Entrepreneurship and Small Business Opportunities in the UAE - Case Study Example

Name Course Tutor Date Executive summary The United Arabs Emirates is one of the fastest growing economies in the world today. The country is rich in oil wealth which has been attributed to the growth of other industries in the country. Business in its major cities like Dubai and Abu Dhabi has been booming over the last few years. The country is ranked as one of the best business hubs and most conducive to live in the Middle East and in the world as well. In the recent years, the country has invest4ed heavily in infrastructure and support systems to facilitate trade with other countries. As a result, the country host business personalities and tourists throughout the year who facilitate he growth of the economy even further. Due to its diverse portfolios, the country receives personalities from all over the world that travel there for diverse purposes. As a result, the hotel, tourism and hospitality industry is a booming one in the country. The all sunny weather in the country makes it an all years round economy with no specific seasonality. As a result of the busy nature of the country, opening fast food outlets in the country is a lucrative venture with high potential of maximum returns. Diversity is key in the success of the business and the ability to meet different needs of consumers from different origins and culture in the world. Opportunity analysis As mentioned earlier, UAE is one of the fastest growing economies in the world today. The country has strong functional and structural facilitate which facilitate business growth. The country hosts visitors from m all over the world throughout the year. Visitors in the country come for different purposes and needs. T has become on e of the world major destinations in the Middle East due to its attractive infrastructure and hospitality facilities. The country is also known for its outsourcing of labor from foreign countries hence making it a hub with people from different parts of the world. Being a modernized country, individuals sin the cities are always busy and involved in different activities and hence always on the run. A fast food outlet is an entrepreneurial opportunity to sell snacks and foods to this population. Being an Arab country, the many diverse cultures from different parts of the world may find the food culture different from what they are used to. This provides the opportunity to occupy this niche and serve foods that foreigners can associate with. Diversity and providing major delicacies from different parts of the worlds is the main aim of the fast food restaurant. Satisfying this market also has the potential of growing into multi chains to include other major cities. The long run could see franchises and licensing of the brand to other major contenders in the industry. The other opportunity in the business is providing already existing citizens with diverse food cultures from different parts of the world (Boone et al 1162). The opportunity is therefore not only in the foreigners but also in locals who would like to experience food cultures from other parts of the world. Description of the business The business would include a fast food restaurant in one of the busy in Dubai. This would ensure maximum exposure and recognition from potential consumers. The business intends to serve fast foods that are common in the country and other favorites from foreign countries. It is crucial for the business that the foods are packaged in a fast food perspective for purposes of simplicity and time saving. However, consumers who would prefer to take time, the business also intends to have a restaurant section to hold this group of people. The man aim is to however maximize on the fast food which is more convenient and requires less space. As a result, this would also minimize the overhead costs associated with a restaurant. Performance of the business for the first few years would determine extension plans and probability of rolling out to other cities in the country. Some of the main servings would include different types of burgers, fries, salads, steaks of different meat types. They would also be accompanied by sea food delicacies which are common in the country. The menu would include diverse mixtures to make signature dishes which are un9ique and favorites among many. This would require the assistance of a professional restaurant and cooking expert who will be responsible for designing different types of food packages depending on demand and diversity of consumers. Apart from food items, the restaurant would also serve different beverages like tea, coffee and sodas that are also common in the country. The restaurant would also have a blend of unique beverages designed and made there. All this is in a bid to create a brand that is recognized through different products served to consumers. Due to the ill health that is associated with fast foods, the restaurant intends to be responsible in this aspect. It will also have healthier options which will include vegetables and less fat and sugar content for consumers to choose from. The theme of this will be designed to make healthier food options fun to consume as well (Trainer 60). The aim is not only to create a business out of the venture but to celebrate food culture and diversities of different people that live in the country. Creating a lasting impression through service and product quality is the ultimate aim of the business. This way the business can create a consumer base that is loyal and makes recommendations to others. Financial data and predictions The success of the business will depend on initial performance of the business in the first few years. Due to high demand, cash flows are expected to be positive and the business should break even within first financial year. This will be facilitated by the demand and the diversity of consumers in the city. The first year of operations will have many expenses due to initial costs and overheads needed to start the business. In this view, initial costs will include premises rental, hiring costs and procurement of equipment needed to run the business’s other costs will include incorporation and registration cost which will be in line with laws governing such businesses in UAE. Support services such procurement of supplier will also be incorporated in the initial year. This will be in terms of agreements required to ensure constant supplies of necessary items and raw foods to be prepared din the company. Property costs in the UAE have been on the rise due to high demand and reducing space. Hiring costs are also high due to minimum wage rate requirements and the need to meet employee satisfaction. The initial costs of the business are estimated to be around $300,000 dollars before the business takes off. Most of these requirements are to meet the initial, costs of the business which are the biggest limiting facto for initiation of such a business. As mentioned earlier, property rates in the country have been at an all time high due to demand and the need for accommodation space to facilitate the needs of the rising population in the country. The initial capital will be used for setting up the business and paying off initial expenses for the business. Rental space in the city will cost around $1000 dollars in a month. This is the average rate for rental buildings for small businesses in the city. Further, other expenses will go to hiring qualified staff to meet the needs of the consumers and the mission of the business as well. Most of the initial expenses will go to the development of the systems to support consumer needs and infrastructure needed to set up the restaurant. Hiring professionals in the modern age is an expensive situation which the business must undertake. This involves vetting of resumes and experience that different applicant have. the hiring process will keep in mind that that the restaurant must have internationally oriented staff who are capable of meeting international standards that are to be in line with the needs of foreigners in the country . Hiring such staff will need the engagement of qualified hiring personalities who will ensure that only the best are hired for the job. Hiring costs are expected to cost the venture an approximated amount of $ 50, 000. The amount is justified due to the current wage rates in the country and also expectations of employees working in the industry. The highest costs will come from buying of equipment needed to start the business. First, the business requires infrastructure to facilitate its activities. Starting a restaurant requires setting up of infrastructure that will attract consumers and also facilitate their comfort. .setting up the infrastructure will cost around an estimated $ 150,000 which will be sourced from differ partners. The restaurant industry in the UAE is a competitive one. As a result, marketing and promotion will be essential for its survival. $ 50,000 will be used for advertising and promotion of the business. In the contemporary business world marketing has become an essential tool to facilitate business survival and prosperity. The online platform offers immense opportunities for growth and the business intends to invest heavily in this sector. Consumers can make online orders and have them delivered to their doorsteps. The online platform offers immense opportunities and the capability of growth if key competent areas in the sector are to be exploited. In terms of projections, the first six months of operations are expected to generate enough revenue to have the venture break even. Due to the demand and business strategy, the business will have consistent consumer patterns that will facilitate this. The need for such facilities in Dubai has been on the rise and the timing of the venture is strategic in solving this problem. In future, the long term business plan is to expand into other cities in the country that have similar challenges. This will keep in mind the competition that large scale and multinational fast food companies have established. The selling brand of the business is uniqueness and ability to satisfy consumer needs from diverse origin in different parts of the world. The venture also seeks to open outlets in major cities in the country in its expansion plan within the next few years. This will depend on initial performance of the venture in its initial location. Supporting documentation In order for the business to be registered as a legitimate one, the business will be required to meet standards of a fast food outlet in the country. This will be negotiated with relevant authorities in the country. Further, business documents to support the initiation of the business will be relevant as well in gaining the support of investors and individuals who would want to be part of the venture. Documentation processes would require following of set up procedure and rules according to authorities in UAE. Works cited Boone-Heinonen, Janne, et al. "Fast food restaurants and food stores: longitudinal associations with diet in young to middle-aged adults: the CARDIA study." Archives of Internal Medicine 171.13 (2011): 1162. Trainer, Sarah S. "Body image, health, and modernity: women’s perspectives and experiences in the United Arab Emirates." Asia-Pacific Journal of Public Health 22.3 suppl (2010): 60S-67S. Read More