Businesses ‘must stop relying on subsidies’

BUSINESSES must stop relying on subsidies which are unsustainable in the long run, a top minister has said.

Industry, Commerce and Tourism Minister Zayed Alzayani advised Small and Medium Enterprises (SMEs) to look for merger opportunities and locate public funding.

Businesses must keep a close check on their strength and affordability, he said.

“Very often, especially in this part of the world, businesses are heavily reliant on subsidies.

“Subsidies are bonuses and businesses should not rely on subsidies as they are not sustainable – which is a lesson we learnt from Covid-19.”

He was speaking at the Asian Business Leadership Forum virtual conclave yesterday.

Mr Alzayani pointed out the new dynamic of technology, citing the need for businesses to make it a priority without compromising on quality.

“A new dynamic or one which resurfaced now is investment in technology or e-commerce and remote selling, which survived a lot more than traditional ways of engaging with customers.

“Businesses are not making these their priorities, but at the end of the day, quality of service is important as mediocre companies will lose their customers who will migrate to other businesses, if they fail to cater (quality).

“The concern is about SMEs, which are typically underfunded, less experienced and vulnerable.

“My word of advice would be to look for opportunities to merge, join hands with your competitors and locate public funding,” he said.

Source: https://www.gdnonline.com/Details/950485/Businesses-%E2%80%98must-stop-relying-on-subsidies%E2%80%99