Bahrain's Business Incubators Need to Focus on Growth, Not Just Profit: Industry Leader

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Dr. Abdulhassan Al Dairi, Chairman of Bahrain SMEs Society, has expressed concern that many business incubators and accelerators in Bahrain have strayed from their core mission of nurturing successful businesses. He argued that the true measure of their success lies in their ability to graduate profitable and sustainably growing companies into the real market.

"A number of incubators and accelerators in Bahrain have deviated from this objective, transforming into mere rental spaces for business addresses and registration, primarily driven by profit," said Al Dieri. He highlighted the confusion between the concept and function of business incubators and accelerators, on the one hand, and business centres or "business centres," on the other. "Many rental spaces catering to entrepreneurs and startups call themselves business incubators, which is a mistake," he added.

Al Dieri emphasised the need for genuine incubators and accelerators that actively recruit individuals with ideas, projects. He stressed the importance of providing training, support, and development programmes to elevate these businesses. "We want to see small businesses grow into medium-sized businesses, and medium-sized businesses become large corporations," he explained.

He also highlighted the need for specialisation within business incubators, with each incubator focusing on a specific industry. He advocated for a structured timeline and programme with performance indicators for each business, along with oversight from relevant authorities. This, he believes, will ensure that incubators operate in a well-organised manner, fulfilling their intended purpose, especially as they receive funding and support from various entities.

Al Dieri stressed the crucial roles of business incubators and accelerators, which include developing marketing research skills, building relationships with commercial entities in Bahrain, the region, and globally, facilitating access to financial support, as well as assisting with patent and ownership acquisition. These roles, he stressed, should be carried out according to a carefully planned schedule and objectives, with annual success rates measured.

He underscored the importance of rigorous evaluation and monitoring of incubators and accelerators, as their failure to perform adequately could indirectly harm the national economy through the failure of the small and medium enterprises they support. "Their existence would become merely cosmetic," he warned. Conversely, effective incubators and accelerators contribute to the success of the businesses they nurture, ultimately boosting the national economy.

Furterhmore, Al Dieri acknowledged the evolution of the business incubator concept into business accelerators, which are more focused on developing smaller businesses into medium-sized enterprises and medium-sized enterprises into larger ones. He recalled that the first business incubator in the Gulf was established in Bahrain's Industrial Area in 2000.

"The added value of accelerators and incubators lies in developing the businesses they support," he stated. "These businesses are the backbone of any national economy, and they represent the majority of employment in economies worldwide, accounting for 90%. In Bahrain, they represent 93% of businesses. Their success is the success of the national economy."