Entrepreneurship

For two decades, Noe Sanchez sent money from California to his father in Mexico City through storefront outlets of traditional remittance firms such as Western Union.

Now he grabs his smartphone and uses Remitly, one of several new competing mobile apps promoting cheap and quick international transfers. Sanchez quickly got over his initial unease of sending money through an unfamiliar company.

“If it goes badly, I’ll cancel it and try another,” said Sanchez, a 44-year-old Mexican technical support professional in Oakland.

Founded in 2011 and backed by Amazon.com Inc. Chief Executive Jeff Bezos’s venture capital arm, Remitly is among a vanguard of financial technology, or fintech, companies targeting what they view as an underserved immigrant market — traditionally disregarded as high-risk and low-margin.

The upstart firms — along with expanding digital and mobile options from Western Union Co. and MoneyGram International Inc. — are helping immigrants deepen their roots in the United States at a time when incendiary anti-immigration rhetoric dominates national politics.

Presumptive Republican presidential nominee Donald Trump recently attacked remittances from illegal immigrants as a form of “welfare” for Mexicans. Trump threatened to impound such money transfers unless Mexico agreed to pay up to $10 billion for his proposed wall on the southern U.S. border.

Many emerging companies in the fast-growing fintech sector, by contrast, view financial services for immigrants as an untapped source of revenue. They include remittance apps, such as Remitly, TransferWise and Xoom — an early player bought last year by PayPal Holdings Inc. for $890 million — along with companies such as Lendup and Oportun, which lend to high-risk borrowers.

“We’re part of a community of companies that is helping [immigrant] customers understand the landscape of financial services” in the U.S., said Raul Vazquez, chief executive of Oportun.

Global cash flow

It remains unclear whether Trump’s campaign attacks represent a real threat to the remittance industry. He proposes regulating remittance firms through U.S. anti-terrorism laws that now apply to banks and other financial institutions.

The plan has been criticized in part because of the difficulty in differentiating between the transfers of legal and illegal immigrants.

“Good luck with that,” U.S. President Barack Obama quipped, reacting to Trump’s proposal at a recent news conference.

Trump’s campaign did not respond to request for comment from Reuters.

Many financial technology companies expect a continuing boom in cross-border transfers and other financial services for U.S. immigrants. According to the World Bank, remittances to Mexico totaled nearly $25 billion in 2015, their highest level since 2008. Globally, nearly $600 billion is transferred each year. 

The World Bank reported that 700 million people opened bank accounts globally between 2011 and 2014 — making them more likely to use financial technology — and about 2 billion more people remained unbanked, representing huge growth potential.

Immigrant communities increasingly access financial services through phones. Thirteen percent of Latinos in the U.S. are dependent on smartphones as their only source of Internet access, compared to just 4 percent of white people, according to a 2015 Pew study.

Those trends play into the strategy of remittance apps like Remitly and Xoom. Many other financial tech firms are private and not required to share financial results, but some claim fast growth in customers or revenue when releasing selective data.

Remitly said it transferred five times the amount of money in the first quarter of 2016 as it did in the same period a year earlier. The company said it recently surpassed $1 billion in annual transfers.

Western Union, a $9.36-billion public company, acknowledged new threats in its 2015 annual report. 

“We are seeing increased competition from, and increased market acceptance of, electronic, mobile, and Internet-based money transfer services,” the company told investors. 

In a statement to Reuters, the company said the transfer industry is teeming with new players and that competition had contributed to falling prices. Western Union’s digital money transfer sales reached about $300 million in 2015, and the company expects online and mobile transfers to be a “major driver of overall remittance market growth,” it said.

Arjan Schutte, the CEO of fintech investor Core Innovation Capital, said he’d seen more than 100 different business plans for companies wanting to disrupt Western Union or Moneygram, but that’s “not nearly enough relative to the market opportunity.” 

Economies of scale

Smaller financial technology companies can be flexible in crafting creative solutions to serve customers on the margins, said Lisa McFarland, an executive vice president at Ingo Money, which charges between 1 and 4 percent to deposit paychecks through a mobile app.

McFarland previously worked at Visa Inc. setting up prepaid products for the immigrant market. She said more established financial companies have long struggled to serve lower-income markets because of high development costs and low profit margins.

“The problems have to be solved, in many cases, in unique ways,” she said. “That’s what opens the door to technology players.”

Oportun and Lendup, for instance, use their own underwriting formulas rather than traditional credit scores to underwrite risky borrowers, and they offer declining interest rates over time for those who pay reliably.

The alternative online lending sector as a whole has faced new scrutiny in recent months in the wake of scandals at industry leader Lending Club. 

But Lendup says its customer base of half a million borrowers is growing at 15 percent per month. The company says it can charge less than traditional payday lenders because of its underwriting software and because it saves money by not opening physical branches.

“If the work is lower margin, technology has a real opportunity to allow you to reach that profitability,” said Leslie Payne, who runs public affairs at Lendup. “Once you reach scale, the economics can work out.”

(Reporting by Gabriel Stargardter; Editing by Jonathan Weber and Brian Thevenot)

While working in London for an international telecom company, she shared her vision of building a global product company in Chennai. The father-daughter duo jointly conducted their research and arrived at a product idea that had the potential to touch a billion lives globally.

That is when they came across NFC (Near Field Communications) technology and how it could be used for cashless payment transactions. Ra. Arjunamurthy, Founder and CMD, YELDI Softcom and Lakshmideepa discovered immense potential in the ‘tap and pay’ capabilities of NFC – as it has a lot of versatility to address the needs of everyone from a daily wages labourer to an upper-middle income shopper. In 2012, Lakshmideepa relocated to India and took the idea forward and launched their product in 2012

“I would say that entrepreneurship is in my DNA, it comes very naturally to me. My family’s a third-generation business family. I grew up watching my father setting up various companies and run them. So my decision to become an entrepreneur stems primarily from the environment I grew up in,” said Lakshmideepa.

This is what product offers you

The product does not offer just the convenience of cashless transactions but it also ensures that their B2C customers save money every time they use a YELDI product. Retailers on the other hand, will get a host of benefits like Customer Loyalty Solutions, Business Intelligence Analytics and so on.

“After I finished my Masters, I wanted to start a company that touched a billion lives across the globe. I Discussed my r aspirations with my father and  we immediately knew that our product had to penetrate all sections of the socio-economic pyramid. To illustrate this point, my father would often tell me that our product should be usable even by the roadside chaiwala,” said Lakshmideepa.

Funds Rolling In

For the sole reason of not wanting to be a proprietorship concern, Ra. Arjunamurthy (Founder & CMD) has funded the company from its launch. They have recently raised some funding from a Private Equity company and they are channelizing these funds into the development of their upcoming products.

“The investor was influenced mostly by the fact that our core offering is very versatile and could be used for a multitude of applications. Across various industries and various income segments,” said Lakshmideepa. 

To create a separate entity called YELDI Labs, they are in talks with some of the industry bigges in Engineering & Technology space.

There is No Undo button for this

For every venture, there are certain business facets which are made of stone for them. They firmly believe in them and would never want to change the. When asked to Lakshmideepa about her business fundamental she said, “There are three fundamentals that we believe in. Innovate, never ever go to the market with a me-too product and the core focus of our business is the customer. Everything else comes afterwards.”

Tackling challenges in her own style

Every venture has to face challenges. Founder has to go through numerous sleepless nights to make his venture a profitable one. “Professional challenges seldom give me sleepless nights. I have learnt to sleep over them and this is probably my way of giving me time to address them more efficiently. I don’t believe that panic can help solve any challenge,” said Lakshmideepa.

Evolving as a person

From working as a CRM and admin executive in London, to setting up her venture, Lakshmideepa has evolved as a person over the years.

“I am basically an introvert. But heading YELDI from the front has helped me evolve. I am a lot more forthcoming now and have learned to take challenges in my stride without taking them personally. I have learned to differentiate between challenges and understand where they are stemming from, rather than looking for on-the-surface solutions,” said Lakshmideepa.

Future Plans

With the team size of about 80 people, the venture plans to ramp up this figure to 300 people by the end of this financial year. As an organisation, they are currently valued at $ 200 million. They plan to become a $ 2 billion company by FY 2018-19.

“We are about to launch a multitude of payment products in both the Indian and International markets. One clear segment for us is the NFC prepaid payment card in association with large banks. We have already launched iTapIt in Sri Lanka, as a joint initiative with National Development Bank PLC. We are looking to market about 10 million cards in the current financial year. We will soon be launching such products in India, Qatar and Philippines,” informed Lakshmideepa.

They are also in the process of launching YELDI BIZ, their cloud-based business management suites for restaurants, retailers, academic institutions and even corporates. There are a bunch of other highly disruptive offerings that are currently in their prelaunch phase which they will announce soon.

Sector Overview

The digital payment space is still in its formative stages. Over the past few years, we have witnessed that the number of digital payments has been increasing as compared to cash and card payments. As of 2015, there has been a transaction of nearly $70 billion via digital payment and is expected to reach $230 billion by the end of 2020. Not all this, investors are all showing there keen interest in backing these digital payment startups.

Former WWE World Heavyweight Champion, ‘The Great Khali’ today announced his entry into India’s rapidly growing fitness industry with the launch of The Great Khali Gym and Fitness Club, a chain of luxury gym and fitness centres. 

The new entity was launched at the Franchise India 2016 show being held in the National Capital. Dalip Singh Rana or ‘The Great Khali’ has partnered with Franchise India in its endeavor to expand his chain’s footprint across the country.

The Great Khali Gym & Fitness Club has

With the aims to make India walk on the treadmill and get fit, Great Khali’s Gym and  Fitness Club is not only for the hardcore fitness enthusiast but also for normal individuals, who wants to be fit.

Moreover, it will provide girls and women self defense training along with Zumba dance and power yoga classes for all genders of all age groupa.

It plans to expand on a pan-India scale, with the help of franchising. It requires an area of 3500-8000 square feet in total investment of INR 30-45 lacs and the payback period is less than 2 years.

Unleashing India’s Innovation and Entrepreneurship Potential India has been one of the best performers in the world economy in recent years. Indian economy has been one of the stars of global economics growing 9. 6% in 2006 and 9. 2% in 2007. Growth had been supported by market reforms, capital inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. Like rest of the world, however, India is also facing testing economic times  with inflation running at 11%, the highest level seen in a decade .

The Indian stock market has fallen more than 40% in six months from its January 2008 high. $6 billion of foreign funds have flowed out of the country in that period, reacting both to slowdown in economic growth and perceptions that the market was over-valued. It’s high time we recognize the growing significance and visible impact of Entrepreneurship and innovation on wealth-creation and employment generation in India.

Innovation

Innovation is a process to achieve measurable value enhancement in any commercial activity, through introduction of new or improved goods, services, operational and organizational processes. It is a significant factor in fostering competitiveness, improvement in market share and quality. It reduces costs . Innovation is a key driver of economic growth. It is both creation, commercialization of new knowledge and diffusion and absorption of existing knowledge in new locations. Growth, accompanied by innovations, has been associated with rising living standards and a reduced number of poor people. India is increasingly becoming a top global innovator for high-tech products and services.

Still, the country is under performing compared to its innovation potential which has direct implications for long-term industrial competitiveness and economic growth. About 90 % of Indian workforce is employed in the informal sector. This sector is often characterized by underemployment, low-productivity and low-skill activities. Although India has the benefit of a dynamic young population , with more than half of the country’s population under 25 years old, only 17 percent of people in their id-20s and older have a secondary education. To uphold rapid growth and help alleviate poverty, India needs to aggressively exploit its innovation potential, relying on innovation-led, rapid and inclusive growth to achieve economic & social transformation . According to one of the findings the output of economy could increase more than five folds if each enterprise could absorb knowledge existing in India and achieve the level of productivity of top enterprises in their sector.

By applying knowledge in new ways to production processes, better and new products can be produced with the same or fewer inputs to meet the needs of all sections of Indian society. The very popular “Dabbawala” system is an innovative business process which allows 4,500–5,000 semiliterate Dabbawalas to deliver almost 200,000 lunches to workers every day in Mumbai. The Dabbawalas reportedly make one mistake per 6 million deliveries. So remarkable is this delivery network that international business schools have studied the work flows of the Dabbawala system to understand the key to its stellar performance rating.

To unleash its innovation potential, India needs to develop following strategies:  Increasing level of competition to improve the investment climate, supported by stronger skills, better information infrastructure and more public and private finance. Recommended actions to raise competition include removing regulations which are not essential and applying essential ones more transparently in product, land, labor, capital, and infrastructure services markets—for example, easing limits on small industries, restrictions on foreign direct investment (FDI) etc.

Limited skills and training are a major bottleneck. Only 16 percent of Indian manufacturing firms offer in-service training, compared with 92 percent in China . The Indian firms that provide in-service training are 23–28 percent more productive than those that do not. This bottleneck could be overcome  by providing public matching funds for firms to invest in training and  increasing the fiscal and managerial autonomy of universities and colleges, and increasing private participation in higher education. Better information flows are needed: high-speed national research and education networks accelerate the pace of new discoveries and the expansion of knowledge. Information-related actions could include expediting the allocation of radio and wireless broadband spectrums, increasing targeted subsidies for rolling out rural mobile and broadband, and agreeing on an organizational structure to deploy and manage a national research and education network.

India can benefit from supporting efforts to create and commercialize knowledge, help in diffusing existing global and local knowledge and by increasing the capacity of smaller enterprises to engross it. Private enterprises need to increase R&D spending. Between 1998 and 2003, multinational corporations spent $1. 3 billion on R&D in India—showing that its valuable assets could be exploited more effectively. Measures to spur private R&D could include consolidating and expanding early-stage technology development programs as well as developing a policy and action plan to use public procurement to promote innovation.

New domestic knowledge needs to be converted to commercial use. Of the top50 applicants for patents in India between 1995 and 2005, 44 were foreign firms. Only six were Indian. Actions to promote commercialization and strengthen links among industry, universities and public laboratories could include providing support to technology transfer offices, creating a patent management corporation, developing technology parks and incubators and improving India’s regime for intellectual property rights.

India should also consider enhancing support for higher-risk technology R&D and commercialization by strengthening its New Millennium Indian Technology Leadership Initiative and by opening the program to international collaboration and giving grants to both research institutions and private enterprises, with sharing of any resulting royalties. The Diaspora needs to be tapped more effectively. About 20 million people i. e. 2 percent India’s population earn the equivalent of two-third of India’s GDP.

Steps to tap more efficiently tap India’s overseas talent could include supporting a larger Diaspora network, building on existing groups that aggregate this population’s (NRIs’) talent and capital for use in India. >> India would benefit from fostering more inclusive innovation—by promoting more formal R&D efforts for poor people and more creative proletariat efforts by them, by improving the ability of informal enterprises to exploit existing knowledge. Inclusive innovation can play a critical role in lowering the costs of goods and services and in creating income-earning opportunities for poor people.

The Council of Scientific and Industrial Research has developed technology applications for rural India, university and formal private initiatives e. g. e-Choupal. To leverage traditional knowledge into revenue, a policy-oriented intellectual property rights think tank could propose how to implement a cheaper intellectual property regime. Finally, successful technology upgrading programs could be extended to help informal and rural enterprises make better use of existing knowledge.

Entrepreneurship

Entrepreneurship represents a mindset. It is the skill of finding creative, innovative and profitable solutions to problems and to be paradigm pliant. An entrepreneur is someone who assumes the financial risk of the initiation, operation and management of a business. They aren’t generally high-risk takers when they can’t affect the outcome of the situation. They tend to set realistic and achievable goals, and when they do take risks, they’re usually calculated ones based on facts and experience, rather than instincts. Entrepreneurs are participants not observers, players not fans.

And to be an entrepreneur is to be an optimist, to believe that with the right amount of time and resources, you can do anything. Why is the US more prosperous than India? Is it because we Indians are less smart than Americans? No, Indians are universally known for their intelligence. Is it because they have greater resources? No, India is as much if not more rich in natural resources. Then, why is the US more prosperous than India? The US is more prosperous simply because they have more entrepreneurs. Entrepreneurs have a big role to play in driving India’s growth.

With a slower economy, it is vital that government; academic world and regulatory bodies create a favourable environment for entrepreneurs to flourish. Entrepreneurship is a critical element of a growth economy and India is poised to unlock a Silicon Valley like entrepreneurial boom through the next 10 years. If India needs to eradicate poverty, we have to grow. To grow, we have to employ the unemployed. NASSCOM and CII have estimated that if India wants to be a developed country by 2020, it needs to create 10 million jobs.

The million-dollar question is how these jobs are going to be created. Neither the Army nor the police force can soak up such a large number, nor can the Railways or the government. They can only be engrossed by the private sector. The industrial set-up is expanding, but not at the rate that can employ such large numbers. Is there any solution to this grave problem? Fortunately, YES, the answer is entrepreneurship. As per TiE (The IndUS Entrepreneurs- a non-profit organization, promoting entrepreneurship) each entrepreneur creates 30 jobs.

An entrepreneur creates jobs, setting stage for a flourishing economy. Over 30% of Microsoft employees are Indians. The NASA relies on Indian brains for its various missions. IIT graduates are considered the worlds brightest. Why do these people flock to the US, simply because the US has more opportunities? What can we do to stop this self-ruining brain drain? The answer lies in promoting entrepreneurship. The beginnings are already in place, steps have been taken in the right direction. There is an overall shortage of start-up entrepreneurs in India compared to the rest of the world.

One of the most significant deficiencies an Indian entrepreneur may face revolves around capital. Although there is ample willingness to invest capital in a well-established enterprise, there is little willingness to fund start-ups. The quality and quantity of venture capital in India is low. The benefits of entrepreneurship to the society and the economy as a whole are enormous. Entrepreneurship helps in avoidance of monopolies and cartels and help in checking large corporations and MNCs.

Entrepreneurs realize the tremendous demand for goods abroad and help to market the surplus. This will make the Indian market export competitive and at the same time, the MADE IN INIDIA brand more acceptable. The surplus footstock which would have been otherwise rotting in the government storehouse, can be exported, thus earning foreign exchange. The government gets rid of the excess stock while the exporter earns revenue, leading to a win-win situation. An important factor influencing FDI, from developed nations to developing nations is the concentration of entrepreneurship.

FDI is directly proportional to entrepreneurship. The highest contributor of FDI is the US. The US readily welcomes Indian exports and also lists Indian companies on American exchanges. No wonder NASDAQ rocks on the beats of Infosys Chairman, NR Narayan Murthy. So, the message is clear; we need more entrepreneurs. It is high time, the government realizes that only and only ntrepreneurship can help it grow at the high rate and rethinks its policies. To unleash its entrepreneurship potential, India needs to develop the following strategies

Nurture early stage entrepreneurial ventures based on technology and innovation. Create physical infrastructure and support systems necessary for business incubation activities. Facilitate networking with professional resources that include mentors, experts, consultants and advisors for the incubated companies. Identify technologies/ innovations which have potential for commercial ventures. Promote and foster the spirit of entrepreneurship. Carry out activities that facilitate knowledge creation, innovation and entrepreneurship activities.

Executive Summary Creative Maker Sad Bad established described in this business plan Is to start-up a charity business by determined and dedicated Individuals who are experience In this field. Through the Basic Entrepreneurship Culture course (EXEGESES) we are exposed to the basic entrepreneur knowledge for the purpose to implement the entrepreneur satellites and managing basic entrepreneur risks In order to carry out this business. Without doubt this idea came out as a dream now beginning to shape Into reality.

In supervising us throughout this project. In general, this business Is focusing on the field of manufacturing and by focusing on high quality customer service, diverse offerings, creative promotion strategy and continuous development of employees, our company Is projected to reach 850 customer In a month while maintaining a high gross margin on sales while strengthening cash management and working capital.

A comprehensive analysis of the market indicates that souvenir industry is strong and robust generating a fair amount of annual revenues. The location of our business will include various places inside University Malay and it is highly desirable as it is based at a busy part of the university. Our chosen target markets which include the students, lecturer and staffs of University Malay and will account for a total of 850 potential customers in the first month.

The promotion will A review of our competitors shows that we will be competing against Creative Center Sad Bad established near our location. This business focus on different pricing structure and marketing approaches. With our consistent, high quality services and moderate pricing, we have the edge in attracting customers by delivering a full range of beauty and pampering treatments in several convenient location. Our concrete marketing plan will distinguish us as souvenirs of choice for customers. PC entrepreneurship By mimicked Creative Maker Sad Bad established described in this business plan is to start-up a hearty business by determined and dedicated individuals who are experience in this activities and managing basic entrepreneur risks in order to carry out this business. Without doubt this idea came out as a dream now beginning to shape into reality. We would like to thank Dry. Norwich bin Mood Musical as our lecturer who had been so committed in supervising us throughout this project. In general, this business is employees, our company is projected to reach 850 customer in a month while

Environmental uncertainty can be a serious threat to the achievement of the set goals for an organization. The type of the organization is never an issue when it comes to environmental uncertainty given that any type of organization can and is always faced with an uncertain period in its lifetime. What differentiates between the organizations is the ability to adjust and adapt to the new circumstances as provided by the newly evolved operational timeline.

This is where organic organizations or firms or companies are better placed, since through their nature, they are able to quickly get into the new system of conditions and move on. Mechanistic organizations always find it hard to operate in these changed circumstances and survival chances are always reduced (Tosi, 2002). Different reactions are given by these two types of organization when faced with environmental uncertainty. Also, the modifications or adjustments or steps taken in a bid to adapt to the new operational climate are different.

All the same, these reactions and the steps taken for adaptation into the new business surroundings are very important as they are always geared towards ensuring that the firm, organization, company or institution survives and meets expectations besides achieving its objectives. This paper discusses the complex issue of environmental uncertainty, the way both organic and mechanistic organizations react to environmental uncertainty as well as the way in which these two types of firms can be able to adapt to these uncertain conditions.

At the end of the paper, there is a summary of the whole work that captures the concept of adaptation to environmental uncertainties by the two concerned types of organizations which include the organic and mechanistic type.

2. 0 Introduction Environmental uncertainty can be defined as the vacillating, wavering, un-determinability or unpredictability of the circumstances under which a company or firm or organization operates. This unsure nature of the operational climate always leads to problems for the organization and it is the reaction of the firm towards these unstable conditions that determines the ultimate success of the organization.

Poor reactions will always lead to poor adaptation and this definitely compromises the strength of the organization. Appropriate reactions on the other hand result in perfect or smooth adaptation and the strength of the organization gets enhanced. Different organizations react differently to environmental uncertainty and thus get affected in different ways during this moment of environmental uncertainty. 2. 1 Background information Since time immemorial, man has always been faced with unascertainable conditions for which he has had to struggle to respond to due to their abnormal nature.

The evolution of business entities has resulted into two main types of organizations. These are organic organizations which are defined as organizations with the ability to adjust to new or changed circumstances due to their flexible nature and mechanistic organizations which are defined as the organizations which are not easily adaptable to changed or unstable conditions since they are more or less the same as bureaucracies with rigid operational models that follow routine settings.

Burns and Stalker in their book entitled Theory on mechanistic and organic organizations, clearly points out that, organic organizations are non- rigid whereas mechanistic organizations are rigid and fixed in their operation mode (Burns and Stalker, 1962). 3. 0 Literature Review The Journal of Business Research provides us with amazing information on how environmental uncertainty influences small businesses.

Managers and other business leaders tend to engage in less planning when faced with uncertain circumstances or conditions in the business world. Dean A. Shepherd and Mark Shanley in their book entitled

New Venture Strategy: Timing, Environmental Uncertainty and Performance (Entrepreneurship and the Management of Growing Enterprises), presents us with a set of ideas on how to survey the market and determine whether it is ripe for our new product and whether it is indeed certain enough to accommodate our venture.

Ramirez and Waldman of Arizona State University in their paper entitled: Does Leadership matter? Leadership qualities and profitability under situations of perceived environmental uncertainty, point out the issue that leadership is vital a factor in times of environmental uncertainty but then again they state clearly that environmental uncertainty is significant in its impact on businesses and the way the organization responds determines its success through the uncertain environmental period (Raynor, 2007).

This is where they say that leadership is vital in times of environmental uncertainty. The Journal of Economics also examines the aspect of business uncertainty form the angle of finance and accounting. Avinash and Robert in Investment under Uncertainty recognize the fact that businesses face uncertainties and therefore need to be prepared (Avinash and Robert, 1994)

For a long time now, the Middle East region’s ties to the fashion industry has been primarily a commercial one- the region’s prominence as a retail hub, owing to its purchasing power, and its population’s flair for elegance and opulence are what came to one’s mind when thinking of the region’s fashion sector. But while the early goals of the region (especially the UAE) may have stressed on wielding influence as a powerful customer base for Western creations, the narrative has, in recent years, shifted to a focus on developing a right here. Policymakers and stakeholders have begun to realize that it’s not enough for the region to have just large spenders, but it also needs to cement its place in the evolution of the industry.

Take Dubai, for instance. In many ways, 2013 was a landmark year for its fashion ecosystem. It was a year when the country took a leap to get closer to the billion-dollar industry dominated by the Europe, the U.S. and others. With top fashion brands already tapping the market here, UAE Vice President and Prime Minister and Ruler of Dubai H.H. Sheikh Mohammed Bin Rashid Al Maktoum set up the to steer design and fashion initiatives in the Emirate. If DDFC was meant to be the umbrella entity for all things design and fashion, the move was followed up with the creation of a free zone to house and nurture the region’s creative thinkers. To make the space a hub for the region’s creatives, d3 aims to create a close-knit community, where designers can share space, collaborate on ideas, and attract talent from across the globe. In the meantime, the region also got its own official fashion week, the Arab Fashion Week (AFW). Organized by the Arab Fashion Council, AFW has earned a name as a high-profile showcase event in the league of similar fashion weeks held in New York, London and Milan.

“As we found through the report released by DDFC in collaboration with d3, in the MENA region, the design industry is gaining grounds at a rapid rate,” says Nez Gebreel, CEO, DDFC. “Its market value surpassed US$100bn in 2014, and now constitutes over 4.5% of the global design market. The sector has grown at more than double the pace of the global industry over the last few years, and is expected to continue outperforming the global design industry. With an average growth of 6%, the MENA design industry will grow at twice the pace of the global design sector and by 2019, its contribution to the global design sector will reach 5.2%.” Gebreel notes that there’s been a strong influx of design-focused initiatives and events over the past few years, one of them being

Sensing a need for a platform to give more visibility to designers and hone their skills, Ramzi Nakad and Bong Guerrero launched Fashion Forward Dubai (FFWD), an organization aiming to streamline the fashion industry’s efforts. Having run Brag, an experiential lifestyle marketing agency, the duo had developed a strong relationship with the region’s designers and had noted a feeling of “displacement” among the emerging talent. Endorsed by DDFC and operating in partnership with d3, FFWD follows a two-pronged approach, addressing both education and real-world experience for fashion entrepreneurs. With their bi-annual fashion events, FFWD helps fledgling designers go through the process of putting together shows. “Every six months, we make them think of the business aspects involved- collections, production, costing, marketing, working with a team of professionals, and exposing them to a large audience,” Nakad explains.

Aspiring fashion entrepreneurs had more reasons to rejoice with FFWD extending their involvement in the sector recently, launching a program to provide business development opportunities to regional fashion talent, in collaboration with Samsung MENA, d3 and DDFC. The initiative came about as a result of the MENA Design Education Outlook study, conducted by DDFC and d3. Besides noticing a skills gap in the industry, the report drew attention to business development challenges for fashion entrepreneurs. “What came out from the report was that designers need more support in retail pop-up opportunities,” says Nakad, which EPIC aims to address, along with showroom retail. “Since most large multi-brand retailers buy in showrooms, we decided to set up a FFWD showroom in Paris during Paris Fashion Week, where we pick designers, who we feel are ready to go global, and help them get buyers,” explains Nakad. Besides that, EPIC will also offer scholarships for courses in fashion management, and also enable tie-ups with key social media influencers in the region, to galvanize further support for local designers.

One can’t take an analytical look at the region’s fashion industry without addressing the massive contribution and influence of Islamic or “modest” fashion as well. Thomson Reuters’ State of Global Islamic Economy Report 2015-16 lauds the modest fashion space to have continued to expand even amid all the pressures faced by the mainstream fashion industry. The is leading the charge for growth and development of the sector globally, with a presence in seven countries. Alia Khan, founder and chairwoman, IFDC says that the organization was launched to “keep a finger on the pulse of the modest fashion industry,” with IFDC offering consultancy services, assisting designers and creating a community for this sector. While the council engages with government agencies on what Islamic fashion could mean for their economies, Khan says she would like policymakers to work more closely with them. “We have knocked on doors, and people have not understood the importance of it [Islamic fashion],” she says. “But I think we will get there.”

However, even with external factors rooting for the industry, it’s difficult to take an ecosystem to the next level without sufficient human and material resources. “There will inevitably be challenges that any industry will face as it achieves growth,” says Gebreel. “Ensuring that these challenges are identified through in-depth research, and then working together as an industry to address these gaps is what will help us continue on this positive trajectory.” For instance, the MENA Design Education Outlook study estimates a substantial skills gap in the design industry (which includes fashion) to support the growth projected for the sector.

But education in this sector is a weak link for the region, given the lack of specialist educational institutions. But there is change happening here as well: while Gebreel notes that DDFC is working on implementing initiatives for higher education as well as K-12, institutions like (part of the global ESMOD group), which bills itself as Dubai’s “first and only fashion institute,” are also a move forward. The school stresses that building a fashion business requires skills in “creation, production, marketing and communication,” and offers courses such as fashion design, fashion management, fashion buying, and others. ESMOD Dubai Managing Director Tamara Hostal also highlights the school’s ESMOD Fashion Designers Incubator, which was created after being disappointed “seeing students who stop trying to become designers because they don’t get any support from the industry.” Gebreel notes DDFC is aware of this issue too. “There is also a need for dedicated training and mentorship,” she says. “One of our most recent initiatives is a partnership with Chalhoub Group. As part of the partnership, Chalhoub Group will provide expertise to designers on a wide array of topics.”

Like in other industries, the consumer mindset on dealing with local brands is a key hurdle for the too. Nakad believes that that is a primary challenge they focus on at FFWD. “If you look at sustainability of the economy, we have to focus on creating brands that we can export to countries,” says Nakad. “We need to convince the end consumer to shop local; to shift part of the spending power from imported or international brands to regional ones.” Nakad believes that providing more exposure to and offering products “on par or even better” than global brands can help the cause. Designer Zaid Farouki says cost pressure is also an issue, along with talent sourcing and retention. “The majority of the tailors, embroiders, pattern makers, have learnt the trade through inheriting it from their parents, or through practice, but it is very little talent that you find that went to school to learn the trade; therefore, you really have to filter the talent pool down.”

Aya Sadder, lead organizer of this year’s edition of Startup Weekend Dubai that focuses on the fashion sector, adds that practical challenges every entrepreneur faces in the region also applies to designers. “SMEs have to pay various amounts like rents, employee cost, and other bills, even before you start creating any magic with your designs,” she notes. She adds that without a family to back you monetarily and in other ways, it’s difficult for designers to get their name out, given the regulatory hurdles. IFDC’s Khan highlights a need for to focus on affordable production solutions without comprising on quality. “Sourcing, production [management], quality control, and challenges of securing enough orders from retailers,” are other issues, she notes.

Be it a tech startup, or a fashion venture, every business needs money to grow, and according to Nakad, getting investors to look at fashion in a “futuristic” way is the way to go. “We live in a day and age of collaboration,” he says. “Technology and lifestyle can be a great combination and I would definitely encourage angels and VCs to see how they can collaborate or cross-promote different industries.” He believes growth of sectors such as e-commerce and mobile commerce can aid the ecosystem’s growth, owing to their inter-relation. It is this connection that also prompted global consumer electronics giant Samsung to back the EPIC program. Abdo Chlala, Regional Head – IT & Mobile Division, Samsung MENA, says that the company saw the potential to “enable the fashion space in the region through meaningful ” “The primary challenge in fashion and design industry today is that yesterday’s wow is today’s new normal,” Chlala says. “It (technology) is key to maintain the excitement and longevity of fashion content, and remain relevant in today’s world.”

As for the road ahead for the fashion industry, while it’s easy to look back and be awed by the distance covered in such a short time, industry insiders say that there’s a need to continue chasing progress. Nakad believes that just like entrepreneurs, d3 and DDFC too are going through an interesting learning curve of their own. “We want to help them  policymakers to help position Dubai as a global fashion capital and more success stories will help materialize this,” he says.

As for the entrepreneurs in this space, believes it is the responsibility of designers to fight the internal struggles of pleasing both the creative and business sides of their ventures. “As a creative, your business model needs to be updated all the time to last, and you need to see eye-to-eye with investors,” he says. But at the same time, dreaming big is good and Farouki encourages that wholeheartedly. “Everything will fall into place eventually, but work for what you dream for every day and every hour, and let the world work in its mysterious ways.”