Entrepreneurship and Innovation in the United Arab Emirates

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The below topics and the text contains the data and the theory regarding the problems faced by any newly going to be opened company and as per the given topic the mentioned company is that gives creative vacation packages to its customers. All the problems have been mentioned which the company will face whether under the restrictions of the government in Dubai or the government of UAE. Also different types of external and internal problems have been mentioned. Also some of the remedies have been mentioned to get rid of the problems a company faces. The sources used here are from the EBESCO host and some of the other equivalent search engines.

The topic has covered all the required information's and the problems faced in opening a new company in UAE and even what are the problems faced in opening a company which organizes or provides special vacation packages to the people of the UAE. All the problems whether it's internal or external has been discussed in the topics below and even the remides for the problems have also been mentioned to some extent. The problems faced by the entrepreneurs have also states in the points below. The topic has been widely studied and then presented before where all the problems whether big or small has been covered and been explained with full reasons. (Thomas S. Anisya, 2000)

external adoption issues:

If there is anything in this world which is steadfast and very unchanging, it is the change itself. The process of change is invertible all those organizations that do not move with the change will slowly and steadily become very unstable. And their long term survivability in the market will come under question. There are situations, things or the events which occur and affects or governs the new opening of the business whether it's the concept of organizing of the business for creating of the vacation trips for the people in UAE or it is any other kind of business. There are two kinds of issues which are responsible for the governance of the new business. They are the internal and the external adaption issues. Internal issues are those issues are those kind of issues which are totally under the control of the company or organizations which is going to be inaugurated and the external issues are those kinds of issues which occur externally and cannot be under the control of the company and so the company which is going to be established has to adjust itself according to those factors. These factors always keep on changing whether it's internal or it's the external. And if any new company like mentioned the organization which gives creative vacation packages has to be very flexible and should respond with these changes in a positive manner. And the business for the creation of vacation trips for the people in UAE is not working in vacuum. The organization has to react and act on all the issues which are happening outside at the time of opening of its business and these factors are called the external adoption issues of the business. (Roger, 1984)

But the main factors which affect the business is the degree of the competition as how fiercely the other vacation providing companies compete. The commerce also needs to get conscious of their communal errands. These are the method where they can act towards the dissimilar parts of the society and with that they can come into contact with the people and the market. The legislation covers a number of areas under the responsibility that commerce has with its clients, employees and the other businesses. Some of the other main external factors which tend to effect and control the opening of a new business which provides creative vacation trips to the people of UAE are:

The social issues as how the common people of the country or the community behaves and how is their belief affected by the newly going to be opened company. For how were the people and how was their trip within or outside the country before and at the time of the opening of the company. The selecting of the places where the company will take its tourists is the main work to decide before the opening of the company and this place should be such that the people shall happily accept and would enjoy the places. The places which are outside the country should be such that the common people of UAE have heard and have accepted in their minds. (Michael, 2002)

The legal issues where it is looked that how will the legislation of UAE affects the business. As to how many hours can the employees work in the office, the change in the employment, and what will be the hurdles imposed by the government for the safety of the customers when they are going out of the country. The company should satisfy all the requirements of the government in terms of the legal papers of the company, the security of its customers who will be given the packages whether in or outside the country. The company should have all its papers in legal and complete so as to avoid the further disturbance or the interference of the government. So these are the common problems faced in starting of a business in UAE due to some of the government restrictions. (Stephanie, 2004)

The economic issues as what will be the terms of the taxes which will be paid by the company and what will be the reaction of the UAE government in the exchange rates of company which is going to be opened. Not only this but also the government spending, their interest rates, and there going to be global economic factors. Even the company should have enough capital to start its tourism business with all the luxurious and other requirements which can attract the customers towards the company.

The political movement or the interference is also a hurdle for the company like the restrictions made on the opening of the new firm by the government in order to fulfill the demands of the government, and also it is a matter of worry that how will the companies going to be affected by the change in the policies of the UAE government. There is no stable policy of the government of any country for their business sectors so if the company wants to come in establishment it has to be well prepared with the answers for the coming questions of the government. (Rauch Andreas, 2005)

The social environment is also a hurdle for the company it will be very hard to get the clearance from the minds of the common people who are mainly responsible for the success of any organization. For any of the firm to gain international fame firstly it has to go with the common and local market so the company should be prepared to face the acceptance and the rejection going to come from the local market. The company should get itself prepared In order to overcome these hurdles and move further. (Barbee, 2005)

The selection of the location is also a big problem for the company to choose. Thus the selection site is a very hard thing to process. This is the step which will either bring more customers or this will move the company to dearth. Because the place should be in front with centrally located so as it can be in the views of every one. Location has always paid the major role in the growth of the company so to get a good location is also a hurdle only for the going to be open companies in order to get a proper establishment. Beyond this there are also certain external factors which keep on changing and the company has to be prepared to cope up with them. The markets are changing every now and then. It also does depend on the type of business a company does, however a business needs to react or will lose customers during the market changes so before the opening the company should know and get prepared to come in the market. (Steven, 2007)

Some of the major reasons for the change in markets include:

The new needs and wants of the customers for different places during the hot and cold weather.

By entering of a new competitor in the market..

When a world or countrywide event has happened e.g. Gulf War or any kind of disease which has spread in the country where there is the venue of the tour planning company.

When the government suddenly introduces new legislation. (External Business Environment). (Christian, 2009)

internal adoption issues:

The internal adoption issues are such issues which are totally under the control of the entrepreneurs. They can easily handle the problems caused under this unlike the external problems. The internal problems are regarding the finance problems or the experience problems or the problems which are created in the newly developing company. And as far as the establishment for a company which organizes the tour packages have to face a little more problems than the other organizations as in this case the problem which gets added extra is the network problem, the company should have a well established network in various places which are worth visiting whether they are monuments of UAE or the beach or even the foreign places where the company can plan its tour. The market research should be very firm for every successful business there should be a rock solid idea. And if it goes wrong the firm also goes wrong. This can be a tough road to walk as the market research faces a lot of problems and investment. (Antonia, 2009)

The lack of the funds proves to be a terrible issue in the establishment of the new firm. Since the entrepreneurs does not always have that much of personal collection or saving to start this business so the business will start very slowly. The lack of the fund can also limit the business plans of the entrepreneur.

The lack of personal experience also proves to be a problem as most of the entrepreneurs do lack in the handling of the business. Not only are this many of the people even not well equipped with the skills which are necessary to run a business. Starting of this business requires many plans to attract the customers in spite of a tough competition present in the market so the company has to be well enough with it before the opening of the company (Soosay, 2004)

Another problem which comes in the way of opening the new company is the small network. The best option to start a new commerce is that it should be done with a group of competent kind of people who all should contain different kind of skills in them but should have the same vision for their work and for UAE. It's because most of the entrepreneur lacks that network of the highly skilled type of professionals as they get only very few years to expand their networks for the contact. Thus it may take a very long time to for building a long and strong and a meaningful kind of relationship with the same type of the likeminded people in the world of business. (Dildar, 2010)

The other problem can be the time management where the entrepreneur cannot recognize which work has to be given more attention to be done and which can be extended. So after concluding from all these above the main internal problems which comes to existence in the establishment of a company which creates vacation trips for the people in UAE are: (Cynthbia, 2009)

The company can face problems regarding the investment so it should arrange enough funds in its account and an excellent or if possible something better than that type of personal credit should be maintained so that the people when going anywhere with this company should get all the luxury whether its regarding their transportation facility or their arrangements of the hotels or most importantly the vacation place. And before it the company should be done well enough with its researches so as to know the places which go in the minds or the dreams of the people. In order to avoid the further challenges the company should have a well established and nice plan for the establishment of the travel agency. Thus the internal problems can be handled easily with a little effort and devotion of the entrepreneurs irrespective of the external problems which not only requires a hard work but also a huge capital in order to fulfill the government norms of not only UAE but also of the other countries which will be in the venue list of the travel company. It is also significant to deem the possessions of a business that can have on the limited and the local society. These possessions are known as the social reimbursement and the social operating cost. A communal benefit is a field where a newly opened business action leads to reimbursement above and ahead of the undeviating benefits to the trade or the customer. For example, the giving of concessions to the people during the holy months or during the vacations will allow the middle class people to visit different places this will be for the communal benefits and will create a market for the company (Radaun, 2006)


The main response after going through all these points is that there are two types of problems in establishment of a new company which plans the vacations. Firstly the external problems and secondly the internal issues where the external problems are out of the reach of the entrepreneurs and the company so the company cannot change or remove these problems but it has to adjust itself according to these problems. The external problems include the political factors of the country, the competition in the market and various other measures so he company while opening has to adjust in such conditions and as far as the competition is concerned then for that the company will require some time and experience to tackle. Where as the internal issues are concerned then it is the internal problems which comes within the company during the time of establishment that is the availability of the resources and the funds n the company as if the company has to provide luxury to its customers then it has to go with the costly and comfortable transportation for its tourists for their in or outside journey. The venues available in the company list, where the customers can visit. The other internal problems are regarding the experience problem which will only develop with time. (Entrepreneurial strategies and problems in post- communist Europe: A survey of SMEs in Slovakia, 1997)

Even many more problems were there like the lack of the networks etc. so these were the mentioned external and the internal problems of the newly going to be opened company. And not only are this some of the solutions also mentioned within for how to get rid of these problems at the time of establishment. Like how to get rid of the experience problems and how to manage the capital. Not only this but it has been also mentioned that where the company has to invest more and where not. So a small plant doesn't becomes a tree suddenly it requires a lot care and protection same is the case with the new company. (Hung, 2007)