Importance of Entrepreneurship in the Growth of UAEs Economy

Question: Discuss about theImportance of Entrepreneurship in the Growth of UAEs Economy. Answer: Introduction This report will basically describe the importance of the entrepreneurship in the development of national economy. For the study, the country United Arab Emirates has been taken. UAE is one of the countries which have highest per capita income in the world. The country has also highest standard of living in the world. The reason of high per capita income is the discovery of oils by the country. The citizens of the country get benefit from this growth of high per capita income. There are supportive government policies, high public sector salaries, education allowance, no-tax system and other welfare schemes by government that support the growth of United Arab Emirates (Schoof, 2006). But, there are various social, cultural and education related factors which are the reason of unemployment and low participation in private sector among the citizen of United Arab Emirates. So, the vision of the country is to diversify its image of being oil-based economy to education-based economy. In th is framework, entrepreneurship is the most important factor. Entrepreneurship can be seen as the most valuable strategy for creating job and economic dependence for young people of the country while building an education based economy. The aim of this report is to understand the importance of entrepreneurship for national and global development (Saddi, Youssef Soueid, 2011). Understanding Entrepreneurship Entrepreneurship can be described as the process by which an individual become aware of business ownership. This is the process of developing ideas, learning to become entrepreneur and taking the initiation of development of a business. Basically, entrepreneurship is an idea of starting a business and willingness to work hard. So, entrepreneurship can help the individual, organization, family, and society to convert opportunities into actions (Hristoforova, 2011). The relationship between entrepreneurship and growth of a countrys economy has continuously gained lots of interest from economists over the years. Entrepreneurship also introduces improvements in the economy that impact the growth of the country over the time. In the context of UAE, there is around 42% of age-group of 15-34 of total UAE population it means there are around 40,000 people falling in this age-group. This huge young population is significant for the country to develop the economy (Salem Mourtada, 2012). Importance of Entrepreneurship for National and Global Development There is a great importance of entrepreneurship in the development of national and global economy. In the developing countries such as United Arab Emirates, Netherlands, Saudi Arabia etc, this is a very important aspect for the economy growth. Entrepreneurship not only helps in increasing the economy growth but also improves many other factors. In the context of United Arab Emirates, the unemployment is the major issue which leads the country toward the entrepreneurship strategy (Hofer Delaney, 2011). The global entrepreneurship monitor (GEM) shows that the UAE is focusing on innovative driven economy by using Total Early Stage Entrepreneurial Activity (TEA). Now, the TEA score of UAE is lower as compared to other countries such as Australia, Netherlands etc. From many years, entrepreneurship has played a key role in shaping the countrys economy (Welsh Assembly Government, 2010). This is an important factor which makes the country as a fastest growing country in the world. Entrepren eurship creates many job opportunities for the citizens of the country. It can be measured by the increasing rate of employments. In United Arab Emirates, the situation is very similar. There is unemployment and it is the need to focus on Entrepreneurship for creating the job and employments. Entrepreneurship is like an engine of economic growth of the United Arab Emirates because it can be used for the expansion and promotion of productive activities of economic life in every part of the country (Kargwell Inguva 2012). Arguments towards the UAEs Innovation Practices In present time, there is large growing population in the UAE and it is important to create jobs for the population of the country. The aim of the UAE is to encourage entrepreneurial activities within the country. The government is planning to improve the business environment through legislative reforms. The UAE is trying to reduce the image of oil based economy and the young population of the country is presenting opportunities to create high-value added employment for the emerging generation. In this context, promoting entrepreneurship among the population of UAE is the best idea for creating job opportunities. Entrepreneurship can be developed by the policies of government such as education and skilling, human capital development etc (Lee, Chang Lim, 2005). Conclusion From the above discussion, it has been analyzed that UAE is one of the countries which have highest per capita income in the world but there is unemployment and low participation in private sector among the citizen of United Arab Emirates. So, entrepreneurship is the most important factor to create the employment in the country. Entrepreneurship can be helpful for the individual, organization, family, and society to convert opportunities into actions. Entrepreneurship is very important in the development of national and global economy. For the improvement of Entrepreneurship, there must be promotion of entrepreneurship education at all the levels. Although a number of classical factors of economic development influence entrepreneurship in UAE, it remains as one of the key factors that influence economic development of a nation. Entrepreneurship can be seen as the most valuable strategy for creating job and economic dependence for young people of the country while building an educatio n based economy. The government support related to entrepreneurship should be introduced to general public. In the conclusion, it can be said that entrepreneurship is very important process for developing the economy of the country. References Saddi, J., Youssef, A. Soueid, R. (2011). Accelerating Entrepreneurship in the Arab World: World Economic Forum and Booz Co. Schoof, U. (2006). Stimulating Youth Entrepreneurship: Barriers and incentives to enterprise startups by young people. SEED Working Paper, International Labour Organization. 76 Salem, F., Mourtada, R. (2012). Arab Social Media Report. Dubai School of Government. 2 (1) Hristoforova, T. (2011). EU Best Practices: Initiatives in Development and Promotion of Youth Entrepreneurship Hofer, A.R., Delaney, A. (2011). Shooting for the Moon: Good Practices in Local Youth Entrepreneurship Support. OECD Local Economic and Employment Development (LEED) Working Papers Welsh Assembly Government. (2010). Youth Entrepreneurship Strategy: An Action Plan for Wales 2010-15 Kargwell. S, Inguva S. (2012). Factors Influencing the First Generation Entrepreneurs: An Analytical Study on the Graduates of UAE Universities: International Journal of Business and Social Science. 3 (7) Lee, S., Chang, D., Lim, S. (2005). Impact of Entrepreneurship Education: A Comparative Study of the U.S. and Korea. International Entrepreneurship and Management Journal. 1