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Friday, May 30, 2008
It is so hard to believe that our journey across three continents, Europe, Africa, and Asia has finally come to an end. The first thing on my mind that final morning was skiing in the desert. After a thirty minute cab drive to the Emirate mall, Michael Bookman, Stephen Macdonald, and I hit the slopes. As someone who has skied at renowned locations in Vermont and Canada, Ski Dubai was nice facility. For 180 AED ($60 U.S) you get equipment and gear for two hours. Your time begins once you enter the gates for the ski lift. Each time you enter a digital read out lets you know how much time you have. A suggestion for anyone thinking about skiing in the desert; pack gloves your hands will get cold. They do a great job of capitalizing on your experience with a photographer at the base of the mountain snapping photos of you, which you will undoubtedly buy for 60 to 120 AED.
We were fortunate to have our checkout pushed back to 3:00pm. After checkout, we all boarded the bus to begin a tour of Dubai. The first stop was the Jumeriah Mosque - an impressive place of worship that accommodates over 1200 people. After a few photos, it was back to the air conditioned bus and our second stop the Royal Palace.
We only got a glimpse of the palace, and we were not allowed to take photos. The reason for the seclusion is for the privacy of the royals not their safety. Sheikh Mohammed can freely move around Dubai without security. This lets you know just how safe things are in Dubai.
The second stop was the Dubai museum, the first thought that came to mind was this country is only 40 years - what could they possibly have to archive. The museum was an impressive history lesson of how they evolved from the 1960’s until modern time. You learned about how Pearl diving played a big role in developing Dubai's economy. In addition we learned the importance of the camel as a means of transportation. A camel can travel for two to three days in the desert without water. The museum was definitely worth the trip, as it provided valuable information into understanding how Dubai has developed.
Keith, Jessica, and Dewanna Bonita on water taxi
Our third destination was the boat taxis on a canal that took us to the spice and gold markets. The market brought back memories of Cairo’s market. There was a lot of bargaining and great prices on goods especially jewelry.
The final stop before the airport was the mall for dinner and perhaps some last minute shopping for some. The atmosphere on the bus on the ride back to the airport was quiet and relaxed. At this point most of us were excited about the thought of getting home to loved ones and sleeping in our own beds. This was an incredible experience packed into two weeks.
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Thursday, May 29, 2008
Today in Dubai, we left the hotel at 11:00 A.M. to meet with the consulting company Booz Allen Hamilton. In the past week, the company has split into two separate companies; Booz Allen Hamilton and the other is named Booz and Company. The separation of the company is going to provide more growth to each one. Booz Allen Hamilton has been providing services since 1914. There are five different offices in the Middle East. Currently there are about 300 employees in the Dubai office. About two and a half years ago there were only about 100 employees. The company expects to grow to 500 employees in the next year.
At the meeting today, we had a few different employees from Booz Allen Hamilton present to us. Andrew Horncastle, whom is a principal at Booz Allen Hamilton, spoke to us about two concerns that the company is facing today. The first concern is what is going to happen to the oil in the future. They do not anticipate oil prices to drop but to increase. Andrew also went in depth about alternatives to oil. Dubai is now anticipating the next wave of going green. The second concern is attracting and retaining employees. There is much opportunity in the job market in Dubai. It is important to have competitive salaries, health benefits, and the right resources to attract top talent. An interesting topic that was brought up in the meeting today was about women in the workforce at Booz Allen Hamilton. Currently, there are not many women entering the consulting field. Many speculate that the reason is the work life balance. Booz Allen Hamilton as a company is trying to communicate to women that there is room to have a family and work at the same time. It is trying to incorporate flexibility in the workforce to be more attractive to women to enter the consulting field. One point that was stressed continually in our meeting is that it is difficult to find qualified candidates.
A project Booz Allen Hamilton has recently worked on is implementing post offices in Dubai. There is no such thing as a street address. Most people have P.O. Boxes. A number of people said that they get their mail at work because they do not have a P.O. Box at their residential home. Implementing street addresses will also help determine the demographics of Dubai. Right now there is no record of any demographics.
Throughout the day we had four students present their presentations. Emma presented about medical tourism in the UAE. She stressed that the UAE is a prime location for medical tourists due to its top notch, convenient and affordable medial services. Some of the reasons for medical tourism include less regulatory and legal oversight, shorter wait times, lower costs, and global revenues of medical tourism (about $56 billion last year). Some popular destinations are India, Latin America, Thailand, Israel, South Africa, and the UAE. Jewelle presented on the Burj Dubai, the world's tallest building. She explained that the Burj Dubai is an international collaboration developing the tallest freestanding building in the world. It was developed by Emaar Properties and is the centerpiece of the 500 acre master planned development. Construction began at the end of 2003 and will be completed in 2009. It will incorporate 160 floors, 56 elevators, luxury apartments, boutiques, swimming pools, spas, and an observation platform on the 142nd floor. In addition, Giorgio Armani's first hotel will be located in the Burj Dubai. The project will cost an estimated $1 billion dollars. The final height of the building is being kept secret for competitive reasons. Keith presented on the topic of Egypt's growing real estate market. He discussed that the market is a sound investment that offers relatively low risk, considering that foreign investors are experiencing double digit returns. Some of the factors driving investment in Egypt's Real Estate markets are tourism, low prices, location, and the government. Will concluded the presentations on the topic of Dubai's artificial islands. The islands consist of the Palm Jumeirah, Palm Jebel Ali, Palm Deira, and the World islands. These islands are built from sand and rock from the desert. A problem that is occurring from the man made islands is coastal erosion.
We ended our day at the university called Szabist. Szabist stands for Shaheed Zulfikar Ali Bhutto Institute of Science and Technology and is located in the Dubai Knowledge Village. The Dubai Knowledge Village features twenty institutions, ten of which are universities and the other ten are institutions. A student clarified for us the difference between the university and an institution and it would be equivalent to the university being a four year degree and the institution being a technical degree specializing in one area of study. Szabist is one of the ten universities. The main campus is in Pakistan. They have students of all different nationalities not just from Pakistan. It was very interesting meeting with the university and comparing it to Georgia State University. One difference that was pointed out is that their BBA degree consists of 48 courses with a total of 144 credit hours. GSU consists of 124 credit hours for graduation.
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Wednesday, May 28, 2008
Bearing the fruits of your labor is always refreshing. It allows for innovation to rejuvenate itself in our thought and business processing. Today, was not only educational from a packaging and supply chain perspective but also exciting as we ate lunch at the Jumerin Sui at the Burj Al Arab.
We began the day with a briefing from the UPS team. Brent Melvin and Bret Calvert shared with us their Dubai business and operation as well as answered various questions. The discussion began with an overview of the Dubai office and how business is conducted. In January 2007, the UPS office opened in the Dubai area. With 18,000 shipments a month exported and 40,000 shipments imported this office continues to garner a significant profit margin. We walked through how this UPS team does it and reviewed the core values that drive this business to continued success. It is so amazing how advanced the Dubai area is but still primitive in certain areas. And with this thought it is amazing how company's such as UPS have identified the need and are successful in delivering packages as well as working with the government to create a sound mailing system.
In walking into the warehouse, while hot, I could see vividly the UPS mission of "sustain the CORE. CREATE the future". It was amazing how the team receives packages in the morning and then organizes, sorts and delivers them within a day. We walked though each station of the warehouse. It interesting to know that Dubai does not have any street numbers so it is key for the mail carriers to know the area in which they serve intimately. As a visitor here and taking the cab, it was a little frustrating trying to direct the cab driver without having a street number. The UPS carriers are very knowledgable about the areas - using landmarks as guides as streets can sometimes change daily due to the amount of growth. UPS is working with the government to create a system where street names and numbers as well as community names and numbers will be used.
Competition with the Emirates postal services is not fierce or even a threat as UPS offer services that this govermental office does not - front door delivery. As an entreprenuer in the area, UPS has several services that aid small business owners with their supply chain management, packaging and delivery services. They provide seminars to the business owners on the value add of UPS. A few interesting facts from our discussion were as folllows:
- UPS is the 9th largest airline
- 1st to enter the Middle East Region in 1987
- Delivery fleet of 93,637 cars, vans, tractors and motorcycles
- Delivers approximately 15.8 million documents/packages daily
After our visit we headed to the Jumerin Sui restaurant at the Burj Al Arab. We arrived  at the gate around 12 noon. It was amazing. The architechure of the building was breath taking. To get to the resort there is a bridge that visitors have to pass. Fortunately, we were escorted to the entrance in golf carts. When we approached the building we saw a fleet of luxury vehicles, which are for the guests to use at their leisure, lined up for use. I really felt like I was in a movie where all the bell men were lined up greeting us as we entered. When we walked in to the Burj Al Arab a welcome committee greeted us and gave us dates to refresh us. This hotel was AMAZING. We walked in to a lobby of colorful decor and a 2 story water fall that had water sprouting out sequentially. Everything was in gold. I totally felt like we were in the Wizard of Oz where Dorothy goes to the king's palace. We went up to the second floor and were greeted by a second water fall that was simply exquisite. There were high end jewelry and couture retailers that offered everthing from golden rings to the kitchen sink.
A few steps away was an elevator bank, encrusted in gold, that allowed visiting guests to go to the 28th floor and view the Palm Island, the man made island in Dubai. It was a sight to see. Just to be around all the progression and forward thinking as an aspiring entrepreneur is very enriching and rejuvenating. In visiting this restaurant as well as the surrounding area, it is proven that any business can work with due dilligence and hard work.
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Tuesday, May 27, 2008
Today we visited Dubai International Financial Centre (DIFC) where we were first greeted by Sally Yousif, a GSU graduate who now works within DIFC's Investments unit.
The managing director of DIFC, Abdullah Mohammed Al Awar, kicked things off by providing us with an overview of DIFC and how it supports Dubai's long term strategy of creating a knowledge economy that is not dependent on the export of oil. This strategy is based on three horizons: continuing to improve existing core competencies in trade, transportation, and tourism; sustaining GDP growth; and accelerating the financial services contribution to GDP to 50% (currently at 11%). As the financial sector is a part of the overall economic strategy for Dubai, it is not surprising that DIFC plays an integral role in achieving this goal.
Realizing there existed a gap between the major stock exchanges in New York, London, and Hong Kong, DIFC has translated that gap into an opportunity by creating its own stock exchange, DIFX, and financial services units. It is amazing the pace of growth. The new strategy was only announced in September 2002 and over the past few years the concept for DIFC was created and agreed upon with the government. It was stressed, that without the government's support, this rate of change could not have happened. Indeed, DIFC has been set up as a city within a city with its own set of laws and judicial system. We were surprised to hear how progressive their judicial system is - they've appointed the first female judge and social networking is used to get feedback from the public before laws are enacted.
Dr. Zeinab Shalhoub (Dr. Z) later told us that Dubai and the UAE are built on the cluster theory in which there's a financial services cluster (DIFC), medical cluster, and so on. Similar to the U.S. Silicon Valley in which every major IT company has a presence in the area, these clusters allow for greater interactions, relationship building, and innovation.
Another interesting point which Dr. Z shared with us is that the DIFC really looks at a person from the human perspective by providing everything anyone could possibly need in one area. This not only shortens the commute time drammatically, but allows employees to feel as though they are members of a vibrant community. One of the major challenges that the DIFC faces - and Dubai in general - is a shortage of knowledge workers. This makes finding, attracting, and retaining knowledge workers a critical aspect of the business in order to support the rapid growth the area is experiencing. Creating a community of knowledge workers in a city with everything you could imagine is one way they are tackling this issue.
From an entrepreneurial perspective, we learned that 90% of businesses in Dubai are family businesses. This compares similarly to Egypt in which passing a business down to heirs is most commonly the chosen exit strategy.
We also learned about the insurance and reinsurance program from Ahmad Ghazal who is helping to transform Dubai into a captives hub.
The session ended with a lively discussion of the Young Arab Leaders organization. This organization provides opportunities for young Arab leaders to gain global experience that they can then use in the local region. It is very clear how this organization supports Dubai's strategy of becoming a knowledge economy.
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Monday, May 26, 2008
Arriving in Dubai airport this morning at 1:00 am was like moving out of a little apartment (Cairo Airport) and into a new penthouse. The airport is a world class facility that sets the bar high for other airports. It only got better; as we walked to our tour bus we observed all the luxury cars and SUVs. You could not help but think just how different the experience in Dubai would be versus Egypt.
After a few hours of sleep, breakfast at the Imperial Suites, and a one hour delay waiting for our tour bus, it was off to our first interview in Dubai. The location was a 30 minute drive from the hotel. During that time Lee Harrop an MBA student from the downtown Cohort, delivered his presentation about energy use and going green in Dubai. Every student on this trip is responsible for a presentation on any topic concerning Egypt and Dubai.
We had an interview scheduled with the owner of the International Apple Academy, a  coed private elementary school founded in 1994. There are approximately three hundred students from kindergarten to the eighth grade. The school has students from fourteen different nationalities, and the main groups are Indians, Pakistanis, and Philippines. The entrepreneur behind this school is Nabil Lahir whose family also owns a private high school based on the British curriculum and owns Gamma Contracting LLC, a construction company.
The way that the Apple International School is run is what makes it so special. It all starts with the teachers; they all have post graduate degrees or teaching certifications if they are undergrads. The school puts a great deal of effort to ensure that they hire the best teachers. The school combines a solid foundation for education and is run like a business. This is evident by the fact that Mr. Lahir has hired a general manager. The manager K.S. Pradeepkumar plays a pivotal role in the operations of the school. Mr Pradeepkumar explaiined that one of the ways they were expanding the school was through word of mouth, a great example of guerilla marketing. You quickly get the feeling that he is Nabil's right hand man. He responded to most of our questions and did not miss a beat when Nabil had to take excuse himself to take a call. Both of our hosts were warm and welcoming and gave us complete access to the school. The children were happy and energetic with no fear or apprehension regarding these new strangers in their school.
The principal Nita Maitra was educated in India, the UK, and has over 12 years of teaching experience. Her expertise and passion is training teachers. The education here has another advantage - children start kindergarten at age 3 and teachers place an emphasis on activity based learning. The principal seems to play a role in bringing value to this business by preparing the teachers to deliver a superior product and working with the parents to ensure better results. Due to time restrictions we were unable to visit the high school. We learned that demand for education is increasing as the population grows. The greatest challenge they face is that the government controls how much they can charge for their schools - any changes to the school (tuition fees, building improvements, etc) must be government approved.
Gamma Construction company complements Nabil's ambition to expand his education business. The Gamma Construction company has been in business for over 20 years, and according to Mr. Lahir its reputation is a key factor in growing the business. The company has 350 employees primarily from India, Pakistan, and Afghanistan working for about 1000.00 AED. They also use consultants to help find new business, but relationships seem to be an important factor in growing their construction business.
The final interview of the day was with a young entrepreneur named Fadi Ainwilati  Almsasri. He started a real-estate company by the name of GS Real Estate in September 2006. The name was assigned to his company because the original name he chose was already taken, and the process for choosing another name would take too long. He bootstrapped the business by starting with only $12,000 and his company has grossed over 412 million AED in sales in 2007 with only eight sales representatives. His strategy is to focus on foreign investors rather than compete in the local competitive market. He recognized the importance of the diversity of his sales representatives and capitlaized on this. For example he has an Iranian representative that has connections in Iran - this gives hm access to a whole new market. What was even more impressive is this young man is only 23 years old, he moved out of his home at 17 and became a project manager at 19 managing people who were much older than him. One of the most valuable things he shared with us was his failures and how he handled them. This entrepreneur was one of the most inspirational people we have meet on this study abroad. Even though it was a long day and we were all tired, Fadi's story kept your attention, and this certainly ended the day on a positive note.
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Sunday, May 25, 2008
Since today was a travel day the couple hours in the airport allowed me to reflect on the week spent in Cairo and Luxor. When you compare the two cities Cairo and Luxor, it is similar to comparing NYC and Phoenix. The most obvious difference is the climate; when the sun sets in Luxor it is still hot. Luxor is a refreshing break from the hustle and bustle of Cairo.
If you ask the participants on this trip if they would visit Egypt again the majority will tell you no. The ability to enjoy this land with its rich history and culture is seriously hampered by the locals determination to help you depart with your money every chance they get. The most annoying experience was rushing to the bathroom only to find there is no toilet paper, or paper towels. Next thing you know you have some one trying to sell you the paper they obviously took from the bathroom. The government is doing a good job of promoting entrepreneurship, but this bathroom hustle is not sound entrepreneurship.
Many of the Egyptians you meet know a lot about the United States - especially our ongoing presidential election. They really like Obama, so it will be interesting to see how the outcome of this election affects the United States' reputation in this part of the world.
Egypt is an incredible country to visit for its rich history, culture, food, and let us not forget the favorable exchange rate. There are some precautions you must take to ensure you have an enjoyable trip.
- If you can afford it hire personal security
- Secure transportation: "tour bus for groups", "driver for family vacation"
- Learn some basic Arabic as it will go a long way
- Never drink the tap water
- Drink lots of bottled water
- For communication home, unlock your phone and purchase a SIM card
- Relax and enjoy taking a look back in history.
Right now it is on to our third and final destination, Dubai. If what we are seeing on this Emirates flight in terms of service and comfort is a reflection of what to expect in Dubai, then this trip can only get better.
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Saturday, May 24, 2008
Today in Luxor, we left the hotel at 6:00 A.M. to go to the Valley Of The Kings. We got to view the burial chambers of three kings. We viewed King Ramses I, III, and IV. The chambers were very artistic with all the drawings and paintings. They used oxen blood to color the drawings and outlined them in black to depict the figures. It was very interesting to see how much detail was put forth in decorating the King's chambers. There was more detail in some chambers than others because this related to how long the King lived. The longer the King ruled the more detailed the chamber.
The Valley of the Kings site was designed to direct the traffic to the entrances of the King's chambers and exit through a mini market filled with local vendors selling their history books of the area and artifacts. These vendors were very persistent in their pursuit of us to buy from their shops. They harassed us until we reached the market exit and boarded the bus.
On the way over to the Hatshepsut's temple, Stephen gave a presentation on Hatshepsut. We believe he made a great point in that she "possessed qualities of a highly effective President and CEO and ran her country like a business." Hatshepsut was determined to take claim to the throne. She promoted herself to have a strong image so the villagers would like and support her. She even dressed like a man with the kilt, double crown, and the false beard. She wanted to make known that she was just as powerful and intelligent as a man. Her strive as a business person was to focus on peace and making her people happy. She knew that she could not conduct a village without support from her village. When Hatsheput became a pharaoh, the Oracle of Amun was proclaimed as follows: "Welcome my sweet daughter, my favorite, the King of Upper and Lower Egypt, Maatkare, Hatsheput. Thou are the Pharaoh, taking possession of the two lands." When Hatsheput was Queen she repaired the temples at Karnak that were damaged during the Kyksos invaders. A great business decision that Hatshepsut did was expand the trade routes. She even expanded the trade into Asia, which was great for importing and exporting goods.
When you exit the Valley Of The Queen, you have to walk past a restaurant and gift shop. Local vendors did a good job of offering water and other necessities to the tourists. The majority of the people site seeing are thirsty and want to sit in the shade to cover themselves. This is a great way to make money because most people will pay more money than they normally would because there is no where else to buy any refreshments. Beside the restaurant there is the gift shop. While we were walking around the gift shop, we still saw bargaining taking place. The only thing different was there was no harassing taking place. After you leave the restaurant and gift shop, you encounter the street peddlers before you can get on the bus.
On the way back to the hotel, we stopped at a papyrus store. We received a demonstration of how the papyrus paper is made. It was really interesting to see how the plant is cut, soaked and laid to create the paper. This location had a lot of orginal artwork with both historical and modern artwork of the Egyptian culture. The team at the store was very informative and organized which aided us in quickly getting our artwork. Many tourists come through Luxor wanting to buy "real" papyrus. And, it was evident with the plaque from the Ministry of Tourism and the testimonials from some notable clients, i.e. Jimmy Carter in 1983, that this papyrus store is successful. A statistic was presented to us today that 90% of revenue in Luxor is from tourism. Therefore, marketing through hotels and tourist guides would be a great way to promote a business.
After spending money at the papyrus store, we got on the bus to go back to the hotel. We got to ponder and think about the eventful day we had in Luxor.
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Friday, May 23, 2008
Hope. Love. Vision. Love. Perseverance. Love. Respect. Love. Effort. Love. Survival. Love. Determination. And yes, LOVE!
From yesterday evening at Care with Love with Magda to today's visit to the recycling center run by Spirit of Youth NGO with Laila, love and passion for bettering the social economic efforts in Cairo are evident. These entrepreneurs have shown that with vision a society can change. In listening to their stories, in both instances, nearly brought me to tears. We were full with the possibility that we as a people can move mountains by sharing our visions with the right groups and individuals. We were humbled by the intense drive by each leader to create equal opportunities and education for their targeted audiences in the metropolitan Cairo and Alexandria areas. As we began to think about these endeavors, we thought "how awesome are their lives to have the opportunity to assist those who want to help themselves and encourange those who need some direction to do so." Today, we are sharing with you our experience at the metropolitian Cairo Recycling Center (CRC) managed by the Spirit of Youth NGO where being poverty-strickened is the appearence but bootstrapping entrepreneurship is a state of mind.
Imagine waste from the metro area is at your front door daily, the stench of garbage becoming a familiar smell, a visit with your neighbors is to barter the day's recycleables and daily errands run through the paths around the metropolitan Cairo's waste. Yes, this neighborhood we are discussing is a recycling facility as well as home to the garbage collectors and their families. There are approximately 5 neighborhoods similar to this one in the metropolitan area, and they are supported by a fearless, diligent visionary, Laila Karmel. She, along with the community, have shared their neighborhood with us today and we learned more in these 3 hours about humanity, education, economics and business relations than any class room could teach.
Within this community, the youth are educated based on the business relationships built with large corporations to recycle products as well as reduce/eliminate brand fraud of their used products. One school we visited catered to boys only. There is a girls only school as well. These schools teach the students the basics of life: reading, writing, arthmetic and recycling through a phonemic curriculum. Their instruction is dynamic; it is individually managed by the student and instructor. With partnerships with large corporations such as P&G, the students are able to earn and learn. While learning, the students are aiding P&G with reducing brand fraud by recycling shampoo bottles to prevent individuals from putting toxic chemicals in the bottles and resaling under the P&G brand. It is also flexible to cater to the students availability, which we noticed students coming and going throughout the day. This is based on the various jobs the students have to complete to aid their families.
When riding the bus through the waste filled corridors of the neighborhood we could only think of the nobility of this effort. We saw familiies sorting and organizing the day's waste, children running to the area corner store to get a piece of fruit, and gentlemen sitting at the local cafe having a sip of tea after a day of managing and bartering waste. In all the instances, we were greeted with a smile and friendly wave welcoming us to their way of life.
While the majority of the neighborhood contained waste, there was a spiritual section of the neighborhood that was clean and where people of all religions came to practice their faith. There were murals on the mountains, walls and on the statues of the nativitiy scene, cruxifiction of Christ and other biblical parables. There were also parables of Egyptian and Muslim history as well. There is a meeting hall that seats 3,000 which congregates each Wednesday to recieve a word of encouragement. There is also a santuary for the Coptic Christian faith that seats up to 13,000 people where mass is conducted weekly. It was very interesting to hear that those who are considered to be "rich" materialistically frequent the church and speak with the recyclers to understand their stories. These "rich" people are fascinated and surprised to listen to how these people in the neighborhood continue to have faith in God or their higher power to help them out of their current struggles. The 'rich' are fascinated because their beliefs are not as strong and they are searching to find their faith.
We visited the Fabric Center where the women of the neighborhood are trained on how to create rugs from patches recieved from textile manufacturers. This effort further emphasises the business relationships with large corporations this organization has established. The process is that the women of the center are given a specfiic amount of fabric to practice on and take home to create patches based on instruction from the teacher. Once the student returns, their work is evaluated and if approved is placed in the fabric inventory. Next, the students are given a weaving machine and taught how to weave the patch work into one piece. After practice and instruction, the students are then given projects to do for customers. Their work is sold in a small retail store on the property and the detail and the styles are very nice. We purchased quilts, rugs and souveniers which we will thoroughly enjoy using and sharing the history behind each item. This concluded our visit to the recycling center where we were shown that with struggle there can and is productivity. And, staying focused and driven is 80% of accomplishing your goal, the remaining 20% are the actions executed.
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Thursday, May 22, 2008
Today we had a very full day of meetings with different entrepreneurs and associations.
9:00 am USAID office with Dr. Joe Ryan, Chief of Policy and Private Sector
The day started with a visit to USAID, which was established in 1961 and is part of the U.S. State Department. Through Dr. Ryan, we learned about USAID’s mission to make entrepreneurship easier in small, growing economies. While USAID doesn’t lend money directly to entrepreneurs, it does help to ensure that the necessary infrastructure is in place to support business and trade. As an example, one of the major projects being worked on in Egypt is a customs improvement project in which the goal is to redesign the processes used at the ports to make the processes more efficient to achieve a reduction in clearance time. Streamlining customs processes is a huge deal for any size business which must import or export products to market.
Opened in Egypt in 1975, the USAID office in Cairo is one of the largest projects. Its success factors are largely based on the socio-economic status of Egypt. A few of these success factors include the fact that one-fourth of the workforce moved to higher jobs since 1996, and there has been a 20-30% growth rate of micro finance loans outstanding. While it has achieved some successes in the area, there are still more needs which could be fulfilled. This makes the planned budget cuts of more than 50% (from $415 Mln in 2008 to $200 Mln in 2009) all the more difficult to fathom. According to Dr. Ryan, there remains a gap in professional education that could be filled by using the great asset that the U.S. has in its college system.
Lunch with Mohamed Radwan, top entrepreneur professor in the Middle East
After the visit with Dr. Ryan, we met with Mohamed Radwan to get his perspective on entrepreneurship in Egypt. According to Radwan, entrepreneurship levels are higher in Egypt than in Dubai, however the entrepreneurial infrastructure as far as access to capital and ease of starting a business  is much smoother in Dubai.
It was noted that the ease of doing business has improved significantly in Egypt. For instance, we learned that there are five leasing companies in Egypt which cater to SMEs to help entrepreneurs lease computers, cars, and other small equipment. There are also institutions in place to help entrepreneurs learn how to start a business by learning how to market their products, how to create a business plan, and etc. What was particularly fascinating is that Radwan was hired as a consultant because the client needed help finding business opportunities to invest in or it would lose its budget.
Radwan also shared with us that Dubai hired world renowned business guru Michael Porter to assess the business climate there. Porter’s assessment was that Dubai’s economy is not sustainable without a tax system. This is very interesting as low taxes are often promoted as incentives to entice businesses to an area in order to promote growth.
2:00 pm Social Fund for Development (SFD)
We met again with Hanaa El Hilaly, who introduced us to three entrepreneurs who were beneficiaries of SFD. These entrepreneurs shared with us their moving and inspiring stories of how they got started as entrepreneurs. The overarching theme here was that credibility above all else is greatly valued here as an entrepreneur. Through these entrepreneurs we learned how they bootstrapped their businesses with little startup capital of their own and carved a niche for themselves in their respective industries. Their passion for their business allowed them to persevere through difficulties and overcome obstacles to achieve their successes.
Soraya Helmy got started as an entrepreneur when she wanted to thank her friend with a small inexpensive gift. Soraya’s friend loved the small laundry bag that Soraya hand-made so much that she ordered more for her friends in Canada. Soraya soon showcased her goods at an exhibition by buying a half booth for LE 8.00. This is how she effectively bootstrapped her business with startup capital of only LE 50. She attracted much attention - that soon she was applying for a loan from SFD to buy a sewing machine. As her linens and textile business grew in size, she needed more capital. However, when she went to a bank for her 3rd loan, they would not loan her the money unless she dealt directly with them without SFD – for they recognized her success. Because Soraya refused to break her ties with SFD, the bank made her wait 7 months which essentially set her back about 7 years. This was a very tough period for Soraya as she had made commitments to her suppliers. With such strong integrity and a deep regard for her credibility, this weighed heavily upon her. She then faced another setback when her prices were dropped to LE 25 from LE 60. Through all of this she persevered. She now has LE 2 Mln in working capital and 28 employees. She attributes much of her success to persevering, to her credibility, and to the support she receives from her husband.
Mohamed Abdel Galwad produces handmade ornamental oriental tiles and sells them through six big clients in Saudi Arabia and Jordan. He was inspired by his mentor who was a Dean at his university to learn the craft. He pooled his savings to start his business but still found things were too expensive so he contacted the SFD for funding. He now sells more than 2,000 different items and receives orders in excess of his production capacity. Mohamed’s extraordinary talents are very rare in this region and serve to differentiate his product from competitors. Because there are no direct competitors, Mohamed’s pottery business is essentially a monopoly which has enjoyed much success. Even when offered a job abroad, he refused because ‘he belongs to Egypt’.
Iman Abdullah produces medical supplies and artificial limbs through her manufacturing business. She was inspired to help folks with disabilities when she watched her husband die in a tragic accident before her eyes and was dismayed to find that she could do nothing to help him. Now, she’s on a mission to help those who have become disabled by making quality medical supplies that are tailored for them. With two kids at home and a recent widow, Iman applied for a SFD loan and started marketing her product in pharmacies. While the work she does is not easy – not even for a man - she is motivated by knowing she is helping someone increase their quality of life. She encountered a setback when her partner setup a deal for a large quantity and was not paid when the product was delivered. The partner died from shock, and left Iman to run the business alone. As the only female entrepreneur in this type of business, Iman attributes her success to her education as well as her credibility.
5:00 pm Dr. Magda Iskander owner of Care with Love
 Dr. Iskander is a social entrepreneur with a really big heart. In 1995, she saw a need for her organization as there was no system for home health care. Because the industry was new in Cairo, she encountered many challenges with the biggest being to overcome the perception that caregivers would be thought of as servants. Her company’s mission is twofold: 1) to enable individuals to stay in the comforts of their own homes and 2) to create new jobs for young people. To ensure the legality of the operation, quality of training, and employment guarantees, she established partnerships with private hospitals, non-government organizations, and the Center for Geriatric Sciences. Dr. Iskander is the only entrepreneur, we have met with thus far, who focused on the team building aspects of her organization. The employees go on a 3-day trip to bond and get to know each other. Employees receive full benefits and have access to a private exercise room which Dr. Iskander is planning to expand further. She has even developed a franchise model so that the success in Cairo can be duplicated in Alexandria and potentially other parts of the community.
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Wednesday, May 21, 2008
This morning we left at 9:30 am for our first destination, the American Chamber of Commerce in Egypt. As you get closer to the American Chamber of Commerce which is centrally located, you are surprised by the number of empty apartments in this trendy neighborhood. Upon arrival at our destination the first thing you will observe is the armed soldiers outside the building. You feel safe with the security, but you also wonder why is it necesary.
Once inside, our hosts made all of us feel like VIPs. They had our name tags and microphones and seating. You would think this was a press conference. The guest speaker leading the discussion was Hisham A Fahmy, Executive Director, the highest level in the organization. He reports to the Prime Minister which lets you know just how important this organization is. Mr. Fahmy is very impressive; a strong public speaker who is quite knowledgeable of international business since he has spent time in the United States and the UK.
The Director General, Hanaa El Hilaly, was a wealth of information on entrepreneurship in Egypt and kindly answered all our questions. You really get the feeling that this lady who has lived in the United States is extremely passionate about entrepreneurship.
The American Chamber of Commerce is 25 years old, and its mission is to fund and  increase entrepreneurship in Egypt. In 1991 the Social Fund for Development was established to assist entrepreneurs in funding their businesses. The government is really dedicated to promoting entrepreneurship, and this is evident due to the fact that they are offering 10% of government land free for entrepreneurs. This organization is having a tremendous impact on not just the economy but the society as a whole. Sixty two percent or entrepreneurs funded through SFD are female entrepreneurs, an impressive statistic.
The second stop was American University in Cairo, a downtown campus that is not very different from typical U.S. campuses. The students were in the midst of their finals, and the campus was bustling with activity. Our guest speaker, a professor at the American University of Cairo, made an interesting comment about the fact that 92% of business in Egypt comes from entrepreneurship. This number seems high based on our research, which leads you to wonder how they define entrepreneurship. We learned that there are no large organizations in the country, and he defined that as companies with over 2000 employees. The lack of large corporations definitely makes Egypt an ideal location for entrepreneurship.
The final stop was the U.S. Embassy - a taste of the good old US of A while you're away from home. The first thing we learned from the young Egyptian lady who escorted us into the embassy was the new ambassador is a woman named Margaret Scoby (former ambassador to Syria). The final speaker Christina Sharkey shared important information anyone considering thinking of entrepreneurship in Egypt should know. Here are the most promising sectors in this country :
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Oil Gas
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Power Generation
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Telecom/ IT
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Consumer goods
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Non-Food Franchises
After the meeting it was time to make a short trek back to the bus to return to the hotel. There was a calm on the bus as we had time to think about the long and busy day that passed. Where has the time gone? Only two more nights in Cairo, yet it seems like we just arrived.
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Tuesday, May 20, 2008
Today we visited the town of Memphis, the pyramid of Saqqara, the Sphinx's, and the great pyramids of Giza. The great pyramid of Giza is the only one of the seven wonders that is still standing today. The experience at the pyramids is like no other, and words cannot describe it. When you are fortunate to visit a monumental historical sight, you are overwhelmed by the greatness.
When you visit the pyramids you will get a rude awakening from the street peddlers selling souvenirs and services. You are bombarded by the street peddlers that want you to ride a camel or buy their souvenirs. The street peddlers are persistent and will not take no for an answer in their attempt to convince you to buy their goods or ride their camels. One example is they will ask to take a picture of you with your own camera and then try to charge you. Sometimes the street peddlers do not know when to stop. By street peddlers, we don't only mean men and women but also children of all ages. It seems they are doing this to make a living. Can we define this as entrepreneurship?
There needs to be more organization within the tourism sector of business. By organizing the tourism sector it will eliminate the unwanted harassment by the street peddlers. One way to organize the tourism sector is to allow only certain vendors or preferred street peddlers to sell and provide services. Another way to organize is to have a law that prohibits harassing and selling aggression towards the tourists when at the pyramids. You can put an end to it by having all vendors sign a waiver prohibiting pressure to buy. This will also help with the unwanted sales pitches that are repeated over and over again. The area can also be organized by quality and price. For example, the camels can be in one location and offer the rides hourly or by the ride.
When visiting the pyramids, one can not help but notice the panoramic view of Cairo. The pollution is horrible, there is waste on the streets and in the banks of the Nile. This is a great opportunity for a waste company to start a business to take charge of removing this waste. This would help eliminate some of the waste problems prevalent in Cairo. It is a shame that there is so much liter and debris. If it were cleaned up the land could be put to better use - such as a playground for kids. 
While we were on the way to the pyramids the driver made a stop at Saqqara Carpet School. The carpet school is filled with students of all ages making carpets. The carpets come in all different sizes and styles. It is very interesting how they make the carpet. Their fingers move so fast when they make the carpets. It takes about three months to finish a small area of carpet. The cost of a carpet range from a 100 to over a 1,000 Egyptian Pounds. They are very detailed in their work and put a lot of time and effort in producing quality products. And it's evident in the price.
We ended the day at the pyramids with a night show. It was beautiful to see the pyramids lit up. The show featured an overview about the history behind them.
Cairo has many beautiful artifacts and history that people travel over hundreds of miles to see. However, action needs to be taken so that visitors can freely enjoy themselves and not be harassed.
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Monday, May 19, 2008
We visited IBM Egypt today and discussed the major transitions in the government and technology sectors. The way of doing business has changed in Egypt. It has now become an easier country to conduct transactions. In listening to the speakers, it felt like we were talking to history makers in the region with experience in excess of 20 years. They have served as the ground breakers of not only technology in IBM but the region as well. From their sales and marketing experience to their software development, IBM has created a business for major and small companies alike that pushes the envelope to enhance an organization's efficiencies and competitive advantages.
In speaking with a few entreprenuers, many quote that passion for the business in which you operate is what makes the difference in being successful. In parallel, IBM has the same stance as well which is to ensure alignment within the business units. IBM exhibits this by developing and retaining relationships with clients and employees with a value proposition of harvesting innovative, creative and efficient processes. All of which exceed the client's expectation on time and within the appropriate budget.
In relation to quality, IBM has been able to create certifications that allow for a triple level product and service valuation to ensure that the client receives maximum efficiency and minimal defects on the final solution. Entrepreneurs also have this level of review with advisory teams as well as with the conscious of wanting to provide their clients with a stellar product and service.
With a rise in GDP of 7% and an increase in FDI of 23%, Egypt's economy is booming and open for business. Partnerships with the government, universities and expatriates, growth and development is up to the imagination in all business and industry sectors for the country and region.
Our visit concluded with Dina, a government program executive, discussing the Egyptian environment, progression and economic conditions.
This afternoon has been filled with negotiations and walk aways at the Khan al-Khalili market. We got really good deals on souvenirs and first hand knowledge of how some of Egypt's entreprenuers make a living by ensuring that each consumer knows how much better their products are. You may ask how, well let's just say we are now queens/kings of the country and have received engagement proposals from some of the vendors.
This evening we had dinner at a restaurant in the Zamalek district with Dr. Stuart as the guest of honor. She shared with us her experiences in Cairo the past 8 years and her thoughts on entreprenuership. She planned a meal that would feed the royal family and humored us with her knowledge of the area and her wisdom.
With the last few days of travel, the evening was concluded with a relaxing boat ride on the Nile River, where we sat back, laughed and enjoyed the scenery.
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Entrepreneur Interview with Adam Haridi
May 18, 2008
Adam Haridi is the forty year old business owner of Al Karak Factories, a maker of organic perfumes and hand-made glass bottles. Adam started his business in 1982 at a very young age. He was inspired by his mentor to work in this business doing something he loved. After three to four months, Adam received his license and was able to start his business with only himself as an employee. His business has since grown to 27 employees and two retail locations in Cairo.
 Adam’s fragrances are unique in that they are organic and contain no alcohol or chemicals so that they last longer. His top selling fragrance for men comes from Egypt’s Lotus flower and is nicknamed ‘Egyptian Viagra’. Likewise his top selling fragrance for women is also derived from the Lotus flower. All fragrances are developed locally in a Cairo factory. In addition to the organic perfumes, Adam’s company also designs and makes hand-made perfume decanters and other crystal bottles and cups in Cairo.
With two retail locations in Cairo, Adam has no immediate plans to expand to other locations like North America. By exporting products to Italy, Switzerland, and other parts of Europe, Adam is able to expand his reach into the global market. In addition, he maintains a catalog of his products, so that clients worldwide can order direct from him. Because of his years of experience in this business, he is able to select a scent for a customer based on their physical characteristics (i.e. hair color, nationality, eye color, etc.) without needed them to be present.
Adam attributes his success as an entrepreneur to his genuine love for what he does and the tourists he loves to meet. His love for his business is evidenced by the fact that he speaks six languages – four of which were self-taught through his relationships with his customers. He offered the sage advice in that if you don’t speak the customer’s language – then you don’t make the sell. Adam strongly believes in treating all customers the same whether they be rich or poor. Describing success as simply the ability to make money, Adam’s primary concern is leaving a rich heritage for his family.
However, Adam cautions aspiring entrepreneurs to be prepared for the sacrifices which must often be made. For instance, since Adam has very little vacation time, his wife and son are often left disappointed and upset about his long absences. It helps that Adam loves his business as it allows him to get what he’s looking for – a more secure future for his family. As this is a family business, it is Adam’s wish to leave his business to his son. To this effect, his son has begun working for him to learn about the day to day operations. It is very common in Egypt to keep the business in the family rather than try to sell it as part of an exit strategy.
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Sunday, May 18, 2008
Today we visited the Egyptian Museum, which was filled with so many beautiful exhibits that it was impossible to take it all in within one afternoon. I was wowed by seeing first hand some of the oldest artifacts ever produced by man. I learned about many kings and queens, like Akhenatun and Nefertiti who were change agents and believed in monotheism and that God was neither man nor woman. Their beliefs were so different from traditionally held beliefs yet they were still able to influence Egyptians during their reign by challenging long-held beliefs. This ability to influence a group of people is not unlike what an entrepreneur must do. Motivating employees to work towards your vision of the company is all about influence. Likewise, selling to a target market and convincing them that your product is worth an investment is also influence.
The museum also provided several other examples of entrepreneurship. For instance, while King Tutankham's sarcophagus and tomb artifacts are on display at the museum, to view his mummy tourists must go south to Luxor to the Valley of the Kings. Definitely, cross-promotion at work!
Another interesting discovery was at the souvenir shops. None of the items had price tags. This left me to wonder whether this provided shopkeepers more freedom over prices when dealing with tourists. If this is true, it demonstrates that everyone - even museums - want to be profitable.
After the museum, many of us were assailed by street peddlers selling fake 'genuine' papyrus Egyptian paper. Negotiations quickly ensued. The very adept negotiators were able to negotiate very well to lower the price -- but others weren't so successful. Afterwards, our tour guide commented that he did not want to tell us the papers were fake because the business men 'really needed the money'. Therefore they were selling us these fake papers primarily because of necessity rather than opportunity.
The day ended with an entrepreneur interview of Adam Haridi. Adam, the owner of Al Karak Factories, was initially reluctant of being interviewed by us. He strongly felt that we should interview the entrepreneurs on the streets of Cairo, because as he said 'those are the real entrepreneurs'. We stressed to him the importance of his business and eventually convinced him to do the interview. Stay tuned for details of our interview.
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Saturday, May 17, 2008
It's 7:30 AM, and we have touched down in Amsterdam. We are very curious about what the city has to offer the next 8 hours of our layover. While we await our flight time to Cairo, let's explore this historical city.
The canals, museums, cafes and shops are filled with beautiful interior and exterior architecture. These breathtaking builds quickly filled my SanDisk card within the inital few hours with the number of pictures taken.
Our journey began with breakfast at a local cafe. The business owner was a native of Amsterdam and ran a profitable business. The business' profit is realized through high traffic based on peak and non peak tourism season as expressed by one of the waitresses. This is also evident in the way the employees were speaking about the large crowds that are their daily routines and our presence was simply during the opening frame as we were a small piece of the high volume of traffic in the cafe's location.
 While walking to the cafe, we saw canal boat establishments that were for hire to take their targeted market on a tour of the city. Many of these establishments were owned and operated by small business where the partners are either retired or chose to pursue their passion in sailing the canals of Amsterdam while telling the city's history.
Once we got a feel of the canal business, we walked around the city visiting downtown, the Red Light District and a few other areas. As we learnerd in our enreprenuership class and checking out some of these areas of towns, it's amazing to see the items and services being sold. Did I say INTERSTING? With the weather getting colder and the rain coming down more forcefully, we concluded our day discussing how we could assist passengers making their connecting flight with alerts that would notify the passenger at a small fee.
We're preparing to board to go to Cairo, and we are so excited and ready. Talk to you soon.
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Thursday, May 15, 2008
In less than twenty four hours my journey to the Middle East will begin. Visiting this part of the world will be a first for me, and I am extremely excited. Since the class focus is on Entrepreneurship I felt compelled to better understand what is motivating Egyptians to take this road.
The job market in Egypt is driving young people into entrepreneurship. The guaranteed government jobs for college graduates are no longer there, and this has had a profound impact on the job market. The Egyptian job market operates entirely on word of mouth. On a rare occasion a job listing will appear in one of Cairo’s English-language publications. There are some similarities to the United States, let’s face it most people find good jobs through networking.
The vast majority of jobs are located in Cairo. The jobs are paid two ways: Egyptian pounds known as guinea, and foreign currency. Workers earning local currency tend to be paid better than those who are paid in foreign currency. There is a market for foreign workers despite the weak job market.
There is also a large expatriate population in neighborhoods like Zamalek and Maadi, which provides entrepreneurial opportunities for foreigners. It is not uncommon for sales of personal services such as haircutters and dog sitters thriving in a part-time business.
It should not be forgotten the government has made recent reforms to promote entrepreneurship; all this makes Egypt a very attractive location for entrepreneurial endeavors.
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Friday May 9, 2008
As my last semester draws closer; so does my last tuition payment. This led me to wonder about the cost of University education in Egypt. Like the United States, they have public and private institutions, whose distinct difference is price and population.
Public universities in Egypt get their funding from the state as they are state-owned. Egyptian students receive their tuition free of charge but pay a very small registration fee. However, non-Egyptians pay full tuition and fees that are estimated around $1,500.
Private universities in Egypt receive no state funding and are solely dependent on their resources and supporting foundations and societies. Tuition and fees range from $2,000 to $11,000 per semester.
The admission process is interesting. Like the United States students with higher grades get into the schools and programs of their choice. The students with lower scores can apply to the private Universities where there is less competition. This means student’s punishment for lower grades is they will pay more for their education.
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Thursday, May 1, 2008
It is amazing to know that we will be traveling to ancient lands that continue to progress while maintaining their rich histories. I am always wowed to see various culture's reality versus just watching a documentary, online video or digging deep from those days of world history class. Ooo...that was a long time ago. This is also to say that I am very excited to create this chapter in my book of life where I'm able to connect with entrepreneurs and participate in the communities of Egypt and Dubai alike. I hope to learn most about the entrepreneurs drive to succeed in business. While I aware of turning a profit is key to business success, I find it interesting listen to foundations they have built. These countries have very strong family values and being from a small town where have a strong family connection is important I something that I want to understand how this is balanced with the entrepreneurs.
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www.InternationalEntrepreneurship.com
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