DOHA: Startups and budding entrepreneurs have all praise for the Qatar Development Bank’s (QDB) soon-to-be launched ‘Entrepreneurship Leave Program’. They say that the ambitious programme, which will allows government employees to take paid-leave from their jobs for launching startups or to pursue their business ideas as full time entrepreneurs, is expected to work as a great catalyst in attracting more number of startups and accelerating the process of economic diversification.

The initiative will help and incentivise full time employees to take leave from their job and become full-time entrepreneurs instead of pursuing their project as part-time business activities.

“It is a fantastic idea on the part of QDB. I am a big admirer and supporter of the agency. It’s doing good job to support SMEs and startups. The new initiative will definitely be of great help because I believe time is the most valuable thing in life. In fact time is money,” said Khalifa Saleh Al Haroon, one of Qatar’s most well-known entrepreneurs.

Al Haroon, one of the most successful entrepreneurs, said: “Since the scheme will provide support, time and ability to sustain an individual without job with a fixed steady income. This will attract a lot of innovative ideas. The initiative will also provide a peace of mind to startups and pursue their business ideas whole heartedly.” He has founded one of Qatar’s most popular digital network of websites, which include brands such as iLoveQatar.net, Qatar Events, Qatar News, and a fast growing YouTube content network. His content network includes online programmes such as QTips, Mr. Q Visits, Karak Time, Raqami TV, and Top 5 Everything. He is also working on several innovative ideas which he is expected to launch very soon.

Another entrepreneur, who did not wish to be named, also echoed similar optimism about the initiative. However, he also expressed his concerns that the paid leave programme is very good but need to be implemented with great causation so that no one can misuse it. He suggested that QDB can introduce an evaluation system measuring key performance indicators (KPI) to know how effectively the startups in question are achieving key business objectives.

The QDB, the government-backed agency which has been entrusted with the task of developing small and medium enterprises (SMEs) to achieve economic diversification for sustainable development, has been taking host of initiative under a broader strategy. QDB has accelerated its efforts to overcome the recently identified challenges facing the SMEs and budding entrepreneurs. Abundance of secured and well-paid government jobs, lack of local talent, and the current labour and business laws are some of the hinder ices facing the sector.

Ibrahim Abdulaziz Al Mannai (pictured), Executive Director for Advisory Services, QDB, recently told The Peninsula that the initiative was taken way back in 2016. Since then QDB has been developing it, working with different stakeholders, including various ministries.

“Just few weeks ago we had a meeting with the Ministry of Administrative Development, Labor and Social Affairs and finalised on the details how the programme is going to be implemented,” added Al Mannai.

Asked about the tentative date of the launch of the programme, he said that it is at the advance level— at the Prime Minister’s desk. “We are just waiting for an announcement from His Excellency the Prime MInister.”

Despite government support and promising opportunities, the entrepreneurship culture is still limited due to a plenty of jobs impacting its development.

The percentage of self-employment in Qatar is only 3.4 percent of the total employment (2016-17) which is relatively low compared to some developed countries, such as Turkey and Italy where the self-employment ratios are 32.4 percent and 23.9 percent, respectively, according to the findings of a latest study conducted by QDB and its partners.

A significant majority (81 percent) of Qataris are employed in government entities, or government-owned companies.

High paying jobs and retirement benefits reduce the incentive for Qataris to become entrepreneurs, particularly a full-time entrepreneur. As such, most of Qatari entrepreneurs are full-time employees and part-time entrepreneurs impacting the speed of startups’ growth and hindering the development of an incubation landscape, noted the findings of the report.

Commenting on other challenges in the promotion of entrepreneurship and foreign talent attraction in Qatar, Abdo Al Habr, a senior official at A.T. Kearney, a leading US management and consulting firm, during a presentation at a QDB event on ‘Fostering the Development of Qatar’s Incubation Ecosystem, noted that current Qatar immigration, labour and business laws hinder the attraction of international talent and startups.

“Foreign entrepreneurs are unable to relocate to Qatar without an already established sponsor, and inability to source talent hinders the creation of entrepreneurial ecosystem,” said Al Habr.

He also said that the immigration and labour laws are also hindering ‘knowledge transfer’ as world-class professionals face difficulties in entering Qatar.

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