Things People Get Wrong about Slot Games

December 11, 2019

Slot machines are perhaps some of the most misunderstood devices. Different people have different perceptions about slot games- some positive and others negative. Knowing these things can help you improve your gaming strategy and stand a better chance of winning big.

Slot Machines Don’t Alter Their Odds

If you’re planning to play slot machines, it’s an incredible idea to know exactly how the odds work. However, this won’t help you win more regularly, though. But it might go a long way in preventing you from making wrong decisions based on a faulty premise.

In a slot machine with 3 reels, each featuring 8 symbols, it means that each symbol has a 1/8 probability of popping up on a given spin. This is because the symbols aren’t weighted in any special way.

The jackpot for such a game is 500 coins. And the probability of hitting that particular jackpot lies in the possibility of getting 3 similar symbols in a row. When calculating the probability of having multiple events happening concurrently, you multiply all the probabilities by each other.

Casinos Never Change the Game’s Programming

Once you understand how slot machines work mathematically, it becomes easier to see why the casino wouldn’t find it necessary for changing the programming. The casino isn’t actually bothered if you win. Winning is carefully baked into the game’s math and advantage. Remember, no one would play slots if it were completely impossible to win. Plus, a large casino with over 5000 slot machines wouldn’t find it reasonable to re-programming specific machines after wins. It would actually end up being counter-productive since the casino is looking at a bigger picture.

Your Players Club Card Isn’t A Winning Tool

At no point does your Player’s Club Card interact with the casino’s random generator. Both programs are designed to serve different purposes. The main idea behind the player’s club card is that the casino will reward you with rebates as well as free food to inspire you to play the slots more often. Typically, they do so by crediting 0.2 or 0.3 percent of your action to your rewards account.

Progressive Jackpots Are Extremely Hard to Hit

Some players love playing progressive jackpot games. They enjoy the idea of winning one big jackpot that could change completely transform their lives. It’s more like playing the lottery. But the main problem is that such progressive slots are extremely hard to hit. In most cases, people measure how “loose” a particular slot machine is by checking its payback percentage.

The Bottom-Line on Slots

Now that you’ve known that casinos and slot sites don’t change the game’s odds or programming, you can play without any worries. Gambling is solely dependent on luck as well as mathematical calculations. So, if things don’t happen the way you expected, don’t blame the casino. Accept the outcome and move on. If you don’t win now, tomorrow is still another day. Keep on trying until you hit your target. And always try as much as you can to gamble within your budget.

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To Rent or To Buy A Home: Which is a Better Choice For You?

December 10, 2019

It’s exciting to hear your friend talk about the new condo he just moved into. You want to have a place of your own too, someday. But just as you begin to get lost in the fantasy over your own home, you are reminded of the people who get submerged in the costs of their mortgage monthly payments and other ongoing costs after they’ve bought the house – the house-poor.

So, should you rent or buy? A buying a house checklist can help you decide.

Short-term vs. Long-term budget

You have to first consider your financial situation. You might have your eyes set on buying a house in a particular neighbourhood, or a condo with state-of-the-art amenities, but you might not be able to afford that for now. Renting a house could be a valid short term option in this scenario. In the long run though, buying a house is an excellent choice from a financial perspective. The money that you spend on rent can go towards equity on your home, not to mention the additional appreciation that you will get over time. It’s an investment that often pays out well in the future.

Are You Ready To Settle?

Be sure that you’ll be staying in a single city or neighborhood for at least the next 5 years. Otherwise, renting might be a good option. This is because the added costs of moving from one place to another might be substantial especially if you’re making the move before the 5 year mark. Consider the fact that you might still have a mortgage over your head during this period, and incurring costs upon costs might not be so smart!

Fully Utilize Online Real Estate Tools

To get a better idea of your situation, you can use mortgage affordability calculator to get an assessment of how much you can afford to spend on a home right now. They can provide a realistic guide on what you can afford to buy and help you to make the choice of either buying or renting a home on the basis of your budget. Are you in love with a house that’s way over your budget? Maybe it’s better to rent and save up for a while longer. With the aid of these online tools, you can easily work out your available options.

Tax Benefits from Buying A Home

If you buy a home as a primary residence, you can benefit from certain tax benefits. In Canada, if you have lived in the home since you bought it, any appreciation you get from the sale is not taxed at all. In the US, there is an exemption for a certain amount of gains from the sale of a primary residence, allowing you to keep most, if not all, of your gains tax-free.

Wrapping Up

The decision of either renting or buying a home is one that can’t be made on a whim and there is no one size fits all approach to making a choice. After carefully weighing the points raised in this article, you should be able to make a decision on which one suits your needs most right now. You can always use online tools and guides to help you make a final decision.You may also check out this article about the pros and cons of renting by Movingsoon to give you more clarity and aid in your decision making.

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Innovation and the Art of Transformational Leadership

December 10, 2019

By Mostafa Sayyadi

Executives willing to succeed in the knowledge-based economy will need to adopt transformational leadership at the highest organizational levels in order to develop innovation. This article adopts a holistic approach to address the following research question: how can transformational leaders meet the need for innovative products and services?

Transformational leaders solve problems and people across industries members frequently solve technical problems and share their ideas and knowledge together – especially when it comes to charitable and disaster-type events. This frequent contact and keenness to share existing practice and knowledge in solving daily technical problems can in turn enhance a shared understanding among organizations that make up certain industries and it does not even matter if they are in the same industry.

Frequent contact and keenness to share existing practice and knowledge in solving daily technical problems can in turn enhance a shared understanding among organizations.

To provide an array of leadership theories and models, the next section examines some theories and models that are directed at developing a better understanding of the concept and evolution of leadership thought. There have been several shifts in the study of leadership, and subsequently newer approaches to leadership emerged leading up to the emergence of transformational leadership as a key enabler for organizational innovation.

A Look at Leadership Theories and Models from a Critical Perspective

Behavioral Theory

Behavioral theory could have been the impetus for a change in the focus of leadership studies, and encouraged researchers instead to embark on empirical studies to identify leader behaviors and accompanying categorization schemes.^1&2 Ralph Stogdill, Alvin Coons and Rensis Likert investigated the behaviors of leaders at both Ohio and Michigan Universities.^3&4 These authors classified leadership styles resulting in two aspects of task and people. These studies aimed to portray the best leadership style when delegating task to people, and also illustrate the behaviors of effective versus ineffective leaders. Task behavior tended to be elaborate and tenuous, leaving leaders exhausted at the end of the day while people behavior, sometimes referred to as relationship behavior, led to leaders spending and inordinate time with followers also leading to exhaustion and, in some cases, frustration do the hand-holding and continuous feedback necessary to complete the work in question.

Ohio State Studies

To investigate effective behaviors in leaders, Ralph Stogdill and Alvin Coons conducted an empirical study in which they employed a Leader Behavior Description Questionnaire (LBDQ) for subordinates to evaluate the behaviors of their leaders, using 150 items that reflect important functions of a leader.³ More importantly, Ralph Stogdill and Alvin Coons rated these behaviors using a range between two aspects – initiating structure and consideration. Leaders can score high or low on each of these aspects.³

Initiating structure refers to the behavior that organizes and defines relationships or roles, and establishes well-defined patterns of organization, channels of communication, and ways of getting the job done, consideration, on the other hand, has been highlighted as the behavior indicative of friendship, mutual trust, respect, and warmth.⁵

In Ralph Stogdill and Alvin Coons’ view, there can be four types of leadership styles.³ These are classified as low initiating structure and low consideration, low initiating structure and high consideration, high initiating structure and low consideration, and high initiating structure and high consideration. Conceptually, these four leadership styles resulted from a combination of initiating structure and consideration which ware on an X/Y chart with initiating structure on the left and consideration along the bottom. Based on this chart, transformation of leadership approaches from a set of universal traits to some context-dependent styles left the behavioral model lacking the necessary application to be useful in large corporations. However, the two dimensions were considered important when leaders determined how to utilize human resources, train people, and guide them.

Michigan University Studies

Rensis Likert conducted another empirical study at the University of Michigan, which aimed to define the relationship between leadership behavior, group performance and processes within a group.⁴ This research adopted a mixed method approach, and used both survey questionnaire and qualitative interviews to classify effective versus ineffective leaders. This classification highlights several interesting differences in the behaviors of these leaders, and reveals three styles of leadership which emerge differently with respect to effective or ineffective leaders. Accordingly, Rensis Likert suggested the three leadership styles as: ⁴

task-oriented, which focuses on planning the work, organizing employees and technically supporting them to achieve their business goals. These are similar functions to initiating structure as identified by the Ohio State Studies;

relationship-oriented behavior that reflects supportive behaviors for subordinates, and is consequently equivalent to consideration as described by the Ohio State studies, and;

participative behavior which is reflected by paying attention to both task-oriented and relationship-oriented behaviors, and demonstrating some behavioral aspects such as being supportive, collaborative, cooperative, and highly oriented towards accomplishing high performance, solving problems, and facilitating conflict resolution.

It is number three above that began the new leadership research that large corporations needed to better apply leadership theory and models. Without a framework, the Ohio State studies and Michigan State studies did not provide closure for leaders attempting to run corporations in a hypercompetitive global environment. For example, Peter Northouse posits that a leader who practices participative leadership is one who invites others to share in the ways and means of getting things done.⁶ They work to establish a climate that is open to new and diverse opinions. This type of leader consults with others, obtains their ideas and opinions, and integrates their suggestions into the decisions regarding how the group or organization will proceed. In Rensis Likert’s view, most effective leaders have a dual concern for task-orientation and relationship-orientation, and undertake a participative leadership style to enhance a climate of openness within organizations.⁴ Leaders in large organizations began to apply this knowledge and managerial implications where beginning to surface as beneficial and worthwhile.

In the corridors of universities, scholars challenged these two studies, because of the failure to account for situational variables in order to recommend the best leadership style, and also the methodological limitations of these studies.^7&8 Gary Yukl explains these limitations in that the selection of behavioral items for a questionnaire is usually influenced by preconceptions about effective leadership or the desire to develop a measure of key behaviors in a leadership theory.⁹ He also expressed that the sample of respondents is seldom systematic, and the accuracy of most behavior questionnaires is seriously reduced by respondent biases and attributions. He criticized this construct of the theory for applying the fundamental assumption of factor analysis, which searches for high association among variables in terms of a similar category. Furthermore, he argues that this basic assumption could be effective for leaders when they only need to take one alternative way among a category of various behaviors – sort of satisficing to end the search for the optimal choice of action necessary for high performance and productivity. While the behavioral perspective adopts a new approach to overcome the problems of trait theory, the empirical studies themselves suffer from several limitations leaving leaders in large companies salivating for a more congruent and applicable theory or model.

Situational Leadership Model

Situational Leadership is a model. Unlike theories, it has its good attributes but has not empirically been tested. Therefore, scholars look at it as a passing fancy, a myth, or a schematic diagram that has not been tried and true. Unfortunately for scholars, this is not true. Millions of managers were trained in situational leadership and it has advanced into law-enforcement, parenting, and customer service. Basically, situational leadership was developed to highlight the importance of situational factors and how they impact the effectiveness of leadership. Albert Murphy argues that leadership is naturally situational, and that leadership study calls for a situational approach; this is a fundamentally sociological viewpoint, not a psychological one.¹⁰

According to this model, leadership does not reside in a person. It is a function of the whole situation or a particular situation. Henry Sims, Samer Faraj and Seokhwa Yun also explain the fundamental idea of situational leadership, and highly recommend that one type of leadership will be effective in one situation while but may be ineffective in other situations.¹¹ Consequently, this model, unlike behavioral and trait theories, highlights that there is no best single leadership style for all the situations, and conversely encourages leaders to consider the impact that situational variables can have on the effectiveness of a behavior.

Peter Northouse is one scholar that critiqued this theory and provides its strengths and weaknesses.⁶ In his book titled “Leadership: Theory and Practice,” he identified the limitations of situational theory. He asserts that situational theory suffers from several weaknesses. First, this theory has been challenged based on the lack of empirical studies to test its hypotheses. Secondly, there exists a high degree of ambiguity that is highly reflected in a failure to theoretically justify the relationships between the variables presented in the models. The third criticism relates to the fact that even these models themselves lack a theoretical rationale by which these relationships can be justified. Moreover, the studies replicated by other researchers could not have actually supported the fundamental prescriptions of this theory. In addition, this theory has been criticized because of the failure to account for the critical role of demographics in its prescriptions. Furthermore, situational leadership failed to sufficiently differentiate between group and one-to-one leadership within organizations, and consequently could not have adequately addressed these concepts. Finally, the methods of data gathering generally suffer from bias, particularly in those questionnaires that have been constructed to force respondents to describe leadership style in terms of the specific parameters of situational leadership…rather than in terms of other leadership behaviors.⁶ Therefore, this finding supports Claude Graeff’s argument that the situational approach cannot even represent a theory or a practical model to study leadership.¹² Barring this sporadic but relevant criticism, situational leadership provides prescriptive and anecdotal applications that leaders and supervisors can grasp. It is straightforward and uses a variety of guidelines for both leaders and followers alike.

Transformational Leadership: The Focal Point of Innovation

Executives around the globe realize that they play a critical role to achieve the best climate and for creating innovation and growing the organization. Engaging followers and getting them to participate in leadership activities is an important part of organizational innovation.¹³ Success is dependent upon how executives formulated their organization’s mission and vision. The key is for executives to inculcate a culture of trust and transparency of knowledge sharing within organizations so that information can be found and used instantaneously.

Two prominent scholars on organizational innovation are Ikujiro Nonaka and Dave Ulrich who suggest that executives build a climate of trust for individuals to exchange ideas.^14&15 Like tacit knowledge, individual knowledge can become a valuable resource by developing an organizational climate of trust for members to exchange their ideas and insights. A climate of trust is a big part of organizational innovation and can inspire organizational members to share their individual knowledge to generate new ideas within companies. This is where the transformational leader can attempt to achieve the best corporate climate and inspire followers to achieve business goals–stemming from a shared or distributed form of leadership across pivotal areas on the organization.

Organizations today require a form of leadership in which “the freedom to explore new ideas and set its own agenda” in an empowering way which frees followers from the shackles of organizational missives.

It is apparent that transformational leadership theory is associated with trust-based relationships for centuries that go back to Sun Tzu. An example of this comes from the work of Jon Pemberton, Sharon Mavin and Brenda Stalker, who posit that communities that work in tangent with each other as a group of like-minded people whose interconnectedness brings richer and more comprehensive knowledge and experience.¹⁶ Organizations today require a form of leadership in which “the freedom to explore new ideas and set its own agenda” in an empowering way which frees followers from the shackles of organizational missives.¹⁶ The outcome is success which narrows the gap between success and failure and this can be achieved by the commitment of its members and facilitated by an executive acting as a transformational leader for the purposes of organizing meetings and communication. Thus, transformational leadership theory is a necessary precursor to create new knowledge in organizations. And transformational leaders enhance competitive advantage by creating new ideas and storing knowledge that can be tapped into at the right place and time.

In Conclusion

By facilitating and fostering a culture that enables followers, transformational leaders are effective trust builders who develop innovation and provide a flow of knowledge and ideas. Clearly, transformational leaders unfold results in organizations, influencing employee individual interests to align with institutional interests, and through inspiring employees to develop trust-based relationships and create new ideas and innovations for effective business outcomes. The key is to see the practices, consider implementing them for followers and anticipate a large change in the leadership gaps that exist in the organization.

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About the Author

Mostafa Sayyadi, CAHRI, AFAIM, CPMgr, works with senior business leaders to effectively develop innovation in companies, and helps companies – from start-ups to the Fortune 100 – succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to HR.com and Consulting Magazine and his work has been featured in these top-flight business publications.

References
1. Marturano, A., & Gosling, J. (2008). Leadership, London: Routledge.
2. Pierce, J.L., & Newstrom, J.W. (2008). Leaders & the leadership process: Readings, self-assessments & applications. Boston, MA: McGraw-Hill, Irwin.
3. Stogdill, R.M., & Coons, A.E. (1957). Leader behavior: Its description and measurement. Columbus, OH: Ohio State University Bureau of Business Research.
4. Likert, R. (1961). New patterns of management. New York: McGraw-Hill.
5. Yunker, G.W., & Hunt, J.G. (1976). An empirical comparison of the Michigan four-factor and ohio state LBDQ leadership scales. Organizational Behaviour and Human Performance, 17(1), 45-65.
6. Northouse, P. (2010). Leadership: theory and practice. Thousand Oaks, CA: Sage Publications.
7. Fisher, B.M., & Edwards, J.E. (1988). Consideration and initiating structure and their relationship with leader effectiveness: A meta-analysis. Proceedings of the Academy of Management. Anaheim, CA.
8. Bryman, A. (1992). Charisma and leadership in organizations, London: Sage.
9. Yukl, G. (2012). Effective leadership behavior: what we know and what questions need more attention. Academy Of Management Perspectives, 26(4), 66-85.
10.Murphy, A.J. (1941). A study of the leadership process. In J.L. Pierce & J.W. Newstrom (Eds.), Leaders & the leadership process: Readings, self-assessments, & applications, Boston, MA: McGraw-Hill/Irwin.
11. Sims, H.P., Faraj, S., & Yun, S. (2009). When should a leader be directive or empowering? How to develop your own situational theory of leadership. Business Horizons, 52(2), 149-158.
12. Graeff, C.L. (1997). Evolution of situational leadership theory: A critical review. The Leadership Quarterly, 8(2), 153-170.
13. Merat, A & Bo, D. (2013). Strategic analysis of knowledge firms: the links between knowledge management and leadership. Journal of Knowledge Management, 17(1), 3-15.
14. Nonaka, I. (1994). A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14-37.
15. Ulrich, D. (1997). Human resource champions the next agenda for adding value and delivering results. Boston, MA: Harvard Business School Press.
16. Pemberton, J., Mavin, S., & Stalker, B. (2007). Scratching beneath the surface of communities of (mal)practice. Learning Organization, 14(1), 62-73.

The Key to a Sustainable Digital Future; Human Rights Safeguards

December 10, 2019

By Sabrina Rau

This article will lay out some of the risks to individuals in the digital society and suggest how we can learn from the international human rights framework to implement effective safeguards. Safeguards that enable us to benefit from scientific progress while mitigating risks to human rights through effective due diligence.

Data is not good or bad. Data can be the greatest asset and opportunity to learn and innovate but also dangerous if processed and used without human rights safeguards. It is the manner in which data is collected, processed and shared and the purpose for which this is done that determine its potential as an advantage or danger. Our lives are increasingly online and linked through smart devices and the internet of things (IOT).¹ From smart speakers to smart phones, from social media to cloud storage, our data is collected in various formats by a variety of data controllers that include states, businesses, NGOs and others. Your employer, bank, healthcare provider, social media platforms and others all collect data on us in an effort to “personalise” services and provide us with every day “convenience.” Yet, at what price?

Data collection and processing can provide numerous benefits in our everyday lives and on a larger scale allows business to better understand their customers and states to better understand their citizens. The United Nations (UN) Sustainable Development Goals (SDGs), for example, use set indicators measured against a tremendous amount of data points to establish and better understand the progressive realisation of human rights.² “Data is knowledge” is a common expression and one that holds true in today’s society, but is all gathering of data legitimate? Does data collection and processing pose a threat to our human rights? Can businesses do anything to reduce the risks of potential malpractice in the collection, processing and sharing of data?

Why we need to talk about human rights and not ethics

Human rights are important for understanding issues around data protection. The risk to privacy is often highlighted with new technologies and in relation to data breaches but the processing and sharing of data can have serious implications on a wide array of human rights well beyond privacy. Human rights are “rights inherent to all human beings, regardless of race, sex, nationality, ethnicity, language, religion, or any other status.”³ International Human Rights law lays out the obligations of governments to protect these rights and freedoms. Human Rights include the right to work, right to effective remedy, freedom of thought, freedom of assembly, right to education, right to benefit from scientific advancement and many more.⁴

The universal declaration of human rights and other human rights conventions together form a basis of rights and freedoms every human being is entitled to. Knowing these freedoms and rights allows us to identify when a harm has occurred. Most importantly, human rights are universal, indivisible, interdependent and interrelated. While ethics are often spoken about in company values and in relation to data processing and AI, they are not necessarily universal and can be extremely subjective, making them difficult to comply with and assess industry wide. It is for this reason that it is more effective to speak about human rights rather than ethics when it comes to the opportunities and challenges of data processing.

In the context of data processing the right to privacy and freedom of expression are commonly spoken about through data breaches or content moderation such as in the case of Cambridge Analytica and InfoWars.⁵ An infringement on the right to privacy typically does not stop at the interference with your personal data. If a data controller shares data with another entity who uses it for another purpose and aggregates it with data gathered somewhere else, the merging can result in harmful outcomes for the individual such as affecting the right to work, right to health and others. In this way data, and particularly big data and AI, can greatly affect the enjoyment of human rights.⁶

While data protection is one of the objectives of GDPR which coincides well with human rights, the other objective of GDPR is the free movement of data which more closely reflect commercial and global competition objectives.

Why GDPR is not enough

One interpretation of the General Data Protection Regulation is that it is a human rights instrument hindering and limiting businesses and other data controllers from their work. GDPR, however, does not prohibit data processing but merely limits the means through which data processing occurs. While GDPR contains elements that reflect a human rights based approach, in practice the focus on human rights can many times be lost due to the competing objectives of GDPR. While data protection is one of the objectives of GDPR which coincides well with human rights, the other objective of GDPR is the free movement of data which more closely reflect commercial and global competition objectives.

On a positive note GDPR contains human rights language including recitals on the right of data subjects. This includes the right to receive information, the right to access data about the data subject, the right to rectification, the right to erasure of any data held about the data subject, the right to data portability and the right to object.⁷ It also includes requirement of transparency, and assessments of necessity and proportionality which are directly borrowed from human rights law. It may appear through these references that this is a strong rights guidance, however implementation is made complex by the competing objectives.

The underlying assumption throughout GDPR is that data is being collected. The rights of the data subjected are all consistent with opt-out features, illustrating the clear assumption that data is being processed. This is unlike the consent requirement which has a strict opt-in model.

Because of the commercial objectives of the free flow of data to remain competitive internationally, its implementation is a challenge in a number of ways. One way in which this is evident is through the ineffective use of consent online. Obtaining consent is easier for data controllers than it is to justify the other six legal grounds for processing data.⁸ The reason for this is that GDPR places an excessive burden on the individual to be their own data manager with little negotiating power against large data controllers and relatively little information on the complex data processing.

The problem of consent online

According to GDPR, consent should be “freely given, specific, informed and unambiguous indication of the data subject’s wishes by which he or she, by a statement or by a clear affirmative action, signifies agreement to the processing of personal data relating to him or her.”⁹ While this may sound good, in practice this is difficult in a number of ways.

Informed consent requires the data subject to be given the information required to make an informed decision about what they are agreeing to and the associated risks. When it comes to an online context, however, the lack of foreseeability, specificity, clarity and accessibility make informed consent particularly challenging.¹⁰

“Freely given” consent speaks to the data subject’s control and choice. However, a person cannot meaningfully opt out of being part of the information society nor has a negotiating position when it comes to the terms of the data collection. This is mainly due to the existing power imbalances between data controllers and data subjects and often the monopolies that certain businesses have over particular services and the networking effect.¹¹ The “unambiguous indication” requirement of consent is also dependant on the context in which the data is collected and the nature of the information collected.¹²

While it may appear that consent is completely ineffective in the online/digital context, it is worth questioning the role of consent in other parts of our society. When framing this in terms of human rights, one can consider questions of autonomy and self-determination. Respect for individual autonomy underpins international human rights law, given that the law focuses on respecting and fulfilling individual rights and freedoms. Considering the central role that consent plays in our society and the lack of meaningfulness online, we should think further about when consent is appropriate to use in a digital society.

In order to benefit from scientific progress and not stagger innovation, acquiring adequate safeguards for data processing is key. Rather than relying on ethical principles, which as noted earlier are too subjective and not measurable, the UN guiding Principles on Business and Human Rights (UNGPs) offer a framework through which adequate safeguards can be put in place mainly through effective due diligence processes.

How the UNGPs can be part of the solution

The UNGPs are the only official guidance the United Nations Human Rights Council have endorsed for States and Businesses. They do not create new human rights obligations but rather explain how existing human rights standards can be upheld. The three pillars of the UNGPs are:

The State duty to protect human rights
The corporate responsibility to respect human rights
Access to remedy

States in the first instance have a duty to protect human rights from third party harm according to the UNGPs. This may include regulations and policies that require mandatory due diligence practices and monitoring such as some countries already have put in place. Furthermore, knowledge sharing and providing expertise to policy makers to understand how data processing works is key to promoting policies that are conscious of the risks or data processing practices.

When it comes to the responsibility of businesses and corporations the actions look a little different. Businesses are not responsible for protecting human rights but are required to “respect” them. This means that they should avoid infringing on the human rights of others and address adverse human rights impacts they are involved in throughout their value chain and their business relationships.¹³

A due diligence process must “identify, prevent, mitigate and account for how they address their impacts on human rights.

According to the UNGPs, a business should have (1) a public policy commitment to human rights, (2) a human rights due diligence process and (3) a process to enable the remediation of any adverse human rights impacts they cause or contribute to.¹⁴ Having these elements in place allows for clear measurable standards to be in place through which due diligence processes go though. A due diligence process must “identify, prevent, mitigate and account for how they address their impacts on human rights.”¹⁵ Further detail and guidance exist on how these due diligence processes must be carried out, but important aspects of them are the range of activities that must be covered as part of the process and the nature and context of its operations that may have human rights impacts. Another important aspect is that a due diligence process should be ongoing “recognising that the human rights risks may change over time as the business enterprise operations and operating context evolve.”¹⁶

Drawing the connection between effective due diligence processes and data processing, it is important to better understand the complexity of data processing, and specifically data sharing, to understand the risks and human rights harms that may be suffered at different levels as a result.

Human Rights Safeguards are the way forward

The benefit of businesses committing and applying the UNGPs within their business operations, including in their data processing is that it creates more measurable reporting guidelines that make human rights compliance easier to understand and evokes a race to the top of good corporate human rights performance. Data processing should have effective impact assessments that assess the risk on an ongoing basis, in the same way as other supply chains. The first step is to understand the potential harms that can be caused by data processing beyond privacy. The second step should be the implementation of a human rights due diligence process that assesses risks at every part of the process, from data collection, to storage, analysis, processing and sharing, and that monitors and assesses these practices in an ongoing manner. Implementing these safeguards allows data to be an instrument for innovation while having the right safeguards in place to respect human rights.

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About the Author

Sabrina Rau is a Senior Research Officer in the Human Rights, Big Data and Technology (HRBDT) project based at the University of Essex. Her work focuses primarily on rights, regulation and remedies and the role of business in the digital age.

References
1. Morgan, Jacob, “A Simple Explanation Of ‘The Internet Of Things” https://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-internet-things-that-anyone-can-understand/#47ba1c1d1d09
2. SDG Indicators, found at https://unstats.un.org/sdgs/indicators / indicators-list/
3. https://www.un.org/en/sections/issues-depth/human-rights/
4. Universal Declaration of Human Rights https://www.ohchr.org/EN/UDHR/Documents/UDHR_Translations/eng.pdf
5. “How Does Content Moderation Affect Human Rights? Commentary on the Case of Infowars” https://hrbdt.ac.uk/how-does-content-moderation-affect-human-rights-commentary-on-the-case-of-infowars/
6. HRBDT UDHR report https://48ba3m4eh2bf2 sksp43rq8kk-wpengine.netdna-ssl.com/wp-content/uploads/2018/12/UDHR70_AI.pdf
7. GDPR Articles 12-23
8. GDPR Article 6 https://gdpr-info.eu/art-6-gdpr/
9. GDPR Article 4 (11)
10. Consent background Paper https://48ba3m4eh2bf2sksp43rq8kk-wpengine.netdna-ssl.com / wp-content / uploads / 201 9 / 06 / 19.06.09-Background-Paper-on-Consent-Online.pdf
11. Consent background Paper
12. Consent Background Paper
13. UNGP, Art. 13
14. UNGP Art. 15 (a)
15. UNGP Art. 15 (b)
16. UNGP Art. 17 (c)

How Technology Is Transforming Banking for SMES

December 10, 2019

By Alain Vansnick

For years, banks have struggled to deliver a truly engaging digital experience for their customers. However, we now find ourselves at a crossroads – one where data, advanced analytics and artificial intelligence are opening the doors for banking to become more personal and tailored than ever. The impact of this will be felt across many sectors and it’s exciting to consider the implications this will have for SMEs in particular.

As economies grow, there is an opportunity and need for SMEs to scale their business adequately. In the Nordics for example, increasing demand in the domestic market has been creating many opportunities for the growth of SMEs, as have other factors such as the better availability of highly skilled labour and greater digitisation¹.

Alongside trends like these, comes a greater need for borrowing and the types of services that banks provide. According to recent statistics from the European Commission, bank lending accounts for 75% of all SME funding in Europe².

At the same time, around one in five SMEs report that they are struggling to get the funding they need to further develop their businesses³. So, what can banks do to address this issue?

The truth is that SMEs require a specific style of banking compared to larger businesses – one that caters to their specific needs and individual personalities. A small business owner may find that he has all the skills, products or services to succeed but may then run into problems with regard to the admin, bureaucracy and management needed to run a business. And it’s precisely here where banks can leverage AI, data and analytics to help boost SMEs along their journey as they evolve from small firms to larger corporates.

Once banks are able to get a clear view of the business data, as well as the human needs of the owners, they can in turn obtain key information on the unique requirements and potential of small businesses.

The power that data has to unlock the potential of SMEs is massive, given that it helps banks understand what they need and when they need it. A data-driven approach enables banks to make decisions which are in line with the aspirations of SMEs, helping them make recommendations that are better aligned to their goals and aspirations.

Through a smarter analysis of cash flow, banks can help SMEs project future positions and identify pressure points, foreseeing moments when working capital may run low.

Banks can analyse data from the SME, as well as from other businesses with a similar profile, to enable decisions which are based on previous successes. Using the latest cloud technology, banks can also get their information in real time, enabling them to deploy the right advice and services when it matters. After all, SME owners lack the time and resources to analyse data effectively and it’s here where banks can add significant value by doing the work for them.

Through a smarter analysis of cash flow, banks can help SMEs project future positions and identify pressure points, foreseeing moments when working capital may run low. Other key ways that banks can add value is by tailoring activities specific to the SME’s needs which are based on future expected commitments and revenue data. This may include highlighting which payables could be deferred, providing discounts to customers who pay early and offering short term credit options – and all of this ranked in terms of which options other customers found most helpful to their business.

The best part of this data-driven approach is that everybody wins. On one hand, the customer gets to grow a successful business and the bank also continues to get revenue from that customer, who may have otherwise had to file for bankruptcy. It also allows business owners to focus on what really matters, which is building and scaling up their company; not worrying about how to survive.

The banking sector is beginning to realise that cloud-native, API-first technology can deliver this tailored experience that SMEs require. This is further supported by recent research conducted by Temenos and the Economist Intelligence Unit (EIU), which shows that data and AI is becoming a vital part of the new technology mix, improving personalisation and enabling more tailored offerings. 61% of banking executives worldwide think AI will create better value for customer by 2025.

But the path will not be without its challenges, stemming mainly from legacy systems and a lack of skills to apply insights effectively. Banks in the Nordics, for example, have always been at the forefront of technology but now find themselves in a position where they might find themselves left behind if they don’t make the shift to the cloud. It’s not a question of if – but a question of when they make this move. The rest of Europe faces a similar situation.

Over the last few years, SMEs have evolved from a position of struggling to survive, to one where they are legitimately challenging the larger players in their markets. As a result, today banks are competing more than ever for the attention of SMEs. Those that succeed will be the ones that deliver the tailored service they need – one that meets the disruptive, customer-focused, data driven nature of their own business. Banks must craft an offer that meets the challenges of an SME’s growth cycle through embedded data and people-focused engagement technology.

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About the Author

Alain Vansnick is Regional Director for Benelux and the Nordics at Temenos, the World’s #1 Banking Software Company. Mr. Vansnick joined Temenos in his current role in March 2019. Prior to joining Temenos, Mr. Vansnick was Senior Vice President at TAS Group where he led business development for the EMEA region. In his previous roles at ACI Worldwide, Clear2Pay and OpenWay, Mr. Vansnick delivered financial software solutions to the global payments, banking and consulting markets. Mr. Vansnick has more than 25 years’ of experience in senior management roles driving high growth in international organizations and motivating multi-cultural teams through inspirational leadership.

References
1. https://www.statista.com/statistics/707314/survey – on – future – growth – potential – of – smes – in – selected – nordic – countries/
2. https://www.nasdaq.com/articles/sme-growth – markets%3A – eus – long – term – solution – to – sme – funding – 2019 – 09 – 10
3. https://www.nasdaq.com/articles/sme – growth – markets%3A – eus – long – term – solution – to – sme – funding – 2019 – 09 – 10

World Economy On The Brink

December 10, 2019

By Graham Vanbergen

2019 has already proved to be the weakest global expansion in a decade and another fracture in the financial system is producing yet more rising dangers in shifting political economies – ill-prepared for a second assault like the last. Graham Vanbergen makes the case that there is a lot more at stake than just another recession.

It was Benjamin Franklin that opined that in this world nothing can be said to be certain, except death and taxes. Both, of course, are the normal consequences of living and since the birth of money – so are economic recessions. And it appears that no matter how much meddling and tinkering we humans do, even with the advantage of our collective history and technical advances – all three are as assured as each other.

It was not so long ago that the global banking system suffered its near-death experience. In its death rows, flashbacks of the 1920s depression years came and slowly went. The lessons of these and other recessions have still not been learned though. Our species is, after all, inherently flawed as are the financial systems we build around us.

That global economy is in a synchronized slowdown and is now performing at its slowest pace since the global financial crisis.

Last year, in an article for The European Financial Review (The Predicted 2020 Global recession Oct 2018), I wrote that by late summer 2019, economists all over the democratic West would be talking of another financial crisis. They are, but with ever more shrill warnings of a repeat of the most ruinous economic slump in history, which is yet still to fully recede.

The IMF reports that that global economy is in a synchronized slowdown and is now performing at its slowest pace since the global financial crisis. In its October report – rising trade barriers, increased geopolitical tensions, low productivity growth and aging demographics in advanced economies are the key issues. Investor confidence is also draining away. All these issues are a problem, but they were not unexpected.¹

The real problem is that the world has not faced up to the real aftermath of what happened in 2008 and unexpected events now dominate global growth as a result.

The impact of the last crash has been far more devasting than the financial ruin of millions. In its wake, the democratic world is seeing a shift of ideologies – the rise of populists, the far-right and religious conservatism. Isolationism, nationalism and racism are some of the hallmarks of its progress and declining middle-classes along with austerity is its ringleader.

Steve Bannon, the architect of Donald Trump’s ascendency to the Whitehouse likes to brand it ‘economic nationalism.’ The falsity of this is that its ideology takes greater control of the markets – far from the free-market system he espouses.

Mervyn King, the former governor of the Bank of England has recently made the point that another global financial crisis is not just inevitable but actually en-route.

The Western banking system has proved beyond doubt that it was neither robust nor disciplined enough to make the necessary adjustments to future-proof markets and as King asserts – the democratic West is strolling blindfolded straight into a new slump, turning the Great Recession into an epoch.

King rightly warns that – “Another economic and financial crisis would be devastating to the legitimacy of a democratic market system – and sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe means we are sleepwalking towards that crisis.”

King goes on to say that – “No one can doubt that we are once more living through a period of political turmoil. But there has been no comparable questioning of the basic ideas underpinning economic policy. That needs to change.”

Roubini makes the point that there are four global collision courses being played out. First, is the zero-sum game of chicken represented by the US-China trade war.

Nouriel Roubini the economist that advised the IMF, the US Federal Reserve and World Bank also warns of the rising dangers of these shifting political economies.

Roubini makes the point that there are four global collision courses being played out. First, is the zero-sum game of chicken represented by the US-China trade war. Then, the escalating and highly divisive political trench warfare in the UK over Brexit and its effects upon the European Union – (just as America starts prodding it with tariff barriers to force the EU to comply to its own standards reductions). Then, there is the potential fallout in the Middle-East as American influence wanes and finally, the economic implosions of South America.³

Roubini says that additional economic pressures are building into political outcomes and King asserts that the institutions put in place to protect global economies from another bank-led crisis don’t have the firepower to insulate from another emergency.

Roubini:

“A full-scale trade, currency, tech, and cold war between the US and China would push the current downturn in manufacturing, trade, and capital spending into services and private consumption, tipping the US and global economies into a severe recession. A failure to compromise would lead to a collision, most likely followed by a global recession and financial crisis.”

King:

“Following the Great Inflation, the Great Stability and the Great Recession, we have entered the Great Stagnation. It is the failure to face up to the need for action on many policy fronts that has led to the demand stagnation of the past decade. And without action to deal with the structural weaknesses of the global economy, there is a risk of another financial crisis, emanating this time not from the US banking system but from weak financial systems elsewhere.”

The lethal combination of Trump’s global trade wars, Britain’s democratic failure to contain Brexit alongside, Europe’s fragile euro and the aforementioned triggers of economic difficulties almost guarantees another fracture in a system ill-prepared for a second assault like the last.

2019 has already proved to be the weakest global expansion in a decade.

Last month’s United Nations trade and development body, Unctad warned that- “A spluttering north, a general slowdown in the south and rising levels of debt everywhere are hanging over the global economy: these combined with increased market volatility, a fractured multilateral system and mounting uncertainty, are framing the immediate policy challenge.”

The UN argues that the slowdown in growth in all the major developed economies around the world are relying on easy monetary policy and asset price rises to stimulate demand. This failure to act on the crisis of the last decade will produce, at best, “ephemeral’ growth, while tax cuts for corporations and wealthy individuals is failing to trigger productive investment.

Rising economic and political failure

The result of this failure of economic management is evidenced all over the world and even in historically stable countries. From months of rioting in France to mass public protests in Britain. The ‘just about managing’ are reacting against a political economy that is not working for them.

Anti-government protests or one-sided political economies have ignited protests in a dozen other countries around the world- and as the saying in Chile goes – “If there’s no bread for the poor, there’s no peace for the rich.”

The decade long economic perfect storm was passing but political ripples are once again turning into the breaking waves of economic shocks and dramatic political change with far-reaching implications.

Today, we are witnessing the failure of neoliberalism to deliver its ‘trickle-down’ promises and as this 40-year project of failure continues, the liberal global order is disintegrating. Autocratic rulers, demagogues and populists are now leading countries that contain well over half the world’s population.⁴

Our system of financing the global economy is the very cause of its own demise – with democracy now at threat even in places like Britain.

Britain is a burning example of economic failure where vulture capitalists now circle and hedge funds are backing its decline and shorting its currency. Brexit is nothing more than the accomplishment of disaster capitalism – itself nothing more than evidence of economic mismanagement.

Neoliberalism is crushing its most revered jewel where tolerance, freedom and economic prosperity has quickly been replaced with its ugly twin – Steve Bannon’s economic nationalism, not just in America but of all places in the world – in Britain.

It is not just the world economy that stands on the brink but the social democratic political systems that underpinned it.

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About the Author

Graham Vanbergen is the founder and contributing editor of TruePublica and author of Brexit – A Corporate Coup D’état

1. https://blogs.imf.org/2019/10/15/the-world-economy-synchronized-slowdown-precarious-outlook
2. https://www.theguardian.com/business/2019/oct/20/world-sleepwalking-to-another-financial-crisis-
3. https://www.project-syndicate.org/commentary/playing-chicken-with-global-economy-trump-china-
4. https://www.hrw.org/world-report/2017/country-chapters/dangerous-rise-of-populism

What does a VIN number tell you?

December 10, 2019

VIN refers to the Vehicle Identification Number. You can find the complete history of a vehicle with the help of this number. The VIN number check report contains information related to maintenance records, vehicle’s lien, title and other records related to its history.

If you are buying a new or second-hand vehicle then a VIN number is really essential. A second-hand vehicle comes with a variety of features and functions that you should need to check before making a final call for purchase.

Social Security Number

In any case of robbery, you can use a VIN number while filing a report to the police and that will help the police in finding the vehicle. It is a security number for your vehicle. The alphanumeric identifiers are unique for each vehicle. You can track everything related to a vehicle using this number. The recalls for your vehicle, require the VIN number.

When Do You Need It?

The number is required while you make warranty claims for your vehicle, during manufacturing recalls and while insuring the vehicle. We have already mentioned in the starting that you should ask for the VIN number while buying a second-hand vehicle.

1. Information For Buyer

The information that is crucial for you as a buyer include:

Accident Records
Maintenance History
Airbag Deployment
Robbery Records
Product recalls
Past owner history
Lemon status
Current liens and a lot of other specifications.

2. Information for Seller

If you are planning to sell your vehicle then it is again important for you to go through the VIN check where you will get a complete knowledge of the problems that are likely to arise with the buyers. This way you can inform them about these things in advance to maintain transparency. The buyer might raise certain questions that you should be prepared to answer beforehand.

VinCheck.Info offers vehicle history report for free and that can be really helpful for you if you are planning to buy a new vehicle. You can use the VIN decoder tool for free and it will provide you with all the important information related to your vehicle. So, always make a vehicle purchase after going through its VIN check.

How to find your VIN number

A VIN number contains 17 letters and digits. These digits are visible through the wind shades from the driver’s side and are provided on a small tag on the dashboard. The vehicles that were manufactured before 1981 used to contain 11-17 digits. The other locations in your vehicle where you can find the VIN number are:

On the rear side of the door frame on the inner side of the driver’s door
Usually on the front side of the engine block
Under the extra tire

Where else can you find the VIN number are :

Registration card
Insurance Documents
Vehicle’s Titles

The number that is mentioned on your vehicle is found to be most reliable. The campers, utility trailers, boats have their VIN numbers as well. The number is present on RV’s at the same place as it is mentioned in the cars. In the trailers, the VIN number is however found on the cabinet.

Decoding VIN

A VIN is a composition of letters and digits. Each letter and digit or a group of them contains some information related to the vehicle’s design and manufacturer. Let’s see how:

The 1st digit on the left tells about the location of the manufacturer

The 2nd and 3rd digit contains the name of a manufacturing company

The digits from 4 to 8 tells contains information about the size and type of engine

The 9th digit contains the manufacturer’s security code.

The 10th digit contains the model year

The 11th digit contains the manufacturing plant

The digits from 12 to 17 contain the serial number of the vehicle

Generally, every vehicle manufacturer issues a VIN decoder. This helps in decoding the VIN and the checker learns what each digit represents in the specific VIN. This helps the manufacturer in learning what each single-digit represents in its model and makes. You can attain this piece of knowledge by searching for the manufacturer’s name or by accessing the VIN Number Decoder.

You can learn in detail about every particular specification of a vehicle using sources that provide the VIN check at free of cost.

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How to Manage a Part-Time Job While Studying Online

December 10, 2019

Many people want and need to get an excellent grade to better their careers. To do this, many people opt to concentrate on their studies full time, giving themselves a better chance of working harder on their course material. Unfortunately, this isn’t the case for everyone, as some have to balance school work and working. To help you increase your chances of getting good grades, below are tips and tricks on how to manage a part-time job while studying online

1. Pick A Flexible Online Program

To better your chances of dealing with a job and learning online, you need first to choose the ideal online program. Fortunately, to cater to the increasing online program demand, the number of schools offering a reliable online program has grown. A great way of how to manage study with a Flexible Part time jobs for students is to look through the courses you have at your disposal. Choose one that offers a flexible schedule that you can structure into your own life.

2. Manage Your Time Effectively

Many people make the mistake of assuming that online learning programs are more laid-back than regular courses. Usually, this is due to the misconception that they aren’t accountable to a physical tutor; hence, they can do as they please. Unfortunately, this isn’t true and to succeed in your studies you have to put in serious work. Typically, online programs require an input of almost 40+ hours a week. A great tip on how to study while working is to take time management seriously. Put a rain check on parties.

3. Have A Smart Study Plan

As you are basically in charge of your study material, a great way of balancing work and school is to create a smart study plan. Get an overview of the course material for the whole month and print it out. Look it over and create a study plan based on what you need to do. Keep track of your progress through various study activities. Additionally, keep track of assignment deadlines and additional course submissions you need to turn in. Doing this allows you to have sufficient time to study without feeling overwhelmed by your part-time job.

4. Utilize Vacation Time

One of the main advantages of having a part-time job while working online, you have a lessened workload when compared to students who work and study full time. For most people, this usually translates to more vacation time where you have nothing but free time. An effective way of how to balance work and study is to take advantage of the downtime and do more studying. Look into accelerated course options during vacations and take advantage of them. Overall, utilizing your vacation time allows you to further your studies at a more rapid pace hence enabling you to get more credits during breaks.

5. Maximize Every Minute

Working part-time means that you dedicate a section of your day to day activities to putting in hours to make a living. However, when you look carefully, many people waste a lot of time during the day waiting around. Carefully analyze your daily activities and look for areas where you can squeeze in school work. Consider simple aspects as studying during work hours by cutting your breaks. Additionally, factor in any spare minute you can get like waiting in line at the groceries, doctor’s appointment, etc. With this, the minutes quickly turn into hours, reducing the amount of time you need to sit down and study at the end of the day.

Conclusion

As seen above, due to your already packed schedule finding time to study can be challenging. For this reason, you need to make time for learning. Create a solid study plan and stick to it. Are you’re still finding it challenging to show up for all of your classes? If yes, probably you have asked yourself this question, “should I pay a professional online class taker to take my statistics class for me?” That a common question to most online students but it’s worth thinking about it. By paying someone, you lessen your load and still manage to get a good grade on your course.

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Effective Offline Marketing Strategies You Need To Know

December 10, 2019

One of the essential parts of growing your business is marketing. Marketing involves the activities that help people get to know your brand and convinces them to try out your goods and services. There are two types of marketing; online and offline marketing. Online marketing has to do with marketing strategies via the internet whole offline does not deal with the internet. Here we are going to focus solely on offline marketing. The most common question people ask when it comes to this type of marketing is, what are the best strategies to market products /services offline? Well, we are here to help you. Some of the best effective offline marketing strategies you should be conversant with are;

1. Networking

If you are in business or in any way into marketing, networking should be at the top of your list regarding offline marketing activities. Networking can encompass a wide range of things like going for meetups, attending seminars, and conferences, among many other things. The bottom line in all of these things is face to face conversations. If you want to get your product/service out there, you need to talk to people and tell them about what you are marketing. Furthermore, if you are going to be a pro at networking, you should also ask them about what they sell/deal with and listen to them. This helps in building a bond that can open many doors.

2. Print Publications

Even though we are in the digital era, print media is still a valid form of marketing. If you want to be known or your products/services to get attention, then you should try getting your products/services advertised in newspapers. Many people purchase newspapers, and as they go through them, they might land on your post, and you will get a lot of recognition.

Magazines are also a form of print media advertising; therefore as a marketer or entrepreneur, you should try as much as possible to attend all the magazine interviews you are invited to. When people see your interviews and the reason you are there, they will get curious. Their inquisitive nature will make them search for your company, and there, your products/services will be out known and recognized.

3. Cold Calls

In the offline marketing space, having a connection /resonating with prospective clients is one of the best things which can actually take you far. One of the ways of getting to a personal level with people is through making direct phone calls.

The most important thing you should know about this type of offline marketing is that you need to have a concrete reason for making a call to a prospective client. You do want to be calling a potential client every single time trying to pass a message that does not carry a lot of weight. It may look like you are bothering them, and that may make you lose clients. You should also be mindful of the time you call them.

4. Print Advertising

Offline marketing with flyers is also a way of getting your company in front of clients. You can have people go around giving out your flyers to people. You may not attract all of them to your company, but there is a high probability that two or three may ask for your services after observing your flyer templates. It is through those few people that you grow and expand to greater horizons as you attract more. Vinyl banners are also forms of print advertising. With such huge fonts printed on a banner and placed on a busy road/street, you will get people talking about your products /service.

Conclusion

Offline marketing has been existing for years now and has played a vital role in the growth of numerous huge companies we know today. If you are new to this, there are a few methods of offline marketing you can use to get your company known. One of these methods is by use of print media. Print media includes things like magazines and newspapers. With this, people can read about your company and get to know what you provide. Another means of offline marketing is using cold calls. In this case, you make direct phone calls to connect with clients on a personal level and get your name out there. Print advertising and networking and are also effective means of offline marketing.

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Becoming a Global Hub for Start-ups

December 10, 2019

By Ramy Jallad

Ras Al Khaimah is the northernmost Emirate in the UAE. While not in the global spotlight as much as its neighbours Dubai and Abu Dhabi, it has nevertheless been working quietly to transform itself into a hub for entrepreneurs.

Small and medium enterprises (SMEs) are, in effect, the backbone of national economies, generating employment, fostering innovation and delivering inclusive growth. In the UK, one study last year suggested they accounted for 51% of private sector turnover. Another study in the US claimed they generated more than half the country’s jobs.

The Gulf is a region people don’t associate with SMEs. They can think certain industries dominate, assume legislation is oblique and support is limited. In 2019 they couldn’t be further from the truth.

As well as playing a significant role helping oil-dependent economies diversify, the SME sector is fuelling fantastic opportunities for growth in the region, helping tackle the growing challenge of creating jobs for the 20 million young people in the region expected to join the workforce by 2025.

A case in point is Ras Al Khaimah, the northernmost Emirate in the UAE. While not in the global spotlight as much as its neighbours Dubai and Abu Dhabi, it has nevertheless been working quietly to transform itself into a hub for entrepreneurs.

In Ras Al Khaimah Economic Zone (RAKEZ), the Emirate’s fast-growing business hub, primary source markets for investments are India, Egypt, Jordan, France, Italy and Germany.

While the UAE has the seventh largest oil reserves in the world, Ras Al Khaimah has never been able to rely on oil and consequently had to start the process of diversification fairly early on. This head start has given the Emirate a thriving industrial, real-estate, and manufacturing sector, and a growing tourism industry. And all of that has led to a dynamic environment for a rapidly expanding SME sector.

You might think that because they are SMEs they aren’t international but actually to many, Ras Al Khaimah is their second home. In Ras Al Khaimah Economic Zone (RAKEZ), the Emirate’s fast-growing business hub, primary source markets for investments are India, Egypt, Jordan, France, Italy and Germany. Reliable infrastructure, strong government institutions, and excellent domestic and international transport links have had a huge role to play in making the Emirate a draw for global entrepreneurs.

The UAE has had a historically close relationship with the UK, with a large expat population and high levels of trade and investment between the two countries. The UAE is already home to around 5000 UK-based businesses in sectors such as infrastructure, FMCG, fintech, media and ICT. As the country grows and diversifies, more opportunities are available in food and beverage, trading and education. Also appealing to expats is Ras Al Khaimah’s ‘small town’ feel and low rents and general cost of living as compared to other cities in the region.

In RAKEZ alone, a large proportion of the 14,500 companies hosted are SMEs. Recognising the need to attract and sustain entrepreneurs, RAKEZ was an early pioneer in offering co-working spaces, accelerators and incubator programmes, which have really taken off. For example, the Mubader Package, aimed at entrepreneurial young graduates and final year students has been receiving high enquiries and demand so far. It offers low-cost packages that include operating licences, shared workspaces, and a gamut of additional support services that are vital for a small business.

Women entrepreneurs are yet another resource for the SME sector. According to the Melinda Gates Foundation, only 2% of venture funding goes to women-led start-ups globally. This is a barrier that needs to be dismantled. Encouragingly, in the Middle East, we are seeing an increasing trend in the venture capital community to look at gender diversity as an important investment criterion.

Ras Al Khaimah has created a unique economic ecosystem that thrives on diversity and fosters the growth of SMEs from anywhere and everywhere.

In the UAE, women are pivotal to our economic future – they make up around 70% of university graduates and 44% of the workforce. Recognising this, RAKEZ has just launched a first-of-its-kind initiative in the UAE to encourage more women to get into business. The RAKEZ BusinessWomen Package provides simplified set-up processes, fast-track visas and licences, and cost-effective office space for women entrepreneurs. RAKEZ already has over 900 women-owned businesses in fields spanning FMCG to media. Since the launch of the initiative, more than a hundred additional applications have been received, and the number is steadily increasing.

However, the UAE can confound entrepreneurs with the same barriers they face throughout the world, most notably securing financing and seed capital. According to a recent World Economic Forum report, while SMEs in the MENA region represent about 96% of registered companies and about half of employment, they account for only 7% of total bank lending – the lowest level
in the world.

Governments across the region are looking at solutions to close that gap, including the UAE. In Ras Al Khaimah, RAKEZ recently hosted Startup Weekend, a global congregation of entrepreneurs with experience of setting up start-ups. Not only did it provide a meeting ground for like-minded entrepreneurs to learn from each other’s experiences, but it also offered access to venture capitalists, which is crucial. At a government level, the National Bank of Ras Al Khaimah is one of the few banks in the region to maintain its focus on SME lending; in fact, it is the largest small business bank in the UAE.

Ras Al Khaimah has created a unique economic ecosystem that thrives on diversity and fosters the growth of SMEs from anywhere and everywhere. So committed is the government that it has launched RAK International SME Fair 2019 organised by the Emirate’s Chamber of Commerce and Industry. Running from 14th-16th November, this is set to be a huge international event with SMEs from all corners of the globe coming together to network, build relationships, meet potential partners and investors, and exhibit new ideas and products.

All this suggests the environment for SMEs has never been more conducive – particularly in places like Ras Al Khaimah. For those businesses hungry for growth, footholds in new markets mean access to new customers, fresh talent and ambitious innovation.

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About the Author

Ramy Jallad is the Chief Executive Officer of RAKEZ. His role is to develop and drive strategic growth, creating a thriving commercial and industrial business hub that attracts and welcomes investors from all around the world.
Mr Jallad has over 25 years of professional experience, where he has developed and led various commercial and industrial free zones, business parks and mixed-use real estate developments. Mr Jallad holds a Bachelor of Science degree in Mechanical Engineering. He is also a Lead Assessor of the European Foundation for Quality Management and a certified trainer in sales, marketing, and customer care as well as people management.

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