
I attended the Big Business Idea Competition finals last night. The Big Business Idea Competition is one of the nice initiatives made by PEIE and Ernst & Young to promote entrepreneurship among the Omani youth. The concept of this competition is simple, you submit your business plan, if you win, we will give you a grant of RO 5,000 ($15,000) and office space and facilities for an entire year free of charge to make your big business idea a reality (Check rules here). It is a really nice concept in essence, but for some reason, even after running for three years in a row now, we have not yet seen a single successful startup emerging out of this competition:
- Winner of the year 2006: Oman Gateway Portal (Read post at BBIC blog): The project was to create a “dynamic and interactive online tourism company” – Which basically was a tourism website. You can search google for “Oman Gateway Portal” and you will only find it mentioned in press releases made by TKM. I have no idea if the website ever existed.
- Winner of the year 2007: Oman Souq Online (Read post at BBIC blog): The project was for “online retail” – No additional info can be found about the project anywhere online. No active website can be found online, but Archive.org shows me this pathetic page.
I am not sure I understand what the reason for this failure is, it might be just a natural failure of a business like any other: all business have risks and it is normal and expected that not everyone will succeed, but then again, for the winners of a competition organised by the government supported incubator program AND Ernst & Young you would expect them to last for a year at least before they find out that this is not going to work. These businesses do not even seem to get off the ground. There really seems to be something wrong. I think that it could be attributed to one or more of the following:
- The selection process cannot identify projects/ideas that will actually work.
- The post-selection process does not provide sufficient support and guidance to transform a winner’s raw idea into a viable business venture.
- The competition is not capable of attracting good enough business ideas which are new, innovative and can be transformed into a real business. It is impossible to pick an amazing idea from a stack that does not contain any. And it is also impossible to create an amazing business venture if its based on a bad idea.
I am not sure that there is anything majorly wrong with the selection process (100% sure there is no wasta involved in this), not really sure about the second point as I have no idea what goes afterwards, but the third one really seems like an issue to me. That is because (a) Omani people are not really known for taking risks, many people *happily* live by the saying “a bird in the hand is worth two in the bush” (b) the competition reward is not lucrative enough to make people drool. I mean, what are you really going do with RO 5000?Â
If I am going to start a business, I do not expect to make profit or even make any money from day one. Let’s assume we are running a two person IT web design/development company, I’m going to need to pay for the following to start up:
- 2 professional workstations @ RO 1000 = RO 2000.
- 2 Adobe Creative Suit Web Premium Packages @ RO 950 (this is what Loay sells them for, believe it or not) = RO 1900
- Cheapest webhosting offered by origin oman services = RO 100! (IT developer must have a website)
- A .co.om Domain name: RO 40 (dude, Omani company must have a .co.om domain, right? (Awain, but lets play along))
So the remainder of this is 960. Divide that by 2 (there are two people in the company) and you get RO 480 as a salary for this month…. and your RO 5000 is gone!
However, a big part of the prize is the rent free office and the office facilities provided by the Knowledge Mine, but if you really wanted to get this you can apply directly to TKM without going through the competition which will provide you with the same exact facilities and probably for a longer period, so this competition is just about the RO 5000.
So how did the Big Business Idea Competition 2008 (the one I attended last night) go? First of all, initially four finalists were supposed to be qualified for this stage, one them was the Omani School Network, which I have
written about before (I didnt know at that time that this was a contestant), however, for some reason, there were only three finalists during the show last night and the Omani School Network was not one of them. I would really like to know what happened. These were the ones that were there:
- An environmental consultancy firm that aims to combat oil spills.
- A 3D video production company.
- A robot manufacture company.
Each of these had to do a 5 minute presentation. The first one was half decent, the other two were completely pointless. The last guy with the bizarre robot idea was saying random stuff like robots will replace housemaids and will be used for security purposes – I didn’t understand if he was talking about his robots or what. He showed us a video about a robot fighting tournament (RoboCup, he ironically mistakingly pronounced it RoboCop) which he said [talking about the video] “I think is shot in the US if I am not mistaken” (HE DID NOT FREAKING KNOW WHERE HE GOT THIS RANDOM VIDEO FROM).
On the other hand, the 3D video contestant claims that he will have the first Omani TV series next Ramadan, he did not show us A SINGLE SHOT OR ARTWORK OR CHARACTER DESIGN OR ANYTHING AT ALL ABOUT THIS CARTOON. HE DID NOT EVEN SHOW US ANY OTHER THING HE HAS EVER MADE …….. and instead he showed us a clip from
Freej. This was like: you guys see this thing on the screen, I will try my best to copy its success. That’s exactly what I call an innovative idea.
The third group (Mazoon Environmental & Technical Services LLC) which actually came first place was an environment consultancy that aims to combat oil spills and related pollution. They had a half decent presentation that showed a problem and suggested a solution to it through their services and product. They have also created a locally made bio-tech product that they intend to sell. I really liked them and I thought that they deserved to came first place. If they have a product made I hope that they do apply for a patent at the Ministry of Commerce to make sure that it is not copied by others.
The first and second places each got a RO 5000 grant and the third got something like RO 2500.
We don’t know if in a year any of these winners will still be around, I hope they do, but I think history tells us that they will have to work very hard to do so.