Small and medium enterprises (SMEs) are the backbone of any country’s economy. These companies prove to play a big role not just for the entrepreneur, but also for the country. It has been reported by the Ministry of Economy, UAE that more than 94% of companies are SMEs. These SMEs contribute more than 86% of the workforce in the private sector and make up more than 60% of the UAE’s current GDP. It is predicted that this figure will increase to 70% by the year 2021.
These statistics prove that SMEs are considered the best opportunity for entrepreneurs setting up a business in Dubai. This is the reason why most business consulting services firms such as Ajman Media City Free Zone believe if one wishes to have a business setup in UAE, they should consider SMEs.
Here are some reasons why small and medium enterprises (SMEs) are considered the best opportunity for entrepreneurs starting a business in Dubai.
1. Can Respond to Customer Needs Much Faster
In big companies, there is a lengthy chain of procedures and policies that need to be followed before the customers are responded to. When entrepreneurs are managing an SME company, they can know sooner if their customers are facing any difficulties. This helps them to respond and cater to their customer’s needs at a faster pace. The clients’ concerns and questions are handled immediately.
2. Offer Their Clients with Personal Ongoing Service
One of the biggest advantages an SME has over a big company is that they are in a much better position to offer personalized services to their customers. In today’s world, customers put their faith and trust in those businesses that give them genuine personal attention. If a business remembers their name and details about previous transactions, this
Due to their size and number of clients, SMEs can offer this service. You may not receive the same kind of treatment from big companies and giant corporations.
3. Overhead Costs are Lower
As the company is small, it requires fewer resources to run and sustain. This is especially a big plus to those who have just come to the UAE in search of business opportunities in Dubai. When you are starting a new company, you want your overhead costs to be minimized. Operating an SME will give you just that.
4. Quick to respond to fluctuating market conditions
Market conditions will change every now and then. The demand for new and innovative products, changes in customer demographics, changes in style and fashion, all these factors play a role in the fluctuation of market conditions.
Only an SME can be quick to react to these changes. Due to their size, they must innovate themselves if they wish to compete and thrive in the market.
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