Management for the Entrepreneur
Small business is an indicator of the development of any economy. It shows the entrepreneurs’ activity, demonstrates openness and complexity of starting a new business in any country, as well as capacity to adapt to the market needs and changing business environment. In spite of the fact that annually a big amount of small business fail, they keep moving economy forward and influence the business environment and country’s economic development. That will be discussed in details in the current paper, basing on the opportunities for the small business in United Arab Emirates (UAE). Small and medium businesses in United Arab Emirates cover 90 percent of the workforce and 94 percent of the companies in the mentioned business sector (Khalifa Fund for Enterprise Development).
Majority of the companies operates in a trading and services sectors, and the minority of them belong to the manufacturing area. That means that niche of manufacturing for small business is not yet fulfilled and there are opportunities for entering, being competitive, and getting profit. The type of small business that is offered for developing in UAE is the waste recycling plant. According to the definition for small companies operating in manufacturing sector, there should be not more than 100 employees and their turnover is limited by AED 100 million (Dunkan). The waste recycling plan supposes collecting of waste of different types and making new products from products that already have been used. The vision on the recycling today is a little different from the one that existed a few years ago. Nowadays waste recycling includes various types of materials that could serve for second usage starting from traditional aluminum cans, paper and scrap metal and finishing with e-waste (computers, cell-phones, separating of gold from cell-phones etc.). This type of business is labor and capital intensive as it needs investments into infrastructure, equipment, various kinds of transport etc.
Besides, there should be a well-planned organization of waste collecting and transportation to the plant. The plant usually is located out of the cities; that is why logistics in this case is an important factor. However, one of the benefits of such type of business is that the raw-materials will never end, taking into account annual production of waste and quantity of citizens and tourists in UAE. Daily waste production only in Western region reaches 33,247 tones and the majority of this quantity belongs to the construction waste (16,425 tones) (The Center of Waste Management). At the same time the level of recycling activities is very low: in Abu Dhabi, for example, less than 1% of the whole volume of waste was recycled. It means that this market is full of opportunities for the small business. One more benefit is that people are going more eco-conscious and tend to correct their behavior, life being, and customs in the more green way. This trend is also supported by governments and non-governmental organizations in the country. The ecological problems that UAE faced due to infringement with construction and …