Factors Leading to Sustained Growth of SMES in the U.A.E: A Concept Paper

Abstract

Purpose: Small and Medium Enterprises (SME) engaged in the business of Trading and Distribution in the United Arab Emirates are characterized by fluctuations in the business performance and growth. Even though 95% of the businesses in the UAE are SME sector, the variations in the growth pattern lead to various challenges which the owner/manager sometimes fails to handle well. The aim of this concept paper is to identify the factors contributing to the sustained growth of SME business in the UAE. Approach/Methodology/Design: The research problem for this study is “how to ensure sustained growth in business for Small and Medium Sized Enterprises in the United Arab Emirates”. The other studies on SME business have focused on SME performance but have not specifically focused on sustaining the performance and growing over a long period of time. This research will specifically focus on the factors contributing to sustained growth and this will be ascertained through quantitative survey of various SMEs in the UAE. Findings: This research aims to find the success factors which can be useful to the SME sector of the UAE in order to achieve sustained growth in business. As a result of this study, a possible matrix will emerge showing a framework to be applied for sustained growth of business for SMEs. Practical Implications: Sustained growth and longevity of the business remains the most important dream of every SME owner/manager, and the final recommendations of this research will result in a framework which would help SMEs in the UAE to have a sustained growth in business. Originality/value: The specific objective of this research is to find “factors that contribute to the sustained growth in business”. This would ensure that, despite the vagaries in the business environment, the SME owner will continue to have a stable business with sustained growth over a long period of time.