UAE ideal hub for start-ups

Dubai - Infrastructure and visionary government are key advantages

The UAE is a perfect crucible for start-up businesses, says a successful young entrepreneur who founded Buimerc Corporation, based in Jebel Ali.Siddharth Balachandran, chairman of the Dh500 million Buimerc Corporation, says a world-class infrastructure, presence of credible financial institutions, a reasonable interest rate regime and a visionary government make the UAE one of the most credible countries to start a business.Balachandran, who holds several prominent posts, including chief patron of the Indian Social and Cultural Centre, is a philanthropist.
He is on the board of charities, including the Abu Dhabi Indian Community Welfare Committee, Science India Forum and the Dubai Autism Centre. He is also on the panel of the Abu Dhabi Centre for Special Needs. In an interview with Khaleej Times, Balachandran speaks about the environment for start-ups, his business philosophy and goals.
How did you get this novel idea to start your business?
I have always believed in the core concept of institutional wealth accrual rather than individual wealth accrual. Hence, it is this core philosophy that created the germ of the idea to create Buimerc Corporation. Buimerc Corporation is my operating holding company that is based in Jebel Ali Free Zone, Dubai.
How can this idea change the world or the UAE?
Buimerc Corporation could be a magnet for good businesses with stable cash flows and solid intrinsic value, to consolidate, thereby creating a great example that can be emulated and followed. The core ideals of transparency, excellence, strength and trust (the Test ideals) are strictly adhered to, which could be another credible benchmark that may serve as an aspiration to other young entrepreneurs who are starting out.
Why is this idea a game changer?
I believe this idea is a game changer because the intensity of the initiative is reinforced with the clarity of purpose. My vision is that Buimerc Corporation transcends the level of pure operating companies and becomes a name associated with intangible values like continuous improvement and sustainable excellence. I believe the identity of Buimerc Corporation should not be restricted to any individual business or establishment, it should be pan industry. The core function of Buimerc Corporation will be effective cap-ital allocation among its subsidiary companies.
How old and large is the team?
No company survives without the most important fundamental pillar, a committed core team at the helm. We have been fortunate in this aspect, as there is an ideal blend of youthful exuberance and tempered dynamism with respect to our core management. The total employee base of Buimerc Cor-poration and its subsidiaries is approximately 500 plus.
Your role model business and role model companies?
My role model business would be in the insurance sector and my role model companies are two; Tata-sons and Berkshire Hathaway.
Your first source of funding - was it personal, family and friends, or a venture capitalist?
It was a healthy mixture of family, personal and institutional finance.How do you find the UAE start-up environment?
If there is a perfect crucible for a start-up, then it is this great country, the UAE. World-class infrastructure, the presence of credible financial institutions, a reasonable interest rate regime and a visionary government make the UAE one of the most credible countries to start a credible business in. The cosmopolitan nature of the populace and demography is another feature that makes this market a sustainable one.
Other than your present business, which new areas/sectors you will like to explore to expand your business empire?
The insurance sector has always intrigued me and is a sector I am currently exploring, in addition to the financial services sector.
What advice would you give other entrepreneurs?
Be passionate, but also precise. Every initiative should be backed with a clarity of purpose. Be prepared to work 18 to 20 hours a day. The focus should be to constantly im-prove the fundamental operating cycle of the business.
What are the strongest and weakest points of UAE's start-up ecosystem?
The strongest points are 1) world class infrastructure 2) solid credible financial institutions 3) unparalleled logistical infrastructure 4) ideally positioned in terms of geography 5) world class standard of living and recreational facilities 6) business-friendly initiatives and rules by the government.The points that could be im-proved are laws governing bankruptcy and the legal system frame-work with respect to white collar crime. However, it must be said that the government is doing a commendable job in addressing these areas of concern.
How do you see the role of technology in your future growth plans? Do you properly use social media, online and digital to strengthen your business?
The entire world has been revolutionised in the past 15 years and the pace of change has been stupendous. The only way that a business can survive in these times is by following a holistic and seamless technology integration policy. We follow a policy of credible and responsible PR, and our online and digital strategy mirrors the same. We also en-sure that there is appropriate social media exposure for the new initiatives that we execute.
To whom do you attribute your success?
I don't believe myself to be successful.but if there is a general perception that I have done well, then I attribute that success to every individual that I have interacted with in my life thus far, as I believe that there is something to learn and imbibe from every person in this world. This learning may happen consciously or subconsciously, but the diffusion of knowledge takes place. I recognise this and am thankful for this.
What new measures you adopted that resulted in the success of your business?
Again, I feel the word 'success' is very relative and one can never, or should never, call himself 'successful'. But I think a seamless flow of information between the various personnel of a company is imperative for excellence to be sustained. This is something that has been facilitated by creating core teams and by ensuring that these core teams have formal meetings regularly.
- issacjohn@khaleejtimes.com