Since the third millennium, the Gulf Cooperation Council (GCC) has emphasised entrepreneurship as a means of empowering the youth.
With nearly half of the GCC population under the age of 25, the prospect of entrepreneurship provides young people with a stable source of income while also acting as a catalyst for sustainable development.
However, a giant roadblock for GCC youth remains figuring out how they can transform new business ideas into reality.
With London ranked as the best city in the world for young entrepreneurs, there has been a significant increase in interest from GCC entrepreneurs to develop their ideas and set up their businesses in the UK.
At the iUK Academy, we have identified three key factors that GCC entrepreneurs should consider in order to achieve their entrepreneurial goals in the UK:
Developing a viable business idea and model
While an idea can be innovative, if it isn’t viable (and scalable) then it is just an idea. Therefore, ensuring your idea can fill a gap in the market is key. It is also important to note that innovative ideas aren’t purely tied to ‘tech’, as many assume; there are innovative ways to make a sandwich or even give a haircut.
Ultimately, innovation is relative and though a small example of innovation in the design of an umbrella is very relevant in the UK, it is rather less so in Dubai!
The viability of your business will depend on how you fund and manage it. The amount of investment capital required for your business to succeed will depend on your business model.
For example, an online florist only requires a computer, a bucket, and a pair of scissors, while new battery technology needs technical design, testing, and production facilities – if your business venture is the latter, it will be far more capital intensive.
Scalability is the most difficult aspect to achieve when you are starting a new business. Being scalable doesn’t necessarily imply that you’re better than your competitors, but it does demonstrate that you’re better than the market.
There’s no objective definition for how ‘scalable’ your business is, so this will depend on the market you’re entering and whether your product or service already exists in it.
It is true that some founders are not interested in scale. They are happy with a ‘lifestyle’ business that gives them a good living, and this is the limit of their ambition. Yet this approach will ultimately limit your potential and that of your business.
If you are an entrepreneur who is driven to increase in size (perhaps, to achieve a succession plan or exit), you have a higher ceiling but should also be prepared for the greater risk of failure that this entails.
Enter the market
Once you have turned your innovative idea into a business reality, you can provide it to those in need. You should develop a top-level marketing and communications strategy that allows you to launch your new product or service by understanding your customer segmentation, targeting and positioning.
Furthermore, this approach will let you identify and understand your users’ needs and map out the customer experience journey.
In the age of digital, many tech-savvy innovators and entrepreneurs have become comfortable with social media and handling online campaigns. This is a sound strategy for you to adopt as it raises awareness about your brand and offering.
The key here is to optimise for the UK market. Every market is different commercially and culturally and the UK is no exception, so ensuring that you understand how to achieve frictionless market entry is key.
And remember it’s not just about online marketing, in a market as mature and sophisticated as the UK, you need to understand the full range of strategies.
Keep tax and accounting in consideration
If you live in the UAE or Saudi Arabia, there are likely many tax-free incentives that you are now accustomed to. However, if you plan on establishing your business in the UK, tax regulations are something that you must consider and abide by.
Whether it be personal tax, business tax, or compliance issues relating to setting up your company, effectively managing the finances of your business is crucial for your ability to live and have a thriving business in the UK. To do this, you understand the intricacies of financial statements, business plans, budgeting and forecasting, and other relevant and related matters.
You may be concerned about this aspect as the UK tax system is very different from that in GCC states. However, while tax can be higher in the UK, your average earnings are also higher. Thus, it’s about finding the right balance of tax mitigation strategies while still honouring your commitments to UK society.
The entrepreneurship experience
When you enter an unfamiliar market, it is critical that you empower yourself with local knowledge and expertise in order to thrive. Indeed, your entrepreneurial success will likely be dependent on your business network.
If you’re an entrepreneur from the UAE and wider GCC who wishes to follow Dr Eesa Mohammed Bastaki’s wonderful mantra; ‘Made in the UAE, sold globally’, you must forge business links along your journey and draw on existing knowledge in the UK market.
Rupert Gather, Chairman of InvestUK and iUK Academy.
Follow us on
