Expanding business incubators increases the role of beginners in economic growth

More than 1,000 new businesses in the world worth more than a billion dollars each –

The spread of technology is increasing the scale in the business world and turning small businesses into billions of dollars.

The size of the value added of emerging companies in the world is close to the gross domestic product of the economies of the Group of Seven industrialized countries combined.

The Sultanate of Oman is witnessing a tangible interest in encouraging entrepreneurship projects, including the category of beginners who are distinguished by their superior ability to promote innovation and transform it into new goods, services and technologies that add value to the economy increases and the competitiveness of the country.

This interest comes through the support of various entrepreneurship projects and the expansion of business incubators into a number of free and industrial zones such as Duqm and Sohar. The incubator begins with ten new projects, with the opening of the door for more projects to join the later . phases, paving the way for increasing the contribution of these promising companies in promoting growth and creating added value for goods and services, as well as providing meaningful jobs. These investments included the acquisition of a stake in SpaceX, one of the emerging companies. which has changed in recent months into one of the largest companies specializing in space and satellite communications technology. This will enable the Sultanate of Oman to be a pioneer in taking advantage of the technology owned by the company within current trends It aims to open horizons to attract global investment, and potential opportunities to take advantage of its experiences and expertise within the Sultanate of Oman to achieve financial sustainability, maximize returns and promote economic diversification initiatives.

Emerging companies are the basis for strengthening the power of innovation in various societies and the countries of the world are interested in it because of their great role in creating an economy based on knowledge and innovation and improving the position of countries in a highly competitive world in providing all the new ideas and innovations in various sectors and industries Transformation into attractive destinations for emerging companies’ talent.

Startups begin their work with a small, simple, yet highly flexible business structure characterized by innovation based on the groundbreaking ideas offered by startup owners and their contribution to changing technologies and business rules, and they often have ‘ a business model that is scalable according to market and customer requirements and is able to adapt to the changes that may occur in the scope of work, and this model is often dependent on technology, innovation and talent as a basis for growth that achieves becomes in the case of an empowering environment to support the transformation of a small company within the country into one of the icons of creativity and growth in the world. This is one of the most important distinguishing points of small and medium-sized enterprises, whose work is often limited to a specific place or market.

Until the end of the last century, the success of new companies and projects was largely linked to the availability of many significant factors, especially capital, buildings and headquarters dedicated to activity and work, and the use of manpower according to size and specialization of each project. Then the spread and advancement of technology rapidly changed the scale in the world Business from the nineties of the twentieth century, with the rise of small companies starting their business with an innovative idea or a new technology and over the years in entities whose market value is estimated at billions of dollars, and whose value currently exceeds the budgets of some countries, and these types of companies spread in various sectors through ideas, programs and technologies It has made a big leap in services aimed at the public or in lifestyle, including artificial intelligence companies, travel and tourism, social networking sites, e-commerce sites, new technology technologies and other fields.

Years ago, companies like Facebook, Google, Twitter and Booking were ambitious starters trying hard to raise funding and capital aimed at offering products that users would accept, and they have now turned into giant companies with a market value of billions of dollars, and just like that all emerging companies are currently competing in the field of technology. products of emerging companies, as it started as a mere innovative idea and then achieved rapid growth with the expansion of its use in many activities and sectors, and the applications of logistics growing by drones at high pace.

According to the annual classification issued by the CB Insight website, which specializes in beginners, the number of large emerging companies in the world reached more than 1,000 emerging companies by the end of last April, each with a business value of more than one billion dollars or more, and about 50 of them are icons in the business world and exceed the value of their business $ 10 billion or more, and there are 3 giant companies whose turnover exceeds $ 100 billion or more, namely ByteDance, SpaceX and Shen.

Bitdance is a Chinese company working in the field of artificial intelligence, and it is the most valuable start-up company in the world with about 140 billion riyals, and so far it is still a private company not set up for public subscription, and it is the parent company of the well-known Tik Tok application and the Vigo Video application, and with 1.9 billion active users. ByteDance generated $ 58 billion in sales in 2021 monthly from 150 countries and more than 110,000 employees.

As for SpaceX, it is one of the pioneers of the space race and was the first company to send people into space, exceeding its value by about $ 100 billion and not announcing its intention to put the world on the stock exchanges so far. not. The company works in the field of air and space transportation services and aims to reduce the cost of space travel.

Beginners are considered one of the key drivers of economic growth at global and local levels, and according to the estimates of the World Economic Forum, the amount of value added created by emerging companies in the world is close to the GDP of the economies. of the Group of Seven Industrial Countries together, and the volume of funding for start-ups in 2021 exceeded about $ 600 billion. This is why the countries and cities of the world are rushing to encourage their presence through incubators that facilitate their work and overcome the obstacles they face, especially with regard to financing, and the world is witnessing an expansion in various cities and countries to support emerging companies by providing the so-called emerging ecosystems, that is, to create a supportive environment for these companies.

In a report published by Startup Genome, which specializes in consulting services for beginners, the report monitored a number of factors that support the success of support systems for beginners, including the presence of companies with unique individual performance and talent. largest countries in the world are at the top of the rankings for having the most important support systems for beginners in 2020 and 2021, and the US Silicon Valley is first, followed by New York and London in the second and third, Boston in the fourth, and Beijing in fifth place, and Sweden, Norway and some other Asian countries are among the best countries in the world that offer favorable systems for the growth of beginners, and North American countries are responsible for 47 percent of the best systems for the growth of beginners. , and the Asia-Pacific region accounts for 30 percent of the world’s best systems, and countries join And new cities are constantly on the list of the best systems to attract beginners and talent, including Persepan in Australia, Luxembourg , Santiago and Valparaiso in Chile, and the city of Hue. Chi Minh in Vietnam. In the past year, Seoul has for the first time entered among the top 10 world cities that have support systems for beginners, as Helsinki in Finland rose more than 20 places to 35th place, and Detroit of America advanced 13 places to 40th place. and Oslo in Norway rose 16 places to 58th Worldwide, Japan experienced significant growth with a 52.3 percent increase in value-added generated by the initial support system in Tokyo (from $ 40.7 billion in 2020 to $ 62 billion in 2021) and Kyoto is now the second largest start-up ecosystem in the world. The country has seen an 11 percent growth in the value added of these companies over the past year from $ 424 million in 2020 to $ 471 million in 2021.

In the Middle East and North Africa, interest in emerging companies is increasing dramatically, and the prospects for financing these companies are improving, often requiring bold investments that accept investment risk, and the World Economic Forum statistics indicate an increase in total investment capital financing and an increase in the total number of rounds of capital financing. Waiting capital for start-ups in the region has increased by 60 percent in the past year.

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