Dubai: Ruwad Establishment is providing Dh1.5 million to fund four new Sharjah-based small businesses in an effort to develop an environment of entrepreneurship among Emiratis, according to Ruwad Business Development Manager Khalid Makled.
"We are ready for any support, financial or moral," said Ruwad Chairman Ahmad Mohammad Al Midfa to the four business owners in a meeting where Gulf News was present. "We don't want any of the projects to face obstacles."
Ruwad sets three main selection criteria to fund small businesses: A logical business plan; a market ready for growth and absorption of new ideas; and an applicant with solid business skills — willingness to learn and deal with problems, and entrepreneurial experience.
Makled added there was only a 10 per cent failure rate among businesses selected by Ruwad for funding.
"The world economy is heading back to basics, back to businesspersons," said Makled. "Assets should belong to the people not governments and so these projects have to be funded."
Through its financial support for small businesses Ruwad aims to create an entrepreneurial environment in the UAE, encourage creative business ideas, and stimulate growth of industries, specifically infotech, Makled said.
Dr Nouf Al Raeesi, one of the small business owners funded by Ruwad and a second year plastic surgery resident in Dubai Health Authority, was given Dh300,000 for her laser treatment project — the first phase of a Dh650,000 beauty centre. The rest of the start-up capital will come from her own pocket, she said.
Al Raeesi said Ruwad assisted her in preparing everything from a feasibility study to a business plan. "In every business there are worries but mine were minimal because everything was studied and the gaps plugged," she said.
"I benefited greatly, I didn't know how to draw up a business plan. Before that I went into the project blindly," she said. "It's not just about the money, the business plan was messy and they arranged everything in order."
Al Raeesi noted that government authorities needed to facilitate easier business procedures for small businesses including licensing, registration, and bank loans.
Khalid Eisa Al Midfa, another small business owner, was given Dh200,000 by Ruwad to fund his Dh1.46-million project to set up a national solar power company. The first phase of the project is an exhibition for solar power equipment from local factories, he said. "The idea is to provide solar power as an alternative energy source and reduce prices for customers," he said, noting that Ruwad provided him with not just money, but also consultation and direction.
