Assignment Cover Sheet

Subject Code: MGNT215

Subject Name: Small Business Management
Submission Type: Individual Essay
Assignment Title: Immigrant Small Business Owners

Student Name: Muhammad Hamza Yousuf

Student Number: 5671346

Student Phone/Mobile No. +971-55-921 4859
Student E-mail: mhy861 @uowmail.edu.au 
Lecturer Name: Dr. Ritu Sehgal
Due Date: 4th November
Date Submitted:

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 Immigrant Small Business Owners

Small and medium enterprises (SME) based in Dubai account for around 47% of Dubai’s
GDP and employs nearly 52% of the workforce in the emirate. Over the course of recent
years, the UAE has developed a distinct approach to a booming economy with a shift from
oil-based to a more tourism and business activity dependent economy (Augustine, 2020). The
increased economic activity has attracted individuals from all around the world to seek
business opportunities in the country. The following report is a study of ‘immigrant small
business owners’ who came to the UAE for improved living standards and increased business
activity. The report focuses on a male entrepreneur based in the UAE and discusses about the
challenges faced by him in establishing a small business in the UAE. The immigrant small
business selected for this essay is ‘Max Express Courier Service LLC-Dubai’. The
information is collected by an interview with owner Mr. Mohamed Tahir.

Description of Business and the owner

Mr. Tahir who hails from Pakistan is a young entrepreneur based in Dubai, UAE. He
migrated to UAE in 2010 in search for better job opportunities but within three years in
Dubai he realized the gap in courier services and e-commerce sector of the country. Mr. Tahir
along with his friend established the organization Max Express Courier Service in 2013. The
business excels in domestic and international courier services with promised on time
deliveries and most competitive rates in the market which helps Max Express in retaining its
customers (MAX Ex, 2020). Other than courier service the organization has diversified and
in past years while investing in building an e-commerce platform for increased convenience
of customers.

Why did the business owner decide to start the business, did they face any issues to start
a business in UAE?

The organization was setup in early 2013 when the masses had just been introduced to
convenience of e-commerce and online shopping. Max Express had been providing services
to consumers who prefer same day deliveries or hassle-free returns. There was a huge gap in
the market when Max Express was established as online marketplaces found substandard
logistics which affected their quality of service. Max Express had availed the opportunity on
time and is a well-established small business today. In the early years of establishment, the
organization had faced issues with finances. Mr. Tahir who was inexperienced in the early
years faced a problem when he dedicated most finances to establishment rather than for
MUHAMMAD HAMZA YOUSUF 2
 Immigrant Small Business Owners

expansion. As Mr. Tahir is a management graduate, he handled the situation professionally

by acquiring external sources of finance. The organization is very strong internally when it
comes to management, this quality has helped Max Express in the past and would aid in
better performance in the coming years. External factors such as government policy or
international business environment play a significant role in the performance of a business
(Duncan, 2020). The external factors pressurized Max Express in the initial years, but Mr.
Tahir patiently and professionally dealt with such forces personally.

Is it easier or difficult to setup a business in their home country compared to UAE?

The UAE and Pakistan both have policies to attract foreign direct investment but, the UAE
leads the list with more favourable business environment for small and medium businesses.
The UAE has posed itself as an economic hub in the past decade with extensive investments
on free trade zones and the amendment in the policy that allows expats to have 100%
ownership of the institutions based in the free zone areas (Gundala and Khawaja, 2020). The
corporate taxes remain very high in Pakistan compared to the UAE who offers tax
exemptions for newly established organizations. The government of UAE has also introduced
10 years visa which attracts investors as the initiative helps in reducing visa renewal cost of
workers. Furthermore, the Expo 2020 has brought a boom in the economy of UAE with
increased government spending leading to greater aggregate demand in the country. The
courier and logistics sector play a vital role in exhibitions hence, there is great potential for
Max Express in the year 2020 (Gulf News, 2020). The UAE has been attracting expats for
many years and the newly introduced visa policies to supplement immigrant population
growth by reducing processing times and visa fees. The smart initiative by the government of
UAE, the digital platform helps in acquiring visas and other services with just one touch
while improving efficiency. All the above-mentioned aspects of the UAE point to the benefits
of establishing business in the UAE instead of Pakistan.

Analysis and Recommendations

Max Express was operating at break-even with sustained performance in 2019 but the
coronavirus outbreak and movement restrictions has affected the organization with a dent in
international couriers as the borders were closed in mid-March 2020. However, the
organization has seen significant growth in local deliveries as individuals were reluctant to
step out of their homes during the pandemic. The logistics business operated smoothly as per
MUHAMMAD HAMZA YOUSUF 3
 Immigrant Small Business Owners

the government guidelines of constant sanitization of facilities and packages. Max Express
should align themselves with increased precautionary measures during the pandemic as this
would ensure safety of their customers. With Expo 2020 around the corner there is huge
untouched potential in the logistics sector of the economy (Gulf News, 2020). The
organization could see unparalleled growth in the coming months of 2021. Lastly, Max
Express should speed up establishment of their e-commerce platform to acquire more market
share.

The UAE has evolved well with its policies compared to past years and has jumped in ease of
doing business index. The country has made drastic changes in promoting small and medium
enterprises and attracted huge sums of foreign direct investments in the recent years. Unlike
before, expats can start businesses much easily now with increased support from the
government in terms of finances or consultation. The country has however strengthened its
laws governing to small businesses as crowded corporate markets always attract lemons in
the markets or scams.

MUHAMMAD HAMZA YOUSUF 4

 Immigrant Small Business Owners

References

Augustine, B., 2020. Small And Medium Enterprises Account For 99.2% Of Businesses In
Dubai. [online] Gulfnews.com. Available at: <https://gulfnews.com/business/small-and-
medium-enterprises-account-for-992-of-businesses-in-dubai-1.68441294> [Accessed 29
October 2020].

Maxexuae.com. 2020. About Us – MAX. [online] Available at: <http://maxexuae.com/about-

us/> [Accessed 31 October 2020].

Gundala, R. and Khawaja, H., 2020. Brand Management In Small And Medium Enterprise:
Evidence From Dubai, UAE. [online] Papers.ssrn.com. Available at:
<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2323011> [Accessed 31 October
2020].

Duncan, G., 2020. Problems Facing Entrepreneurs And Smes In The UAE. [online] The
National. Available at: <https://www.thenationalnews.com/business/problems-facing-
entrepreneurs-and-smes-in-the-uae-1.435486> [Accessed 31 October 2020].

Gulfnews.com. 2020. Growth Of Regional Logistics To Intensify In 2020, Say Experts.

[online] Available at: <https://gulfnews.com/business/growth-of-regional-logistics-to-
intensify-in-2020-say-experts-1.69105187> [Accessed 29 October 2020].

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