Dubai's SME and Expo 2020

¶ … Expo 2020 to Small Scale Business in United Arab Emirates

The Expo 2020 will have an enormous economic impact on the Emirate of Dubai since they won the bid to host the convention. Dubai's is a nation with an economy that is not very diverse. The country depends on several factors to keep the economy stable, and these include tourism, the real estate sector, and the financial services sector. Due to this it is understandable that Dubai's economy could easily come under heavy pressure from external factors. The 2008 and 2010 economic crisis demonstrates this point clearly as the housing bubble declined and pulled Dubai's economy down with it.

The Expo 2020 is a great benefit for Dubai since its economic implications will lift the financial sector for both Dubai and the UAE. Travelers from all over the world will come to see the Expo and is thus a great opportunity for foreign investment to grow. Another obvious perk is that these visitors will be spending very large amounts of money in Dubai. This will provide a much needed boost in the economy, specifically in the hospitality sector. Those businesses which provide accommodation for tourists and visitors will benefit greatly from the Expo 2020. Infrastructural development is also a sector that the Dubai government is hoping will grow during the event, and as a result they have invested very large amounts of money in expanding the industry for the expo (Dokoupil & Menon, 2013).

Even though the Expo 2020 comes with great economic benefits, it also carries certain financial risks with it. The most severe risk is the possibility that the other sectors of Dubai's economy will be cut across by an economic bubble. Housing prices have inflated greatly since the announcement of the expo being held in Dubai, and the stock market is sharing the same trend. Unstable and unsustainable prices are permeating Dubai's markets right now, and could eventually cause a great collapse which would lead to an economic depression (Mustafa & Crompton, 2013). This would additionally lead to Dubai ceasing to be as competitive of a city and foreign investors might choose to go elsewhere.

The build up to the Expo over the next six years will greatly benefit the SME's. Additional FDI's (foreign direct investments), skilled labor, and more business will be attracted to Dubai's increasingly competitive business arena as the Expo comes closer. An approximate number of 200,000 new businesses will be founded by 2020 (Walid, 2015). Due to this many of Dubai's entrepreneurs feel like privileged stakeholders and important agents in the government's goal to boost the national economy and create a thriving environment in which both small and large businesses can flourish. However, these industries do realize that their fate is their own and that only their own hands can help build a successful enterprise (Yahoo News, 2013). The travel industry is a big sector in the Expo as over 25 million visitors will come over the half year prior to the Expo (Dubai Chronicle, 2015)

History of Expo

The World Expo has proved to be a highly fruitful achievement throughout its history. It is a reflection of man-kinds deep understanding of economy, industry, science, technology, culture, and ethnicity. Its history is a history about cooperation, of people joining together and collaborating in order to advance civilizations industries. In a way, the Industrial Revolution really paved the way for the modern World Expo that we know today. The World Expo features various achievements held by the different participating countries. The very first expo is recognized as the one held in London back in 1851. This was called the Great Exhibition of the Works of Industry of All Nations. The event lasted for a total of 160 days and included 10 participating countries. The entire event attracted roughly 6.3 million visitors. Later, the Chicago Expo in 1993 was another defining moment in the development of the World Expo. It was held in a very historic and sensitive time in America that was just starting to emerge from the Great Depression. The city celebrated its 100th anniversary with 47 participating countries and over 38 million visitors present. A Century of Progress was the explicitly given theme that expo received, and it has become the official theme and staple of the convention. It also started the tradition of large scale companies building pavilions at the convention site. The Expo allowed for certain large businesses such as Ford, Chrysler, or GM to build dedicated pavilions. This practice became greatly appreciated by both businesses and visitors (Mohamed bin Rashid, 2011).

The first World Expo following World War II was held in Brussels in 1958. The convention took place during a time when people where still living in rubble and trying to recover from the war. Another theme was therefore added to the expo: A World View - A New Humanism. A shift to a higher focus on humanism is what this new theme symbolized. The Atomium was a huge structural model depicting atoms which became yet another symbol of this theme. The structure represented the ability man has to use power in a peaceful and safe way. This was of course a reference to the atomic bombs and their devastation towards the end of the war. Japan, a defeated country, started focusing heavily on economic revival and national development following the war. A major progress point for the country came when they were allowed to host the 1970 Expo in Osaka. This drew the attention of over 64 million visitors and 76 countries. This was by far the largest turn out throughout the World Expo history, and became a massive success for Japan and their economy. Transportation, residential communities, tourism, cultural exchanges, and business facilities all received wonderful improvements due to the success of the expo. It also marked a milestone as the first expo ever held in an Asian country (Mohamed bin Rashid, 2011).

The respecting of nature was a growing trend as the 20th century transitioned over towards the 21st. This in turn led to the expo also become significantly more environmentally concerned. Ecology and environmental protection became big issues and inclusive themes in the convention. People's yearning for peace had become intensified due to the numerous wars behind them. Because of this, the World Expo came to be viewed as many as a bridge between cultures and peoples that could eliminate conflict, provide protection, and sort out misunderstandings. The current scope of the theme led the Hanover Expo of 2000 to choose protection of resources as a major issue. This fit the line of the current trend very well. In similar lines, the Aichi 2005 Expo in Japan chose Nature's Wisdom as its theme. It reflected both global and individual attitudes and perspectives in regards to society, nature, and the future. The Zaragova Expo of 2008 followed suit with a large focus on water and the human society's dynamic relationship. The Zaragova Expo had a profound impact on the globe due to its supportive program on water and sustainability (Mohamed bin Rashid, 2011).

The 21st century Expo organizers desire to demonstrate the processes through which humans connect with nature using technology and wisdom. As in the past, the 21st century Expo will also promote peace and unity throughout the world. The World Expo will continue to have a profound impact on history and it has started with the 2010 Shanghai China Expo with the theme: Better City, Better Life (Mohamed bin Rashid, 2011).

Objective of the research/survey

The primary purpose for this research project is to examine and evaluate the implications tied to small scale businesses before and after the Dubai 2020 Expo.

Research Problem (Statement of Problem)

The problem to be studied is regarding whether or not the Dubai 2020 Expo will have negative or positive effects on the small scale businesses in the UAE.

Hypotheses

The hypothesis for this project stands as such: That the Dubai 2020 will provide positive and long lasting effects for the small business owner.

Limitation of the Study

Through have the purpose of lowering all chances of erroneous replies, Saunders et al. (2012) recommends that detailed deliberation of both rationality as well as consistency be offered by the researchers in regards to the strategy of the project. Dissimilar researches gaining similar deductions have to be taken into account when determining reliability of a study. All in all, the exactness of the computing stratagem demonstrates difficulties and quandaries present when considering the limitations of reliability (Bouma, 2010).

In support of this position and opinion, Saunders et al. (2012) claims that the apprehensions of predispositions can be connected to reliability and exists in two types. Emphasis will be placed on the plan and design of the questionnaire questions so that no prior bias of the researches will have an impact on the individual. Additionally, the researcher will seek to gain the trust of the study participants so as to avoid all suspicion of illegitimacy or of wrongful data collection.

Literature review

Tourists and investors will flock together into the region and boost the local economy which will create a tidal wave of business for small companies as well as the SME's across both the Emirates of Dubai & Abu Dhabi. This will create a large net effect of economic increase for business leaders. Consequently there are a lot more entrepreneurs and business owners looking to participate if the Expo receives its confirmation (Bailey, 2013)

Over 90% of all Dubai's registered companies are SMEs, and they represent 42% of the total labor force. All together they result in 40% of the nation's GDP (Walid, 2015). There is a more optimistic prospect in the future though if the region keeps moving forward and is managed correctly. This would create significantly more opportunities to spend and will stimulate growth of the city towards the inland and the center of the expo (Bailey, 2013)

Opportunities will increase and doors will open during the Expo 2020 that will allow medium and even small sized companies to be big winners. Tourism will skyrocket and as a result, create a huge demand for more products and services across the Emirates. This has led the Dubai chamber to expect over 245,000 new career opportunities to be created by 2023. The numbers of hotel rooms are projected to double by 2020 as the tourism sector booms to Dh143 billion by 2023. Moreover, construction sector and the tourism business will benefit as a natural consequence and so will other industries like food and beverage. Waste disposal management, goods suppliers, and transportation will all feel this increase when over 20 million visitors come over the next 6 years. Additionally, SMEs will have increased opportunity in the IT sector as well (The National Staff, 2014)

Developing competitive advantage

The emirate's strategic growth agenda directed towards the future will be the main focus of the pre-event development of the convention. The Expo 2020 will act as a stimulus in order for the business to improve their competitiveness. Additionally, a faster growth for the business community will be fostered.

Development of business

The enhancement of infrastructure, the hosting of greater employment opportunities, the increasing of global reputation for good, and the economic development of the UAE are all things that the country is set to see during the expo. The Expo's are by far the largest and most well-known events in the world, and as such it is a remarkable opportunity for businesses to embark on new endeavors, seek new opportunities, and fulfill new potential. The Expo will provide business across the nation the very best chance for not only financial development, but also for their strategic operations (IAEWP, 2013). A demand across several different sectors is expected to be seen directly over the following 6 years. This is supposedly linked to the operations, delivery, and servicing needs of the convention. Therefore it should only be natural that business will grow across the wider regions areas. Examples of businesses expected to flourish include real estate, construction, engineering, logistics, transportation, aviation, tourism, and hospitality (Algethami, 2014).

High competition in pricing and branding of products

The success of Dubai in securing the place as host for the World Expo 2020 will serve to drastically increase the job market competition. For some this will mean a huge benefit of salary raises (Maceda, 2013). Since it has been forecasted that thousands of new job are to be created, people will flood in from all over the world in hope to secure a new career. This inflation of people could result in a tough time for job seekers. The current population of the UAE sits at 9.2 million but is already expected to grow well over 12 million by 2018. Since only a rough 220,000 new jobs are projected to be created, this will cause problems of unemployment. Even though a rough road is projected in the future, the job market of the UAE is expected to become much more competitive.

Availability of funding for small business

The budget for the 2020 Expo in Dubai is solid and straightforward. It is the result of in depth financial analysis. The total budget for the convention tops at 6.4 million Euros which is spread across both long and short-term needs. The Dubai Government is also participating in adding to and financing 5.2 million Euros that is obligatory for operating expenses. These costs are expected to be recovered in full through the revenue of the conventions operations. Since much of the infrastructure and assets that are gained and built during this convention are permanent, it marks the expo as a fantastic investment opportunity for private investors. The volume of interest is already increasing dramatically as many investors are recognizing the large opportunities offered by the Expo. As part of the commitment in creating an Expo that is globally inclusive, and as an event that demonstrates the power of collaboration, a formal outreach institution will be established at a time deemed appropriate. All in all, there are many opportunities available for both private and public investors to participate and gain from the Expo 2020 (Algethami, 2014).

The result of all this is a government invested budget of at least $8bn in projects aimed at the convention which includes: infrastructure, such as seaport and airport capacity; new roads, highways; and finally a boost of water units. Additionally, the private sector will gain greatly from the event and will stimulate investors to spend in leisure, residential, commercial, as well as the hotel industry. The existing $11bn of opportunities is highlighted in the report in addition to the $6-$8bn worth of projects instigated by the government. Together they will deliver the Expo to the world (Business Wire, 2014).

The small scale business will play an important role in the economic development of UAE during Expo

Reading up on and reviewing how previous Expos have contributed in boosting the local economies of the host is a suggestion given by Ali Borhani who is the founder of Dubai based Incubeemea. Additionally she suggests visiting the Milan Expo of 2015 in order to gain a greater understanding of what the convention is and how it functions. The World Expo should be a mind-set not an event for business and corporation leaders. The convention can help millions of potential customers connect with a business or an industry, and thus the importance of a good impression can't be overstated. The most significant point for business is that they leave a solid impression with the visitors in regards to what their business strategy is, what matters most to the company, and what their key messages are. If they are successful in this endeavor it could have an immense impact on their future success (Expo Dubai 2020, 2014).

Business Expansion

Never before has an event like this been held in the Middle East, Africa, or even the Southern regions of Asia. The Expo 2020 in Dubai marks itself as a historical land mark purely because of its location. The excitement for the expo is therefore not only contained to the UAE, but neighboring countries in the region are hoping to have their reputations boosted and economies impacted in a positive way as the convention takes place. It has been projected that well over 200,000 jobs will be created in Dubai over the course of the convention. However, for each one of those jobs it is also projected that 50 other jobs will be created in the surrounding regions. The Expo 2020 will leave a strong and powerful legacy in Dubai as an inspiration for the generations of the future (IAEWP, 2013). The implications this economic growth provides for business is that their expansions throughout the expo will not be limited to Dubai only, but rather they have access to the entire region. The collaboration of the expo also means that for many businesses they will have opportunities to create ties and partnerships with investors that can aid the expansion and growth of the company into new sectors. The opportunities for corporations to extend their reach and for business owners to from new alliances are at the greatest during the period of the convention. As for the host and the surrounding region, having the World Expo is an exciting once-in-a-lifetime opportunity to be a part of a in international and dynamic event, and an agenda that aims to enhance collaboration, suture geographical divisions, encourage trade and development, and also to boost economies (IAEWP, 2013).

Small scale business will have a good opportunity to enhance their bottom line during Expo 2020

Which sector of the economy that will gain the most benefit from the Expo is hard to say. History shows that the benefits provided by the expo crosses the entire spectrum of economy. In Dubai's case, we can expect a similar outcome with all pillars of economy receiving gain and support. The particular sectors that we expect to receive the highest benefit include tourism, hospitality, construction, and transportation services (IAEWP, 2013) (Expo Dubai 2020, 2014).

Research is vital in assessing the needs of the consumer base and what market opportunities are available. By entering the Expo 2020 with a previously prepared strategic plan, the company will have a much higher chance of increasing growth and revenue. Also, another important planning detail is the additional resources that would be required if company demand increased. Prior to the event the expo has already had an impact on both consumers and business leaders as their confidence has been boosted. As more and more projects are unveiled for the expo, this trend of confidence will increase. The expectation that sales will increase is held by 51% of traders according to a survey done by the DCCI Dubai Traders Outlook. Companies should already be focusing on what their primary strengths are, and what their core values are so that when the Expo 2020 comes, they are prepared and can align themselves in the proper sector (Expo Dubai 2020, 2014).

The only time a business should step outside of the core offerings that already exist is if they have the capability to lose if they fail. When available, it is recommended for businesses to align and partner up with government to take on various projects, or at least in proposing projects that would benefit the Expo (Expo Dubai 2020, 2014).

277,000 new jobs are expected to be created in the run up to the convention. Roughly 40% of these jobs will lie in the restaurant and hotel sector, and 30% will lie in construction. The peak of this job creation run will occur in 2018-2019. The final 30% will lie in other tertiary sectors such as retail, transportation, logistics, and various other business services. The businesses that operate in these sectors will need to take extra measures in preparation to meet new requirements. New strategies and massive planning will need to be done to gain the most out of the Expo. Marketing will also become an important thing to consider as job competition grows and media coverage increases (Expo Dubai 2020, 2014).

Methodology

Answering, understanding, and exploring the behavior observed and analyzing it through unstructured data is a part of what defines quality research. Numerical data is in this case dropped in favor of linguistic data. This type of research also tends to hold more bias then numerical studies do. Still, the linguistic data study seems more able to define events in actual language. Examining information straight from the source and collecting important data are both benefits of these research methods. Qualitative research includes many different strategies and methods while gathering data. It could be done through a questionnaire which involves reasoning and thought. This is one of the more efficient methods and provides first hand data from the source of our interest. They are significantly more time consuming though than numerical research (Saunders et al., 2012).

Research Strategy

Saunders et al. (2012) stated that the key components of any research strategy institution and layout clarifies the methods and processes that are used throughout the gathering of data, and this will in turn provide the researcher with assistance in achieving his or her objectives; to describe all resources necessary in the collection of information as well as the description of limitations and challenges present in the project.

The survey technique is most likely the best and most rewarding study method in a project like this. Throughout time, this method of data collection has proved to be one of the most efficacious techniques in regards to any sort of social investigation or study. Distributing questions to a specific target group or audience with well formulated questions are both ways in which this research method assists the researcher. Questionnaires and interviews are both viable methods in data collection and the researcher will have the ability to select information from both of the dissimilar techniques (Trochim, 2006). Trochim (2006) undertook a study that showed that surveys are incredibly flexible in allowing for wider responses that encompass a bigger range of information than a numerical study can achieve. This is exactly what makes the survey methodology superior and what allows it to be suitable in this form of research

Time Horizons and Research Type

The effects and implications of the World Expo 2020 that will be held in Dubai is the primary purpose of this research investigation. It is to examine the impacts of the expo specifically on small business before, during, and after the Expo has occurred. As a portion of this research is the consideration of the discernments and options of the general public without regard to gender, age, or nationality. Likewise, the general public's opinions will be considered before and after the expo as well. This is what will be accounted for when constructing quality questionnaires over a relatively short period of time, and as a result this study will become cross-sectional. The research can be defined as the examination of a specific event over a certain time period (Saunders et al., 2012). The currently known and understood progressive approaches will be taken into account for the study.

Fact-finding as well as experimentation comprises the general setting of the study, and this allows the researcher to mix the inquiries up in order to receive a more comprehensive, flexible, and profound methodology in collecting the information required to answer the study's purpose. This is vital and highly useful since it allows the researches flexibility to react to unforeseen data. A common misconception related to this methodology is that surveying often leads to nothing and has no true purpose. However, focusing in on main objectives and receiving conclusive data is one of the many strengths of this methodology (Saunders et al., 2012).

Data Collection Methods

Understanding the various features of a social setting including the philosophies, considerations, customs, and ideologies that go along with it is the intention and aim of qualitative structure according to Bouma (2010). Saunders et al. (2012) adds that the qualitative nature of the methodology allows the researcher to presume and assume the numerous unceremonious and mutual relations between the various features. They also ascertain that the viewpoints and partialities of the findings of the model being sampled is yet another thing that the researcher can understand better through the assistance of the qualitative method (Saunders et al., 2012).

The benefits of the qualitative kind of study and research have been highlighted. For instance, the researcher may, throughout the process of gathering and changing data, adapt to the constant evaluation and analysis he or she is receiving (Bouma, 2010). Another advantage that often gets overlooked is the relationship that the researcher gains with the subjects of the study, thus they can make better judgments in analyzing the data (Bouma, 2010). Finally, the significance of the qualitative layout is highlighted in the benefits it provides social arrangements as the general methods, resolutions, and predispositions held by organizations can't simply be determined through an equation (Yin, 2013).

The vital foundation for the gathering of all necessary data needed to complete the study's objectives is employed through the ideal and tentative format of the questionnaire. It has been demonstrated and proven that the format of the questions on the questionnaire is vital in the sense that they need to encompass the entire range of the research studies purpose. Additionally, designing well-thought out questions that are neither offensive nor imposing will result in a more authentic and transparent response by the study's subjects.

The questionnaires

There are three ways that the main purpose of the questionnaire is to be achieved. The first point is that the questionnaire aids the researcher in the gathering of information and all related statistics, and also that it helps provide a better awareness and insightfulness regarding the predispositions, standpoints, bias, outlooks, and philosophies held by the subject (Tuckman, 2012). Second, another way it will provide assistance is through the validation, understanding, criticism, and ascertaining of results or conclusions that have already been made, and also the ability to incorporate new conclusions into the study. Finally, the process of distributing questionnaires can be combined with many other forms of research methodology and offer up a new and wide variety of scopes and perspectives that had not previously been considered (Kerlinger, 1999). This will help the researcher gain understanding regarding as to why the subjects are responding as they are, and also what circumstances led to the conclusions of the study.

In this case, the questionnaire will be designed and used in a fashion that allows for the gaining of a more adaptable and comprehensive data that would be impossible to gain any other way. The first step in becoming familiar with the nature of a structured questionnaire is to describe them.

All subjects in the study will be given hand outs and instructions as to what the arrangement and layout of the questions are so that they can become used to the theme and accustomed to the subject being studied. The format of the questionnaire will be strict as to allow the subjects limited freedom and discretion to answer whatever and however they desire. At the end of this process a report will be created so as to perform unbiased and highly effective deductions of the information received. Also, it is vital to confirm and ensure that discretion and anonymity of the subjects be maintained since the matter is of a serious and complex nature, and also since confidentiality was requested (Saunders et al., 2012).

Sampling

The sample size for the group that will carry out this survey will be rather small. This is because of information received from Saunders et al. (2012) who states that a smaller sample group could be far more appropriate when considering context for particular backgrounds or phenomenon.

As a result of the small sample size, the study will use a more judgmental sampling method that allows the researcher to pick the most fitting subjects for the study (Saunders et al., 2012). Sampling in this way allows for the creation of a diverse and fully informational research study to be performed. The sample has not been predetermined and will only be determined after the researcher enters the field. Although, according to Saunders et al. (Saunders 2012), the whole population could not be considered for use in a sample.

A non-random sample may be selected in the case of certain problems arising such as workers showing an inability or lack of desire to cooperate. In that case the subjects will be chosen and identified through connections through the societal enclave, and the study will be put together with the help of societal networks.

Analyzing the questionnaire

Remember that a standardized method of quantitative techniques is not how qualitative data is gathered. The data that has been collected must be split into various categories and examined thoroughly. Again, even though there are diverse strategies, tactics, as well as research customs, there is no one method that has been standardized for analyzing qualitative data (Saunders et al., 2012).

The course of action to be taken in this study regarding data analysis is reliant upon hypothetical propositions, and that means that the study will pursue the original proposition on which the designs of the case study were founded and on which the aims and objectives lie (Yin, 2013). The first step in analyzing the data to fulfill the study's goal is to classify all information into identical orders in the same way that the theories are described in the literature review. After that in the discussion chapter an attempt to explain the purposes and questions that have been researched will be done (Saunders et al., 2012).