Startups
Employee engagement tops business leaders’ challenges, according to global survey
![Employee engagement tops business leaders’ challenges, according to global survey](https://adigitalboom.com/wp-content/uploads/2018/01/employees-engagement-1.png)
The two top challenges facing today’s leaders are employee engagement and effective strategy execution, according to a survey of 1248 senior directors and executives of which 10% come from the Middle East. Almost three quarters of the total respondents come from global organizations, multinationals and large companies.
Also among the top five challenges are talent management, driving work across organisational boundaries and collaborative working across teams.
These are just some of the findings from a new study carried out by London Business School’s Leadership Institute which explores the issues facing the world’s leaders of business and other organisations.
“Importantly, these top five issues are all intertwined: disengaged employees are unable to put strategy into place effectively. The commercial imperatives are clear: without an effective strategy which the workforce fully supports, organisations suffer and results fall,” explained Randall S. Peterson, Academic Director of London Business School’s Leadership Institute.
He continued: “This is particularly pertinent today given the growth in the service economy: people really are an organisation’s most important asset. So for success, employee engagement has never been more important.
“Furthermore, this widespread study demonstrates that four of the top five issues facing organisations relate to managing the workforce. The UK, for example, is plagued by poor productivity, so organisations need to address the full range of people management issues to up their game.”
“To engage staff, leaders may be tempted to simply ‘sell’ reasons for staff to be passionate about their role. But this approach won’t succeed. The best performers are motivated by work that is rewarding in itself: work that gives meaning to their lives or develops their skills.”
Aligned to this, the survey also asked respondents about the most important skills required by leaders for success. Communicating purpose ranked as the single most important skill.
Professor Peterson argues that firms need to be focused not only on issues such as staff needs, fair pay, a safe working environment and resources, but also on individuals’ goals and aspirations which also support organisational goals.
“Ensuring staff and stakeholders share a joint sense of purpose encourages them to go above and beyond what’s required. This is critical for long term organisational success – and is complemented by the other key leadership skills highlighted by the survey, namely, integrity, setting direction, critical thinking and practising what you preach in terms of beliefs, values and behaviours,” explained Professor Peterson.
Drive change through collaboration
Almost 80% of respondents said that change was driven, or mandated, by senior management while only 10% was driven by people lower in the organisation and 9% consider that their organisation resists change.
Commenting on the results, Vyla Rollins, Executive Director of the Leadership Institute, said:
“In an age when change is increasingly accepted as a constant, it’s important to approach the development and execution of change initiatives in a way that works in organisations facing 21st century challenges.
She added: “For example, according to our study, a ‘bottom-up’ approach to change is rare and the prevalence of senior manager-led initiatives may go some way to explain why employee engagement is such a concern for many organisations. It’s therefore well worth organisations acquainting themselves with some of the emerging collaborative approaches to change, whereby senior leaders’ responsibility is to facilitate and orchestrate change, rather than mandating and driving change via clusters of individuals in senior roles.”
“The results also suggest that individuals may lack the skills to lead and manage complex change involving multiple stakeholders. We find many organisations still use a linear approach for large-scale organisational change, which can often be more disruptive than the change they are trying to introduce.”
A focus on day-to-day delivery is leaders’ main barrier to success
The primary reason leaders are unable to reach their full potential is a focus on day-to-day delivery, according to 54% of respondents, followed by a lack of strategic thinking (45%) and organisations’ inability to adapt to change (35%).
“These results indicate that cultures overly focused on tasks and delivery can make it difficult to feel okay with stepping back and creating time to think about what the organisation should be achieving strategically,” said Vyla Rollins.
Effective senior management teams
Respondents were also asked how well they perceive that senior management figures work together. Worryingly, 58% of participants have concerns about how their organisation’s top executive team appear to work together from focusing on their own agendas to regular conflict and even in-fighting within the team.
Professor Peterson commented: “So it’s no surprise that respondents also feel they are struggling with executing strategy, building engagement and creating meaningful change in their organisation.
“Behaviour at the top of an organisation informs how individuals further down lead and behave, as well as influencing organisational performance.
“Effective conflict resolution is critical to building trust for the future in any group or organisation. This means all parties need to accept the decision as legitimate and commit to implementation. The problem with simple voting procedures, which are extremely common, is that some members’ views are typically shut down and this can de-legitimise the team’s decision and undermines commitment.”
Managing failure
The survey also explored how organisations deal with failed initiatives and there is an overwhelming feeling that such projects are met with negativity.
In fact, 59% of responses suggest that the results of failed initiatives are not shared across the organisation, or else not talked about. However, what’s more concerning is that a further 11% of responses demonstrate that individuals involved typically disappear from the organisation, while 14% suggest that the results are shared but the individuals concerned are stigmatised.
Only 11% of responses reflect that results from projects which have failed are celebrated as important learning opportunities. Start-ups and SMEs appear more likely to embrace failure than larger organisations.
Professor Peterson notes: “For any organisation to succeed at innovation, they must develop ways to make it acceptable to talk about projects that don’t progress as planned and then turn them into learning opportunities. It takes a real shift in beliefs, mindsets and behaviours for companies to start to innovate more effectively.”
“So to help organisations thrive, leaders must learn how to manage failure. Naturally you need to minimise potential downside costs by beginning with a small pilot project, for example, but also by maximising benefits and extracting as much value as possible from what is learnt. Simple questions can be valuable, for example: ‘What went well, and why?’, and, ‘What could have been done to help bolster possibilities of success?’”
How is failure managed in your organization?
Startups
Rising from Debt: Al Nashmiah Farms’ Battle to Empower Indebted Women
![Rising from Debt: Al Nashmiah Farms' Battle to Empower Indebted Women](https://adigitalboom.com/wp-content/uploads/2024/02/Alnashmiah-farms.jpg)
Al Nashmiah Farms, committed to aiding women burdened by debt and facing the threat of incarceration, offers a novel solution for them to earn their way to freedom. Under the leadership of Razan Harb, motivated by her family’s financial struggles, the farm has become a pivotal force in rescuing those ensnared in the debt trap, providing them with employment and a sense of purpose.
Harb, observing the plight of many women who took loans in hopes of improving their families’ fortunes, only to be overwhelmed by unfortunate circumstances, economic downturns, and oppressive taxes, has established a farm that serves as both a source of employment and a supplier of high-quality produce to major markets.
The farm’s operations include the provision of household essentials, emphasizing the importance of quality through methods such as nitrogen sterilization and the use of healthy packaging. Additionally, Harb has initiated work-from-home opportunities, enabling women to engage in the packing of vegetables and fruits for market and direct sales, thereby offering a sustainable model for economic independence and recovery from debt.
News
GoDaddy’s Global Markets VP Predicts Egypt’s E-commerce to Hit $9.88 Billion by 2028
![GoDaddy's Global Markets VP Predicts Egypt's E-commerce to Hit $9.88 Billion by 2028](https://adigitalboom.com/wp-content/uploads/2023/12/Selina-Bieber-the-Senior-Director-of-Global-Markets-at-GoDaddy.webp)
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
Apps
Saudi Fintech ‘Lendo’ Raises $28M in Series B Funding
![Lendo Secures $28M in Series B Funding Led by Sanabil Investments, Eyes IPO](https://adigitalboom.com/wp-content/uploads/2023/12/Untitled-3-1.webp)
Lendo, a Saudi Arabia-based shariah-compliant debt crowdfunding marketplace, has raised SAR 105 million ($28 million) in Series B funding led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (“PIF”). The round saw participation from Shorooq Partners, AB Ventures and other investors.
Lendo is a Shariah-compliant, debt crowdfunding marketplace that helps pre-finance outstanding invoices for businesses in Saudi Arabia. The platform is a community of creditworthy borrowers and sophisticated investors looking for alternative investments. The platform is licensed by the Saudi Central Bank (SAMA). Lendo will use the funds to support its fast-growing customer base in Saudi Arabia which has grown 3X year-on-year, introduce more innovative financing products, and accelerate market expansion plans.
“With this funding round, we are going to expand into new markets, support new and current customers, and launch new Shariah-compliant products, all the while continuing to innovate the marketplace for digital lending. We are going to make financial services more accessible, affordable, and inclusive for everyone. I am excited to see what the future holds for our company,” said Osama Alraee, CEO, and co-founder of Lendo, who also disclosed its plans for an IPO within the next few years.
Alraee has also expressed his gratitude to SAMA (Saudi Central Bank), Fintech Saudi, MCIT, Misk, and Monshaat for their unwavering support, emphasizing the pivotal role they have played in advancing financial inclusivity and fostering innovation in partnership with Lendo to reshape the financial landscape. Their dedicated efforts in advancing financial inclusivity and fostering innovation have been invaluable to us. We greatly appreciate their partnership in our mission to transform the financial landscape
Commenting on the announcement, Sanabil Investments said: “Lendo is a leading fintech company that is transforming the financial services industry in their specialist area of Shariah-compliant digital lending for SMEs. The Lendo team, especially the founders, Osama and Mohamed, have achieved a significant amount in a relatively short period, and we are eager to join their journey of increasing access to flexible financial solutions in Saudi Arabia and the region at large.”
“The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. At Lendo, we are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond. By fueling SME growth, we aim to contribute to the realization of Saudi Arabia’s Vision 2030 economic goals and to create a ripple effect of opportunity throughout the MENA region,” said Mohamed Jawabri, COO, and co-Founder of Lendo.
Lendo previously raised a SAR 27 million Series A funding round ($7.2 million) in 2021 led by Derayah Ventures with participation from Seedra Ventures and other investors, bringing the fintech’s total funding to SAR 132 million ($35.2 million).
Since the inception of Dec 2019, Saudi fintech Lendo has processed more than 2,500 financing transactions on its platform, providing over SAR 1 billion ($300 million) in financing to SMEs and generating SAR 140 million ($37 million) returns for investors.
The Small and Medium Enterprise financing landscape in the Middle East and North Africa (MENA) presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually. According to the International Finance Corporation (IFC), the SME financing gap is estimated at SAR 19.5 trillion ($5.2 trillion) every year in developing countries.
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, which aligns with the Saudi Vision 2030 to significantly expand SME lending from 4% in 2018 to 20% by 2030.
The total value of debt crowdfunding in Saudi Arabia surged from 1.4 million SAR in 2019 to SAR 771 million in 2022, marking a remarkable 430% growth, according to SAMA’s annual fintech report 2022.
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