Ever wonder where (and how) big banking intersects with entrepreneurship? Read on for some honest words from one of the industry’s steadiest and most reliable leaders.
Bader: Can you please tell me who you are, and what you do?
I’m Areije Al Shakar, and I am the deputy head of development services here at Bahrain Development Bank. Before that, I was with Lehman Brothers, and had already completed over ten years of banking experience. During the financial crisis, everything went down, and I went down with Lehman. In the interim, I got an opportunity to join Bahrain Development Bank. I think it was maybe a blessing in disguise, because I actually found a passion: working with entrepreneurs.
Bader: Recently, a lot of my friends have been facing tough career decisions: moving from one job to another, from no job to a job, or leaving a full-time job to become entrepreneurs. How would you suggest they approach these transitions?
It’s a little different for everyone, but I think people often make decisions based upon fear: What if I don’t find another job? How long will I be able to survive without a job?
In my case, because of the global financial crisis, nobody was hiring. It was a time when I could be okay with not really doing anything for a few months, and actually discover my passion. It was okay to try something new. If somebody feels that they’re in a position where they’re not able to grow, it’s probably time to make a change. It might be in a completely different area, but it’s okay to try, you know? Now that we’re supporting entrepreneurs, I see that we always tell them it’s okay to fail—and then it becomes okay to start.
It’s okay to try something new. Otherwise, how would you ever know?
Bader: Exactly. Now we’ll move into talking about entrepreneurs and
the people you directly help. Do you personally feel (or have you ever felt) that Bahraini entrepreneurs are lazy?
No. I don’t like to use the word lazy. We have more of an island mentality. Because I didn’t grow up in Bahrain, I don’t have that in my veins, as they say. It has to do with the weather. When you’re surrounded by water, you just tend to be more laid-back and easygoing. I think it’s just a different type of entrepreneurial culture that we have.
Since I started at BDB five years ago, I’ve seen a complete shift—not only in the way entrepreneurs think, but also a completely different mindset.
Bader: That’s true.
Imagine the effort it takes to drive a cultural mindset. Even within our own organizations, when we’re driving change, we face challenges when changing organizational culture. I’m happy to say that in my humble experience in the entrepreneurial world over the past five years, I’ve seen an increased awareness of what entrepreneurship really is.
Bader: What do you think BDB is doing in collaboration with other organizations to help fix, however incrementally, our laid-back culture?
It’s in the types of programs and schemes we offer. In the past, everything was very spoon-fed and given to the entrepreneur. There were a lot of counseling and borderline-consultant types of interactions, and entrepreneurs became very dependent. We’ve recently shifted to more of a coaching mentality and approach. We empower the entrepreneur to actually become aware of their challenges, goals, and potential reach. In this way, they hold themselves responsible for reaching their goals.
Bader: They make their own decisions.
Exactly.
Would you mind giving us a really good success story that BDB is proud of—someone who has benefited from incubation, advisory, development, or financial services?
I think all of them have potentially been success stories. One of my favorite entrepreneurs—okay, I won’t use the word favorite—but one of the entrepreneurs who started even before all of this support became available, someone who started literally against all odds, is Ali Alkhayat. He started with just twenty square meters or so for reupholstering furniture. He didn’t go to university, because he didn’t feel like he needed to. He had just completed high school. When he was young, all of his friends would go play football or whatever, and he would spend his free time either helping his dad, who used to fix boats, or sitting and using his hands. His friends would tease him. He comes from a very humble background. Once he felt he was starting to get a lot of demand to reupholster furniture, he felt he needed a bigger space.
He basically decided that he needed some help, so he asked around, and got a friend to give him a hundred dinars to buy his first machine. To make a long story short, Ali now occupies over nine thousand square meters in the Bahrain Industrial Park.
Yeah, I’ve been there.
You’ve been there? You’ve seen his factory?
Yeah, it’s amazing. Now that I know the backstory, it’s even more amazing.
His family kept telling him, “You know, you’ll never going to get this.” No support, nothing. He did get a loan from BDB when he needed to build his factory, so we met Ali because we kept hearing about this factory, which we supported. He was one of the first people we actually featured on the cover of Rowad magazine, because he’s quite inspirational. I don’t think he realizes what an inspiration he is to other youth, because he really started…
With nothing.
With nothing. And he actually won the award for enterprise…
I hope more people hear his story, so they feel he’s even more deserving of this award.
Yeah, he is.
On the opposite side of the spectrum, can you, if possible, share a nightmare story?
I have a good sense of forgetting bad things. I’m an optimist, so I always like to see things in a positive light. We’ve had stories of people coming in with zero focus, and believing they’re entitled to everything. I think we learn from every experience.
Would you be willing to share your favorite failure story, someone who failed for unforeseen circumstances that you felt badly about?
I remember in my early years here at BDB, there was a person who would come in every single day with an idea to create something to help support people who shop at malls.This entrepreneur, in their mind, saw something incredible. They actually went through with it, and worked on their business plan. Even though the numbers didn’t add up and we advised them of that fact, they still pushed on. This is the beauty of the coaching relationship, because you can’t stop them; it’s their decision, in the end. This person did start, but within three months, they shut down. Why are they my favorite in this aspect? Because they still came back. I remember saying, “We tried, but it didn’t work out.” I think it was a learning opportunity for them.
What hasn’t worked for BDB? What services were supported that you tried providing or offering, but did not meet a demand of any kind?
I think it’s just a matter of getting the culture attuned. At the beginning, we introduced the e-advisory so people could access advisory services online. Unfortunately, it just turned into customer service rather than a point of contact—for example, when people are at home and can’t access a branch to come in and actually ask a question. It was interesting, because we were trying to move with the trend, and it didn’t work out.
Why do you think that happened?
We realize that people who are working on their business plans like to talk to one person they’re used to—not always just whoever is answering. They don’t want to have to explain their story all over again. We didn’t even have the human resources for a dedicated team just to be on the computer, at that point. Our new program of coaching has replaced this very well, so now they can actually have that one-on-one relationship.
What’s really working for BDB?
Since Sheikh Hesham came along about three years ago, a synergy has come together between all of our different products and services. Some people used to feel there was a divide between what financing, incubation, and business advisory were doing, even though business advisory and incubation technically were under one umbrella. He’s a visionary individual. This has helped people flourish and grow, and has made possible a greater opportunity to introduce new products and services and see them flourish, as well.
And what are BDB’s next plans? Tell me something – give me a sneak peek on something you guys are working on.
The farmer’s market is the next sneak peek we’re working on. A lot of new support services for entrepreneurs will also be coming up.
In 2015?
In 2015, we should be having our first formalized mentorship program, and we’ll be having a quarterly event just for entrepreneurs.
Nice. Do you ever plan to start your own thing?
It’s funny, everybody asks me that question. I’m actually working within a capacity in which I feel very passionate. I’m lucky to work with such a great team, and with a very supportive leader. I think if I do ever go on to something else, it might be what I’m doing right now: coaching and helping others. That is my passion.
That’s excellent. Thank you for this!