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Background Information

This research is a case study on entrepreneur who has set up a small business in Abu Dhabi, United Arab Emirates (U.A.E). Abu Dhabi is the capital of the of United Arab Emirates. Abu Dhabi is a cosmopolitan city with a large number of expatriates from countries like India, Pakistan, China Bangladesh, Philippines U.S.A and a number of European countries. U.A.E has the most diverse economy amongst the Gulf countries. It is one of the fastest growing economies in the world today. Multiculturalism is a dominant feature of the workforce in the U.A.E. An organization here is comprised of many different nationalities. This workforce environment has resulted in diverse attitudes and behaviors.

The entrepreneur an expatriate has been doing business in Abu Dhabi for the past 20 years. The entrepreneur has been also employing workers who are also expatriates. So the business environment is called as an expatriate environment. An expatriate environment can be defined as an environment where expatriates from different countries work together in a business. According to the government of U.A.E, when an expatriate decides to start business or industrial activity in Abu Dhabi, he may do so through establishing a local or foreign proprietorship, or he may join other natural or legal persons willing to combine efforts, expertise and money so as to initiate a joint company (http://www.abudhabichamber.ae) .

In the case of the entrepreneur under study is being sponsored by an Arab National. An Arab national has the privilege of sponsoring an unlimited number of business activities. The entrepreneur needs the help of the Arab sponsor to clear all legal and government formalities. The local sponsor can be also made a share holder of the company and can also invest in the company. In the case of the entrepreneur, his local sponsor has no share in the company but will be paid an amount of money for his services for the company. This amount will be decided while meeting the sponsor initially. The sponsor can increase the money after a certain period of time if necessary.

The entrepreneur had the experience of working in the Oil and Gas industry for more than ten years. The entrepreneur had worked as Personal manager in an Oil Company in Abu Dhabi. It was with this experience he set up his first Oil Field Services Company. The company employed at first only 4 people to work on onshore and offshore oil fields. At present the company employs more than 70 people working for different companies in different onshore and offshore locations.

All of them are male expatriates from different countries. The Oil Field Company undertakes all types o welding and fabrication works on industrial plants and mobile structures including drilling rigs, vessels and offshore platforms with the help of a large pool of experienced and qualified welders. The company has a well established Health and Safety system to comply with the safety and management principles and standards of the clients in the Oil and Gas industry. The company is associated with principals in U.S.A for modification, maintenance and installation of major machineries on oil rigs. The major oil companies in the country require machineries and equipment for their rig activities. The company provides them with all these.

U.A.E more than 30 years ago when the entrepreneur came to start his business venture, was not the same as it as at present. One of the main attractions that bought a large number of expatriates to this country was the absence of personal and business income tax (Dew and Shoult, 2000). It is impossible to gain citizenship of U.A.E, but still many people migrants and establishes business in this country mainly due to the absence of tax. At the time the entrepreneur came to U.A.E, the economy was still in the development stage and the main source of income was Oil and Gas reserves. The Oil and Gas sector still remains the dominant contributor of government revenues. This sector will also remain to do so long into the future.

But as time passed by there was a drastic economic development. The country diversified into other field like trade, tourism. The economic outlook of the country at present continues to be positive. These factors have led to the emergence of a globalized environment booming in business and trade. This has created a highly competitive business environment comprising of large multinational companies and even a large number of small businesses. U.A.E is a politically stable country. The country is open to business with all countries of the world, except Israel (Al-Saleh, 2000). U.A.E also offers complete freedom of capital movement. The country boasts of a sophisticated financial and services sector. Some of the core activities in the oil and gas sector industry are performed by small service sector companies. So these companies play an important role in making the companies world class.

Statement of the Problem

The research aims at identifying and analyzing the various strategies employed by the entrepreneur in starting up a business in a foreign land. Apart from focusing on small business the research also makes a study of the entrepreneurial behaviors and characteristics and how it influences in a cross cultural context. In other words the research aims at exploring the entrepreneurial capacity of the expatriate. Since the entrepreneur is based in a foreign country the research aims in identifying the factors that the expatriate entrepreneur had to consider while setting up his business. This is done with the help of interviews and the questionnaires. With these information’s the success rate of the entrepreneur as an expatriate business will be analyzed.

The risk of starting a business in a foreign country is much more than that of starting a business in one’s own country. The owner of a business in Abu Dhabi has huge responsibilities when it comes to his labor force, which consists of mainly expatriates. For example the entrepreneur has to obtain work permit of “Labor Cards” for his employees. He also has to ensure that his employees are repatriated when the employment contract has been terminated. Therefore this research is an investigation of an entrepreneur and his small business in an expatriate environment. This makes up the primary data. This research is supported by detailed reference to relevant theories and concepts of entrepreneurship and small business from the literature.

Research Question

What impact does an expatriate environment have on the entrepreneur’s behavior, attitudes? What effect does it have on the business start-up, growth and development strategies?

Very little has been written about an entrepreneur in an expatriate environment. Hence it was found to be interesting to make a study of an Indian expatriate in Abu Dhabi, U.A.E who turned into an entrepreneur after gaining experience by working in an Oil Company. The research investigates how the expatriate started as an employee and then turned into an entrepreneur. The main aspect that was studied was how the culture of the country influenced the entrepreneur.

Purpose of Objectives

The purpose of the research is

• To make a case study about an expatriate entrepreneur who has set up business in Abu Dhabi, United Arab Emirates.

• To investigate and study the key factors and strategies associated with the start up, growth and development and SME in an expatriate environment.

• To analyze the strategies and practices followed by SME for operation in an expatriate environment.

• Finally, to compare and contrast my findings and analyze it with the general body of knowledge contained in the literature.

The literature review section has covered the critical aspects of entrepreneurship and small business. Some of the authors have considered small business as an entrepreneurial activity. This fact shows that there is no clear difference between the terms entrepreneur and small business owner. Therefore concepts of entrepreneurship developed by different authors have been based on different schools of thought using different variable to describe it. Thus it can be said that the entrepreneurship has been analyzed from various perspectives. The entrepreneurship literature shows the absence of a specific definition for ‘Entrepreneur’ or ‘Entrepreneurship’. Different authors have given different definitions. For the research all the criteria mentioned by various authors for being an entrepreneur has been considered. The small business literature covers the phases of pre-start up, start up, establishment, growth and survival.

Review of Literature

The term entrepreneur was introduced into economics by Cantilon (1755) and raised into prominence by the French economist J.B Say around 1980. (Collin Barrow 1993). The word entrepreneur is actually derived from a French word entreprendre which means “Undertake”(Donald F. Kuratko, Richard M Hodgetts,1995). Wickham says that Entrepreneurship is a complex and rich phenomenon (Wickham, 2004). Several definitions have been given for an entrepreneur in the management and economics literature. “An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the natural resources to capitalize on them. Although many people come with the great business ideas most of them never act on these ideas. Entrepreneurs do.”(Essentials of Entrepreneurship and small business management, Fourth Edition, Thomas W Zimmerer, Norman M Scarborough). Entrepreneurship is usually very hard work.

The entrepreneur is considered as a person who undertakes the task of bringing together the different elements of an organization like people, resource productivity etc. and giving them a legal entity (Wickham 2004).According to Collin Barrow (1993) and entrepreneur is someone who recognizes an opportunity, raises the money and other resources needed to exploit the opportunity and also takes risks associated with executing the plans (Collin Barrow, 1993). Schumpeter (1954) has stressed that the role of an innovation was of major importance in defining the entrepreneur. But he has emphasized less on the role of risk; this is due to the fact that he believed that both entrepreneurs and managers are subject to the risk of failing. Thomas W Zimmerer and Norman M Scarborough says that Entrepreneurs are people who see potential where most other people see problems or nothing at all, which often makes the a ridicule. Tolouse (1979) has defined entrepreneur in relation with three axes: Values, Risk taking and Action. An entrepreneur has the tendency to take considerate but calculated risks.

According to David Rae an entrepreneur is a person who acts in an enterprising way and entrepreneurship is the subject of enterprise and entrepreneurs, encompassing both practical and academic knowledge. (David Rae, 2007). Recently entrepreneurs have been doing so many things so the definition of entrepreneur has been broadened. But still there is no single definition for entrepreneur. According to Donald F. Kuatko and Richard M.Hodgetts there are certain characteristics for an entrepreneur they cannot be taught or neither can they learned. They include aggressiveness, initiative, and drive, a willingness to take risks, analytical ability and skill in human relations. (Donald F. Kuratko, Richard M. Hodgetts, 1995).

Entrepreneurship has a great impact on society and the economy of a country. Bruce R Barringer and R Duane Irelend states that Entrepreneurship’s importance to the economy and society was first articulated in 1934 by Joseph Schumpeter, an Austrian economist who did majority of his work at Harvard University. (Bruce R Barringer and R Duane Irelend, 2006). Mitchell (1997) concentrated on the activity as the basis for the definition of an entrepreneur, E.g. Entrepreneurs being defined as individuals who have created a new business venture. While some others have defined them in psychological traits. According to Kirby (2003), entrepreneurship serves five main functions, Innovation and change; new venture creation; Business growth and job generation and Regional development. Thomas W Zimmerer, Norman M Scarborough (2005) states that certain are frequently exhibited by an entrepreneur. They are

• High Degree of Commitment- Entrepreneurship is hard work. Launching a business or accompany requires total commitment from the person or entrepreneur. The entrepreneur has to be completely immersed in their companies.

• Tolerance – Entrepreneurs should be tolerant towards ever changing situation. The operating environment often keeps changing. Inability to handle such situations will lead downfall.

• Flexibility- One feature of an entrepreneur is the ability to adapt to the changing demands of their customers and business. In a society the taste of people keep changing, so an entrepreneur should adapt to these changes.

There are certain factors or reasons which force a person to become an entrepreneur. They may be losing a job, frustration of working under a person. Being an entrepreneur a person gets the chance to be his own boss. According to Bruce R Barringer and R Duane Irelend (2006) the entrepreneurial process consists of four steps. They are (1) Deciding to become an entrepreneur. (2) Developing business ideas. (3) Implementing the idea by setting up the business. (4) Managing and growing the business. Entrepreneurs have to take a considerate amount of risk. Entrepreneurship is a type of behavior which concentrates on opportunities rather than the resources. (Steven and Gumpert,1991) According to Bowen and Jones (1985) they live in the present, plan rarely for the future. But according to Kolb (1984) some reflection is necessary for a successful entrepreneur to learn from his mistakes and success. Donald F. Kuratko, Richard M. Hodgetts, (1995) states that entrepreneurs use failure as a tool for learning and they have enough confidence in themselves, they also clearly have a vision or a concept of what their firm will be or can be. The degrees of entrepreneurship are not directly measurable and observable (Copper and Dunkelberg, 1986). According to their study those who started firms were the most entrepreneurial.

Characteristics of an Entrepreneur

Some characteristics of a successful entrepreneur were identified by Wickham (2004). (1) Hard Work. (2) Self starting (3) Setting of personal goals. (4)Resilience. (5) Confidence. (6) Receptiveness to new ideas. (7) Assertiveness (8) Information seeking (9) Eager to Learn (10) Attuned to opportunity (11) Receptive to change (12) Commitment to others (13) Comfort with power. Bruce R Barringer and R Duane Irelend (2006) state that even though a lot of characteristics of entrepreneurs have been described, there are some which are very essential. This includes (1) Passion for the business (2) Product/ Customer focus (3) Tenacity despite failure and (4) Execution intelligence. An entrepreneur’s business experience of owning a business may differ according to the number of business he or she has developed (Westhead and Wright.1998).

An entrepreneur who is happy to deal with the uncertainty of owning several businesses simultaneously may be more creative and innovative. According to Thomas W Zimmerer, Norman M Scarborough(2005) one of the characteristics of entrepreneurship is the ability to create new and useful ideas which solve the problems and challenges faced by people. Entrepreneurs achieve success by creating a value in the marketplace. Donald F. Kuratko, Richard M. Hodgetts, (1995) state that the desire for independence is the main driving force behind entrepreneur. “Being a successful entrepreneur is actually very simple, Not easy but simple. It requires four major elements”:

• Belief

• Focused knowledge

• A proactive approach

• Perseverance (Tim Burns, 1999)

Five entrepreneurial characteristics were identified by Stokes and Wilson (2006) known as ‘Big Five’ personality dimensions. They are

• Need for achievement

• Need for autonomy

• Locus of control

• Risk taking

• Self Efficiency

The work of Smith (1967) suggests that the entrepreneurship may reflect a constellation of characteristics and behaviors and that these vary among all individuals, including small business owners. Entrepreneurship encourages the pursuit of competitive knowledge through the induction of innovations (Ireland et al, 2001).

Entrepreneurship and Small Business Management

David Stokes (2002) has defined small business as a certain group of enterprises which have certain characteristics and management issues in common which distinguishes them from other organizations because of their size. According to Martin (1982) a person who owns an enterprise is not necessarily an entrepreneur. Anyone who starts a business at first will be involved as a small business. It is later when the company grows it will be called a large business. During the recent years there has been a development of small businesses worldwide. Schumpeter (1984) believes that innovation was the central characteristic of the entrepreneurial behavior. D.J Storey (2005) states that the major area of difference between small and large firms is their role in innovation It is the ability of a smaller firm to deliver something different that differentiates them form the larger firms.

Creating a business is only one way of adopting an entrepreneurial behavior according to Shane and Venkataraman, 2000). Colin Barrow (1993) state that once someone defined a small business as one where the person running the business thought it was small. There is an element of truth in this view. There are many definitions for a small business and mainly people consider the number or employee to measure the size of a business. (Thomas W Zimmerer, Norman M Scarborough, 2005) states that a common concept among people about mall business is that they are the ones that employs fewer than 100 people. A small business is one which operates within the given market whereas the entrepreneurial venture is in a position to create its own market. (Wickham, 2004). According to Wickham(2004), a small business may be new to a locality it doe not do anything new in a global sense, but an entrepreneurial venture is usually based on significant new way of doing something. According to Churchill and Lewis (1983) an entrepreneur’s goals are economic survival and growth of the organization. An entrepreneur is mainly concerned with the profitability. Donald F. Kuratko, Richard M Hodgetts,1995 states that the most common entrepreneurial goals are independence, wealth and job satisfaction.

In the case of small business owners they run and own a business for a living. Schumpeterian entrepreneur introduce new product and processes that change the industry and people who simply own and run a business for a living ( Wennekers and Thurik, 1999). According to Wickham(2004) the four contingencies in entrepreneurial process are the entrepreneur, market opportunity, a business organization and resources to be invested. A contingency is something which must be present in the process but can make an appearance in an endless variety of ways. Colin Barrow (1993) states that small business founders have complete faith in their ideas and are single minded. Fass and Scothorne(1990) add a human dimension into the process of entrepreneurship by the identification that is driven by the motivation of individuals, who seek to satisfy their personal goals. Stokes and Wilson (2006) add that passive owner-manager, who looks upon growth as a necessary evil to ensure survival, will not be motivated by the prospect of high profits. They will be more concerned with the satisfaction of the job or the ability of the business to deliver an acceptable lifestyle, without having to compete in the rat race of employment in large companies. On the other hand a profit seeking opportunist or an entrepreneur who may involve an attachment to the market place or a specific process or product.

The others may emphasize on recognition from others with security for themselves and their heirs. This makes them less likely to take the risk of high growth, while being dissatisfied with minimal growth. According to Kirzner(1973) Entrepreneurship researchers suggest that entrepreneurial learning refers to the alertness and knowledge that make detection of opportunities possible. Some researchers suggest that entrepreneurial skills are “Learn-as-you-go” (Collins and Moore, 1970). According to Stokes and Wilson (2006) success in opportunity identification comes not only from understanding the market and customer needs but also by having a wider view of potential industry transformation from the advent of technology. According to Churchill and Lewis (1983) four elements related to the founder-manager that influence small business development are: Owners Goals, Operational abilities, Strategic vision and the willingness to delegate. Entrepreneurs and the processes they use in starting a firm may vary by industry, by time period, by geographical area and possibly by the background and goals of entrepreneur (Copper and Dunkelberg, 1987).

Entrepreneurs who have started one organization seem to be more successful and efficient in the start-up of the second and third organization (Vesper, 1980). David Stokes (2002) states that term “Entrepreneur” and “Owner-Manager” are often used to describe somebody who is engaged in the management of small business. But sometimes they are interchanged as though they have the same meaning, this is because anyone who starts a business is labeled as an entrepreneur and entrepreneurship is linked to small business management. Davis Stokes (2002) also states that entrepreneurs can also exist in large as well as small economic units and also in public and private sector. Peter F. Drucker (2007) states that entrepreneurship is based on the same principles, even if the entrepreneur is in a large company or even if a person is starting a new venture alone.

Small Business

Small business has various definitions. According to Stokes and Wilson (2006) that small business are founded on existing ideas and practices. He also mentions that small business management can easily become a reactive process in which new ideas are pushed out by the need to cope with the more pressing realities. In these circumstances the owner manager has to adapt and react, rather than to direct and create. Calm O Gorman states that small business can respond quickly to opportunities but may not be able to commit large amounts of resources to a new opportunity(Sara Carter and Dylan Jones Evens,2000).( According to David Stokes(2002) small firms are more difficult to define on paper, but are more easy to recognize once they are seen in operation. Simon Bridge, Ken O Neill and Stan Cromie (1998) has stated that small businesses have assumed importance in many people‘s minds because of their employment creation potential. D.J Stokes (1994) state that the main are of difference between a large and small firm is that the greater the external uncertainty of the environment in which the small firm operates, together with the greater internal consistency of its motivation and actions.

Colin Barrow (1993) points out that running a small business may bring potential for both personal satisfaction and conspicuous profit. Small businesses exhibit considerable variety according to Simon Bridge, Ken O Neill and Stan Cromie (1998). Colin Barrow(1993) states that the outset of every small business venture lies the founder’s belief that they have either recognized an opportunity unnoticed by others or they can do something better than the others. According to Simon Bridge, Ken O Neill and Stan Cromie (1998) a business does not arise fully fledged form even the most positive enterprise cultures. A time for preparation is needed. The preparation time include identifying a suitable opportunity, acquiring the necessary knowledge and skills and locating contacts that can help. They also state that a typical small business start up is done in temporary premise or a usual premise with funding from within or from the bank. According to David Stokes(2002) small firms are most vulnerable in their early years.

The four phases of pre-start up process have been mentioned by Van Gelderen, Thurik and Bosma (2005). They are as follow:

• Development or intention to start a business.

• An entrepreneurial opportunity is recognized and then a business concept is developed.

• Resources are assembled and an organization is created.

• The organizations start to exchange with the market.

Systematic thinking in the pre-start up phase can nurture a well reasoned approach to initial actions and resource commitments (Van Alyke and Stevenson, 1985). Gartner’s framework(1985) of new venture creation suggests that the start up efforts differ in terms of the characteristics of individuals who start the venture , the organization they create, the environment surrounding the new venture and the process by which the new venture is started. In the opportunity recognition and business idea development phase , one depends on the environment for information, in the resource assembling and organization phase, one depends upon the environment for resources (Van Gelderen, Thurik and Bosama 2005). Finance plays an important role in small profitable ventures. (Donald F. Kuratko, Richard M Hodgetts,1995). According to Stokes and Wilson (2006), the pull motives which attract the individual to a small business are

• Desire for independence

• Desire to exploit an opportunity

• Turning a hobby or previous work experience into business

• Financial Incentive

The push factors that lead people in starting a new enterprise are

• Redundancy

• Unemployment

• Disagreement with previous employer

Starting a business

A business start up means creating a new business that stands alone and is not tied or linked to other organizations, except in the normal course of trading. (David Stokes, 2002). According to Deakins (1998) the five stages in the start up process of a business are as follows:

• Formulation of idea

• Opportunity recognition

• Pre-start planning and preparation, including pilot resting

• Entry and launch

• Post entry development.

During the pre start-up phase and start-p phase there are five critical segments for the entrepreneur.(Donald F. Kuratko, Richard M Hodgetts,1995).

• The uniqueness of the venture

• Investment size at the start-up

• Expected growth of sales

• Availability of the product during the start-up phase and pre start-up phase

• The availability of customers during the start-up and pre start-up phases.

Starting a business in not an event but a process that may take several years to accomplish (Birley, 1996). Wilken(1979) identified three phases in the establishment of enterprises which are as follows:

• In the motivation phase, entrepreneurs discuss the initial idea and develop their business concept.

• In the planning phase the entrepreneurs prepare to set up a firm.

• In the establishment phase, they focus more on daily activities or exchanges and on problem solving.

There are four key events during the establishment of a firm-(1) Commitment (2) Financing (3) Hiring (4) Sales (Reynolds and Miller, 1992). According to Colin Barrow (1993) there are two fundamental ways of exploiting a business idea: starting a business with one’s own idea or by following someone else’s business style or style of operation. But both have their merits and demerits. In the case of most small businesses during the early phase , control is of vital importance and in order to maintain the level of control which many small business owners feel is required.( MCKenna and Oritt, 1981). According to them as the business grows delegations must occur. The meaning of delegation is giving up direct control and replacing it with confidence and trust. Pennings(1982) found that organizational birth rates were high in areas with high occupational and industrial differentiation; high percentage of recent immigrants in population; a large industrial base; larger size urban areas and availability of financial resources.

Growth

According to Churchill and Lewis (2983), the five stages of development of every small business are:

• Existence

• Survival

• Success

• Take Off

• Resource maturity

According to Scott and Bruce (1978), the survival or growth of small business is due either to the nature of industry in which the firms operate or to the personnel motives and ambitions of the founder-manager. Some very mature firms can grow strongly, sometimes following a long period of stagnation (Smallbone and North, 1966). According to Carter and Jones-Evans, (2000), growth in small firms is a rarely a continuous and sustained process, so that a firm’s age will never be completely reliable predictor of its growth aspects.

The Cultural and Environmental Aspects

Ricky W. Griffin and Michael W. Pustay (2002) states that some experts do believe that the world’s cultures are growing similar because of the improvement in transportation and communication. Schneider (1989) suggested that the strategy managers choose is a function of cultural assumptions regarding their relationship with the people and their view of environment. He argued that strategy formulation is a process in which organization’s scan, select, interpret and validate information from the environment. According to Simon Bridge, Ken O Neill and Stan Cromie (1998) the culture of small business is tied in with the needs, desires and abilities of its owner. They also state that business particularly small businesses are frequently referred to as an enterprise which emphasizes this aspect of their culture. According to Ricky W. Griffin and Michael W. Pustay (2002) “Cultural differences often create ethical problems.

Acceptable behavior in one culture may be viewed as immoral in another”. Alan Southern states that small firms do not operate in a closed world and their activities and behaviors affect the outside world. They are affected by economic, political, social and cultural trends. (Sara Carter and Dylan Jones Evens, 2000). Dollinger’s research has shown that personnel characteristics of the owner-operator affect the relationship between the boundary spanning activities and performance. Gasse(1977) examined certain hypothesis concerning to the extent to which the environment imposes itself on the managers, forcing them to adopt certain practices. Porter (1980) emphasis that the key aspect of a firm’s environment is the industry in which it competes. Storey (1998) cites eight possible factors that may lead to higher rates of new firm formation within a given geographical are:

• Population growth

• Unemployment

• Wealth

• Workforce qualifications

• Business size

• Housing

• Local Government

• Government policy

Expatriate Entrepreneurship

According to Julius (1982), an effective expatriate is one who makes a successful adjustment to living and working abroad. He can cope with both other expatriates and the locals. He understands the ways of the host nation and not to judge them as inferior. He does not give up his own standards or values although he may incorporate some aspects of new culture into his new thinking. At first a person might have a cultural shock, but he gradually gets used to it. According to Julius (1982) some conditions to be considered by an expatriate are as:

• Expatriate should understand how the business is done locally.

• The expatriate should understand the behavior of his colleagues and subordinates.

• The expatriate may find that there are ethnic or regional divisions within the host society and that they have a direct bearing upon working life.

• Local managements styles will vary

• In certain countries the expatriate may experience a master/servant attitude towards him by the host nationality.

Business Environment

The external environment problems are mainly in the early stages, including inception and survival whereas the internal problems become more critical as the small business progresses through the rapid growth and expansion stages (Dodge and Robbins, 1992, Jones- Evans, 1996). In most business the environment has changed from low competition towards more turbulent, complex and demanding operating conditions (Deucker, 1980 ; Ansoff, 1984 ; Peters, 1987). This is due to the impact of external influences and the unpredictable manner in which they emerge or change that provide the major impact on the nature and pace of small business growth(Wyer, 1997). Rapid and short term environmental change expose the entrepreneur to temporary challenges, entrepreneur’s better plans for long term changes pro-actively and adjust entrepreneurial processes accordingly.

If they can understand the impending trends due to mutual inter-dependencies (Etemad, 2004). Location of a firm can affect its growth prospects, since it reflects spatial variations in local environment conditions (Carter and Jones-Evans, 2000). The concept of location is more complex than it first seems. Location differences such as urban, rural or central can mean differences can mean differences in several other factors such as competition, labor market and government support. (Simon Bridge, Ken O Neill and Stan Cromie ,1998). Entrepreneurs who chose their locations wisely with their customer preferences and company needs in mind can establish a competitive edge over their rivals who chose their locations without thinking. (Thomas W Zimmerer, Norman M Scarborough, 2005) They also state that an ideal location for a business varies dramatically from one company to another due to the nature of the business. Mason and Harisson(1985) conclude that the local environment may be an important influence upon the prospects for small firm growth and expansion and the characteristics of the region in which small firms are located will have a significant impact on the relative performance (Hitchins and O’ Farrrell, 1987, 1988; Sweeney, 1987). Storey (1998) cites eight possible factors that may lead to higher rates of new firm formation within a geographical area:

• Population growth

• Unemployment

• Wealth

• Workforce Qualifications

• Business size

• Housing

• Local government

• Government Policy

Strategy

Colm O’Gorman states that the choice of competitive strategy within a market determines the financial performance of an organization (Sara Carter and Dylan Jones Evens, 2000).Porter suggested that focus strategy is most appropriate for small business (1985). (Sara Carter and Dylan Jones Evens, 2000). The owner-manager’s personal values influence the strategies they adopt in operating their business and ultimately the performance of their business. (Thompson and Strickland, 1986). According to Babberger(1983) business strategies are products of a manager’s vision’s which in turn originates from their personalities. The markets on which the a company focuses are also an important element of its core strategy. (Bruce R Barringer and R Duane Irelend 2006). They also state that a firm will not be able to implement strategies without resources. Stokes and Wilson(2006) identified three types of strategies:

Deliberate strategy- Strategy may be developed as a deliberate plan of stated, or unstated, intentions either by formulating a business plan before start up or intentions are thought through in advance in a deliberate and purposeful way.

Emergent strategy-These are not conceived in advance but emerge as a consistent pattern during the course of events.

Realized strategies-Strategies that are a mixture of deliberate and emergent strategies.

According to Colm O’Gorman small business owners rely on previous industry experience to develop a strategy for the business. (Sara Carter and Dylan Jones Evens, 2000). The three basic factors according to Thompson and Strickland (1993) that influence management’s choice of strategy are management, environmental variables and firm’s internal resources. Miller and Touluse (1986) noted that the management has the greatest influence in dynamic, unpredictable and changing environments. Formal and comprehensive planning is rare in small businesses. Colm O Gorman states that the planning processes observed in small business have been described as informal. (Sara Carter and Dylan Jones Evens, 2000). Sexton and Van Auken (1985) found higher failure rates in small business with low levels of strategic orientation and both Bracker and Pearson(1986) and Sandford(1982) conclude that a lack of planning beyond the immediate future contributes to the failure of a small firm. The competence of the owner-manager is the ultimate determinant of survival or failure (Stokes and Wilson, 2006). He identified three areas critical to the survival of a small enterprise which are controllable to some extent by the owner-manager.

• Management –Management of people is particularly important as it includes not only the personnel issues of dealing with the employees, but also managing people outside the organization who are also critical to its success, such as customers, suppliers, banks and investors.

• A small firm needs to answer the basic strategic question: What markets are we targeting, and with what products? A common weakness in owner-manager lies in their failure to understand the key marketing issues. Two marketing problems of a continuing nature are establishing and maintaining customer contacts and assessment and identification of markets. (Dodge and Robbins, 1992).

• Money-financial difficulties of small firms arise either because of inability to raise sufficient funds to properly capitalize the business, or mismanagement of the funds that do exist, or a combination of both.

In the language of traditional strategic analysis, firm resources are strengths that firms can use to conceive and implement their strategies (Porter, 1981). One firm resource required in the implementation of almost al strategies is managerial talent (Hambrick, 1987). According to Stokes and Wilson, 2006 flexibility is a core competence for small business competivenss and hence a successful small business strategy needs to remain flexible and responsive to change. Therefore as the firm grows, the entrepreneur or owner-manager will need to retain its responsiveness to the changing environment. Cooper (1979) proposed that the growth minded small business should chose a niche strategy concentrating on where they have competitive advantages because they can innovate and change products quickly. Four requirements for the successful development of a new venture has been put forward by Drucker(1985) :

• Focus on the market

• Financial foresight, especially planning cash needs in advance of growth

• Building a top management team before it is required.

• Careful definition of the founder’s role in the enterprise.

According to Churchill and Lewis (1983) a crucial decision for the owner-manager is whether to expand or keep the firm stable maintaining and enhancing the current level of profitability. Once committed to expansion, the owner-manager has the dual responsibility of keeping the core businesses successful while concurrently seeking out the best growth opportunities. (Dodge and Robbins, 1992) The decision made by key players in the small business, however professional and well considered, will have more ofa n certain outcome in the market place, primarily because of limited market power, constrained resources and positional disadvantage. (Beaver and Jennings, 2000). According to Cohn and Lindberg, 1972 the planning process observed in small business have been described as ‘informal, unstructured and sporadic’. Thomas W Zimmerer, Norman M Scarborough, (2005) states that small companies must develop strategies that exploit all of the competitive advantages of their size by:

• Responding quickly to customer needs

• Remaining flexible and willingness to change

• Constantly searching for new,, emerging market segments.

• Building and defending market niches

• Erecting “Switch Cost” the costs a customer incurs by switching to a competitor’s product or service, through personnel service and loyalty.

• Remaining entrepreneurial and willingness to take risks and act with speed

• Constantly innovating.

They also state that no strategic plans are complete without putting them into action. Bracker and Pearson(1986) identified eight planning components: Objective setting, environmental analysis, SWOT analysis, strategy formulation, financial projections, functional budgets, operating performance measurement and control procedures. Based on the presence of these they developed four levels of planning sophistication including strategic planning, intuitive planning and unstructured planning. Entrepreneurial strategic orientation involves willingness to innovate to rejuvenate market offerings, take risks to try out new and uncertain products, services and markets and be ore pro active than competitors towards new market place opportunities( Covin and Slevin, 1991). The essence of good strategy is that it is feasible , it provides a clear competitive advantage and there is a ‘fit’ between the business and its external competitive environment.( Rumlet, 1991).

Networks

Wickham(2006) defines a well-developed network as a terrain in which new business opportunities might be identified and assessed and it provides a means by which contracts are agreed and risks might be evaluated and shared. Also it is composed of personal and social contacts as well as economic relationships and is shaped by the culture in which it is formed. Until SMEs are well established, and relatively sophisticated organization structures are adopted, entrepreneurs tend to take the sole responsibility for maintaining and creating networks (Jones and Conway, 2004). Entrepreneurs are linked to people and organizations that interact among themselves and these contacts can widen the availability of resources that sustain a new firm (Hansen, 1995). Mitchell (1973) refers to exchange networks as those that contain the individuals, companies and groups with which small business has commercial transactions.

The trading partners of small business constitute the core of the exchange network. Instrumental network relations, another aspect of business component are recognized by Johannison (1986) as relations that serve as tools for realizing business objectives. According to Jaril(1988) and Charan(1991) claim that strategic behavior is the main reason for building relations. They also added that the establishment network is a consequence of the participating organization’s need to be effective, to build a central competitive advantage and to achieve superior performance in volatile environment. Donckels and Lambrecht(1997) identified the determinants that constitute the different network types as (1) Social ties (2) Communication (3) Business consideration (4)Moral aspect.

One important reason for participating in networks is to represent the business and to make sure people are aware of us and that we could find opportunities for influencing, finding new clients and other forms of relationship development.(David Rae, 2007). According to Cason et al, (1995:200) the small firm owner-manager’s personal contact network has been identified as “the relationships or alliances which individuals develop, or may seek to develop, between themselves and others”. (Sara Carter and Dylan Jones Evens, 2000). Social networks significantly facilitate the operation of entrepreneurs (Aldrich and Zimmer, 1986: Johanisson, 2000) while networking is one pf the major strategies pursued by the entrepreneurial firms in order to gain access to resources and to cope with the environmental uncertainty and impediments in their operations (Floyd and Wooldridge, 1999; Alvarez and Barney, 2001).

Risk

According to Sitkin and Pablo (1992) and MacCrimmon and Wehrung (1990), risk propensity is defined as an individual’s general tendency towards either taking or avoiding risk within a particular kind of decision context. However, abundance of prior research has shown that propensity to take risk is situation specific. Donald F. Kuratko, Richard M Hodgetts,1995 has stated that the greatest risk may be the well being of the entrepreneur. Liles (1974) suggested that in becoming an entrepreneur an individual risks financial well being, career opportunities, family relations and psychic well being. In strategic decisions a condition of risk usually exists because these decisions, by definition involve uncertain outcomes that in the long run are important to survival of the firm (Mintzberg et al, 1976)and about which complete information is unavailable (Ansoff, 1965). Entrepreneurs face uncertainty and possible loss in five areas:

• Financial

• Social

• Emotional and physical

• Career of future employability

• Organizational( Whether or not organization will grow or prosper)

Donald F. Kuratko, Richard M Hodgetts,1995 say that starting or buying a new business involves a risk., and the higher the awards the higher the risk an entrepreneur has to face. This is why entrepreneurs tend to evaluate risk carefully. Entrepreneurial risk is a far more complex issue than a simple economic risk according to Donald F. Kuratko, Richard M Hodgetts, 1995. Mullins and Forlanni (2005) came to the conclusion that for a new venture decision making, the likelihood of loss and the magnitude of loss capture the essence of entrepreneurial risk. According to Yates and Stone (1992) , the risk construct reflects three underlying facts (1) potential losses (2) Significance of hose losses (3) Uncertainty of those losses.

So while risk taking involves both the potential for loss and the potential for gain, risk itself according to Yates and Stone involves the likelihood of some magnitude of loss. The competency hypothesis advanced by Heath and Tversky(1991) suggest that those who are more skilled at an activity are likely to take greater risks. According to Bird (1989), the entrepreneur’s orientation towards risk, as well as his or her attitudes, perceptions and preferences about risk, security, certainty, ambiguity and opportunity determine his or her behavior.

Research Methodology

The research section aims to give a clear picture of the methodology being adopted in the research. As the research aims to explore in depth the entrepreneurial behavior in a cross cultural environment, interpretivism is the most suitable research philosophy for this research because it enables a rich insight of the study (Saunders et al, 2003). According to Saunders et al (2003), business situations are not only complex but also unique and hence they are a function of a particular set of circumstances and individuals. Since this is a case study of just one entrepreneur and his business, generalization is not possible. By using an intrepretivist approach an in-depth understanding of the case is achieved.

Research Approach

According to Saunders et al (2003), there are two types of research approaches- deductive and inductive. Deductive approach is where a theory or a hypothesis is developed and a research strategy is designed to test a hypothesis. On the other hand, inductive approach is where the data is collected and a theory developed as a result of the data analysis. This research makes use of an inductive approach for gaining a rich insight and explanation of the entrepreneurial success factors in an expatriate environment by undertaking a case study. The theories and concepts in the literature review are a base for understanding the data that is collected. These concepts have helped in creating a pattern or framework for the analysis.

A framework was developed to consolidate the concepts of entrepreneurship by using Pettigrew’s approach (1998). He suggested that pattern’s can be mapped in an existing work by classifying those under three variables- context (i.e. inner and outer), content and process .The inner and outer context refers to the internal and external factors influencing the entrepreneurship. The process refers to the ways the entrepreneur carries out his activities that involves all the managerial activities to start and run a small business. The output or objective shows the outcome of the process of entrepreneurship. This approach clearly defines the ‘what’, ‘why’, and ‘how’ of the entrepreneurial process and has been very helpful in the study. With the help of data collected after meeting the entrepreneur and observations made, a theory will be formulated.

Research Strategy

A Case study is an in depth study of the cases that is under consideration. (Jacques Hamel with Stephane Dufour Domonic Fortin, 1993). They also state that the original term case study was linked to that of case history which is widely used in clinical terms. In this case, the case study of just one Indian expatriate entrepreneur was chosen so that a detailed analysis could be performed. The theory in literature review can be explored in detail and can be challenged to form new hypothesis

Here the data for analysis is a collection of historical data from the experiences of the entrepreneur from the time of his business set-up. Therefore it is classified as a longitudinal study but due to the nature of data collected, it is more appropriate to term it as ‘retrospective longitudinal study’. Exploratory study proved to be very useful for the case study as it helped in finding out what is happening, to seek new insights, to ask questions and to access new phenomena in a new light (Robson, 2002, p59). Searching the literature provided a means of exploring the concepts of entrepreneurship and small business. Exploring the characters of the entrepreneur led to collection of rich amount of data. This led to interpretation of data in a new perspective since it was possible to ask questions until the information was satisfactory for analysis.

Data Collection

In a research study data is mainly of two types- Primary data and secondary data. We derive the results and findings from both the primary and secondary data collected.

Primary data are original documents that are collected by the researcher. This is one of the important parts of data collection. Primary data helps in obtaining results. Primary data is of two types- Qualitative data and Quantitative data. Primary data is collected through

• Structured Questionnaires

• Interview

In this research primary data is collected thorough a semi-structured questionnaire, using prompts and through interviews.

Interview

Interview is the most advantageous approach to obtain data where the questions are either complex or open ended. Here in this case a semi-structured and in depth interview was found to be most appropriate. According to Saunders et al (2003), semi-structured and in depth interviews are used in qualitative research to conduct discussions not only to reveal and understand the ‘what’ and ‘how’ but also to place more emphasis on exploring the ‘why’. Since this case study is to explore the expatriate entrepreneur’s capability and his business strategies in an expatriate environment, there arises a necessity to understand the ‘what’ are the entrepreneurial factors that have made him successful and ‘how’ this has led to the success of the business .

Cooper and Schindler (1998) states that when an explanatory study is being undertaken, it is likely to include qualitative research interviews in the approach. Qualitative research allows the collection of data whereby the respondents are allowed to express their views in their own terms, exploring deep issues of human experience. (Johnson and Harris, 2002). For this purpose unstructured or a formal interview was conducted on the entrepreneur where he was allowed to talk freely about his experiences. This was later compiled in the from of questions and answers. The quantitative interview helps in understanding the reasons for the decisions that the research participants have taken, or to understand the reasons for their attitudes and opinions. (Saunders et al, 2003).

Another advantage of qualitative interviews is that it creates opportunity to probe for answers where the interviews need to build on or explain their answers (Saunders et al, 2003). This helped in gaining a rich understanding of the concepts and also provided immense data. “A complex, interconnected family of terms, concepts and assumptions surround the term qualitative research.” (Norman K Denzin and Yvonna S. Lincoln, 1998). According to Veal (1997), qualitative method is a very suitable for analyzing and describing people’s experiences or feelings without being constrained by the framework.

A semi-structured interview was conducted with the Managing Director of the oil field supplies establishment and the Arab sponsor. For this a list of questions was prepared beforehand and during the interview additional questions were added depending on the progress and direction of the interview. This helped in achieving a deeper understanding of research objectives. All the interviews were on a one-to-one basis. But in the case of the entrepreneur apart from face to face interviews, telephonic interviews were conducted frequently. This helped in further clarification of information. Apart from the interviews, observation was also made to support the data obtained from the interviews. The data that is collected is then entered into a compute. Entrepreneurial behavior and the characteristics were analyzed by the observation and also by the memory recollection of the observer. The interview of the Arab sponsor has been very important because he has known the entrepreneur for the most number of years. Quantitative research is in the form of numbers. Questionnaires are the form of collecting data for quantitative data. In this research, semi structured questionnaires are used. The answers to the questionnaires are linked to the literature review.

Questionaire

Questionnaires can be used for descriptive and explanatory research. A questionnaire is the easiest way to collect data. A questionnaire generally consists of a series of questions. They are mainly used in case studies where the questions would be or can be designed so that it can be used to infer the results of the quantitative analysis associated with the research. The questions should be prepared in such a way that they should be related to the research subject and objectives. Here questions are based on factors based on entrepreneurship and small business management in the expatriate environment. The questionnaire can be prepared for an individual or large number of people depending on the research. A semi structured questionnaire is used in this case study. Questionnaires have to be prepared by the researcher. It has to be then completed by the entrepreneur and Arab sponsor. The questionnaires will throw light on the attitudes, characters, strategies etc of an entrepreneur.

Secondary Data

Secondary data mainly consists of data from journals, articles, books, websites, other research papers etc. Here in this case the researcher has collected data from books, articles, journals, websites that are concerned with the research question.

Data Collection Methods

The different methods of data collection are summarized as follows:

• Interview of the Entrepreneur – To investigate and study the entrepreneurial aspects of an Indian in an expatriate environment. It is also used to analyze the strategies formulated and implemented in setting up the business. The interview is the main base for the research.

• Arabs sponsor’s interview- To get background information of the country and the business environment in the past and the present. It is also used to evaluate the success factor of the entrepreneur as an efficient and effective businessman.

Other than the interview even questionnaires are given to the entrepreneur and local Arab sponsor.

Validity and Reliability of Data

The quality of data collected from the interviews has been dealt with in relation to its reliability. This is an important factor certain things such as the attitude of the entrepreneur and local Arab sponsor might change the overall result of the research. Due to the cultural difference of the Arab sponsor, responses given about the entrepreneur has to be analyzed in the Arab perspective. Since this case study is about one expatriate entrepreneur and his small business in an expatriate environment, it is not possible to make any generalizations. There is a possibility of misinterpretation of responses due to the cultural differences between the interviewee and interviewer (Marshall and Rossman, 1999). This arises when the Arab sponsor is interviewed.

So it is essential that the cultural differences are taken into consideration before interviewing the Arab sponsor. Observations made were both of primary and secondary in nature. Primary observation is where they observer would note what happened or what was said and secondary observation are statements made by those people who observed the event (Saunders et al 2003). Apart from the notes made by the researcher, information was also derived from observations of people working in the company. The findings will be the view of the researcher. In order to ensure the reliability of the data the researcher should have an open mind while analyzing and should consider all possible solutions. Here data is also supplemented y interviews.

Careful listening will allow the interviewer to identify the comments that are significant to the research and to explore these with the interviewee (Torrington, 1991). Other than observations made from the interview with the entrepreneur and Arab sponsor, information was also derived from the observations of people working in the company.

Access to the entrepreneur and organization was easily obtained due to the relation of the researcher to the entrepreneur. So there were no issues pertaining to organization access.

Ethical Issues

The name of the organization and people used in the case study are not disclosed to respect the privacy. The interviews were treated with strict confidentiality and the interviewee was made aware of it before the interview. The interviewee was not subjected to any kind of pressure to participate in the interview. The interview of the entrepreneur and the local Arab sponsor was done during their free time. The real purpose of the interview was made clear to the Arab sponsor to attain his consent. During the interview and observation, only the events which are relevant to the research are noted. This was done so that the privacy of the participants is not breached. The purpose of the study has been reveled to the employees working at the office. This research includes an in depth study of the entrepreneur, which includes attitudes and behaviors. In order to protect their anonymity, terms like ‘entrepreneur’ and ‘Local Arab sponsor’ have been thoroughly used throughout the research.

The Differences Between Setting Up a Business In The UAE and India

The cultural dimensions of U.A.E and India are different from each other even though they have some similarities. U.A.E has the most diverse economy among the Gulf Cooperation Council Member countries. U.A.E is one of the fastest growing economies in the world. In U.A.E the uncertainty avoidance aspect is very high compared. U.A.E has a large amount of Indian expatriates like the entrepreneur himself. Due to this factor the environment was not foreign for the entrepreneur. In spite of all these factors the environment had an impact on the entrepreneur. The business environment of U.A.E constituted of people from different parts of the world, thus creating a multicultural environment. Due to this factor the entrepreneur had to familiarize with the other cultures along with the local Arab culture. When doing business with people from other countries it is important to be aware of some basic aspects of their culture.

Since the entrepreneur was dealing with Arab’s mainly, he had to be familiar with their way of dealing in the business sector. Doing business in the U.A.E is tax free. Most operating business in the U.A.E does not pay income tax and are not subjected to tax filing requirements. A person starting a business will not have to pay taxes to the government here. The government in the U.A.E runs on the money generated form the sales of oil. An expatriate planning to start a business in U.A.E should have a local Arab, who is called as sponsor who will be responsible for all legal formalities. It will be under the name of the local sponsor that the entrepreneur can set up a business. The sponsor will be paid an amount of money each year for his services.

The location and relative low labor cost are some main factors that have interested people in starting business here. The expatriate workers have to work under the company’s visa. Their needs have to be looked after by the company. Food and accommodation has to be provided by the company. Failure to do so will result in fines from the government. In the U.A.E there are no labor unions as in other Asian countries. Another important aspect that is to be considered while doing business in U.A.E is rules and regulations. Any one not following them will be heavily fined and their licenses cancelled. U.A.E is a country that relies on rules, laws and regulations.

In the case of India there is low uncertainty avoidance. A person starting a business is prone to uncertainty factors. India is prone to political instability. As the government changes new rules are made. Some governments support business, whereas the other governments do not. Labor unions are very active in India. Strikes are conducted frequently, sometimes without a specific reason therefore bringing work to a halt. This leads to a loss in a company s working day and therefore profit. The workforce in India is mainly of local people. There is only a very less amount of expatriate labor work force in India.

Each state has a different pay rate for labors. Some states have high pay rate where as some have low rates. E.g. In Kerala a state in the southern most part of India the labor rates are very high compared to some other parts like Bihar, Uttar Pradesh. Private companies are still undeveloped in India. Even though there are rules and regulations nothing works accordingly. There is no need of a sponsor to start a business in India. A businessman can start a business himself. In India a person starting a business has to pay taxes and the taxation rate is very high compared to that of U.A.E where there are no taxes. The corporate income tax for a domestic business is 35 %. Moreover the business environment in India is very unstable compared to that of U.A.E. Even if the rules and regulations are broken it is easy for a person to escape being fined. Moreover the oilfield business sector is not as developed as that of U.A.E.

Eventually taking these factors into consideration the entrepreneur decided to start a business in U.A.E

Data Analysis

Data analysis is the process of applying statistical and logical techniques to describe and compare the data. This chapter deals with the major part of the research where all the data collected is analyzed. The analyzed data has to be validated carefully according to the research questions and necessary inferences should be made accordingly. The data should also be checked for errors. The data should also be checked for reliability and special care should be taken to make sure that no data has been omitted. If any data is omitted it puts the validity of the research at risk. The aims and objects of the research has to be reviewed and each analysis has to be in order so that if brings an outcome that is connected with the aims and objectives of the research.

Distinction Between Entrepreneurship and Small Business

The boundary between the entrepreneurship and small business was explored in great detail and it was found that there is no clear difference between the two. A small business owner is also called as an entrepreneur. In the literature authors uses entrepreneur and small business owner synonymously. In some cases the authors state that entrepreneurs are not merely those who start and run a business. In this research the entrepreneur is also a small business owner and analysis has been done taking into consideration the literature of entrepreneurship and small business owner, but in an expatriate perspective.

Therefore one of the major findings of the research is that it has not been possible to differentiate between an entrepreneur and a small business owner based on few factors. An entrepreneur who starts a business is also called as owner manager. Similarly an owner manager who adopts an element of entrepreneurial activity in his business becomes an entrepreneur. Moreover the traits and characteristics described in the literature can also be observed in the owner manage of a small business.

Entrepreneurship and Small Business

The expatriate businessman here has been analyzed in terms of the entrepreneurial activities, behavior, characteristics and entrepreneurial capability with the information obtained from the interviews and observation. The businessman is considered to be an entrepreneur mainly because he took the risk to start a business in a foreign land as an expatriate and the risk taking capacity is considered to be an element of entrepreneurship. The reason for considering the start of business as a risky venture is because of the fact, that at the time of staring business U.A.E was yet to develop and its economy was unpredictable.

Since U.A.E was just beginning to industrialize, the economy was unstable. People started migrating to U.A.E 30-40 year’s ago either to seek jobs as laborers or office staffs in companies which were starting to emerge. The entrepreneur had migrated to Abu Dhabi, the capital of U.A.E some 35 years ago worked as a Personal Manager in Oil Company before starting up the business. The entrepreneur had been working in the Oil Company for more than 10 years which lead him to gain a good knowledge of the Oil and Gas sector and also contacts within the industry. It was with this knowledge the entrepreneur set up Oil field Services Company, his first business. Oil and Gas is the main source of revenue for the United Arab Emirates.

The Oil Field Services Company was started by the entrepreneur with the need to be independent and implement his own ideas as stated by the entrepreneur “I will have the liberty to implement my own ideas and be my own boss. (Refer Appendix)” Self confidence of the entrepreneur was another motivating factor behind the entrepreneur to start the business. These two factors are the characteristics of an entrepreneur. With financial support from the entrepreneur’s family and local support from the sponsor the first business was launched. At first the company’s office was just a single room with just one office staff. This was done to reduce the costs at the initial stage.

The Oil Filed Supplies Company was started with just six employees working in offshore and onshore oil fields. The competition was very high because there were many other companies working in the same field. The entrepreneur’s company had to overcome these companies in order to survive in the market. To overcome competition and gain a strong hold in the market and element of innovation was used. The entrepreneur supplies clients with sufficient manpower and machineries on time.

The entrepreneur only sends skilled labors to his clients and completes his projects in time and without and problems. This has earned him a good reputation among his clients. These entrepreneurial activities helped him to gain advantage over other companies and helped him in winning more clients. As result the entrepreneur’s company is currently supplying manpower and machineries to almost all the top Oil Companies in Abu Dhabi and to many other companies. All these factors contributed to increase in profits of the company. As a result the company started growing in size. The office was moved to a better location with more facilities and is now employing more then 70 workers, whore are working in different onshore, offshore rigs and various other sites. The number of office staffs also increased from one to seven. This helped in distribution of office jobs evenly and relieved the entrepreneur of certain jobs.

The entrepreneurial characters that are observed through the interviews are the need for autonomy and achievement. Risk and self efficiency are the other factors. The goals of the entrepreneur before the start up phase were clearly defined. They are profit and growth and later on to provide employment opportunities for other expatriates. Since the entrepreneur was starting a business in a foreign country thorough planning was essential before the start up. The entrepreneur had to find a sponsor first and then convince him of his plan. For this he had to have a business plan. The business plan is a must for an entrepreneur without a clear business plan an entrepreneur will never succeed. The entrepreneur had a strategic vision about the company and has worked hard for it. This is clear from the statement made by the Arab sponsor which is as follows “I found him to be a very ambitious young man. He was also determined and confident to start and manage his own business. (Refer Appendix)” He had a clear idea of how the company should work and motivated others to work hard for it. These are entrepreneurial characteristics.

Planning Procedure

The relation between the entrepreneur and local sponsor is very cordial and informal. So the management decisions are taken in an informal setting. For legal matters formal records and documents are produced. The planning procedure is done with uttermost care and consideration. This is done keeping in mind the changing market trends and customer demands. The entrepreneur is very particular in planning procedures. Another major concern of the entrepreneur is that his business is abiding by the rules. Any new plans or business strategies being implemented should be fit with the business environment of U.A.E. Before taking a decision these factors have to be analyzed. Any legal changes have to be consulted with the sponsor. Before implementing the strategy it has to be ensured that it falls in line with the local conditions and the local business environment. This is evident form the statement made from the entrepreneur “I believe that when doing a business, it is important for a business to be aware of the past be in pace with the present and plan for the future. Just focusing on the current trend is not just enough. (Refer Appendix)” Globalization has had a great impact on the business environment, causing a very tight competition in all industries. The business environment in U.A.E is multi cultural so to stay ahead, strategies must be implemented as soon as possible but with careful consideration. Therefore constant market research is being done so as to have an up-to-date knowledge about the requirements of local oil companies. As the business environment has changed from a low competition to a very complex and global environment it has had an influence on the strategy formulation of the business. Since the business environment is a multicultural one strategies have to be implemented as soon as possible but also with careful consideration.

During the start up phase, the company had to focus only on external environment factors i.e., marketing and networking to gain customers and suppliers. Once the company became established and gained a reliable network of customers and suppliers, they started focusing on the internal environment factors so as so to boost growth and development. This involved hiring more people so that the office tasks could be distributed. This helped relieve the entrepreneur from minor tasks and helped hi focus more on the external environment so as to see other clients. This does not mean that after the company was established it stopped dealing with eternal environment factors. The company keeps track of both internal and external factors and tackles any problems as soon as possible.

Workforce

The entrepreneur’s workforces are male expatriates from India, Bangladesh, and Philippines. However half of the manpower employed by the company are from Philippines and about 30 % from India. All the employees are under the company‘s visa. All their needs such as medical insurance, visa renewal etc are to be looked after the company. Food and accommodation are provided apart from monthly wages. The monthly salary will be transferred into the employee’s bank accounts. The entrepreneur ensures that his workers are fit physically. Since the entrepreneur is an expatriate he is aware of the problems faced by the expatriate workers. This is clearly stated in the interview by the entrepreneur “Since I am an expatriate myself, I can understand their situations and I have provided support to them. (Refer Appendix)” Even though there have been minor problem with the workforce and entrepreneur which is bound to happen in most cases, they have been sorted out. Employees are given salary appraisals and a efficient employees are given benefits. This is done to motivate them so that they can deliver the best for the company. Best employee awards are given every year to the best employee that includes salary appraisals and benefits. All these are the strategies used by the entrepreneur to motivate the employees. During a particular project a group of employees had refused to work demanding an increase in their pay. This was soon sorted out by increasing the wages. The entrepreneur uses some strategies to motivate the employees. There are salary appraisals every year and also benefits are given to employees.

Network

The entrepreneur’s network consisting of social as well as business contacts has proved to be a major factor of success for the entrepreneur. With the expansion of the entrepreneur’s business, the entrepreneur was able to meet people of different nationalities from different industries having different experiences. The expatriate environment in Abu Dhabi is closely knit where the Indian expatriates have various clubs. These clubs organize various gatherings. These meetings have proved to be very useful. The entrepreneur gets to meet people with similar interests. Here business ideas are exchanged and new opportunities are explored. These contacts have proved valuable to the entrepreneur in various stages of his business. For example having contact with a Manager in an oil company helps the entrepreneur to gain an easy access to the company. Since the entrepreneur had worked in Oil Company before staring his business he had a good network of people working in other oil companies. This has helped him gain access to these companies. Since the entrepreneur had been living in Abu Dhabi for more than 30 years he had a number of local Arab friends. These networks also have been helpful to him.

Risk

Risk is part of doing a business. Any person doing a business has to face a risk. Apart from the risk of starting a business the entrepreneur has to face other risks. The entrepreneur has to risk his well being and family relations for the business until the company is established. The entrepreneur had to spend more time at the office during the initial stage which made him prone to stress. Because of this the entrepreneur could not spend much time with the family during the start up phase. But as the company established the entrepreneur was able to relieve himself from small duties. The main problem that the entrepreneur had during the start up phase was that of lack of familiarity of the local customs. The entrepreneur was not very familiar with the local way of doing business. The entrepreneur faced a major financial risk during the first stages. Starting the business was a major risk because the entrepreneur had invested his personal earnings and family money onto the business. If the business was not successful then the entrepreneur would have lost his money. This was major risk the entrepreneur had to take. Even though the company has become well established does not men that it will not be prone to risks. Risk is a part of business. The company still has to face risk from competitors.

Success Factors

With the passage of time the entrepreneur had become an effective expatriate. The survival of the business is indicator of his success. This was possible because of number of factors like sufficient knowledge to do a business in an expatriate environment, which was gained through experience, compatibility with his staff and creation of a dependable network. The experience of setting up a business made the entrepreneur more capable and confident. As he became accustomed with the way of doing business in Abu Dhabi things became easy for him. This clearly shows that experience plays an important part in enhancing a person’s business. This is clearly stated by the local Arab sponsor “He was always prepared to take risks and had a clear plan of how things should be done. He also worked hard to achieve it. (Refer Appendix)” The company started by the entrepreneur has a simple organization structure. The entrepreneur plays a crucial role in the organization. As stated by Stokes and Wilson (2006) it was found that the main resources that make up a small business are ‘financial capital, human capital and social capital’. The trends that were observed during the different stages of small business found by the entrepreneur are described below:

Pre-start up process

• Intention of the entrepreneur to start a business in his field of experience, i.e. Oil and Gas sector.

• Investigation of the market

• Gathering of resources.

• Forms the company with the help of local Arab sponsor

The start up process

• Idea formation

• Recognizing the opportunity

• Pre start and planning

• Market entry

• Post entry development

All these stages was according to that described by Deakins et al (1998)

Growth factors

• Awareness of the changing market trends

• Making changes to stay competitive in the market

• Enhancing the network

Survival factors

• Knowledge of the concerned sector

• Customer or client service

• Personal contacts

• Physical resources

• Employees capability

Critical factors for survival

• Internal and external management

• Finance

• Marketing

Conclusion

To conclude, this research has collated the major factors that are associated with entrepreneurship into a framework. The abundance in the literature of entrepreneurship and small business is overwhelming. This sometimes leads to confusion because of the overlap in literature for entrepreneur and small business owner. With all the data collected on entrepreneurship and small business the researcher has drawn a relation between the two, finding similarities. It is not possible to really differentiate between a small business owner and an entrepreneur. A small business owner is also an entrepreneur. This case study has been based on an Indian entrepreneur in Abu Dhabi. The entrepreneur started a small business in Abu Dhabi. Even though the entrepreneur has started a small business he is still considered an entrepreneur. There are many expatriates doing business in Abu Dhabi, but this case study is done one just one entrepreneur. The owner is considered as an entrepreneur because of the fact that he has taken an enormous risk by launching a business in a foreign land with just the experience of working in an Oil Company. The risk taking factor is character exhibited by entrepreneurs. As time passes by the entrepreneur becomes more experienced and this makes him prepared to face bigger risks. From this we can conclude that in order to start and run a small business, no formal knowledge or education in business management is not required. It has not been stated in the literature that an entrepreneur is require to be educated to a particular level. What make an entrepreneur are certain skills and qualities. An entrepreneur must have skills and qualities like leadership, decision making, and creativity, ability to utilize and control resources effectively and efficiently. The entrepreneur must also have the ability to form good contacts. All these factors also make the business successful. All these qualities are in born. They cannot be taught from any schools or universities. These qualities were found in the expatriate owner. That is why he has been called as an entrepreneur. Some factors like external environment shape the attitudes and behavior of the entrepreneur. Here in this research it has been evident that the strategies adopted for the business has been influenced by the culture of the country in which the business is done. The business environment in U.A.E is multicultural. So the entrepreneur had to familiarize with various cultures, but the Arab culture was more important. The expatriate entrepreneur has the ability to learn new things. He has become accustomed to the Arab business culture quickly which has resulted in the success of his business. The entrepreneur started as a process entrepreneur and gradually turned into an opportunistic entrepreneur. Even though this is the case of just an entrepreneur this can be generalized to some extent. This is because any businessman who starts a business will have a desire to expand and grow if the business becomes successful. Even though the business was started by the entrepreneur to satisfy personal goals, the success of the business is a motivation for the entrepreneur to take further steps to improve the business.

As far s the businesses are concerned, the overall concept of the start up, establishment, growth and development is the same. But in this case the expatriate culture influences the way the small business is conducted. This indicates that the culture of a country affects the management of the business, i.e. the strategies adopted by the entrepreneur will be affected by the culture. Since the culture of the country in which the entrepreneur starts business is different from that of the entrepreneurs, it will have a strong impact on the business. Another major factor that makes a business successful is the experience of the entrepreneur or businessman. Mere business education is not sufficient to run a business. The business during the initial stage takes time to grow. It is only after a couple of years that the business gets established. The success of the business is a motivating factor for the entrepreneur. Once the business becomes successful, the businessman looks for more opportunities in the same field or diversifies into other fields. In this case the entrepreneur looked for opportunities in the same field and expanded his business. Entrepreneurs make the best use if these opportunities, and hence they can be called as true entrepreneurs. As mentioned earlier in the literature, entrepreneurial activity is based on certain characters and qualities Risk taking capacity is one of the factors. Setting up a business itself is a big risk. This is because it consumes the entrepreneur’s financial resources, time and energy. Due to this the entrepreneur is at risk financially, emotionally and physically. Some people risk all their savings in setting up a business. The entrepreneur had invested his savings and family money into the business. So the entrepreneur was at great risk. Although this is done to attain an income for survival, it involves a great risk as far as success of the business is concerned. Any individual who starts a business has to face the same amount of risk. Therefore any business activity involves an element of risk and risk taking capacity is a factor related to entrepreneurship. Thus it can be considered that all people who start and run a business can be considered as entrepreneurs.

Limitations

There are some limitations faced in this research in the methodology and data collection. The case study in this research is based on an individual entrepreneur. Do generalization is not possible in this case to some extent. The interviews conducted and may be a bit biased due to the relation of the entrepreneur and the researcher. Apart from the data collected through interviews even questionnaires were prepared for the entrepreneur and local sponsor. A major amount of information was obtained from the memory collection of the entrepreneur and the researcher. Any information regarding the strategic planning procedures is derived from the interviews of the entrepreneur and his local sponsor.

Recommendations

The inability to generalize the data can be overcome by conducting the research on different entrepreneurs with different background. Due to the time constraint it was not possible. It will be fascinating to make a study of expatriate entrepreneurs from different countries in Abu Dhabi and analyze their ways of doing business. By comparing the expatriates of same nationality in different countries and how the culture of the country in which they reside influences them and their way of doing business. This will involve a very deep cultural analysis.

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