Entrepreneurship Incentives

Entrepreneurship Incentives

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Entrepreneurship Incentives

       Generally, the government of the United Arab Emirates (UAE) in relation to its policies on tax-free returns has endorsed considerable business growth, which has further led to interests in investments from foreigners. Because of this, small as well as medium enterprises (SMEs) and startup firms have begun to increase and operate in disparate levels. Despite such positive sentiments, entrepreneurs are currently experiencing considerable challenges specifically due to the funding of the respective businesses. This is attributable to the selective process applied by banks within the country in terms of loan issuances. The challenge involved in running startup enterprises restricts entrepreneurs from setting up potential businesses that would further supplement the country’s economy. In addition, the difficulties associated with SME funding limit the diversification of services and products offered to the consumer. Concerning this, the respective government has focused on applying initiatives aimed at facilitating most of these enterprises. These initiatives mainly comprise incentives that focus on encouraging and promoting business start-ups. According to Parmar (2011), the government in one of the Emirates, Abu Dhabi, has offered novel incentives that are inclusive of discounts on land. Additionally, one of the organizations that manage particularized economic development regions within the capital, ZonesCorp plans to provide new startups with a discount of 25 percent specifically on land costs in comparison to the prevailing market price. Aside from the discounting incentives on land costs, ZonesCorp plans to collaborate with the Khalifa Fund in order to facilitate the growth and development of the start-up (Parmar, 2011). In the capital city, Dubai, organizations that are tasked with the endorsement of small enterprises have sprouted for such purposes. For instance, an organization such as the Department of Economic Development (DED) has began focusing on endorsing small businesses and assisting entrepreneurs in creating successful opportunities for their respective start-ups (California, 2012). In the end, the provision of such incentives will only create immense opportunities for growth for the UAE economy. 

References

California, R. (2012, September 3). Dubai SME reveals new incentives for SMEs. UniqueAuction.ae. Retrieved from http://www.uniqueauction.ae/blog/dubai-sme-reveals-incentives-smes/4540?doing_wp_cron=1435802130

Parmar, Neil. (2011, June 19). UAE offers extra incentives to encourage start-ups. The National. Retrieved from http://www.thenational.ae/business/economy/uae-offers-extra-incentives-to-encourage-start-ups