Onward And Upward: Four Pointers For Entrepreneurs In Emerging Ecosystems All regions have their own set of challenges, but an expected outcome amongst them is that positive results can lift the morale and outlook of any region.

Entrepreneurship plays a critical role in establishing or revitalizing any economy. In the Middle East, the startup sector is booming, with more businesses innovating to address the challenges and demands of tomorrow.

Authorities in the region are rushing to position their respective countries as leaders, but the challenges remain- digital transformation, scarcity of resources, energy transition, and inclusivity are just a few of the hurdles to overcome.

But small business owners are essential to any economy around the world, as they account for a significant chunk of employment opportunities and contribute to the economy. This is why supporting these businesses is crucial to maintaining long-term economic growth.

All regions have their own set of challenges, but an expected outcome amongst them is that positive results can lift the morale and outlook of any region. Using what we at the University of Michigan's Ross School of Business have learned in our academic and career experiences from entrepreneurs around the world, we have seen that there are certain lessons that any emerging ecosystem should keep in mind. Here's a primer:

1. Connecting with your customer is key Understanding the fundamentals of cash flow management is important, but more importantly, businesses everywhere must put finding the customer first. For instance, for businesses in the UAE, that might be a challenge for marketing due to the large expat population, whereas for startups in the rest of the Middle East, the search can be less abstract. Infrastructure challenges can also make connecting with customers more difficult. For example, in rural places of the region, a lack of infrastructure makes ecommerce virtually impossible, making interpersonal connections and marketplaces remain indispensable.

2. Success drags success More often than not, startup accelerations begin with capital- and one of the best resources for it is another company's exit. Nevertheless, cash is the catalyst, and the more it is present in the business and region, the more likely the economy will grow. But this logic process doesn't always hold true in developing economies, one of the hallmarks of which is the absence of the middle class, and the emergence of huge income disparity. When wealth is generated in such environments, there are many places that it can be reinvested in beside another startup: education, properties, and housing infrastructures.

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That being said, more money generated by new venture activities has the potential to lift the income threshold and lead to a more stable, flourishing economy. Startups are the first step in achieving this– even if this takes time, as the fundings come, the business grows, and therefore the economy. Take for example, the case of UAE-headquartered Souq.com, which grew big enough for Amazon to acquire it in 2017. Recognizing the opportunity and market potential of the region has since given birth to several e-commerce platforms that are performing admirably well.

3. Give your talent the fulfilment they need in their jobs One prime challenge for small communities is talent acquisition and retention, regardless of where they are located. However, talent isn't exclusively about having smart people- it's about having people with the skillset needed not only to operate and expand a business, but a community that can support them. The Middle East suffers from one of the highest youth unemployment rates, in addition to the poor economic climate at hand. This leaves us with a landscape that has few to null opportunities for career growth and local economic development.

Moreover, the present talent gap often takes the form of educated and experienced individuals who choose to stay and work in their communities if there aren't opportunities that appeal to them, while others are seeking better opportunities elsewhere. Sturdy entrepreneurial economic systems allow startups to have a fruitful and enriching environment, creating the potential to attract top talents from all regions. This allows the economy to have a self-sufficient cycle once it gets going. One of the ways to get this ball rolling is through a significant local event or a unicorn startup that will generate considerable funding. Developing economies have numerous workers with limited skills who need the determination and resources to invest in themselves. This goes to show how essential it is to have an economic system that can help them have a good base.

4. Local differences play a role What works in one area doesn't necessarily mean it will work in another. When trying to apply what has worked somewhere in another place, the details become local-centric and might be different. For instance, many businesses choose to operate purely in cash since they don't trust banks, while others are fine with banks and credit lines. Some areas have one local language, while other places have a handful of languages that working people speak. For example, startups in the UAE, especially those catering to the local market, are proficient in marketing to a diverse population made up of over 100 nationalities speaking multiple languages. The key takeaway here is that successful ventures need to able to be able to identify and communicate in a manner that their customers can relate to.

While many economic factors and characteristics differ from one country to another, one thing doesn't: when entrepreneurs and innovation win, it can lift the outlook of an entire economy. For instance, the UAE has, with the right resources and support, stepped up to create the jobs and standing it needs to survive in the modern economy- and developing ecosystems around the world would be wise to follow its lead.

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