Ghada Ismail

Getting your pricing right is one of the toughest calls a founder has to make and it can make or break your business. Set the price too high, and you risk pushing customers away. Go too low, and you may struggle to cover costs or risk being seen as cheap. Finding that sweet spot is crucial, yet many startups stumble here.

The Danger of Overpricing

Overpricing can easily turn potential customers away. If people feel your product isn’t worth the price, they’ll look elsewhere. This is especially risky for startups trying to build a customer base. Higher prices can also raise expectations, and if your product or service doesn’t exceed those expectations, it can hurt your brand.

One common mistake is pricing based solely on costs without considering the customer's perception of value. Customers don’t just evaluate the price; they weigh it against what they believe they’re getting in return. Overpricing without adding value can leave your business looking out of touch. 

The Pitfalls of Underpricing

On the other side, pricing too low can backfire. While it might seem like a great way to win customers early on, underpricing can leave you with little margins or even losses. Worse still, customers might assume your product isn’t up to par. And once you've set those low prices, bumping them up later without upsetting loyal customers can be tricky.

Underpricing can also create a perception problem. Customers may wonder, "Why is this so cheap?" and assume it lacks quality or staying power. For instance, a bakery pricing its cakes below market rates may attract bargain hunters but struggle to establish itself as a premium dessert destination.

Finding the Sweet Spot

The key to good pricing is understanding your costs, knowing your market, and figuring out what customers are willing to pay. Many successful startups use a value-based pricing model, which ties your price to the perceived benefits your product offers. This strategy can help position your offering as worth the investment without scaring off price-conscious buyers.

Market research is crucial here. Founders should analyze competitors, survey potential customers, and study buying behaviors to gauge what their audience is willing to pay. Testing different price points or offering tiered options can also provide insights into what drives sales without scaring off leads. This means creating multiple pricing plans or packages that cater to different customer needs and budgets. For example, a SaaS startup might offer:

Basic Plan: A lower-cost option with essential features for entry-level users.

Standard Plan: A mid-tier package with additional features for growing businesses.

Premium Plan: A higher-priced option with advanced features, dedicated support, or exclusive perks.

This strategy allows customers to choose what best fits their needs, while giving your business opportunities to upsell as users grow or require more value. Tiered pricing is common in tech, subscription services, and even physical products with 'starter,' 'pro,' or 'deluxe' options.

Testing and Adapting

Pricing isn’t something you set and forget. Early-stage businesses should experiment with different pricing models, keep an eye on customer reactions, and adjust accordingly. Special offers, discounts, or premium tiers can help you figure out what resonates best with your audience.

Many successful startups approach pricing as an ongoing process. They gather customer feedback, analyze trends, and adjust their prices when necessary. Some introduce loyalty programs or bundle offers to increase perceived value without directly raising prices. By staying flexible and responsive, startups can adjust their pricing over time.

Wrapping things up…

Pricing mistakes are common, but they’re fixable. By staying tuned into customer feedback and making thoughtful adjustments, you can find a price point that reflects your product’s value and keeps your business sustainable. But even with great pricing, poor execution can derail everything. In the next episode, we'll dive into how operational chaos can drag startups down and what founders can do to keep things running smoothly.

Ghada Ismail

Many startups enter the market believing that a great product alone will guarantee success. However, statistics tell a different story. According to CB Insights, 14% of startup failures are directly linked to poor marketing. Even with a stellar product or service, startups that fail to connect with their audience risk being overlooked. Without effective marketing, businesses remain invisible in a crowded marketplace, and potential customers never learn about what they offer.

The Importance of Effective Marketing from Day One

From the moment your business launches, marketing should be a priority. Visibility is key, and early-stage startups must work actively to connect with their target audience. Without marketing, potential customers won’t know you exist, no matter how valuable your offering may be. A clear marketing strategy not only drives sales but also builds brand identity and customer trust.

Common Early-Stage Marketing Mistakes

New businesses often make avoidable marketing missteps that limit their growth:

• Ignoring the Target Audience: Some founders market to everyone rather than defining a clear customer profile. Without understanding who you're trying to reach, your messaging may fall flat.
• Relying Too Heavily on Word-of-mouth: While positive referrals are powerful, they shouldn't replace proactive marketing efforts. Relying solely on organic buzz often slows growth.
• Neglecting Digital Presence: In today’s digital world, lacking an online presence is a critical mistake. A simple, well-structured website and active social media presence are essential.
• Trying Too Many Strategies at Once: Some startups attempt to market through multiple channels simultaneously without focusing on what works best. Concentrating on a few effective platforms often delivers stronger results.

Low-Budget Marketing Strategies That Work

Effective marketing doesn’t have to break the bank. Here are proven strategies that startups can implement without significant costs:

• Content Marketing: Sharing valuable content through blogs, videos, or social media can position your brand as an authority in your field. Consistency is key.
• Social Media Engagement: Platforms like Instagram, LinkedIn, and TikTok offer cost-effective ways to connect directly with your audience. Engaging content and authentic interactions build loyal followings.
• Email Marketing: Regular newsletters with updates, offers, or insights help nurture leads and maintain customer interest.
• Partnerships and Collaborations: Teaming up with complementary businesses can expand your reach without hefty expenses.
• Community Involvement: Attending local events, hosting workshops, or participating in industry forums can generate buzz and build meaningful connections.

Wrapping things up...

Marketing isn’t just an accessory to your product, it’s rather an essential factor for survival. Research shows that startups that actively engage in targeted marketing campaigns are significantly more likely to gain traction early on. By identifying your target audience, avoiding common pitfalls, and leveraging budget-friendly strategies, you can build momentum and increase your chances of long-term success. 

In the next episode of this series, we'll dive into another key challenge for startups ‘Pricing Problems: Too High, Too Low, or Just Wrong’, exploring how pricing mistakes can undermine even the most promising startups. Stay tuned!

Ghada Ismail

For most new businesses, the first year is a financial tightrope walk. Even with a great idea and a strong market need, cash flow problems can bring everything crashing down long before the business gets a chance to succeed. In fact, running out of money is one of the top reasons startups fail in year one, not because the product was flawed, but because the money ran out faster than expected.

From overestimating revenue to underestimating expenses, many first-time founders fall into the same financial traps that have sunk countless startups before them. In this episode, we’ll break down the most common money mistakes, the cash flow strategies that can make or break a business, and how to secure funding without falling into dangerous spending habits.

Common financial mistakes in the first year
Many founders underestimate how much capital they need to reach profitability, while overestimating how quickly they’ll generate revenue. The result? A dangerous gap between income and expenses that drains cash reserves faster than expected.

Spending too much too soon is another frequent mistake. From fancy office spaces to costly marketing campaigns, early-stage businesses often spend like established companies without the revenue to match. On the other side, some founders underinvest in critical areas—like marketing, product development, or customer acquisition—leaving the business unable to grow fast enough to survive.

Cash flow management strategies
Surviving year one requires tight financial discipline. Startups need realistic budgets that account for slow sales cycles, unexpected expenses, and a longer-than-expected path to profitability. Smart founders track their burn rate weekly, understanding exactly how long their cash will last at current spending levels, but what is a burn rate?

In business, burn rate refers to the speed at which a company spends its available cash before it starts generating positive cash flow (profit). It’s basically a measure of how fast a startup is "burning through" its funds.

There are two main types of burn rate:

1. Gross Burn Rate – This is the total amount of money a business spends each month to cover operating expenses like salaries, rent, marketing, and product development.
2. Net Burn Rate – This is the actual monthly cash loss, meaning how much money the business is losing after factoring in any revenue. It’s calculated like this: 

Net Burn Rate=Monthly Expenses−Monthly Revenue

Setting up clear financial controls, like approving all major expenses, separating personal and business finances, and avoiding unnecessary debt, helps avoid reckless spending. Cash flow forecasting should be part of the regular business routine, helping founders anticipate shortfalls well before they become emergencies.

How to secure funding and make sure you don’t run out of money too soon
Securing funding is only part of the equation as managing that capital wisely is what keeps businesses afloat. Whether funding comes from personal savings, friends and family, angel investors, or VCs, startups need to manage their cash like it’s their last riyal!

Founders should also diversify revenue streams whenever possible, so the business isn’t overly dependent on a single customer or product line. Building an emergency fund—a few months’ worth of operating expenses—can make all the difference when unexpected costs hit or revenue growth slows.

For founders seeking external funding, the key is raising the right amount at the right time. Raising too little leaves the business vulnerable to cash flow crises. Raising too much, especially at inflated valuations, creates pressure to spend aggressively, often before the business model is fully validated.

In the end, cash flow is king in year one. Even the best ideas fail if they run out of money before they find their footing.

Wrapping things up..

At its core, startup survival depends on financial discipline. Founders who track their burn rate, control expenses, and plan for funding gaps give their businesses a real chance at making it past year one. Those who ignore these basics? They risk becoming another statistic in the long list of startups that ran out of money before finding success.

But cash alone won’t save a failing business. Even startups with healthy funding collapse if their business model is weak or unsustainable.

In our next episode, we’ll dive into another key reason startups don’t survive year one, so stay tuned!

Kholoud Hussein 

In the dynamic economic landscape of the Gulf Cooperation Council (GCC) and particularly the Kingdom of Saudi Arabia (KSA), financial technology (fintech) has emerged as a transformative force. By offering innovative solutions that streamline operations, enhance customer experiences, and democratize financial access, fintech is empowering startups to compete and thrive in competitive markets. This article explores the transformative impact of fintech on startups within the GCC and KSA, supported by recent data and insights from industry leaders.

The Rise of Fintech in the GCC and KSA: A Catalyst for Startup Growth

Fintech encompasses a broad spectrum of technological innovations aimed at enhancing and automating financial services. From digital payments and crowdfunding platforms to blockchain and artificial intelligence-driven analytics, fintech solutions are reshaping traditional financial paradigms. For startups in the GCC and KSA, these advancements translate into more accessible funding options, efficient financial management, and the ability to offer customers seamless digital experiences.

According to Marmore MENA Intelligence, the fintech market size in the GCC region rose to $169.92 billion in 2023, with a year-on-year growth rate of 27.8%. In Saudi Arabia, the number of fintech firms increased from 10 in 2018 to 224 by the end of Q2 2024, surpassing the Financial Sector Development Program's (FSDP) target of 168 companies for the same period. This exponential growth reflects the sector's dynamism and its critical role in modernizing financial services within the region.

Fintech Solutions Empowering Startups in the GCC and KSA

Fintech innovations offer startups in the GCC and KSA a suite of tools and services that address traditional financial challenges:

1. Alternative Financing Options

Traditional bank loans often entail stringent requirements and lengthy approval processes, posing significant hurdles for startups. Fintech platforms have democratized access to capital through crowdfunding, peer-to-peer lending, and revenue-based financing models. These alternatives provide startups with more flexible and accessible funding options, enabling them to secure necessary capital without the constraints of traditional financial institutions.

2. Enhanced Payment Solutions

Efficient payment processing is vital for startups aiming to deliver seamless customer experiences. Fintech innovations in digital wallets, mobile payments, and real-time transaction processing have enabled startups to offer secure and convenient payment options, thereby enhancing customer satisfaction and loyalty.

3. Streamlined Financial Management

Managing finances effectively is crucial for startup sustainability. Fintech solutions that automate accounting, invoicing, and expense tracking allow startups to maintain accurate financial records with minimal manual intervention. This automation not only reduces operational costs but also minimizes the risk of human error.

4. Data-Driven Decision Making

Access to real-time financial analytics empowers startups to make informed decisions. Fintech platforms equipped with artificial intelligence and machine learning capabilities analyze financial data to provide actionable insights, helping startups optimize operations, identify growth opportunities, and mitigate risks.

Case Studies: Fintech Empowering Startups in the GCC and KSA

STC Pay: Revolutionizing Digital Payments in Saudi Arabia

STC Pay, a subsidiary of Saudi Telecom Company, has emerged as a leading digital wallet service in Saudi Arabia. Launched in 2018, STC Pay offers a range of services, including peer-to-peer transfers, bill payments, and online purchases. By 2024, the platform had amassed over 7 million users, reflecting the growing demand for digital payment solutions in the Kingdom. STC Pay's success underscores the potential of fintech in transforming traditional financial services and promoting financial inclusion.

Nasser Al Nasser, former CEO of STC Group, highlighted the company's vision: "Our goal is to drive digital transformation in the financial sector, aligning with Vision 2030's objectives to create a cashless society and enhance financial inclusion."

Tabby: Innovating Buy Now, Pay Later Solutions in the UAE and Saudi Arabia

Tabby, a fintech startup operating in the UAE and Saudi Arabia, offers buy now, pay later (BNPL) services, allowing consumers to make purchases and pay for them in installments without interest. Since its launch in 2019, Tabby has partnered with over 2,000 merchants and has seen significant user adoption. The company's innovative approach addresses the evolving consumer preferences for flexible payment options, thereby supporting retail startups in boosting sales and customer retention.

Hosam Arab, CEO and co-founder of Tabby, emphasized the impact of their services: "By providing consumers with flexible payment options, we're not only enhancing their shopping experience but also enabling retailers to grow their businesses by reaching a broader customer base."

Fintech's Role in Financial Inclusion in the GCC and KSA

Beyond enhancing operational efficiency, fintech plays a pivotal role in promoting financial inclusion within the GCC and KSA. Innovative lending practices by fintech startups are providing underserved communities with access to capital, thereby supporting small businesses and fostering economic growth.

For instance, digital payment solutions have significantly reduced the reliance on cash transactions in Saudi Arabia. The country achieved 70% non-cash transaction rate two years ahead of the 2025 target, underscoring the effectiveness of initiatives like FinTech Saudi in driving economic growth.

Such initiatives demonstrate fintech's potential to bridge financial gaps and empower entrepreneurs in regions with limited traditional banking services.

Industry Perspectives

Industry leaders recognize fintech's transformative impact on startups and the broader financial ecosystem within the GCC and KSA. Philip Bahoshy, CEO of MAGNiTT, observed: "What we have seen as a key trend in the fintech ecosystem is that many companies in Saudi Arabia are looking to integrate fintech solutions into their proposition to capture more users and have better user retention rates." 

This perspective underscores the collaborative potential between fintech innovators and established financial institutions to create a more inclusive, efficient, and technology-driven financial ecosystem. By integrating fintech solutions into traditional banking frameworks, financial institutions can enhance customer experiences, improve operational efficiency, and expand access to financial services for underserved markets. This synergy is particularly crucial in regions like the GCC and Saudi Arabia, where digital transformation is a key pillar of economic diversification under Vision 2030. As fintech startups continue to push the boundaries of innovation, partnerships with established banks and regulators will play a pivotal role in shaping the future of financial services, ensuring sustainable growth and regulatory compliance.

To conclude, the fintech revolution in the GCC and Saudi Arabia is crucial in empowering startups with smart financial solutions. By streamlining payments, enhancing access to capital, automating financial management, and fostering financial inclusion, fintech has become a fundamental pillar of startup success. The rapid adoption of digital payment platforms, alternative lending models, and AI-driven analytics is reshaping the business landscape, ensuring that startups can scale efficiently, reduce costs, and improve customer experiences.

In the next episode of "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore "The Impact of Legal and Compliance Services on Startups"—delving into the regulatory challenges startups face, the importance of legal frameworks in securing funding, and how compliance can be a competitive advantage in today's evolving business world. Stay tuned!

Mohammed Ramzy

As Egypt’s fintech sector undergoes rapid transformation, several companies are racing to establish themselves as key players in this evolving landscape. Among them is XPay, a prominent fintech company making significant strides in digital payments and financial technology.

Industry forecasts indicate that Egypt’s fintech market is expected to grow at a compound annual rate of 37% until 2029. Against this backdrop, XPay, founded in 2018 by Mohamed Abelmottaleb, focuses on developing digital transformation solutions with a strong emphasis on financial inclusion. Its suite of services covers credit and debit card payment processing, transactions via Meeza cards, smart wallet payments, mobile payments, QR code payments, and Buy Now, Pay Later (BNPL) services.

In an exclusive interview with Sharikat Mubasher, Mohamed Abelmottaleb, Founder and Managing Partner of XPay, shared the company’s expansion plans, growth ambitions for 2025, and his vision for fostering innovation in Egypt’s fintech space.

How has XPay managed to compete in Egypt’s fintech scene?

XPay is a leading fintech company that started in 2018, right at the onset of the digital transformation era in Egypt, alongside industry giants like Fawry. I firmly believe that technology could reshape Egypt’s financial landscape. With this conviction, we launched XPay to provide payment services for businesses, vendors, and individuals through our own unique approach. We believe that financial technology is a fundamental right for every individual, regardless of their needs or background.

When did XPay officially launch operations?

The first phase focused on market research and analysis, followed by testing different financial service models to determine the best fit based on our extended 20-year expertise in the field. In 2021, XPay obtained its first license from the Central Bank of Egypt and officially began offering services to individuals and businesses. Today, XPay is considered one of the most prominent fintech companies in Egypt.

What has XPay achieved so far?

XPay has achieved significant success in Egypt’s digital payments sector, recording a 75% increase in the number of merchants by the end of 2024. This led to a 250% growth in total payment volume and a 340% rise in processed transactions, with a success rate of 83%.

What are your targets for 2025?

In 2025, we are aiming to process EGP 1 billion in digital payments, while maintaining what we call “cautious growth” carefully expanding our merchant and client base in a controlled and sustainable manner.

What do you mean by "cautious growth"?

This has been a core principle at XPay since Day One. It means every step of our expansion is thoroughly studied and carefully executed, minimizing risks for both the company and the market, especially given the sensitive nature of the sector we’re operating within.

What are XPay’s funding plans? Are you seeking new investment?

The company still relies primarily on investment from existing partners, but we plan to launch a new funding round next year to support our ambitious growth and expansion goals.

Are there any upcoming partnerships? What’s their purpose?

We are planning several partnerships with various entities this year to enhance the integration of our digital solutions and boost financial inclusion in Egypt. Currently, about 30% of Egyptians remain outside the formal financial system according to recent statistics, which is a significant gap given the population size. We need to develop more innovative services and solutions, and the best way to do this is by forming strategic partnerships with key players.

How do you see the future of fintech in Egypt?

Egypt is steadily moving toward becoming a cashless society — that’s inevitable. To achieve this, Egypt will need massive investments in digital infrastructure over the coming years. Alongside that, continuous development of technology platforms and systems will be essential. This creates a huge demand for new startups focused on innovation and advanced technology, particularly in AI-powered financial solutions. With the sector expected to grow by 37% annually until 2029, the future looks bright for fintech in Egypt.

Are there plans to expand to other markets?

Egypt remains our primary focus, and we are concentrating on expanding our services domestically. However, we definitely have plans to expand into regional markets, with Saudi Arabia being a top priority. We see tremendous potential in Saudi Arabia’s fintech landscape, and it fits well with our regional growth strategy.

Translated by: Ghada Ismail

Ghada Ismail

Some startups fail because they run out of cash. Others fail before they even have a chance because their entire business model is flawed from the start.

It’s one of the most underestimated reasons businesses collapse in Year One: the core structure of how they plan to make money simply doesn’t work. You could have a product customers love, strong demand, and even solid marketing—but if your business model doesn’t add up, the math will always catch up with you. In this episode, we’re diving into how first-year startups unknowingly build on broken foundations—and how you can avoid the same fate.

What Exactly Is a Business Model?

Your business model is how your business makes money, the system that connects your product, your pricing, your customers, and your costs. It answers basic questions:

• Who is your customer?
• What problem are you solving?
• How do you deliver value?
• How do you make a profit doing it?

When these answers are vague, contradictory, or unrealistic, trouble follows.

The Classic Signs of a Flawed Business Model

Here’s how it shows up in real life:
- You attract lots of attention, but hardly anyone pays.
- Your pricing is too low to cover costs, or too high to attract your target market.
- You rely on a single revenue stream, with no backup if it dries up.

- Your model depends on endless growth to survive, instead of sustainable profit.
- Your customer acquisition cost (CAC) is higher than the revenue they bring in.

* Customer Acquisition Cost (CAC) is basically how much money you spend to get one customer. It includes all the costs related to sales and marketing such as ads, social media campaigns, discounts, influencer deals, sales team salaries, and everything you do to attract and convert someone into a paying customer.

* Why does It Matter (Especially in Year One)?

If you’re spending SAR 30 to get each customer, but your average customer only spends SAR 25 with you, then you’re losing money on every sale. That’s why CAC is a vital metric in the first year, because a broken business model often hides behind unsustainable acquisition costs.

Why It Happens So Often in Year One

In the rush to launch, many founders copy models from other industries (without adapting them) or assume that the model will “figure itself out” once the product takes off. Others misread the market, building a pricing or revenue strategy based on assumptions instead of real data. The result? A product people love but a business that can’t survive.

Case Study Snapshot

Take the example of a food delivery startup that offered free delivery to attract customers. They gained thousands of users, but every order they delivered cost more than they earned. Their “growth-first, profits-later” model worked for larger companies with deep investor pockets, but it was a death sentence for a bootstrapped startup.

Fixing the Foundation: What Startups Should Do Instead

Here’s how first-year businesses can avoid this fate:
-Test the numbers before launch: Map out pricing, costs, and realistic sales volumes.
-Run small experiments: Try different revenue models (subscriptions, one-time sales, freemium) to see what fits best.
-Focus on profitability from the start: Growth without profit is a dangerous gamble in Year One.
-Diversify revenue streams: Don’t put all your hopes on one product, one customer type, or one sales channel.

Wrapping things up…

A great idea with a bad business model is like a house with no foundation; it might stand for a while but collapse is inevitable. Startups that survive their first year aren’t just product innovators, they’re rather business model builders.

The good news? First-year founders can fix this before it’s too late by treating the business model like a living blueprint that evolves with real data, not just assumptions.

But even a rock-solid business model can’t save you if no one knows your business exists. That’s exactly what we’ll cover in the coming episode: Marketing Failures—When Great Ideas Stay Invisible.

Ghada Ismail

Starting a business is an exhilarating journey filled with ambition, creativity, and high expectations. Entrepreneurs pour their hearts into developing products or services they believe will change the market. However, one of the most critical and often overlooked mistakes is launching without genuine market demand. 

No matter how innovative or well-crafted a solution is, if customers don’t need or want it, failure is almost inevitable. The harsh reality is that enthusiasm and effort alone do not guarantee success, as market validation is an essential factor. Without it, even groundbreaking ideas can fall flat, leaving startups struggling to gain traction and ultimately shutting down.

Understanding why businesses fail due to lack of demand, and how to properly validate an idea before launch, can be the difference between success and becoming another cautionary tale. This episode delves into the primary reasons businesses collapse without demand, and effective strategies for validation.

Why Businesses Fail Without Market Demand

Market demand is the foundation of any successful business. Without it, even the best ideas struggle to gain traction. Some of the key reasons businesses collapse due to lack of demand include:

• Misaligned Solutions: Startups often create solutions they assume customers need rather than addressing actual pain points.
• Poor Market Research: Many entrepreneurs skip rigorous validation, relying instead on personal intuition or biased feedback.
• Overestimation of Market Size: A niche idea might seem appealing but may not have a large enough audience to sustain profitability.
• Changing Consumer Preferences: A once-promising market can shift due to trends, new technology, or unforeseen external factors.

How to Validate an Idea Before Launching

Validating demand before investing time and resources can save a business from an early demise. Here’s how entrepreneurs can ensure their idea meets a real market need:

1. Customer Interviews & Surveys
   • Engage directly with potential customers to understand their challenges and willingness to pay for a solution, product, or a service.
2. Competitor Analysis
   • Assess existing players in the market. If no one is offering a similar solution, it could signal either an untapped opportunity or a lack of demand.
3. Minimum Viable Product (MVP) Testing
   • Launch a simple version of the product to gauge interest and refine based on user feedback.
4. Pre-Sales & Waitlists
   • Gauge real demand by getting early adopters to commit to a purchase before full development.
5. Market Trend Analysis
   • Use data and industry reports to assess if the market for the product is growing or declining.

Wrapping Things Up:

No market demand is one of the silent killers of businesses. Before launching, entrepreneurs must rigorously test their ideas, validate customer needs, and ensure their solution aligns with real market problems. By taking these precautions, businesses can avoid costly missteps and increase their chances of long-term success.

This marks the first episode of our series on ‘Why Startups Fail to Survive Year One. 

Stay tuned for the next installment, where we’ll explore another critical factor that leads to early-stage failure.

Ghada Ismail

Starting a business is exciting, but let’s be real, it’s also incredibly tough. The truth is, that a lot of startups don’t make it past their first year, and that can be a hard pill to swallow. But here’s the good news: most failures aren’t random. They happen because of common, avoidable mistakes.

In this blog series, we’ll break down the biggest reasons why businesses struggle to survive their first 12 months. More importantly, we’ll talk about how you can dodge these pitfalls and set your startup up for long-term success. By learning from the mistakes of others, you can put yourself ahead of the game.

Let’s first look into some global statistics:  Studies from the Bureau of Labor Statistics indicate that approximately 20% of new businesses fail within the first 12 months. Industries such as information technology, mining, and construction are found to be experiencing consistently higher business failure rates, in comparison with other sectors such as agriculture, retail trade and accommodation, and food services, which demonstrate greater resilience.

Meanwhile, Harvard Business School professor Tom Eisenmann’s research shows that two-thirds of startups fail to deliver a positive return to investors. But why is the first year so challenging?

Why the First Year is the Hardest

The first year of a business is often a make-or-break period where founders must establish product-market fit, manage cash flow, and build a strong team—all while navigating unforeseen challenges.

A study by CB Insights analyzing 101 startup failures found that 42% failed due to lack of market need, 29% ran out of cash, and 23% struggled due to the wrong team composition. These early hurdles prove that launching a business is not just about having a great idea—it’s about execution, adaptability, and resilience.

The Most Common Causes of Failure

Understanding why businesses struggle in their first year is the first step to overcoming these obstacles. This series will dive deep to stand on the most critical reasons startups fail, supported by insights from real-world studies and expert research. By learning from those who didn’t make it, we can uncover the strategies that help businesses beat the odds.

Plenty of things can sink a business, but some mistakes pop up more often than others. Here’s what we’ll be covering in this series:

1. No Market Demand: Building something people don’t actually need or want.
2. Running Out of Cash: Poor money management and financial planning.
3. Weak Business Model: A great idea that doesn’t translate into sustainable revenue.
4. Poor Marketing: Struggling to get the right people to notice your business.
5. Pricing Problems: Charging too much, too little, or failing to understand market expectations.
6. Operational Chaos: Disorganization that slows down growth and burns out teams.
7. Leadership and Team Issues: Bad hires, weak leadership, and internal conflicts.
8. Ignoring Customer Feedback: Not listening to the people you’re trying to serve.
9. Legal and Compliance Pitfalls: Overlooking regulations that can lead to fines or even shutdowns.
10. Burnout and Founder Fatigue: Pushing too hard and making bad decisions as a result.

Each post in this series will focus on one of these challenges, looking at why it happens, how it affects businesses, and—most importantly—how to avoid it.

What’s Next

In the next post, we’ll tackle one of the biggest reasons startups fail: No Market Demand. We’ll talk about why so many businesses launch without a real market need and how you can validate your idea before pouring time and money into it.

Stick around for the next installment in this series. We guarantee that it’s going to be packed with insights to help you build a business that lasts!

Kholoud Hussein 

The inaugural day of LEAP 2025 began with a bold vision for the future of technology and its role in shaping Saudi Arabia’s economy. Under the patronage of Vision 2030, the event attracted industry leaders, policymakers, and global innovators, all focused on how emerging technologies—Artificial Intelligence (AI), Blockchain, Internet of Things (IoT), and Automation—can drive economic growth and diversification.

With Saudi Arabia investing over $6.4 billion in its digital economy, LEAP 2025 has become a key platform for unveiling new investments, strategic partnerships, and AI-driven innovations that are set to reshape industries and elevate the Kingdom as a global technology powerhouse.

Opening Keynote: A Vision for a Digital Economy

The event was inaugurated by Abdullah Alswaha, Minister of Communications and Information Technology, who emphasized Saudi Arabia’s commitment to becoming a leading global tech hub.

Alswaha said: "Our ambition is to increase the contribution of the technology sector to Saudi Arabia’s GDP from a modest 1% to an ambitious 5% by 2030. Technology is the key driver of our economic future, and through initiatives like LEAP, we are ensuring that innovation remains at the forefront of our national transformation."

This statement reflects the Kingdom’s strategic intent to shift from an oil-dependent economy to a digitally-driven, knowledge-based economy, supported by significant investments in AI, cloud computing, and digital infrastructure.

Saudi Arabia’s Vision 2030: The Role of LEAP in Driving the Digital Economy

As part of Vision 2030, Saudi Arabia aims to increase the contribution of small and medium-sized enterprises (SMEs) to GDP from 20% to 35%, enhance its digital economy, and position itself among the top 15 AI leaders worldwide.

According to Faisal Al-Ibrahim, Minister of Economy and Planning: "Vision 2030 is our roadmap to a diversified and innovative economy. Technology is at the heart of this transformation, and through initiatives like LEAP, we are setting the foundation for a sustainable digital ecosystem that fosters entrepreneurship and economic growth."

Key initiatives under Vision 2030 include:

• $1 billion investment in AI, cloud computing, and IoT to build a smart infrastructure.
• 70% cashless transactions target by 2030 to drive a seamless digital economy.
• Expansion of tech-driven education programs to train a future-ready workforce.

LEAP 2025 serves as a critical milestone in achieving these goals, bringing together global investors and tech leaders to collaborate on the future of smart cities, AI-driven industries, and sustainable economic development.

The Economic Impact of Emerging Technologies

The conference highlighted AI, Blockchain, and IoT as key economic enablers, expected to contribute over $20 trillion to the global economy by 2030.

Fatimah Alsharif, a leading AI researcher, emphasized: "Integrating AI into our industries is not just an option; it's a necessity. AI-driven automation and analytics will redefine efficiency and innovation across multiple sectors."

Ahmed Al-Harbi, CEO of a leading energy firm, further added: "Blockchain and IoT will transform oil, gas, and logistics operations, bringing about unprecedented levels of transparency and efficiency."

These innovations will play a pivotal role in driving economic diversification, ensuring Saudi Arabia’s continued global competitiveness in an AI-powered world.

Top 5 Sectors Poised for Transformation Through AI & Automation

As AI and automation continue to disrupt industries, five key sectors stand out in Saudi Arabia’s digital transformation:

Healthcare

• AI-driven diagnostics and predictive analytics enhance patient care and reduce costs.
• Telemedicine and robot-assisted surgeries are expanding healthcare accessibility.

Finance and Banking

• Automation in fraud detection, algorithmic trading, and customer service chatbots is making banking more secure and efficient.
• The rise of fintech startups is reshaping payment systems and lending solutions.

Manufacturing

• AI-powered smart factories are optimizing supply chains, predictive maintenance, and quality control.
• Robotics and automation are reducing operational costs and increasing productivity.

Transportation and Logistics

• AI-driven autonomous driving, route optimization, and demand forecasting are improving efficiency.
• Smart logistics platforms are enhancing shipment tracking and supply chain transparency.

Retail and E-commerce

• Personalized shopping experiences through AI recommendations are increasing customer engagement.
• Smart inventory management is reducing waste and improving stock efficiency.

These sectors are poised for massive AI-driven growth, offering lucrative investment opportunities for venture capitalists and tech entrepreneurs.

Investor Spotlight: Where is Venture Capital Flowing in 2025?

With Saudi Arabia's pro-business policies and massive investment in digital infrastructure, venture capital (VC) funding is rapidly flowing into AI, fintech, and clean tech startups.

According to industry reports, VC funding in the Middle East is expected to reach $10 billion by 2025, with Saudi Arabia leading the way.

Key drivers of VC investment in Saudi Arabia include:

• Government-backed funds supporting AI and deep-tech startups.
• Expansion of tech accelerators and incubators to nurture early-stage companies.
• Public-private partnerships driving fintech, cybersecurity, and clean energy solutions.

Saudi Arabia’s startups and innovation hubs are attracting both regional and international investors, positioning the Kingdom as a key player in the global startup ecosystem.

Global Collaborations and Strategic Partnerships

LEAP 2025 witnessed major tech collaborations with global leaders, focusing on AI, cybersecurity, and digital identity solutions.

Key Partnerships Announced:

 - Microsoft – Investing in Saudi Arabia’s cybersecurity and AI research.
- IBM – Collaborating on AI-driven business solutions.
- Amazon Web Services (AWS) – Expanding data centers and cloud computing capabilities.

John Smith, Vice President of IBM Middle East, stated: "Our partnership with Saudi Arabia is a testament to the Kingdom’s commitment to embracing cutting-edge technologies and fostering a culture of innovation."

These strategic partnerships will accelerate Saudi Arabia’s transition into a global technology hub, fostering job creation and economic growth.

The Road Ahead: What’s Next for LEAP 2025?

As LEAP 2025 progresses, the focus remains on:
✅Harnessing AI and emerging technologies to drive economic growth.
✅Strengthening Saudi Arabia’s digital infrastructure to attract global investment.
✅Fostering innovation hubs to support startups and SMEs.

Crown Prince Mohammed bin Salman has been vocal about the Kingdom’s ambitions, stating: "The future is not something we wait for; it is something we create."

Final Thoughts

LEAP 2025 is not just a conference—it is a beacon of innovation, shaping the future of Saudi Arabia’s economy and positioning the Kingdom as a global leader in technology.

As the event unfolds, the world watches how Saudi Arabia is redefining the digital economy and unlocking new opportunities for investment and innovation. 

Kholoud Hussein 

In recent years, Saudi Arabia has witnessed a significant transformation in its entrepreneurial landscape, with co-working spaces emerging as pivotal elements in the startup ecosystem. These shared workspaces offer more than just desks and internet access; they provide a collaborative environment that fosters innovation, networking, and flexibility, essential for startups and small and medium-sized enterprises (SMEs).

The Growth of Co-Working Spaces in Saudi Arabia

As of December 2024, Saudi Arabia boasts approximately 251 co-working spaces, with the highest concentrations in the Riyadh Region (114 spaces) and the Makkah Region (72 spaces). 

This growth aligns with the nation's Vision 2030 initiative, which aims to diversify the economy beyond oil and gas by promoting entrepreneurship and supporting SMEs.

In 2018, there were an estimated 40 co-working spaces in Saudi Arabia, offering around 30,000 square meters of workspace. Despite this growth, the country's co-working space availability per capita remains lower than in many Western nations. For instance, Saudi Arabia had about 3.4 co-working spaces per one million workers, compared to 32 in the United States.

Driving Factors Behind the Rise

Several factors contribute to the increasing demand for co-working spaces in Saudi Arabia:

1. Economic Diversification: The government's push to diversify the economy has led to a surge in entrepreneurial activities, creating a need for flexible and affordable office solutions.
2. Gig Economy Expansion: The rise of freelancers and independent contractors has fueled the demand for adaptable workspaces that cater to varying needs.
3. Cost Efficiency: Co-working spaces offer an economical alternative to traditional office leases, often resulting in up to 20% cost savings for businesses. 
4. Networking Opportunities: These spaces foster a sense of community, allowing startups to connect, collaborate, and share resources.

Insights from Industry Leaders

Abdullah Alharbi, President of FIABCI Saudi Arabia, emphasizes the role of co-working spaces in the evolving work culture: “The rise of the gig economy and the growing preference for flexible work arrangements have led to an increased demand for co-working spaces in Saudi Arabia. These shared workspaces provide a collaborative environment that caters to freelancers, startups, and even established businesses seeking agility and cost-effectiveness.” 

Hilal Halaoui, Partner at Strategy& Middle East, notes the shifting workplace needs: “As Saudi Arabia’s economy continues to diversify and change, workplace needs are also shifting from traditional office spaces with long-term contract commitments to a more sophisticated and flexible working environment.” 

Challenges and Opportunities

Despite the positive trajectory, challenges persist. The limited number of co-working spaces relative to the workforce indicates significant potential for expansion. High demand in major cities has led to some of the highest global co-working space rates, underscoring the need for more affordable options. 

The projected growth rate of the co-working office space market in Saudi Arabia is estimated at a CAGR of 5.67% during 2024-2032, driven by rising entrepreneurial ventures and economic diversification efforts. 

The Road Ahead

The evolution of co-working spaces in Saudi Arabia reflects broader global workplace trends favoring flexibility and collaboration. As the nation continues its economic transformation, co-working spaces are poised to play a crucial role in nurturing innovation and supporting the burgeoning startup ecosystem.

By addressing current challenges and capitalizing on growth opportunities, co-working spaces can become integral to Saudi Arabia's economic future, providing the physical backbone for a dynamic and resilient startup environment.

As we continue our series, Building Blocks of Startup Success: The Industries Powering Innovation, we shift our focus from co-working spaces to another vital pillar of entrepreneurship—logistics and supply chain. With Saudi Arabia’s e-commerce sector experiencing rapid growth, efficient logistics, warehousing, and last-mile delivery are more critical than ever for startups striving to scale. In the next episode, Logistics and Supply Chain: Supporting E-Commerce Startups, we’ll explore how this industry is enabling innovation, streamlining operations, and driving the success of digital businesses. Stay tuned!

Ghada Ismail

We know by heart how a business trip can feel like piecing together a complex puzzle. With flights to book, accommodations to arrange, meetings to schedule, and budgets to manage, it’s easy to get overwhelmed. Luckily, the digital age offers an arsenal of tools to simplify the process and keep you focused on your objectives. As the final episode in our series on how business travel fuels SME success, we’ve compiled a list of the most effective apps to help you plan, organize, and execute your trips seamlessly.

a. Booking and Accommodation Apps

• Hopper: This app predicts flight and hotel prices with impressive accuracy, helping you book at the best time to save money.
• Airbnb for Work: With options tailored to business travelers, this app offers unique accommodations that feel like home while providing workspace essentials.
• HotelTonight: Ideal for last-minute trips, this app finds discounted rates on same-day hotel bookings.

b. Travel Itinerary Management

• TripIt: Automatically consolidates all your travel details in one place—flights, hotels, car rentals, and more. It’s your go-to travel assistant.
• Google Travel: Syncs with your email to organize itineraries and offers recommendations for your destination.

c. Expense Tracking and Budgeting

• Expensify: Snap photos of receipts, track expenses, and generate detailed reports for reimbursement or record-keeping.
• Splitwise: Perfect for team travel, this app simplifies expense sharing and ensures everyone’s on the same page.

d. Communication and Productivity

• Zoom: Essential for virtual meetings if you need to connect with your team or clients while on the go.
• Slack: Stay in touch with your team, share files, and collaborate seamlessly, no matter where you are.
• Google Workspace: From Docs to Sheets, this suite ensures you can access and edit your work anytime.

e. Local Navigation and Transportation

• Google Maps: Offers reliable navigation, live traffic updates, and public transport options.
• Citymapper: A must-have for urban travel, this app provides detailed transit information and alternative routes.
• Uber: Dependable for rides in most major cities worldwide.

f. Language and Culture Assistance

• Duolingo: Brush up on essential phrases before arriving at your destination.
• Google Translate: Break language barriers by translating text, speech, and even images in real-time.
• Culture Trip: Get insights into local customs, attractions, and dining recommendations.

g. Health and Safety

• MySOS: A health app that helps you locate medical services quickly.
• Sitata: Provides travel safety alerts, identifies health risks, and offers tips to stay safe abroad.

One last word..

As we close this series, it’s clear that the right apps can turn business travel from a source of stress into an opportunity to excel. With tools that help you book flights, manage expenses, and navigate new destinations, you’re equipped to make the most of every trip. This final episode is a reminder that preparation and smart choices are key to success on the road.

As you gear up for your next trip, try incorporating some of these apps into your routine. They’ll not only make your travel experience smoother but also help you stay one step ahead, no matter where your business journey takes you.

Ghada Ismail

For SMEs, business travel is more than an operational necessity, it’s a gateway to new opportunities, markets, and partnerships. Yet, with every trip comes the challenge of balancing costs, time, and measurable outcomes. The real question isn’t just how to travel but how to make every journey count. By adopting a results-driven mindset, businesses can transform travel into a strategic investment. This means setting clear objectives, leveraging innovative tools, and evaluating ROI to ensure that each trip delivers value, whether it’s landing a major client, strengthening industry relationships, or uncovering market insights. With the right approach, business travel becomes not just a journey, but a cornerstone of growth. 

Start with Clear Objectives

Before embarking on any business trip, define its purpose. Are you meeting with a potential client, attending an industry conference, or scouting a new market? Setting specific goals allows you to measure the trip’s success and prioritize your time effectively. For instance, if the objective is to secure a partnership, pre-arranging meetings and understanding your counterpart’s priorities is crucial.

Plan Efficient Itineraries

Time is money, especially during business trips. Group meetings and activities in the same geographic area to minimize transit time. Utilize tools like online schedulers to book appointments seamlessly and leave room for unforeseen changes. A well-planned itinerary not only saves time but also ensures you’re making the most of every hour on the ground.

Optimize Travel Budgets

Maximizing value doesn’t always mean cutting costs but ensuring every Riyal spent drives results. Invest in loyalty programs that offer benefits like free upgrades or discounted stays, and consider flexible travel policies that strike a balance between cost-effectiveness and traveler comfort. Encouraging team members to travel during off-peak times or book in advance can also lead to significant savings.

Foster Networking Opportunities

A business trip isn’t just about scheduled meetings. Networking at conferences, trade shows, or even during casual interactions can yield unexpected benefits. Encourage team members to attend relevant events, prepare elevator pitches, and keep business cards handy. These interactions often open doors to partnerships and collaborations that weren’t initially on the agenda.

Collect and Analyze Data

Tracking the outcomes of business trips is vital for evaluating their ROI. Use data to assess which destinations, events, or strategies generate the best results. Feedback from employees can provide insights into what worked and what could be improved for future trips. Over time, this data-driven approach refines your travel strategies and ensures every journey adds value.

Balance Work and Well-Being

Frequent travel can take a toll on employees’ health and productivity. Encourage practices like staying hydrated, eating healthy, and allocating time for rest. A well-rested traveler is more likely to perform effectively, make better decisions, and represent your company professionally.

Measure Success

After the trip, evaluate its outcomes against the initial objectives. Did it lead to a signed deal, a promising lead, or valuable insights? Sharing these results with the team fosters accountability and ensures every trip’s value is maximized.

Wrapping things up…

Optimizing business travel is not just about efficiency; it’s about aligning every journey with your company’s broader goals. With the right strategies, tools, and mindset, SMEs can turn each trip into a stepping stone for growth. By balancing cost-effectiveness, employee well-being, and strategic outcomes, you’ll ensure every journey is a worthwhile investment in your business’s future.

Stay tuned for the next episode, where we explore ‘The Future of Business Travel for SMEs: Trends and Predictions’ and uncover how evolving technologies and global shifts are shaping the way small businesses connect and thrive.