Prof. Dale D. Murphy is Director of Entrepreneurship at the Dubai School of Government, a position he formerly held at Georgetown University where he taught for 10 years. Dr. Murphy received his Ph.D. in International Relations from the Massachusetts Institute of Technology (MIT). His research and teaching spans the study of entrepreneurship, leadership, creativity, CSR, ethics, international political economy and international relations. He is the author of The Structure of Regulatory Competition: Corporations and Public Policies in a Global Economy (Oxford University Press 2007) and many articles. He was an Assistant Vice President of Citicorp and has been involved in a number of start-up ventures, most recently an online news service.
What are your thoughts vis-a- vis living / working in the UAE in specific and ME in general?
The Middle East in general and the UAE in specific may be undergoing more dynamic change and growth than any other part of the world. It is an exciting time to be here, to work with talented Emiratis and others in the region to shape the future commercial and entrepreneurial climate. There is a richness in the multicultural environment here that is unsurpassed.
What are your views on the progress of academia in the Middle East in general/ UAE specifically?
The last six years have seen a global boom in higher education, with established universities creating or expanding their satellite campuses, and new universities being created from scratch. Universities in the Arab world have become increasingly confident of their intellectual heritage and centuries-old tradition of learning from the best practices that other cultures have to offer. A new generation of educational leaders has emerged here, with direct experience in other educational systems around the world, and they are combining those lessons with local strengths to create synergies in academic institutions.
The strongest universities in the region already compete for faculty and students with any university worldwide. Many challenges remain for others, in creating robust institutions, an understanding and appreciation of academic culture and procedures, autonomy, endowments, research facilities, maintaining the highest academic standards, retaining faculty and staff, and so on. But the prospects are very bright. I am less familiar with primary and secondary education, but I gather from colleagues that there is a great deal of progress going on there as well.
From where you stand, do you see more professionals having opted to pursue post-graduate education with slowing employment markets last year? And is now the right time?
Many professionals returned to (or stayed in) graduate school in 2008 and 2009. There's a good argument that with the economic slow-down, if one has the financial resources then now is a good time to re-tool oneself, either to get brought up to speed on the latest developments in one's chosen field or to chose a new line of work. Some people find that -- after a decade of work in the same field -- their learning-curve, motivation, and productivity-growth begins to taper off. A fresh start can be rejuvenating, and allow one to create new approaches drawing on one's previous work. However, starting afresh may first require one to step down a notch or two, before climbing ahead in the new field. 2010 may also see high enrollments, although early indicators are that the recession has hit its bottom.
Where are the gaps in the Middle Eastern academic infrastructure in your opinion?
One gap that can be relatively-easily addressed over the next 5-10 years is to create regional fora for academics in the same field to gather together, through conferences, workshops, symposia, Festschrifts by former students, research collaborations, and the like. With world-class conference facilities and umpteen new universities in the region, this is a natural vacuum waiting to be filled.
There is also a lack of shared data and research. This may take longer to sort out and develop, but will be a natural outgrowth of research productivity over time. Creating a respect for basic academic research, critical thinking (and writing), encouraging a climate of open, vigorous and rational debate, scholarly standards uninfluenced by any other consideration, and enhancing an academic atmosphere of mutual trust and freedom of thought are among the broader goals.
More down-to-earth, there is currently a lack of research and teaching assistants ready to help with data collection and analysis. In many graduate schools this role is filled by graduate students, sometimes in a mandatory quid pro quo for scholarship tuition money, which trains the students in how to research and teach as well as assisting the faculty. Broadband connectivity in many institutions still needs improvement, in reliability, widespread and uninhibited access to academic content, but in many ways this is simpler to address than other challenges.
As a successful entrepreneur yourself, what would you say are the top 3 essential ingredients for a thriving entrepreneurship culture to develop and be sustainable?
Come to our conference on "Best Practices in Entrepreneurship Policy" (BPEP), sponsored by the Legatum Institute, and help leading entrepreneurship supporters find out! :-) There are many factors, but since you ask for three, I'd highlight these: a) The regulatory environment: laws should encourage, not discourage, starting new ventures. This means: (i) a minimum of bureaucratic red-tape (licensing, permits, fees, etc.), low minimum-capital costs, perhaps assistance in the form of effective "one-stop shops" if they dramatically speed up the time required (instead of slowing it down). But (ii) regulations should also take account of the harsh reality of entrepreneurship: something like 75% of new startups don't survive beyond three years. This means that "exit" (including insolvency restructuring) should also be relatively painless for legitimate firms.
A number of countries in the region need to reform their insolvency laws, in keeping with best-practices worldwide (and Islamic banking norms), to decriminalize insolvency and allow for a rational, orderly and transparent prioritizing and pro-rating of creditors' claims. Youth should not be punished for starting a company that doesn't make it. For wealthy families these debts can be managed, but for poor or middle-class youth the fear of jail can be a rational and serious deterrent to starting a company. This is a complex issue that will require training for judges, lawyers, accountants, banks, other creditors, and entrepreneurs themselves.
The Hawkamah Institute for Corporate Governance issued a declaration on insolvency in May that is worth examining. Finally, (iii) regulations should not be done away with carelessly or entirely, they exist to address market failures and to protect the broader public interest (maslahah al-aam). Insufficient regulations can breed distrust and undermine markets. The lack of effective and autonomous regulatory oversight in US financial markets is part of the reason for the financial collapse. But regulations should encourage new entrepreneurs. b) Widespread access to early-stage seed-capital: a crucial link in creating a culture of entrepreneurship is institutionalizing mechanisms for capital to flow to where it will have the highest marginal impact. A 100,000 AED investment means nothing to a wealthy scion, but could be the big break that a budding middle-class entrepreneur needs. To a poor youth in the Maghreb or Levant, even a 5,000 AED investment could mean the start of financial independence and job-creation.
Fostering legal mechanisms that help institutionalize this early-stage "angel investing" is one of the highest priorities for the region. It requires the ability to accurately assess entrepreneurs' credit history, efficiently perform due diligence, ensure the impartial enforcement of contracts, be protected against non-market forces, retrieve collateral if need be, etc. c) Mentorship and education for youth: nothing better inspires future young people to start their own company than getting to know successful entrepreneurs and having an education that rewards creativity, innovation, responsible risk-taking, and leadership.
Would you say entrepreneurship is innate or is a skill that can be personally developed?
There is a common myth among people who have never taught or studied entrepreneurship that "it can't be taught." That's nonsense, as proven by decades of evidence and research (by the Kauffman Foundation and others). Sure, there are some 'natural-born entrepreneurs' who will succeed in any situation, without any education or skills-development, which is great. And some people have no desire for the hard work, risk and responsibility that starting a profitable company requires, so won't ever try. But for many people in the middle, the right combination of encouragement, skills-development, active (and responsible) investments, and mentorship can make all the difference between starting their own successful company or simply being an employee of someone else.
Some basic business skills are required (financial literacy, financial responsibility), but the more important skills are psychological: developing the right attitude, taking responsibility for one's financial destiny, looking inward and unlocking one's true passion or calling in life, unleashing one's creativity and innovation while being hard-nosed about market-realities, finding one's leadership style and building a competent team who respects this, etc.
When I was Director of Entrepreneurship for Georgetown University, one of our key goals was to reach out beyond the business-school to inspire students in the liberal arts or sciences to start their own ventures. (Most MBA's don't start their own company, and most companies aren't started by MBA's. Accounting skills are fairly transferable and relatively easy to hire, but it's hard if not impossible to hire the leadership, determination and creativity that it requires to start a successful company.)
Would you say the UAE is the right spot for entrepreneurs at this particular moment in time? Any other regional countries/markets you find promising for entrepreneurship today?
The UAE offers some of the brightest prospects on earth for entrepreneurs. There is a stupendous business infrastructure in Dubai, burgeoning demand in Abu Dhabi, untapped markets in the other Emirates, strong support for business from the country's rulers, free zones, and a talented and young professional class. It's a regional and global business hub, and investors are eager for sound business models to invest in.
There are still ways that the UAE can learn from other countries' experiences, of course, but it is deservedly recognized as a leader. For entrepreneurs just starting out, the UAE has some of the best entrepreneurship initiatives and programs in the world, including those led by the Mohammed bin Rashid Foundation al Maktoum Foundation, Mohammed bin Rashid Establishment for Young Business Leaders, Young Arab Leaders and Khalifa Fund, and many private sector initiatives. As I've said elsewhere, the economic crisis in many ways has created new opportunities for entrepreneurs.
The dynamism and growth in the region creates niches that entrepreneurs can fill much more quickly than can large existing firms. Other countries show vibrant prospects as well. Saudi Arabia was ranked #1 for the region by the World Bank's Doing Business unit, and is fueled by a new generation of educated youth and government investments in education and technology. Qatar is transforming its economy in a single generation, and is growing fast. Lebanon is undergoing a business-Renaissance that received assurance by the acceptance of all parties to the June 2009 election (assuming they can form a government). Pro-entrepreneurship reforms, initiatives, and educational programs are underway from Syria to Yemen, Morocco to Oman. I've compiled an online list of more than 150 such initiatives, which so far barely scratches the surface.
Who are the icons and mentors who have influenced you career progress the most?
I was lucky to have a great public and higher education, so I give thanks to my many teachers, and to parents who gave me the freedom to pursue my interests. When I was 19 I took off a 'gap-year' from college and, working as I went, traveled around the world on a shoestring. That opened my eyes and gave me an appreciation of the similarities and differences in regional challenges, and responses to them. I've benefited from too many people's advice and role-modeling to name just a few.
Years ago I was an assistant vice president at Citibank, working for the chairman's chief-of-staff, which gave me insights into the inner sanctum of Wall Street. But in the realm of entrepreneurship, I've learned a great deal by observing up-close for two decades a good friend who is a hyper-successful serial entrepreneur. He's still not afraid to fail, which I've seen on occasion (and even shared in), but when he triumphs he does it big. He's one of the hardest-working and most-effective people I know, expects the same from his team, delegates responsibility but also leads, and "aims for the stars" every time.
Anything else you would like to share with Bayt.com's community of employers and job seekers?
I hope your employers will recognize that the greatest productivity comes from finding a 'good fit' for employees, enabling them to fulfill their own visions, rather than trying to shoe-horn people into pre-conceived roles. Give talented employees the autonomy to find ways that their passions align with the company's objectives. (If they're not a good fit, help them move on to a better fit elsewhere so that they provide a networking resource in the future.) Likewise, job-seekers should expend the effort to figure out what they really want to do in life, and then position themselves to achieve it, even in small steps.
