The Influence of Government Support in Creating New Business Success Venture

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Nov 24, 2024

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1 The Influence of Government Support in Creating New Business Success Venture Student’s name: Professor’s Name Couse Code: Name Date

2 Contents Introduction ............................................................................................................................ 3 Qatar's Economic Context ....................................................................................................... 4 Government Initiatives and Policies ........................................................................................ 6 Qatar Development Bank (QDB) Role in Economic Development ........................................... 7 Challenges faced by businesses in Qatar as they set up .......................................................... 8 How the Qatar Government compares with other governments in supporting entrepreneurship ................................................................................................................................. 9 Conclusion ............................................................................................................................ 10

3 Introduction Qatar, an emerging nation in the Middle East, has acknowledged the significant importance of entrepreneurship in economic diversification. The present research article explores the diverse techniques and policies employed by the Qatari government to facilitate the establishment and expansion of nascent entrepreneurial endeavors. This exploration is set against Qatar's economic environment, complementing the government's measures. The government exerts a substantial influence on the outcome of new commercial ventures. According to Wijaya and Nuringsih (2022), reasonable government assistance significantly increases the likelihood of success for new businesses. The primary factor contributing to this phenomenon can be the government's role in establishing a stable economic and political climate conducive to the prosperity of businesses. The Qatari government formulates legislation about entrepreneurship inside the country. These regulations serve the purpose of promoting equitable competition, preventing excessive taxation, and maintaining domestic tranquility. One further method via which a government can exert influence on a developing firm is by implementing various incentives, including tax reductions targeted explicitly at startups and enterprises controlled by young individuals. Furthermore, governmental bodies may facilitate access to financial support for these emerging initiatives by collaborating with state-affiliated banks, such as the Qatar Development Bank (Qatar News Agency, 2023). The objective of assisting emerging enterprises is to incentivize individuals involved in business endeavors and foster a broader entrepreneurial mindset within the population. Likewise, the significant backing of the government is evident in its efforts to safeguard emerging enterprises from the influence of international investors. Multinational corporations operating in Qatar often enjoy several benefits, including financial advantages, a globally

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4 recognized brand image, and a competitive edge. However, the government takes measures to prevent these companies from exploiting their capabilities to the detriment of local startup enterprises. This objective is accomplished by the establishment and execution of a regulatory framework that emphasizes supporting domestic enterprises and fostering a level playing field for both local and global corporations (Hassen, 2019). As an illustration, the government provides complimentary training workshops, benchmarking visits, and bilateral discussions for emerging small and medium enterprises (SMEs) through Qatar Science and Technology Park, a state agency (Qatar News Agency, 2023). Hence, the impact of governmental assistance on nascent enterprises constitutes a determinant of their overall performance. Qatar's Economic Context Qatar has experienced a substantial metamorphosis in its economic environment in recent decades, characterized by a purposeful departure from dependence on hydrocarbon resources. In the past, the nation's economy thrived on exporting natural gas and oil, significantly contributing to its substantial economic expansion. In light of the vulnerabilities inherent in a mono-sectoral economy, Qatar has diversified its economic activities strategically. The hydrocarbon industry continues to be a critical pillar of Qatar's economy, significantly contributing to the country's Gross Domestic Product (GDP) and government revenue.

5 Figure 1: Startup Revolution: Top 3 Industries in Qatar Qatar has endeavored to reduce the potential hazards linked to the volatile worldwide energy market by making proactive investments in alternative industries. Qatar's finance and banking industry has experienced notable expansion, positioning it as a prominent financial center in the region. The Qatar Financial Centre (QFC) facilitates a dynamic and competitive economic environment by acting as a platform for international financial institutions. This strategic move toward diversification is consistent with Qatar's goal of transitioning into a knowledge-driven economy. Furthermore, the nation has acknowledged the capacity of innovation and technology to stimulate economic expansion. To cultivate a culture of innovation and entrepreneurship, efforts have been made to promote research and development by establishing initiatives such as Qatar Science & Technology Park (QSTP). Qatar's emphasis on technological progress shows it participates in the worldwide knowledge economy.

6 An additional crucial element of Qatar's economic diversification strategy is the tourism sector. The government has made substantial investments in the highest caliber infrastructure development and in hosting significant events, including the FIFA World Cup 2022. These endeavors aim to establish Qatar as an appealing tourist destination, enhancing the hospitality and service industries and luring international visitors. In summary, Qatar's economic environment demonstrates a purposeful and strategic effort to reduce its reliance on hydrocarbon resources by diversifying its sources of income. The comprehensive strategy, which includes finance, technology, and tourism, demonstrates the administration's dedication to constructing a sustainable and robust economy in the face of worldwide economic unpredictability. Qatar's diversified economic terrain fosters an environment that is particularly advantageous for the expansion and prosperity of novel business enterprises. Government Initiatives and Policies Efficient registration procedures and favorable regulations for investors characterize a legal framework conducive to business formation in Qatar. In addition, the Qatari government offers businesses a comprehensive financial support infrastructure comprising subsidies, loans, and grants. Conversely, accelerators and incubators are indispensable in fostering the growth of ventures. Qatar's endeavors in this domain, which prioritize expansion and ingenuity, substantially contribute to the entrepreneurial ecosystem. The success tales that arise from these programs serve as prime examples of their influence on emerging businesses. Government-funded training programs guarantee that entrepreneurs are equipped with the requisite expertise and competencies. Partnerships with educational establishments augment the

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7 labor force's competencies, ensuring that they remain abreast of the ever-changing requirements of the corporate landscape. Figure 2: Business Growth In Qatar Qatar Development Bank (QDB) Role in Economic Development Qatar Development Bank (QDB) actively supports the growth of businesses, especially newcomers and small and medium-sized enterprises (SMEs), playing a crucial role in Qatar's economic development. QDB functions as the principal development finance institution in the nation, stimulating the process of economic diversification. QDB offers financial aid via various programs, providing entrepreneurial endeavors with funding alternatives such as grants and loans. QDB fosters an environment conducive to sustainable business development by facilitating capacity-building programs, mentorship, and market access. QDB actively supports Qatar's overarching economic vision by emphasizing critical industries and strategic undertakings. The scope of its function surpasses conventional banking operations,

8 as it incorporates a holistic strategy to promote innovation, generate employment opportunities, and sustain the entrepreneurial ecosystem as a whole. Consequently, QDB substantially impacts the resilience and success of new business ventures in Qatar. Figure 3: Qatar’s Entrepreneurship Ecosystem Challenges faced by businesses in Qatar as they set up Despite the diligent endeavors of the Qatari government to establish a business-friendly environment, several obstacles endure that have the potential to influence the functioning and expansion of enterprises within the nation. Even with advancements, bureaucratic procedures, and red tape impede business activities' velocity and effectiveness. Simplifying administrative processes may contribute to an even greater degree of business convenience.

9 Due to its comparatively modest scale, businesses seeking swift expansion may find it challenging to penetrate Qatar's market. Intense competition, particularly in specific industries, may also present obstacles for new entrants to establish themselves. Even with the allocation of government funds towards education and training initiatives, a shortage of qualified personnel may persist, especially in specialized domains. It remains critical to ensure that the workforce's skills align with the enterprises' requirements. Despite the government's benevolent initiatives, businesses seeking to prosper in Qatar must comprehend and confront these obstacles. Ongoing discourse between the business community and the government has the potential to facilitate the improvement of policies and surmount these challenges. How the Qatar Government compares with other governments in supporting entrepreneurship The Qatari government has exhibited a robust dedication to fostering entrepreneurial endeavors by implementing a comprehensive strategy encompassing incubation programs, financial incentives, and legal frameworks. On the other hand, a comparative analysis demonstrates strengths and areas that could be enhanced. Qatar, in contrast to certain Western countries with a rich history of entrepreneurship, has made notable progress in establishing an environment favorable for business innovation within a comparatively brief timeframe. Qatar is distinguished in the Middle East by its financial support programs, regulatory reforms, and initiatives like the Qatar Development Bank. In contrast to certain Asian economies such as South Korea or Singapore, Qatar exhibits a commendable level of support for businesses. However, there is potential for further global

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10 cooperation and knowledge exchange. For example, Singapore established a worldwide startup center by fostering strategic alliances and emphasizing research and development. However, Qatar is distinguished from many other countries by its unique challenges, which include a smaller domestic market and reliance on hydrocarbon revenues. The government's commitment to innovation and economic diversification is consistent with international best practices. Efforts to harmonize policies with international benchmarks, promote collaborations across national borders, and tackle unique local obstacles will enhance Qatar's standing in the global entrepreneurship arena. Conclusion The Qatari government has demonstrated a solid dedication to promoting entrepreneurship by implementing many policies and initiatives. The Qatar Development Bank, besides providing financial assistance, incubation initiatives, and a supportive legal framework, has significantly contributed to establishing a conducive business environment. Despite ongoing obstacles, the combined endeavors demonstrate a commitment to bolstering economic resilience and diversification. Qatar has established itself as a leader in the global entrepreneurship arena through its proactive and adaptable approach, which has fostered enduring business expansion and made a significant contribution to the country's economic well-being.

11 References Abidin, J. Z., Abdullah, N. A. H., & Khaw, K. L. H. (2021). Predicting business failure for Malaysia SMEs in the hospitality industry. In Conference on International Issues in Business and Economics Research (CIIBER 2019) , 67-73. DOI 10.2991/aebmr.k.210121.011 Al-Mansoori, R. S., & Koc, M. (2019). Toward knowledge-based economy: Innovation and transformational leadership in public universities in Texas and Qatar. Sustainability , 11 (23), 6721. https://doi.org/10.3390/su11236721 Ben-Hassen, T. (2023). Developing a Vibrant Entrepreneurship Ecosystem in Qatar: A Sustainable Pathway Toward the Knowledge-Based Economy? In: Cochrane, L., Al- Hababi, R. (eds) Sustainable Qatar. Gulf Studies, vol 9. Springer, Singapore. https://doi.org/10.1007/978-981-19-7398-7_18 Hassen, T. B. (2019). Entrepreneurship, ICT, and innovation: state of Qatar transformation to a knowledge-based economy. In book: Political, Economic and Social Issues, Qatar (pp.193-208), Nova Publishers. https://www.journals.uchicago.edu/doi/10.1086/228311# Hassen, T. B. (2020). The entrepreneurship ecosystem in the ICT sector in Qatar: Local advantages and constraints. Journal of Small Business and Enterprise Development , 27 (2), 177-195. DOI: 10.1108/JSBED-04-2019-0119

12 Jamous, R., Kerbache, L., & Al Omari, A. (2022). Bridging the parcel delivery last mile gap in qatar: Challenges and enhancements. IFAC-PapersOnLine , 55 (10), 822-829. https://doi.org/10.3390/su142416437 Qatar News Agency (2023). Entrepreneurship in Qatar...continuous support, influential role. (n.d.). https://www.qna.org.qa/en/News-Area/News/2023-05/22/0072-qatar-economic- forum-entrepreneurship-in-qatarcontinuous-support,-influential-role Wijaya, Y., & Nuringsih, K. (2022). The Role of Government Support and Networking on Business Success Among Beginner Entrepreneurs Fostered by Jakpreneur. In Tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021), 178-184. DOI 10.2991/aebmr.k.220501.028

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