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Businesswomen urged to get proper licenses
Published in The Saudi Gazette on 20 - 05 - 2012

Dabaan, also a member of the Young Businessmen's Committee at Riyadh Chamber of Commerce and Industry (RCCI), has warned women entrepreneurs against starting any ventures without formal documentation from the concerned government departments and agencies.
He said businesswomen should obtain written documents in the form of approvals or letters before proceeding ahead in their business ventures. “This would enable them to seek compensation in case of any procedural discrepancy. The entrepreneurs should not begin any enterprise on the basis of any verbal assurance from the officials of the concerned licensing agencies.”
Al-Dabaan was reacting to the disclosure of a Saudi businesswoman who incurred huge losses that was attributed to the faulty advice of some government officials as well as the absence of documentation of her application. The woman entrepreneur had subsequently lost all her capital and is in debt due to the failure of her two business ventures.
Participating in a meeting on “Developing legal expertise for owners of women-owned enterprises,” organized by the women's branch at RCCI, the businesswoman said that she had lost huge amount of money due to varying administrative procedures and instructions by different officials in a single department.
“This resulted in terminating both my business projects – a tailor shop and a workhouse for women. The first official approved my license verbally and directed me to furnish my project with all the necessary equipment. Later, the municipal official said that the project was in violation of the rules and regulations. Finally, the Ministry of Labor turned down my labor visa applications,” she said adding that this forced her to abandon her project. The businesswoman said that she had a similar bitter experience when she tried to obtain a second license, prompting her to leave the field of business altogether.
Al-Dabaan assured women entrepreneurs they are entitled for compensation in case they produce necessary documents in court that establish the fault of the licensing officials. He also underlined the need for establishing binding work contracts for Saudi employees to limit their leaving jobs without notice.


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