1. A Study of Entrepreneurial Competencies of Non-Resident Entrepreneurs in the MiddleEast Region- A Case Study Approach S.Balaji Shri KamalakannanUnder the Supervision of Dr.R.Jayaraman, M Sc, M.B.A, PhD

2. Why the study? Self-Made Impact making entrepreneurs. A Study by EDII Ahmedabad was the inspirationfor this study The entrepreneurs in the middle-east are perceived to be of people going for jobs in the labor category only and it seemed like there were no white collar jobs available there. In this background the exploration about this breed of entrepreneurs in the Middle-East was taken up 3. Inspiration Self- Made Impact Making Entrepreneurs The Pointer given by the Honourable Guide inthis direction was a timely motivation The path prior to it. The clarity on objectives. The Inspiration. 4. The Challenges to the candidate Posed by the Guide New Environment for the Study Case Study Methodology given to challenge thecandidate also because of the background of the Mentor relationship right from being a member of the selection committee for the MBA program Subsequent Post-graduate Advertising Project (1995) was evaluated by the Honorable supervisor- Uniqueness- That project had more than four qualitative techniques 5. Scope of the study Started off the study with an ambitious scope ofcovering the entire Middle-east region, this was further narrowed down to the GCC region. A representative sample of the GCC namely Sultanate of Oman was taken for the study The reachable sample of the Al Dahirah region was taken for the study The total universe in the area of study consisted of 6. Where in the world is Oman? 7. Objectives of the study To discuss the various concepts and theories ofentrepreneurial competencies To study the profile of the selected NRI entrepreneurs To measure the level of competencies and the association between personal background factors and level of competence To draw lessons for existing as well as potential entrepreneurs in potential entrepreneurs in an International Environment and offer suitable suggestions based on the study 8. The Research Strategy An Exploratory study was deemed fit for thePhase I of the study and the same was maintained for the Phase II of the study Case Studies were used in Phase II of the study to as an alternative research strategy to experiment, history or simulation Exploratory case studies were depended upon for the research questions in the study. These were best addressed by case studies as an approach since these addressed explaination rather than incidence questions. For examples these case studies were not aboutenumeration but about how the entrepreneurs did such and such a thing. 9. Phase I & II Data collected for the study during Aug 2007 &June 2008 Phase I: This phase of the study elicited information about the entrepreneurs based on the Ministry of National Economy (MONE) classification of below 5000 OMR (Omani Riyal) three star companies. Phase II : Exploratory case studies that gave a thick description of how the entrepreneurs did such and such a thing 10. Data Collection Method used in the study Sl. No.Data Collection MethodTools UsedStage of Study1.Field Work* Self Administered Questionnaire (Appendix II) * Personal Profile (Appendix III)Phase I2.Ethnography - Participants ObservationSemi structured questionnairePhase II3.Verbal Reports of friends and sponsorsSemi structured questionnairePhase II 11. Area Profile The GCC or the Gulf Co-operation Councilcountries consists of Oman Qatar Saudi Arabia United Arab Emirates Bahrain Kuwait Libya (Ex-member Voluntarily withdrew due to political reasons) Iraq (Ex-Member after the attack on Kuwait) 12. Area Profile The GCC countries have similar characteristicsas opposed to a little more divergent culture in the Middle-East and because of this reason the geographical scope of the study had to be limited to the GCC countries and further focused on Oman 13. Common Characteristics of the Gulf Countries Hereditary Monarchical regimes Vast Resources of Oil Foreign nationals are not permitted to own any business or immovable property They are required to make a local citizen or entity a majority even if sleeping partner in their enterprises This has facilitated that the wealth generated has been very profitably invested in the development of world-class infrastructure Entire region is sparsely populated Skills shortage for all levels of workers 14. NRI s in Oman Data of the Ministry of Labour & Social Affairs (Govt. Of Oman) Table 1.2 & The Data collected by the Ministry of External Affairs (Govt of India) though the embassy point to figure of 3 million NRIs in 99-2000 Socio-Economic profile now changing to more white collar workers moving in to the region People to people contact as early as 15th century Indo-Oman That time essentially traders and financiers from the Kutch Still these people control the financial dealings in the capital Oldest Indian Family has been here for at least eight generations 15. Sample Design 150 Sample entrepreneurs Population size as per 2005 data available in2007 was 404 The sample size covered more than 35% of the universe and was more than sufficient to validate the results A proportionate random sample was applied to the four main classifications of the Ministry of National Economy For the Phase II of the study a total of 21 entrepreneurs were selected (14% each from the three levels of competencies) 16. Al Dhahirah Region Consists of Five Willayats (District) Al Buraymi (after 2006 a separate region) Ibri Mahadha Yanqul DankMain Town here- Ibri Approx-350 km from Muscat 17. MAP AL DHAHIRA REGION - THE AREA OF STUDY 18. Entrepreneurs in the Al Dhahirah Region Sl. NoClassification TypeTotal Number of EntrepreneursSample NRI Entrepreneurs1.Multi-Economic Activities3161172.Manufacturing27103.Construction1974.Restaurants4216404150 19. The Omani-Expatriate population comparison Years Governorate /Region200520042003ExpatriateOmaniExpatriateOmaniExpatriateOmaniAdh Dhahirah Region Al Buraymi70,662152,81164,963149,49859,326147,68941,10234,61537,78733,86534,50833,455Ibri19,28584,05517,72982,23316,19181,238Mahdah5,0224,8214,6174,7164,2164,659Yanqul2,21514,8942,03714,5711,86014,395Dank3,03814,4262,79314,1132,55113,942 20. The Omani Context The Ministry of National Economy put thestatistics of the expatriates at 24% of the population. This has been maintained steadily by the policy makers. The substantial contribution of this expatriates population are from the Asian community Members of the Asian community specifically the Malayalis have been dominant in the chosen focus area of the study of below 5000 OMR 21. Economic Development & Skills Shortage The Socio-political circumstances combined withlack of education facilities Led to import of labor in the 1970s Continuous efforts of the Gov. to reduce dependence on the Oil reserves and there has been privatization & Omanisation Entrepreneurship could be a career option for skilled immigrants 22. Entrepreneurship and Entrepreneurial Competenices Summary of the review of literature onEntrepreneur Vague definitions Few studies that employed the same definitions Lack of basic agreement on who an entrepreneuris? & lack of homogenous samples in the selection A startling number of traits & characteristic that either make a larger than life image or a generic Everyman 23. Entrepreneurship better suited From Entrepreneur to Entrepreneurship Behavioral & Traits approach Entrepreneurship as the creation of organisation 24. Competency Characteristics Generic Motives Traits Self-Concept Knowledge Skill 25. Competence in Simple terms Describes what people need to be able to do orneed to be capable of doing or have, to do a job well to achieve results This includes what has to be done and to what standard Competencies identified through various techniques Focus groups, panel & subject groups experts Critical behavior event interviews with superiorperformers Use of Generic Competency terminologies and definitions (Employed for the study) Clustering of Competencies, common in 26. The Three Levels of Competence Level of Competence defined by the 23 statementsadministered to the entrepreneurs Simple Arithmetic Mean & Standard Deviation calculatedfor these scores level competenciesX+S.D. (= 75.57 + 16.12) 91.69 92 and above High level X S.D. (= 75.51 16.12) = 59.45 - 59 and above Low level. (X- S.D.) to (X + S.D.) = 59 to 92 Medium level. 27. Level of competence of NRI Entrepreneurs Sl.No.Level of CompetenceNumber of NRI Entrepreneurs 35Percentage1.High2.Medium8657.333.Low2919.34150100Total23.33 28. Relationship between personal background factors & Competence Age & Literacy Level- exists relationship Marital Status no relationship Caste Community no relationship Experience- exists relationship Type of family- No relationship Technical knowledge- there exists relationship No relationship between type of enterprise &competence 29. The Competencies dimensions revealed 23 statements Rotated factor Matrix The principal factors with orthogonal varimaxrotation has been used to extract the factors 30. The Factors F1- Opportunity recognition competencies F2- Conceptual Competencies F3- Network Competencies F4- Organizing Competencies F5- Strategic Competencies F6- Commitment Competencies 31. Broader Findings The study of competency, a HR area can be fully adapted to the multi-disciplinary research in entrepreneurship No unique models available to represent the phenomenon of entrepreneurship in countries where there are 100% ownership not possible Element of insecurity has been good to better behavior Same member of the community contribute more in a host country Hygiene factors of Herzberg in action in the new environment 32. Broader Findings Employment has been important for venture start up Age a deciding factor in the venture initiation Network & peer support plays a key role Considerable variation among entrepreneurs in the same industry No specific personal background factor that would lead to better competence This proves the theory that competencies are independent of personal attributes and competencies are trainable This area of study requires unique competencies 33. Recommendations based on the findings For policy makers Need to promote employment in a foreign environment Identify liaison office Enumerate NRI entrepreneurs List the associations For researchers & trainers Provide BOG & information about the environment Focus on competencies so that major learning can bereplicated in newer environments BOG Guidance for everybody Educate the NRI entrepreneurs Not just sociological dimension but all dimension of the Diaspora 34. Recommendations based on the findings Learning for the potential and existingentrepreneurs Focus on the networking competencies Explore Chambers of Commerce Embassy Links Enlist Active associations with the Ministry ofOverseas India Affairs Ensure continuity for family environment by supporting initiatives of representation for higher education institution in the host country 35. A Study of Entrepreneurial Competencies of Non-Resident Entrepreneurs in the MiddleEast Region- A Case Study Approach S.Balaji Shri KamalakannanUnder the Supervision of Dr.R.Jayaraman, M Sc, M.B.A, PhD