A recent report by the Dubai Chamber of Commerce and Industry, entitled Helping Startups in Financing, was reviewed. On a copy of it, we are facing the obstacles facing entrepreneurs to obtain financing, as these are the most important challenges that hinder the growth process of startups.

The most prominent of these obstacles is the lack of knowledge by the pioneers of the method of researching and dealing with the financing system locally, which is considered by some to be difficult, especially for the new pioneers, despite the presence of a number of authorities. Support, business incubators and accelerators, the network of supportive investors and venture capital firms, crowdfunding platforms and more, along with the lack of websites and forums that are keen to update their information periodically about how to obtain financing, and the lack of willingness to take risks from lenders.

The second obstacle mentioned in the report was the challenges facing the pioneers to obtain financing even after they know the method and source, due to two reasons, the first of which is the existence of very restrictive criteria for investing in Shares, given the reluctance of the investment system to support companies that did not start achieving profits yet, even if they had the minimum constituents to survive and create a new market.

In addition to attracting investors in the region to a limited number of business models, types of technology and sectors, investors are waiting for a large investor to initiate an investment before making their decision to proceed with investment plans. As for the reason The second is due to the inability to obtain debt financing, which further aggravates the situation, so the emerging companies are unable to obtain bank loans without being more than 3 years old.

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