Providing small units a much-needed support system

Dubai: A business grouping with the widest possible regional representation is all set to play the matchmaker. The Arab Business Club is extending its knowhow and support to businesses and investors who are struggling to cope with the pressures of the global economic slowdown.

"What we are doing now is try to help small companies that are suffering a credit crunch and can't survive in the market on their own," Hamdan Mohammad, president of the Arab Business Club told Gulf News.

"We will find them a strong counterpart as a back-up partner to keep the business running."

If the move proves successful, it will create a mentoring programme that is unprecedented in the Arab world. In the past, small businesses were largely left to fend for themselves and had no recourse to a safety net if something went awry. Not so any longer, according to Mohammad.

"The financial crisis hits many entrepreneurs hard, but with the Club's network you still have a chance to safeguard the business. We did merge three companies in different activities and there are others in the pipeline, most of which can be classified as small businesses. Also, we help businesses cut down their costs by providing facilities such as shared offices," he said.

Networking platform

Conceived as an international networking platform for professionals and business leaders in the Middle East, the Arab Business Club was launched in 2008. It has since grown to 8,000 members, 1,200 of whom are Arab nationals, with the Club bringing together a whole host of businesses cutting across industries.

There are, Mohammad added, members who would want to buy or invest in a running business. The Club can facilitate such a transaction by offering its services for fees that would not be more than 2 per cent of the capital of the business concerned. Mohammad was quick to point out that the charges are extremely "reasonable".

"We find that owners who do not have access to specialist consultancy are losing out on a lot when selling or buying in a difficult financial situation," he said. "The Club can bring its skills and market awareness to help them."

Physical presence

That's as far as its consultancy goes. Just the physical presence will help foster a platform where members can share their experiences for the greater good, stimulate new ideas and open minds to new business possibilities. And the Club is only too willing to reach out to non-members as well.

Mohammad Shadi Hamwi, who owns an engineering consultancy and interior design firm, First Art, suggested the Club is not only a channel to boost a business' reputation and gather leads, but useful when it comes to improving the actual performance and develop value-added skills.

"We are in the middle of [a] tight economic situation where a good number of businesses are suffering and many quit from the market," said Hamwi. "But with the benefits the Club provides, owners can actually work on expanding their markets by generating new contacts with potential customers, suppliers and partners."

Another benefit for a member is the networking opportunities and, through them, a chance to raise his profile among a peer group. "It is not well known that most new business your company gets is through the word of mouth," said Hamwi.

"Networking allows you to formally explain what your business is about. As others get to know you, naturally these are potentially new sales leads because people like to pass business to someone they know."

Benefits of networking

Scott Crawley, who has been in the catering line for over 20 years and as head of his own company in the last six, confirmed the benefits from networking. "You get to meet a lot of people from other walks of life who will inevitably be able to help solve some of your problems," he said.

"And you will be able to do the same — it's all part of the relationship building process. At the end of the day it's these relationships that count when recommending someone's services."

While the Arab Business Club focuses its attention on providing a support system for its members, it is also working on directing prospective entrepreneurs to new opportunities.

"Getting to know others will open yourselves to new businesses possibilities and perhaps a new venture that never came to your mind," said Hamdan Mohammad, president.

The Club will then pitch in with trying to find a local sponsor for the business licence. "We are moving towards becoming the leading business networking club in the Arab world - online and offline," Mohammad added.

"The people you meet at our events are not someone you don't know, but new friends whom you haven't met yet!"

Another initiative from the Club to ease the way for start-ups is through alliances with other business councils or industry groupings for the mutual benefit of all.

"There is a big misconception about Arab culture and though the Club we are able to promote the right image to foreign businessmen and women."

On a parallel track, the Club is working on raising the profile of female entrepreneurs within its ranks. "The women's division in the Club has been a key part of our strategy from Day 1, and we are thrilled that it has finally materialised," said Mohammad.