Social Investors, Social Activists And Social Ventures Talk Back: What’s Happening In MENA?

In analyzing the capital flow for social enterprises, the picture behind this reality around the world adjusts depending on what region you go to. In the western markets such as the U.S. or Europe, capital structures are becoming more inclusive for social enterprises. But what’s happening in regions such as MENA?

Badr Jafar

Crescent Group

“It’s tough. The funding circles in our region do not yet see this space as a robust enough asset class to warrant serious attention. There is a broad perception that there is a definite trade-off between social impact and financial returns, and so I have heard many investors argue that they would rather contribute to social gains through straight charity without mixing it up with profit-seeking. For this reason, I always advise budding social entrepreneurs in MENA seeking financing not to overly pitch the social aspect of their ventures and instead to focus on financial metrics when presenting their ideas. I do envisage this will change gradually over time as the investment community increasingly appreciates the collective value of the triple bottom line, but we are not there yet.”

Medea Nocentini

C3 Consult & Coach for a Cause

“Social entrepreneurs in MENA have to make a choice when registering their license: either as non-profits, in which case they cannot raise funds from typical investors or generate revenues from trading activities (limiting their opportunities to scale and sustain themselves through business activities), or as for-profits, in which case they are not allowed to raise donations or apply for grants (limiting their opportunities to leverage the powerful combination of investments and donations that their social enterprise status could unleash). In a region where social and environmental needs are pressing, social enterprises have significant market potential. We might not need to label Middle Eastern social enterprises as such, as they represent attractive investment opportunities by the nature of the market.”

Ali El Idrissi

J.P. Morgan Social Finance

“In MENA, there has been a flurry of new initiatives supporting entrepreneurship from competitions such as the Hult Prize, the MIT Enterprise Forum Arab Startup Competition or the MIT Global Startup Workshop to accelerators and incubators such as Oasis500 in Jordan, Flat6Labs in Egypt and international networks like Endeavor and Ashoka expanding their MENA footprint. However, the amount and diversity of funding still lags behind other emerging markets and there is a significant opportunity for high-quality MENA social enterprises to tap into international networks and funding sources, which rarely have access to such investment opportunities. In parallel, philanthropic capital in the region should be used in a more strategic way and provide early stage funding for social businesses. There is an opportunity for large philanthropic organizations and corporates to act as pioneers in providing this type of capital.”

Soushiant Zanganehpour

Skoll Centre for Social Entrepreneurship

“From my experience advising in the region, I see a range of options available to SE’s for their first financing. Regional competitions like MIT Arab Business Plan or Acumen Dubai’s regional social venture challenge provide chances for those with a bit more than a simple idea to compete for early stage pre-seed funding. Those with just a pitch, a nimble business plan or small working prototype, can access the local accelerators like Oasis500 and Flat6Labs for early stage business development support and funding, usually for a 10-15% equity swap. Bootstrapping is another option that many SEs rely on; there is no quicker way of testing a value proposition and an idea’s efficiency when you’re using your own funds. Finally, some SEs do engage in an emerging and informal angel network of high net worth individuals for seed or pre-seed financing in their home countries. Success and the existence of these networks very much depend on the level of local SE activities, the status of the ecosystem (like awareness about the concept), as well as the entrepreneur’s ability to penetrate into various social networks.”

Eight Communication Tips For ‘Treps By ‘Treps: How To PR Your Business

Ten years ago, Lucy and I set up our integrated communications agency with a team of two (namely us), in a one-bedroom apartment. A decade later, we are a multi award-winning company with more than 60 talented team members, representing the world’s leading international clients, running a digital division and are now proud to be in much bigger and better premises. How did we do this? Not through a large marketing budget or advertising campaign. Not through international affiliations or local partners. The success of our business has been built through the power of establishing a market-leading reputation. To build this reputation we have focused on many of the tools that we deliver to our clients; fantastic quality work, exceptional client servicing, innovative creative ideas, and the power of good PR.

Our clients’ success has been our number one priority, and in turn they have been our best business development tool and have championed our services amongst their own networks. Fundamentally, we have grown organically based on the strength of our reputation and our dedication to our work. To help other budding entrepreneurs build their own reputation and benefit from the power of PR, here are our top tips to get SMEs on the radar of potential investors, clients and talent:

1. Identify Your News Story

Think about what makes you special. Are you the first to introduce a service or product to the market? How will this impact the wider business community? Is there untapped potential in a certain sector that you are able to meet unlike your competitors? Or are you the first SME to breakthrough with a new service for a specific demographic? Identify your story– the reason why someone should sit up and take notice of you. Use this story to pitch to the media.

2. A Targeted Approach Rather Than a Scattergun One

Now that you have successfully identified what makes you different to your competitors, you can start sharing this with media. The key is to ensure you reach the right people. So in other words, if you are a construction company looking for investment, being interviewed on a travel blog is not going to help you get funding. Search online or buy local newspapers and magazines. Understand who your target audience is, what they read, what they listen to and then start targeting that media. Although it will seem daunting to make a journalist phone call out of the blue, they are actually a lot more accommodating than you think, so give it a go.

3. Amplify Your Reach

Now that you have appeared in your chosen publication, you should begin to share links of your coverage to your wider network. Encourage your network to comment and like your posts. The more people who see you sharing your success, the more they will want to be part of that success.

4. Don’t Shy Away From Tapping Into Your Own Network

We all have personal networks, whether it’s friends from university or former colleagues. More often than not, they want to hear what you are up to and share in your successes. Send out regular email updates. People buy in other people. Today’s investor doesn’t always wear a pinstriped suit and sit in a bank, they are just as likely to be sat at a cafe reading their Twitter feeds on their iPad.

5. Embrace Digital Channels

Platforms such as Twitter, LinkedIn, Instagram or Facebook can be harnessed to ensure you are on the radar of potential investors or clients. Use a blog to highlight your industry expertise and start conversations with digital influencers in your field. Digital is the most powerful word-of-mouth tool at your fingertips and the cheapest. Talk about your exciting growth plans and encourage others to be part of that journey. The more people hear about you, the more successful you are perceived to be.

6. Network and Learn How to “Work A Room”

The key to successful networking is having a genuine interest in people. Fortunately, in this market you meet people from a variety of backgrounds and industries. Networking is a skill in itself and one that does not come naturally to most people, but one that can reap dividends in terms of getting a foot through the door in terms of an all-important meeting with a potential customer or client. Once you’ve got that foothold, make the most of it.

7. Be Prepared

Ensure that you have your “elevator pitch” ready. This is a 60 second overview of what your business is and what you can bring to an investor or client that no one else can. If you can’t explain the benefits of what your business can bring to the table, don’t expect others to understand why they should support you.

8. Substance and Style Are Crucial

Every interaction with any customer, large or small, is an opportunity to make a good impression. Ask yourself whether you know your clients’ business back to front. How does your product or service enhance their portfolio? Do you have a presentation to share with them? Is it slick? Would it install confidence in them of your ability to grow a successful company?

Empowering Excellence: Dr. Shamsheer Vayalil Parambath

There are a few obvious facts that everyone knows about Dr. Shamsheer Vayalil Parambath. He’s quite a young man, and he’s an undisputed success in the UAE for-profit healthcare space. He has been distinguished many times over the years for his company’s rapid expansion and brand proliferation, his application of commercial innovation, for championing the spirit of entrepreneurship, and also for several CSR campaigns that highlighted various VPS Healthcare Group endeavors while at the same time contribute to the betterment of societal health and welfare. He’s the son-in-law of one of the UAE’s foremost Indian business leaders, Mr. Yusuffali M.A., and at just 38 years of age, he has already cemented his foothold in the GCC with both a personal brand (check out his Facebook fan page), and a professional one. Dr. Shamsheer is also known to make his pet causes and opinions public knowledge, using his social media channels to convey his beliefs and promote things both inside and outside the healthcare arena, like his recent championing of voting rights for Indian expats.

The entrepreneur practiced medicine in Abu Dhabi for a year before going solo, and has then been able to surge forward with what is now a conglomerate of synergistic commercial ventures that are able to cycle customers effectively between them. The first LifeLine Hospital opened in 2007, and since then, Dr. Shamsheer has expanded his medical businesses to include close cousins like out-of-hospital care and medical event services, and further sub-businesses like the manufacture and sale of pharmaceuticals. Once Dr. Shamsheer gained a foothold in the UAE, the GCC then became fair game- he has since expanded his own brands and done a great job of marketing them, and he’s also waded into the franchise import pool by gaining the rights to The Medicine Shoppe as its master franchiser.

His flagship brand, VPS Healthcare, makes great use of the Internet and they also advertise in a variety of mediums- their ads present emotional touch points with mass audience appeal, and gently ease the reader –all potential clients- into the less-warm medical side of things. The Group’s portfolio brands demonstrate a good web presence with user-friendly sites that potential clients find packed with simple and straightforward information. The latter is especially important in the healthcare business, as customers are already wary; due to the sensitive, intimate and discrete nature of illnesses, marketing for medical facilities must also be able to demystify a procedure for someone seeking treatment. All of these factors have helped VPS Healthcare’s brands become trusted and established, subsequently paving the way for more brands in spheres that cross over with his existing businesses.

“My concept is simple yet effective,” he says. “At the core are three main features. First, to provide cost-effective yet specialized and superior quality healthcare services, complemented by personalized care and individual attention to each patient with an unparalleled passion and commitment to serve the medical needs of the growing population. Second, establishing a comprehensive healthcare network to enable a sustainable referral system. And, third, to have a strong CSR program to give our thanks back to those in the community who require some additional help in their lives.”

When asked about the crowded nature of the healthcare industry, Dr. Shamsheer notes that a saturated market doesn’t necessarily mean a closed market, and instead says that young entrepreneurs can get motivated to establish businesses in fiercely competitive markets by thinking things through: “There are competitors in almost every market, and healthcare is not an exception. Most of the competition has been with the public sector and other private providers who have been in the market for decades. Competition to us is a challenge to make us stronger. Opportunities are always available, you need to differentiate and constantly innovate with fresh mind.” And how well is VPS Healthcare doing in the market? “Our benchmark EBITA [earnings before interest, taxes and amortization] for hospitals are above industrial average due to loyal customer base which has been nurtured since inception. Additionally, our margins are slightly higher due to cost efficiency. In order to maintain profit, private players like us have to provide the best quality, service delivery, and increase efficiency.”

Dr. Shamsheer says that three of his personal strengths related to his work are persistence, patience, and the ability to delegate effectively, but that also entails having a team that he can rely on. “I’m personally involved in the selection of senior level executives, and I’m always approachable to my team.” He is a big believer in how an organization can be shaped by its employees, and that investing energy and resources into those employees pays for itself: “The people in any business will make the difference between success and failure. They are the ones that add value, drive growth and create innovation. Mentoring people at VPS Healthcare is regular affair and part of our culture; we are a very young organization, almost seven years-old, and we have enough examples of people working with us who have grown significantly from entry level position to heading one or multiple units as director.”

That doesn’t mean you need to pull off a kamikaze work routine to get ahead- he’s a big proponent of work-life balance, and says he ensures that it’s encouraged across the Group’s ranks. “Our organization currently is at very rapid mode of expansion in healthcare space and aims to achieve bed capacity of 5000 in the next five years. Each project of VPS Healthcare is important to us, however my personal focus is to uplift the standard of tertiary care in the country to make difference in the lives of people.”

Making a difference in the lives of people doesn’t just mean that of their clients and commercial partners; it extends to his management style with an emphasis on fostering staff growth, hence developing a culture of company loyalty. “VPS Healthcare is diversified group with healthcare as our main stream of portfolio. My personal attention is always on development of the people. To stay ahead in global economic environment, challenges are to develop and retain professional team and ultimately striking a perfect balance between responsible business ownership and professional management.” Dr. Shamsheer says that he strives for excellence following a “dual strategy that includes bringing [onboard] the best people from the industry and empowering them, and recruiting a young and talented workforce in different disciplines, training and developing them under strong leadership to take care of future expansion.”

Currently, VPS Healthcare has eleven hospitals operating, and a slew of medical centers. “Our current growth rate is better than industry average, and going at our current speed, we will definitely cross US$1 billion in next year,” says Dr. Shamsheer, when discussing VPS Healthcare’s commercial aim for 2015. Crossing the billion-dollar threshold, taking into consideration that Dr. Shamsheer only launched his first endeavor just under eight years ago, is super significant. In terms of allocating resources to facilitate growth, he says that taking into consideration the constant advancements in medicine and technology, deciding where to allocate expansion resources is a two-tier method: “One of the prime factors is to achieve the best outcome for patients using advancement of technology, and keeping in view our expansion plans, we follow a multidisciplinary approach in decision-making. Human capital is one of the biggest assets at VPS Healthcare, and we are maintaining the right balance of human capital and technology while allocating resources. Our endeavor is to provide world class technology to the medical team, and constantly update them to deliver the best.”

There is also room for more, says Dr. Shamsheer. He considers VPS Healthcare’s research and development (R&D) arm unexplored, and they’re already looking at how to tackle it. “I feel our R&D is underdeveloped. Investment in R&D will allow us a deeper understanding of the Arab genome, genetic variants that contribute to the health of the Arab population. We have already created a roadmap in this direction.” According to the Managing Director, some of the other challenges faced by the healthcare industry in the UAE include developing and providing healthcare services for the growing population of senior citizens, and quality staff recruitment and retention.

Some of the boons of basing your healthcare business in UAE? “The government support and backing, and quick clearance of licensing, allow us to grow faster and stay competitive in global healthcare arena. Recent clearance from the government about visa on arrival for medical treatment is just one of the examples of government initiative to boost the healthcare sector,” explains Dr. Shamsheer. The Global Health Observatory Data Repository (GHO) of the World Health Organization (WHO) reports that the private expenditure on health as a percentage of total expenditure on health was 30.5% in 2011, increasing to 32.3% in 2012 including “voluntary pooled insurance for health insurance as well as direct payments by private agents.” The total UAE expenditure on health as a percentage of the Gross Domestic Product (GDP) was 3.1% in 2011 and dropped slightly to 2.8% in 2012; UAE’s GDP as of 2012 was $383.8 billion according to the World Bank.

Putting this in perspective, the GHO reports that Switzerland’s percentages for the same measure were 11.0% and 11.3% with a GDP of $631.2 billion (World Bank), and for a regional comparison, KSA’s percentages for the same years and same measure were 3.0% and 3.2% with a 2012 GDP of $734 billion. The UAE’s general government expenditure on health as a percentage of total government expenditure remained stable for four years from 2009 to 2012 at 9.3%. “UAE stands amongst the top 25 in world health systems ranking by WHO, and the government is very supportive to the private players for creating the best healthcare delivery system. Due to the mandatory insurance standard, the Emirates are on par with the best in the world,” adds Dr. Shamsheer.

It also means that there is nowhere to go but up for entrepreneurs in the healthcare space, and those who have businesses that cross over with healthcare, including logistics and construction. “United Arab Emirates is one of the most developed economies in the world with a cosmopolitan mix of people coming from all parts of the globe. Overall, the UAE economy has been performing well, and delivery of healthcare in the MENA region and around the world continues to evolve. Medical standards at VPS Healthcare are at par with [the] global benchmark, however we have already started our work to strengthen the talent pool and increase capacity.

Expo 2020 is great opportunity for everyone, and the healthcare sector in particular will witness increase in demand for quality healthcare services due to the influx of worldwide tourists.” On the subject of medical tourism, it’s important to remember how reputation (and yes, advertising), can help healthcare institutions cross important financial markers. Patients Without Borders estimates that the “worldwide medical tourism market is growing at a rate of 15-25%, with rates highest in North, Southeast and South Asia,” and lists the top destinations as “Costa Rica, India, Malaysia, Mexico, Singapore, South Korea, Taiwan, Thailand, Turkey, [and the] United States.” VPS Healthcare is making itself known globally, and could very well help to get the UAE included in the top medical tourism country list.

Recently, Burjeel Hospital for Advanced Surgery (BHAS), part of the VPS Healthcare Group was awarded “Specialty Hospital of the Year” at the ninth annual World Medical Tourism Congress. “It’s the leading international congress in health and medical tourism attracting healthcare professionals across the world, and the award recognizes the efforts of BHAS for providing exemplary care, innovation consistent with vision of medical tourism, and advocating for high quality healthcare in the region. In short span of time, BHAS has been the trendsetter in Middle East by offering advanced orthopedic surgery and sports medicine using international medical expertise and cutting-edge technology.”

The UAE’s diverse population, a phenomenon echoed across much of the GCC, means that the healthcare industry is catering to very different need-scenarios, almost on a case-by-case basis- straining corporate systems and procedural development and implementation. “Since we are an integrated service, we can provide healthcare requirements specific to the areas in which we operate to meet the expectations of the users. Our service lines enable us to refer from any of our facilities to a higher level of care- for example from primary care or emergency to secondary or from secondary care to tertiary care.”

Dr. Shamsheer adds that a spectrum of patients are catered to by VPS Healthcare institutions, and the budget of these same patients runs the gamut and is dealt with accordingly. Going forward, taking customer budgets into consideration is definitely important, but for-profit healthcare providers will need to consider populace trends and origins when developing programs, and even when building new facilities. If VPS Healthcare’s current on-trend brands are any indicator, it looks as though they’ll continue to gain traction by acting as the supplier for ever-shifting market demands.

CSR Savvy

Dr. Shamsheer sees Microsoft founder Bill Gates as a great example of entrepreneur who also leads as a philanthropist. Much of the doctor’s energies are devoted to give-back community initiatives centering around health and wellness: education on preventative measures, actionable medical drives that engage the community, and public relations campaigns that create an inclusive environment to demystify illness.

“We have leadership team to take care of various aspects of business, however, my focus has always been to return back to society by devoting my time, energy and resources for welfare of the community through various CSR initiatives. Community awareness is our capital asset and our vision is to create sustainable community welfare model. We have done several CSR activities for different strata of the community such as free heart surgeries, free mobile mammography operations for needy patients, and recently VPS Healthcare has established a Guinness World Record for largest simultaneous self-examination to raise awareness for breast cancer.”

Sheikh Khalifa Excellence Award 2014

‘Trep Tip
Window of Opportunity 2015

The World Bank puts UAE life expectancy rate at 77 years of age, meaning that elderly medical care is another solid and lucrative form of revenue, as is the yet relatively nascent area of palliative care (PC). The conversation in the GCC about palliative care has thus far focused on the need to provide the comfort and elevate quality of life for patients in need of PC, but a gradual shift towards profitable opportunity is on the horizon. Middle East Experience in Palliative Care, an article published in the American Journal of Hospice and Palliative Medicine in February 2013, reports that Saudi Arabia’s healthcare industry was the first in the GCC to offer PC to patients as early as 1992, and presently, while it is offered in the UAE, Qatar, and Bahrain, it is still largely misunderstood by residents.

The article mentions that when PC was first introduced, admittance rates increased based on medical professionals educating and then referring patients to facilities. The same article mentions that the healthcare industry in the UAE faces a specific challenge- in this instance referencing PC specifically: “End-of-life problems of expatriate patients with cancer are very different from those of Emirati nationals, with expatriates having limited social and emotional support owing to the living statuses and the low incomes. There is a need to study the social and psychological issues in the expatriate patients with cancer in UAE.”

FitRepublik’s Ali Al Amine Sees Entrepreneurship As The Way Forward

It’s hard not to be taken in by the enthusiasm resplendent in Ali Al Amine’s new venture, FitRepublik, the latest entry in Dubai’s burgeoning health and fitness industry. But do not dismiss FitRepublik off as just another gym in Dubai- because it is, really, a whole lot more than that. Located in Dubai Sports City, FitRepublik is a state-of-the-art sports facility that spans over 100,000 square feet and acts as a one-stop shop for a variety of disciplines that include functional training, strength and conditioning, mixed martial arts (MMA), gymnastics, swimming and more.

As the Managing Director of FitRepublik, Al Amine was understandably excited as he talked about the facility, which, at the time of this interview, was only a few weeks away from its official launch slotted for this month. As Al Amine sees it, FitRepublik will stand out not just for being a world-class sports center, but also for being a community-driven enterprise that caters to, well, everyone. Al Amine stated that while FitRepublik has left no stone unturned in its attempt to be seen as an elite environment, he was, at the same time, very emphatic in his insistence that the facility is not just for an elitist crowd.

“I think FitRepublik is not an intimidating place,” Al Amine said. “That’s the most important component. Because, usually, [places like] gyms, for some reason, intimidate people. Because you think, in the back of your mind, that you need to fit to be fit. This is definitely not that kind of a place. If you feel you’re not fit, then come to FitRepublik, because that’s where you’d fit.” But that’s not to say that FitRepublik isn’t a good place for fitness enthusiasts, professional athletes and the like- on the contrary, this kind of clientele is served just as well as anyone else by this world-class facility and its workforce of more than 100 people, which includes coaches who are Olympians and international record holders.

And getting FitRepublik to cater to this kind of diversity is something that Al Amine and his team have tried very hard to achieve with the facility’s set-up and operations. “FitRepublik houses the diverse spectrum of including every potential person, because we believe fitness is relative to one’s self,” he explained. “We don’t benchmark except onto our individual customers. Your aspirations are your aspirations, and we believe that if we can make you a better version of yourself, then we have succeeded, and you have succeeded as well. You’re happy, and we’re happy. So rather than us come and tell you what you should be doing, you tell us what you’d like to do, and we will partner with you to help you realize your objectives. That’s a very big component of our story.”

With this idea in mind, FitRepublik has been designed as a quality environment that caters to the fitness needs and interests of both adults and children, while also playing host to supplementary facilities that include a retail store selling fitness and exercise-related products, accessories and dietary supplements. In addition, FitRepublik has collaborated with “foodie nutritionist” Nathalie Haddad to build an in-house cafe? and kitchen within the facility that will specialize in producing and serving healthy, nutritious meals that will be mindful of each FitRepublik member’s training goals and personal preferences.

Given the features it boasts of, it may seem a little curious that while Al Amine calls FitRepublik “a place for everyone,” he also notes that every individual that becomes a member of the facility also gets a customized plan in line with his/ her interests and goals. These two things may seem to be at odds with each other, but that’s where the FitRepublik backend shows its mettle. “We have invested heavily on our infrastructure from an IT perspective, which enables us to service people subjectively,” Al Amine explained. “What I mean by that is that when you join FitRepublik, we are capable of identifying for you a tailor-made membership… We take your psychological likes and dislikes into consideration, and from there, we go on to your physiological capacity: your age, your strength, your capabilities, etc. And then, from that, we figure out what is the best membership for you- so that technology enables us to develop a customized program for each individual.”

Al Amine’s ease when talking about the technology aspect of FitRepublik is reflective of his background in the technology sector- in addition to his role at FitRepublik, Al Amine is also currently the Consumer Channel Group Lead for Microsoft Corporation in the Gulf. When asked if he was worried that his new entrepreneurial venture would interfere with his existing job, Al Amine said that he didn’t expect such a scenario to happen. “There’s no crossing over of these two things, as they are two independent subjects,” he said. “I am in love with my job at Microsoft, and I am equally in love with my opportunity as an entrepreneur. Dubai is an economy that provides an opportunity for people like me to be both. So… happy days!”

Al Amine also noted that Dubai was the right place for an enterprise like FitRepublik to happen. “Dubai offers [a kind of] greenfield infrastructure, where you find it very easy to open a company, to recruit people, to set up your business, to market your business, to create a word- of-mouth and social environment around what you do in a very pleasant, easy way,” he explained. “The barrier to entry is much easier in this part of the world, because all the foundations are all laid down in place. The economy is also a rich one, and so that also helps a lot.”

But that also means that FitRepublik is going to enter what is a fairly established, but still growing, market for health and fitness in Dubai. However, Al Amine isn’t too worried about the competition. “I think our concept stands out by its very nature,” he said. “But at the end of the day, this is a generous market. And more importantly, there is a fight for quality. The consumer in Dubai is a consumer that seeks quality. And I think when we compare ourselves to quality service providers, I think there is an opportunity for us to share the market and coexist in a healthy manner.”

And if there are any doubts about the Dubai population’s interest in something like FitRepublik, then head over to the company’s Facebook page, and its 17,000+ fans might help melt those worries away. But perhaps a better indication of FitRepublik’s viability as a business can be seen in the people that have invested in the project. “Our founders are the who’s who of entrepreneurship in this part of the world,” Al Amine revealed. “We have Fadi Ghandour, who’s one of the iconic individuals in the emerging markets, a person we all look up to. He’s like a north star when it comes to entrepreneurship. Then there’s Arif Naqvi, who leads the largest private equity firm in the Middle East. This is a gentleman that has shown all of us in this region that entrepreneur- ship is the way forward in this part of the world. So both of these gentlemen have been very inspiring and very supportive, and they have left nothing on the table to support us and put us in a position where we can go and excel, and do what we can do best.”

Given that FitRepublik has its origins in an idea that was born more than three years ago, it’s quite interesting (and inspiring) to see the zeal and fervor with which Al Amine talks about his enterprise today. When asked about how he navigated the hurdles and pitfalls that are to be expected in the development of such a grand project, Al Amine smiled and said, “I’d say I’m a victim of passion. I’m a victim of dreaming and having big aspirations. I’m 39-years-old, but I dream like a seven-year-old. So it’s in my nature to be overworked, to have sleepless nights. Because I think that’s the adventure.”

“It’s actually very similar to the logic behind FitRepublik,” he continued. “I think it would be a little bit of a disappointment for a human being to live his life and not explore his true potential physically. If you can be mobile, if you can be balanced, if you can be stronger or faster or more powerful, and you have all these years of your life without experiencing that, then it’s kind of like a missed opportunity. I actually believe in that same idea when I work. And so, I think if there’s an opportunity out there that I can run after, I will do it even at the cost of having difficult moments in my life. Because I think the joy of what I am doing really overtakes everything else. So it has been tough, but I wanted tough. I didn’t want it any other way.”

And that’s the mantra that Al Amine would advise for his peers in the entrepreneurial community of the region to take up as well. “I think everything you do should be an adventure,” he said. “You have to always do your best, because your life is short and you always have to have fun, and you always have to try things and fail. Failing is a very big part of having fun. I think, for you to have an adventure, you need to fail. I think people should be more accommodating to failing, because failing should not hurt you, it should make you stronger. And as cliche as it may sound, what doesn’t kill you, makes you stronger.”

Catch Of The Day: Catch New York Comes To Dubai

Eugene Remm and Mark Birnbaum are definitely foodies, but more than that, they’re foodie entrepreneurs. While we weren’t able to get the most candid interview with them –like most U.S.-based figures of business they’ve clearly had media training- we were able to get some strategic info about their upcoming UAE launch of CATCH, and how they plan on addressing operations literally a world away from their base of success.

“Without a great food product you are unable to be successful in this business. After food comes service and then the environment- in that order. Doing all three of those elements well is the key to achieving the allusive balance necessary for a dynamic hospitality brand,” says Remm, one half of the EMM Group, a hospitality-centric company with several original award- winning concepts in their portfolio. The EMM Group co-founders have teamed up with local partners to bring their concept to the Middle East. “Our partners at GHAM, [Global Hospitality Asset Management], are established players in Dubai, matching our experience in the U.S. with their position in the local market. Our relationship with them has made it possible for us to enter such a highly competitive hospitality environment,” says Remm.

While they will slightly be adapting the concept for the UAE’s market, “CATCH is a global seafood concept that plans on sticking to its roots. Originality is what sets us apart and what is going to be the key to our success,” says Birnbaum. The duo are realistic about Dubai’s market, and they admit they’re going up against established F&B market players: “Being the new kids on the block in any market can be a blessing or a curse- how that plays out has a lot to do with how you approach the challenge. I would not feel comfortable entering Dubai as a group from New York without local partners who are integrated into the community. The team at GHAM have a great reputation and some really fantastic properties in their portfolio. As I mentioned earlier, we never would have entered the market without a local partner, and we found more than that in this group. Their passion for the worlds of restaurants and nightlife, and understanding of the dynamic between the two, is very similar to ours which makes for a great alliance and an ideal partnership,” adds Remm confidently.

Established in 2006, EMM Group has several globally-recognized hospitality concepts; their portfolio includes Abe & Arthur’s, SL New York, Ten-june, and The Chandelier Room at the W Hoboken, recently re-branded and “re-conceptualized” as LULU’s. In preparation for their first project outside of the U.S., Remm and Birnbaum says that they personally frequented multiple existing high-end venues in the UAE market to get a handle on what exactly they were up against in terms of competition. “We like to absorb things firsthand and felt the best way to see how CATCH would fit into the Dubai scene was to go and spend some time there ourselves. We visited Abu Dhabi and Dubai about a year ago and tried to take in as much of the cities’ hospitality culture as possible. We dined at three restaurants a night and talked a lot about how CATCH would work within the framework of the culinary landscape.”

The two frequent their own venues for both enjoyment and business purposes, and both have a love of F&B business being as much about the overall social experience, in addition to high quality food and beverage offerings. “We admire the dining and nightlife scene in Dubai. Its international appeal is magnetic and we recognize that pull, as it has already attracted many of the most respected and popular establishments from around the world,” says Birnbaum.

“Not only does Dubai play host to the world’s jetsetters, moguls and socialites, the city has one of the fastest growing populations in the world. People are flocking here for its local originality and universal flavor. These people are our target market.”

In Brief

How much do celebrity affiliation and appearances affect the success of a hospitality outlet?

ER “Celebrities have enjoyed CATCH New York since we opened in 2011. Everyone from Brad Pitt to Rihanna has been to our venue. It’s exciting for guests to see famous people and we respect that so we’re happy to embrace them when they come but also do what we can to protect their experience.”

MB “Tremendously. Every notable personality I can think of has been through the door at CATCH New York. From jay z and Beyonce? to David Beckham and Steven Tyler- it wouldn’t be a Monday night at CATCH without at least a few bold- faced names.”

How much importance do you give these social media marketing channels as F&B entrepreneurs?

ER “We definitely use social as a tool for communicating, but we try not to overthink it or make it too gimmicky. Like anything else, if you lose the authenticity that is tied to the identity of the brand, people stop listening.”

MB “While we do acknowledge the importance of social media, we focus on keeping it authentic. We post food we love and our guests do the rest. With so much out there in social media, we aim to keep our message short, sweet and real.”

What is your idea of a good time for an evening out?

ER “A good time is a great meal with a great group of friends. I like being able to try a lot of different dishes in a family-style environment in a lively room with good conversation and like-minded people.”

MB “Being at a big table at CATCH NYC with many friends, laughing over dinner until the wee hours of the morning is my favorite thing to do!”

Social Entrepreneurs Don’t Have It Easy Raising Capital

At one point, NGOs and charity organizations were the only options for alleviating societal ills, but in today’s increasingly interconnected world, we’re facing more complexity in issues which require more innovative and sustainable solutions. This has led to the rapid upsurge of social entrepreneurship; now socially-conscious entrepreneurs tackle local and global social challenges, while generating profits.

According to John Green, “social ventures have at their core a strategy to deliver explicit social impact in combination with sustainable business growth, recognizing the power of business in tackling social issues around the world.” In theory, social entrepreneurship is an amazing concept but the practical process in progressing from an idea solution to a business ‘sustainable’ operation has its most critical challenges, in particular during the startup financing stage.

Social ‘treps face their first challenge: how do they get the initial financing?

Typically, a regular startup would turn to the following channels of capital: network investments, banking, equity debt, convertible debt, crowdfunding etc., with a relatively straightforward process for funding channels that are revenue options models. However, social ventures don’t have the same flexibility in their identity structure on leveraging capital the same way as regular startup ventures do. First, equity or VC financing usually expects an exit strategy that does not automatically exist in social ventures that plan on generating impact for the long haul. Second, the risk appetite for investors adjusts with the existence of proof of concept models.

However, social ventures exacerbate the challenge of assessing risk, given the unique nature of cultural and business resource issues and investor networks. Thirdly, and most importantly, investors usually depend upon comparable investment activity that helps validate and support an investment thesis around market opportunity and valuation levels. That backup and peer justification doesn’t exist in many social venture markets, where activity is a lot patchier, and those markets have yet to demonstrate clear trends in delivering investor returns. All of this limits the availability of capital in social ventures.

What is the global trend for social ventures to clear the financing hurdle?

To access the aforementioned capital streams mentioned before, social ventures have to do several things, including intensive market research to prove the need and execution capabilities. But funding roadblocks might arise, and for that, social ventures look into the following three options: leveraging partnerships, philanthropy organizations and social cause competitions and funds. Firstly, regarding revenue sharing partnerships, it involves social entrepreneurs thinking innovatively and identifying partners who can bring economic value to both parties. The partner may share intellectual value or property, which adds value to the venture in a completely unique way. The beauty of this avenue is that it is a win-win situation for both parties involved.

Secondly, regarding philanthropic money, it is a large pool of capital that can be tapped into. However, the definition of philanthropic money has shifted over the years from being simple donations, which are commonly seen today as an unsustainable way of giving. The new direction for this new wave of philanthropy is today called impact investing. For entrepreneurs, this source of capital is advantageous in that it requires lower than market rate interest or return targets, and for the philanthropists, a principle attraction in that the returned capital can be recycled into other charitable activities. It must be noted that the concept of impact investing is still evolving, and as such, it needs more time to expand to accommodate for the growing number social enterprises.

Finally, startup competitions, accelerators, angel investors and impact funds are the new buzz words in the industry, and they provide valuable exposure and mentorship leading to capital for social ventures. Good avenues to explore would be university business plan competitions as well as business incubators and accelerators, which are widespread in most big cities, like Echoing Green, Unreasonable Institute, Endeavor Global, the Global Social Venture Competition, and the Hult Prize. Since most of these initiatives exist so far on committed and passionate donors, the challenge would be to identify sustainable models.

How did we get funded at Pi Slice?

In practice, what model examples do we have of social venture startups who are securing financing? At Pi Slice, when we went for our first funding rounds, we learnt from meeting diverse investors to rely on all funding channels. From the beginning we had some pre-seed angel money that helped us to get started, and allowed us with Microworld.orgfrom the group PlanetFinance.org to build a revenue sharing partnership model– we’re big fans of partnerships and creating shared value.

We also participated in different entrepreneurship competitions, as much as time and timing allowed us to- the exercise of preparing for a competition, being mentored and presenting the case to the jury is very beneficial to reassess the model whether one gets funded or not. We still needed money, so we approached philanthropy capital while still pitching the project focusing on financial and operational metrics. At the end of the day, social investors or philanthropists, like any investors, need to know that you can be sustainable, scalable and that you won’t require any other emergency rounds of financing.

Finally, we also engaged with VCs, and set together future milestones to pitch them at a time when they would be interested to come in- this is a very useful exercise to set standards and milestones achievements in foreseeing the growth of the venture. Our experience has taught us to knock on all doors and try all funding models, because each model has its own added value and can prove to be crucial for a new trend to be successful.

What is the future outlook of social venture financing?

We all know today that the MENA region has a big unemployment/youth unemployment problem, and that realistically we can help solve part of that problem by creating jobs through encouraging small startups. The problem is that startups struggle with access to talent, markets, and capital. The landscape is slowly changing and we’re witnessing private and governmental initiatives for budding entrepreneurship ecosystems in almost all countries in MENA, fostering positive trends related to these challenges. That being said, the gap between the capital need of these startups and available seed money and support by investors or institutions is still too big, all more so for social ventures even though they are needed to solve, innovate and disrupt societal issues and challenges.

The change is happening anyway, and more and more people are realizing the value of supporting such startups while creating impact for the wider community. Maybe the MENA region is still not there yet in terms of global standards and networks for social ventures, but societal issues -and the will and commitment to solve them- are definitely there, and sometimes this is all it takes for a movement to be in motion and for the change to leapfrog.

Healthy Growth: Kcal Healthy Fast Food Gets Started On Its Middle East Expansion

It’s not often that one gets to see the words “healthy” and “fast food” legitimately associated with each other, but co-founders Mark Carroll and Andreas Borgman have managed to do just that (and achieve success as well) with their Dubai-headquartered food and lifestyle company, Kcal Healthy Fast Food. While Kcal’s restaurants have become known as a wholesome, nourishing, and yes, tasty alternative to the regular fast food outlets seen in this part of the world, its Kcal Extra division helps people lead better lifestyles by delivering bespoke healthy meals directly to their homes.

Since its launch in the UAE in 2010 with a workforce of just 12 people, Kcal is today a 350-member enterprise with seven restaurants in the country, and it is now all set to expand its operations in the Middle East with the launch of its first non-UAE franchise in Egypt. Given the political situation of the country, the choice of Egypt to launch Kcal’s Middle East expansion may seem like a curious one, but Carroll and Borgman say the research they did about the nation convinced them it was the right place to grow their business in the region.

“When we started looking at Egypt, it wasn’t a great time,” Borgman remembers. “At first, we weren’t sure if it was the right market to start our global roll-out in, but our minds were changed after we visited the country. We saw an energetic country with huge potential, and of course, people always need to eat. We conducted a thorough market study, which involved analyzing demographics, consumer behavior trends and competitors, and realized Egypt was perfect for Kcal. We have also partnered up with a franchise partner who is aligned with our beliefs.”

But Kcal’s launch in Egypt marks just the start of the company’s growth plan. “We have an aggressive expansion plan for 2015,” Carroll says. “We want to roll out more Kcal Healthy Fast Food restaurants in Dubai, and we are planning to launch Kcal Healthy Fast Food and Kcal Extra in the other Emirates [of the UAE] and throughout MENA. 2015 will see us opening franchises in Qatar, Saudi Arabia, Bahrain and Jordan. These are areas we have identified, and [we] are in the closing stages with franchise partners.” And the Kcal team is leaving no stone unturned in their attempt to ensure a streamlined, strategic rollout of their various franchises in the region. “We have partnered with the reputed franchising consultant, Francorp Middle East,” Carroll says. “Working alongside them, we are working toward implementing a sustainable franchising model. Within our franchises, we have area coordinators and a franchise team, which will ensure proper quality standards are being adhered to.”

“In order to ensure the same standards and quality [across all our branches], we pride ourselves on having a detailed franchising manual describing operational procedures, marketing strategies, hiring policies and everything else that needs to be kept in mind about the Kcal brand,” Borgman explains. “I’d also say that having a good solid working relationship with our franchise partners is key, allowing for communication lines to be open. Having the right team makes it so much easier.” But that’s not to take away from the important roles Carroll and Borgman are playing in building and growing the Kcal brand- the two of them are strong proponents for a holistic approach toward healthy living and active lifestyles.

“As obesity numbers reach alarming heights globally, urbanization and the sedentary modern lifestyle are not helping the world cope with its obesity problems,” Borgman says. “We have identified that there is real need for real food and healthy alternatives in the fast food category, particularly in the MENA countries. Kcal Healthy Fast Food fulfills that need.”

“Today, Kcal is more than just a foodie company,” Carroll says. “Kcal embodies a life- style that caters for all those who want to eat well and feel good about themselves. Fast food needn’t be boring or restrictive. Quite the opposite, because with Kcal, you don’t need to sacrifice the food you love to be healthy. We’re passionate about conveying this message, which lies at our very core. We want to capture hearts and minds, not just locally or regionally, but globally. We want to make the world a better place. And we believe Kcal is just what the world has been waiting for. Eat well. Be well. That’s all it boils down to, really.”

Trend Prediction 2015: Offline To Online (O2O)

Although it’s tricky significant interface for enables the evolution of to predict future trends within the e-commerce field due to the speed and development of mobile information systems, digital business infrastructures, mobile data terminals and enterprise business models, the rise of Offline to Online (O2O) Platform Designers is worthy of consideration because the web is becoming a significant interface for offline transactions.

The complex e-commerce space is witnessing a shift to more fluid and horizontal networked entities, allowing for reduced risk and greater sharing of knowledge and intelligence both internally and externally. Simultaneously, the scope of innovation is expanding, and open innovation provides access to new knowledge and enables the evolution of new strategies that keep firms agile and able to respond to opportunities. Designers of unique O2O user experiences are focusing on the process of e-bonding with customers before they navigate into the physical realm of stores to purchase offline products and services.

O2O designers also focus on overseeing the post-purchase customer relationship. This is a complex socio-technical endeavor underpinned by innovative technologies, big data, creative planning, collaborative networking, implementation and evaluation. O2O firms and collaborations encompass a range of scales. Some of the smaller O2O services delivered are growing in popularity in conjunction with the spread of apps and e-transactions. For example, Wasselni, a Palestinian startup for local transportation, is using offline and lo-fi models to overcome the lack of 3G communication technologies and the blockade of Gaza.

O2O strategies are also being developed and implemented by large firms, thereby enabling the attraction of a wider and deeper customer base and hence greater revenues. Chinese B2C retailers such as Yiwugoui.com and JD.com, Inc. are at the forefront of O2O. Yiwugou.com, an e-version of the company’s large physical store network, is broadening its brand recognition and increasing daily traffic through a carefully adopted strategy that includes building one virtual store per offline shop. Using 3D imagery, each website is a replica of its offline stores. It also follows a long-term domestic and global partnership strategy, seeking to combine the e-commerce market across micro and macro contextual levels.

JD.com, a network of convenience stores boasting 25 million customers and 6,000 national suppliers, is creating e-stores on the central JD.com e-commerce platform. Its O2O strategy allows any of its growing customer bases simply to collect goods from online orders from any store nationwide. Its innovative delivery platform also includes fast free delivery, ranging from 15 minutes to an hour after purchase depending on the service. Conventional retailers will have a greater O2O capacity to integrate a whole-systems model of the customer life cycle. The continuum of the O2O model extends into post-sales services: online customer issues associated with returns or faults can be addressed in the physical stores. Significant commercial gains can thus be accrued by embracing a whole-systems O2O perspective.

Mobile data platforms such as tablet computing devices, smartphones and e-books have blended with cloud-based services to provide richer user experiences and innovative service models. The O2O service model provides fertile ground in which customers and potential customers can engage with service providers in a variety of mobile information platforms, both online and offline.

Put It to Work: Actionable Advice

• To satisfy the end user’s growing interest in compelling, engaging and interactive retail spaces and beyond, e-commerce designers employed by retailers must seek novel ways to maintain the current customer base and attract new customers in an aggressive global marketplace. This is important for customer satisfaction and retention.
• Designers must identify new ways of translating product information and communicating enticements. Don’t rely on internal expertise; instead, seek knowledge and intelligence beyond the confines of traditional silos normally associated with closed innovation and a firm’s private research and development practices. Considering that business survival rates are highest among firms engaged in innovation practices, it is essential for designers to ensure that customer buy-in and input take centre stage from day one.
• Designers and service providers must focus on a range of components such as the physical interface via innovative prototyping techniques, real-time communication and enacting ideas in the real world before evaluating their effects. Planning, management and evaluation of the underlying logistics and information platform will be a continuing challenge.
• Retailers must embrace social media with a robust strategy to promote products and services in online settings in order to generate offline sales. For example, digital coupons can be embedded into offline points of sales (POS) and mobile payment through external QR codes.

Five Business Truths From The World Of Hospitality That Apply To Every Industry

Naim Maadad has worked in several different sectors over his lengthy career in various management capacities. In his current role as CEO of Gates Hospitality, he puts his industry know-how to work both theoretically and practically. Here are Maadad’s five business truths gleaned from his experience in prestige hospitality that can carry over to virtually any industry.

1. Relationships

“It is a known fact that doing business revolves much more around personal relationships, family ties, trust and honor. It is therefore important that business relationships be built on mutual friendship and trust. As in other businesses, in the world of hospitality too, business etiquette works around this concept and the circle of influence ensures success in the long run.”

2. Experience

“There is no substitute for experience. One area which any hospitality business venture thrives on is the experience of its leader. The individual heading up a company needs to be a visionary to utilize past experience and synchronize it with future requirements to deliver their very best to meet clientele demands.”

3. Bank knowledge of industry

“In-depth knowledge of the industry is a vital ingredient in the success of any business, and hospitality is no exception. Related to the experience factor, the knowledge and know-how of every aspect of the industry needs to be explored. This ensures sustainable success and thriving by keeping the competitive edge intact.”

4. Local understanding

“Every business leader needs to have a hands-on feel of the local market and cultural ethos of the region. Respecting the local traditions and heritage is an area which cannot be compromised on. This is especially important where tradition and cultural heritage are sensitive matters in the country that the business operates in.”

5. Market reputation

“Reputation of the brand in the market plays a very important role in building the future. This is another key area which can have no let downs. What people say about your company online has become the single most important reflection of your company’s quality, reliability, and skill. In a recent Global Trust in Advertising study, 70% of global consumers indicated they trust online reviews from strangers when making purchasing decisions. Your number one marketing priority should be developing a 5-star online reputation.”

An Opportunity For Growth: Defining Failure In The Context Of Entrepreneurship

During my career, I have had the opportunity to work closely with entrepreneurs, investors and various companies in developing innovative new ideas. Through these collaborations I have witnessed (and sometimes been a part of), the resounding fear of failure, with business as usual set towards finding any way to reduce and mitigate risk, and in some cases almost eliminating it all together. This approach not only directly affects growth prospects and freedom around concept development (lower risk equals lower reward), but it also affects how entrepreneurs and executives address new projects and the value that these projects can ultimately generate for entrepreneurs, enterprises, and society as whole.

We exist in a society that worships success. From athletes to politicians, to executives and workers in general, everyone wants to be successful. We therefore become accustomed to understand success as a viable way to progress, to evolve, to grow and eventually get a better “status”. Success is held up as the Holy Grail that will help us to be better and continue to evolve. Yet, this same obsession with success also leads us deny ourselves failure; hide, and avoid it at all costs. We reduce the risks and replace outright risk for “calculated risk”. Calculated risk is in essence when the risk factor has been reduced to minimum replacing uncertainty with an “expected result”. Where is the creativity when we follow this approach? How can we truly innovate when the risk is zero? Does sustained decreased risk ultimately affect our ability to grow and develop? By reducing the risk of failure, and ultimately avoiding it all together, are we restricting our ability to truly create?

Let’s view risk and the possibility of failure as they really are. In the MENA region especially, failure is not understood as a way to learn, evolve and eventually grow, but as a despicable event worthy of pity and shame. In particular, the digital ecosystem is a world of entrepreneurial failures. A recent global survey showed that 80% of new startups disappear before the first 18 months, and of the remaining 20%, 95% cease to exist after three years. As an entrepreneur, investor and mentor, I have been a part of these statistics. These stats should not scare entrepreneurs, but teach them that one of the key characteristics that they must have is being able to learn from failures, and persevere. There is a Japanese proverb that I think perfectly captures this message: “Nanakorobi Yaoki”, and it translates to “I’ll fall seven times and rise again on eight.” That’s the resilience that a good entrepreneur needs to have.

The entrepreneur must persevere despite difficulties along the path to his goal, because he is the motivator and the vital energy of the venture. An entrepreneur knows that the big payoff will only come if they are able to cope with difficulties, challenges and the risk therein. Facing the fear of failure and turning that fear into something positive will build greater awareness and acceptance of risk. An entrepreneur should also know that great rewards are associated with a risk which cannot always be minimized. Finally, if good entrepreneurs fail, they learn from their failure and use it to drive them to success. From the standpoint of experience, both investors and executives and even teammates, prefer entrepreneurs to have experienced failure. The uncomfortable situation of failure tests not only the character of the entrepreneur, but also his or her ability to reinvent and relaunch.

Tens of thousands of successful entrepreneurs have failed, and will continue to fail around the world. One well known example is Steve Jobs- he reinvented Pixar and then returned to Apple to turn it into the company’s largest market capitalization of NASDAQ. A true entrepreneur, Jobs was fuelled by adversity and decided to launch his own business and struggle against bureaucracy and cash flow, attract talent and win customers. This gave us a clear example on how for some of the best entrepreneurs, failure is the only way to grow.

So, peruse your dream knowing that failure is an option! After which you will only become better- especially when you’ve taken the lessons you’ve learned into consideration.