A New Era Of Innovation: How MENA Entrepreneurs Can Get On The Fast Track To Success Underpinning the growth and success of a new business is having access to the right support and mentorship to help navigate the entrepreneurship pathway.
By Jane Khedair •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.
For those with the ambition of being an entrepreneur, the journey can feel long, complicated, and perhaps somewhat overwhelming. There is no winning formula to what makes a successful entrepreneur, but you need to have an idea that makes you stand out from the crowd. One that is genuinely rooted in a market opportunity, rather than trying to create a venture from a purely aspirational approach. The commercial considerations are just one side of the equation. On the other, personal characteristics are equally key- you need to have the drive, the passion, and the vision to take your startup to the next level.
You will undoubtedly face obstacles on your entrepreneurial journey. Ones that at times feel insurmountable, and which require immense spirit to keep driving forward. Statistics show that over 20% of startups fail within the first year, and around 45% by the time they reach five years. As such, when setting out on this pathway, an entrepreneur needs to understand the challenges they will be facing. And that's what makes a good entrepreneur, one willing to take calculated risks to get to where they want their business to be, and learn lessons from difficulties encountered.
Location, too, plays a huge role in success, with access to resources from within the local landscape providing immeasurable support. It's now widely recognized that the Middle East region offers huge potential for startups. It is fast becoming an international leader in innovation and proving to be a vibrant hotbed for startups. The world-class environment for entrepreneurs is supporting them to accelerate new incentives, helping attract the very best startups from around the globe. Startups recognize the entrepreneurial environment available to them, with the UAE aiming to become the top start-up nation by 2031.
Against this backdrop, it was encouraging to see over 70 tech startups applying to the recent inaugural London Business School MENA Startup Competition held in Dubai to bring together the region's entrepreneurs. The new competition, backed by business giants like Zain, Strategy& (part of the PWC network), and Amazon Web Services Activate, saw Ollang -a provider of end-to-end human powered AI localisation through subtitles and dubbing for video and audio- take the prestigious winning crown. Vaqat, an online platform for companies outsourcing intern support founded by a London Business School alumnus, was awarded the runner-up title.
The Ollang Team, first place winner, LBS MENA Startup Competition. Source: London Business School
Tech innovation is the direction many startups are pursuing. From new patient consultation systems to smartphone payment platforms, to networking apps, the UAE is proving to be one of the world's top tech startup destinations. Whether across fintech to healthtech to e-commerce, the nation's entrepreneurial ecosystem is providing new opportunities for local and global talent to make their ideas, skills and tech innovation come to life. The next generation are increasingly inspired by today's entrepreneurs, keen to pursue the path to find cutting-edge solutions to address consumer demand. Backed by new ambitions and initiatives for startups in the region, the UAE is aiming to be home to 20 unicorn startups by 2031.
The Vaqat Team, Runner-up, LBS MENA Startup Competition. Source: London Business School
A unicorn business is one that's under ten years of age and valued at over US$1 billion, with innovation and scalability key to their growth. According to Consultancy firm CB Insights, to date there are more than 1,100 unicorn startups that can be found around the world. Unicorn business owner and LBS alumnus Anuj Srivastava of Livspace, a one stop renovation solution for homeowners, is one of six special unicorns created by LBS alumni. Within this ecosystem, London Business School's Incubator has already supported and developed over 100 new ventures, helping them raise an impressive GBP100 million.
Related: When Two Become One: M&A As A Growth Strategy For Your Startup
Incredibly, over 93% of early-stage companies supported by our LBS program over the last five years go on to sustained success, exemplifying the following five key observations and recommendations for aspiring entrepreneurs as they strive to become the next unicorn business owner:
Firstly, you need your founding team to have the passion, dedication, and drive to pursue your goals, backed by high-quality solutions or services.
Secondly, do the necessary planning and ensure you fully understand your finances. Be careful of not over-promising to your investors on what you might not be able to deliver. While you should have an eagerness to take risks, don't move too fast. Understand your market fully and completely before moving ahead.
Thirdly, be agile, and adapt your business plans as required when you meet challenges and changing environments. Staying relevant is important in the fast-moving world we now live in, with innovation and tech at the heart of many new startups.
Fourthly, take money only from investors who can add value to your business, and with whom you can develop a close and trusted relationship.
And finally, as you grow and expand, keep developing your team's talent, and enable them to enjoy the journey with you.
Underpinning the growth and success of a new business is having access to the right support and mentorship to help navigate the entrepreneurship pathway. Sharing our knowledge and expertise is crucial to building up other startups and enabling them to achieve their ambitions, alleviating the loneliness of the journey while helping to celebrate the wins.
A new era of innovation is here, and the Middle East is a land of opportunity for the entrepreneur. By providing the right ecosystem, the MENA region can create the innovators of today and tomorrow.
