The foundations of our modern civilization stand on entrepreneurship . Whether we consider the homes we live in, or the many things we fill them with, all aspects of modern life, even love and happiness, are enhanced by entrepreneurship. Growth in the importance of entrepreneurship is largely due to its recognition as an agent of change. It is increasingly positioned as the key ingredient in changing the fortunes of individuals, communities, and the State. For this reason, countries, especially new ones like Singapore, Kazakhstan, and indeed the United Arab Emirates (UAE), are invested in it wholeheartedly. There are extensive government programs stretching across education , commerce, and industry designed to foster entrepreneurship. All in the hope that one day this investment will forge new avenues for economic growth , development, and international competitive advantage . This is even more important for countries like the UAE and Kazakhstan that have experienced high levels of economic growth riding on waves of natural resources.
State investment in entrepreneurship might be an easy sell but returns on this investment are not easily quantifiable nor indeed reliable. Furthermore, investment in entrepreneurship has not always led to equal increases in the number of start-ups . For example, in 2009 the Global Entrepreneurship Monitor reported that the UAE has increased start-up activity by 38%; however, in 2011 it also reported that only 4% of all new start-ups were purely Emirati owned (Bosma et al. 2011; El-Sokari et al. 2013). This is in sharp contrast to reportedly high levels of entrepreneurial intentions among undergraduates and an institutional environment conducive to entrepreneurship within the UAE (Gupta et al. 2012; Haan 2004; Kargwell and Inguva 2012; Sowmya et al. 2010).
In a bid to create a diverse economy that is not overly dependent on proceeds from natural resources, the UAE government has decreed the advancement of entrepreneurship as one of its key strategic goals (Government of Abu Dhabi 2008). As a result, a number of organizations have sprung up ready to support budding entrepreneurs (Kargwell and Inguva 2012). The Khalifa Fund and Mohammad Bin Rashid Establishment are two examples of government funded non-profit organizations mandated to promote and support entrepreneurship within the UAE. Despite concerted efforts by the government, and abundant opportunities for would-be entrepreneurs, the number of nascent businesses fully owned by Emiratis is still relatively low (Kerros 2012; Horne et al., 2011 Global Entrepreneurship Monitor). Furthermore, at 20.8% (Makahleh et al. 2012), unemployment rates among UAE Nationals are extraordinarily high for a country that achieved 3.6% growth in 2012 (Horne et al., 2011).
In 2017, the UAE population reached 9.4 million. However, Emirati Nationals only represent approximately 13% of the population (World Population Review 2015). Nationally, 15ā29 year olds represent the largest strata of the Emirati population. The same is true for the wider Gulf region, which reportedly has one of the youngest populations on the globe (United Nations 2012). Small and Medium Enterprises (SME) and entrepreneurs who start them are the engines of a healthy economy (Minniti 2008). For example, in Dubai these entrepreneurs represent 95% of all businesses and employ 42% of the work force (Dubai SME 2011). A steady stream of new entrepreneurs, especially based in the technology sector, is vital for the UAE economy (Government of Abu Dhabi 2008; Minniti 2008).
In 2012 UAEās GDP jumped to 3.6% from 1.3% in 2011; despite efforts to diversify the economy the UAE still relies heavily on oil and gas for 82% of its revenues (GEM 2011). The UAE is aiming to build an innovative, knowledge-based economy (Government of Abu Dhabi 2008) which requires the formation of new businesses (Dubai SME 2011). In 2011, Emiratis started only 4% of new businesses in the UAE while unemployment stood approximately at a staggering 20.8% in the same year (GEM 2011; Makahleh et al. 2012). As incubation centers and educational establishments try to enhance their offers for budding entrepreneurs (Dubai SME 2011; Kargwell and Inguva 2012), this book highlights whether their efforts are bearing fruit and provides insights on supporting the governmentās strategic plan. Overall, this book aims to develop a better understanding of the entrepreneurial process , improve practice, and inform policy.
Disproportionate gaps between entrepreneurial intentions among undergraduates and the realization of those intentions among the same strata, after they graduate, have also been identified in other parts of the world (El-Sokari et al. 2013; Horne et al. 2011; Ismail et al. 2009; Krueger et al. 2000; LiƱan et al. 2011). Low rates of nascent businesses pose a significant threat to the UAEās prosperity. Exploring possible reasons for this disconnect between high entrepreneurial intentions and low rates of nascent businesses may help fine tune government policy, which is already focused on expanding entrepreneurial activity among the Emirati population (Government of Abu Dhabi 2008). A limited number of studies conducted within the UAE focus on entrepreneurial intentions and rates of entrepreneurial activity; however, research on the clear gap between entrepreneurial intentions and action is lacking (El-Sokari et al. 2013; Bosma et al. 2011; Kargwell and Inguva 2012; Sowmya et al. 2010; Ismail et al. 2009). Developing an understanding of why and how some Emiratis with entrepreneurial intentions are able to start a business, while others with the same intentions opt to seek employment, will highlight the challenges faced by Emirati entrepreneurs .
This book explores entrepreneurship in the UAE with a focus on Emirati entrepreneurs . Exploring the entrepreneurial gap between intentions and actions by highlighting the lived experience of young Emiratis as they make the transition from education into the workforce helps develop a better understanding of the challenges and opportunities faced by Emiratis today. The book also aims to understand the motivational factors that lead to the choice of starting a business and how they can be supported to advance entrepreneurship in the UAE. Differences in levels of entrepreneurial activity between two countries can account for a 30% to 50% difference in productivity (Reynolds et al. 1999; Zacharakis et al. 2000 cited by Sobel et al. 2007). This book highlights the main challenges Emirati entrepreneurs face in the UAE and makes recommendations on how they can be supported to start new businesses and what were the contributing influences in their decision-making process. Constructing this knowledge can be hugely beneficial to prospective entrepreneurs and public, private organizations that are responsible for supporting and fostering entrepreneurship in the UAE.
Understanding which motivational factors enable Emiratis to follow through on their intentions and which factors act as deterrents is important. At the same time, it is also important to understand the perceptions of existing opportunities , resources, and support mechanisms . Thus, this book is framed around the theory of entrepreneurship and key constructs of motivation , intentions, and environmental factors .
Despite gaining significant prominence over the last two decades, the theory of entrepreneurship still lacks consensus (Casson and Casson 2013; Shane et al. 2003; Swedberg 2000). Often a symbiont of other social sciences , such as economics or sociology, the concept of entrepreneurship has struggled to find its own place in the social framework (Swedberg 2000). This may be due to how the notion of entrepreneurship has developed (Shane et al. 2003). Thus, assessing the evolution of entrepreneurship from a historical perspective and with appropriate definitions is important at this early juncture. Although some...