Choosing global MNCs? Try local SMEs instead

Dubai - Small business hub Micropolis aims to be a support network for SMEs in Dubai

Consider this: If everyone in the UAE spent Dh50 per week with small, independent businesses (instead of big brands), an extra Dh475,000,000 would go into the local economy.
Small and medium-sized enterprises (SMEs) are the heart of every economy. However, they face several hurdles in the form of exorbitant rents, set-up costs and trade licence charges. In order to better address these problems, Lucy Bradley, owner of Plug Communications, a web design agency, has formed a hub for small businesses in Dubai, known as Micropolis.
The website intends to provide a support network for SMEs in Dubai and encourage residents to shop local, rather than always looking for the bigger corporations.
"Everyone here is obsessed with brands. We need to make people realise that there is quality in small, independent brands. Small businesses need you," says Bradley.
So, how did the idea of Micropolis come about? It was borne out of frustration at hearing members of a Facebook group recommend products from Amazon over those manufactured locally in Dubai.

Customer service
"The customer service that you would get from a small business would massively outweigh that from a large corporation. Smaller businesses are going to be more concerned about looking after their customers and delivering a good service. People need to understand this," says Bradley.
Micropolis has managed to garner support of over 1,000 small businesses on Facebook within a year. There will be networking events held, where Micropolitans can meet up and recommend each other to clients.
"We might have a voice. At the moment, small businesses are seen as not so important. But, they play a very big role in the economy. If you don't support small businesses, they might not be around. Then we will be forced to go to the large corporations and pay more money," she points out.
However, SMEs face several stumbling blocks. A few of these include prohibitive set-up costs, high rents, visa and medical costs and soaring trade licence costs.
"These are massive costs for small businesses. That's why it is so vital that people use them and support them in any way they can," Bradley adds.

Social media
Lacking generous marketing budgets unlike MNCs, small businesses resort to social media to promote themselves and send out news letters targeted at their database.
She also cites the high-handedness of banks who refuse to offer loans and credit cards to SMEs. "Banks don't take you seriously. We got turned down for a credit card. They took a look at my website and noticed that we have five employees. They didn't have access to any of our records. They see small businesses as a risk. That attitude needs to change. This is a whole sector that they are dismissing because of their paper pushing mentality," she adds.
The founder of Micropolis urges customers in the UAE to make better informed purchasing decisions. "People think if it's handmade, it should be cheaper. Most cheap clothes you buy from big department stores are mostly manufactured in sweatshops by under-aged girls. If you buy from a local SME, you are paying for the expertise," she concludes.
- deepthi@khaleejtimes.com