovation: Firms in the UAE such as Information Systems Associates FZE in Sharjar which deals with technology, has over time discovers new and improved existing aviation software and devices.
Flexible response to economic challenges and problems: Ahmad & Saber (2015) explain that Deira and Al Satwa in Dubai are small firms which can adapt and change to evade problems in the economy. They can perform this action because they have a little chain or hierarchy of command.
Job growth and economic dynamism: Firms in the UAE create employment opportunities to individuals. As a result, there are improved standards of living which pave a way to improve the economy.
The Role of Entrepreneurship in the Development of the National and Global Economy.
Entrepreneurs can perform the following functions towards economy; contribution to the national income such as GDP and GNP, the formation of new businesses. Furthermore, they can create of social change and community developments which are done through community projects and financial aid to society charities (Morris, Neumeyer & Kuratko, 2015). From the national and global perspective entrepreneurs play very critical role. Bearing in mind that they come up with ideas of initiating the business the help in the utilization of the available resources. In return the aggregate employment level in the economy increases whereby the idle resources are put into use and the individuals are employed to work in the firms and industries as the source of labor.
Influence of Key Factors in Entrepreneurship
Entrepreneurship is controlled by several factors such as the absence of the patent, copyright and infringement rights, cultural factors, availability of resources for the business, sources of funds, entrepreneur’s skills, abilities, creativity, knowledge and psychological orientations (Carland & Carland, 2015). These are fundamental factors in determining the success of the entrepreneurial idea. This is because an entrepreneur despite how his her idea is great without this factors it may remain unrealizable dream as unachievable goal. Therefore, whether an idea for the startup of the small business or expansion of the existing business an entrepreneur should ensure that the discussed factors in this paper have been put into consideration.
Government policies, national institutions and firm capabilities in the United Arab Emirates perform recommendable roles in developing the economy at national and worldwide levels. Entrepreneurship also has its rules which it undertakes in the process of building the economy. However, there are some factors which entrepreneurs have to outshine them to make sure that entrepreneurship process is achieved.
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