International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (1099-1103), Month: October 2019 - March 2020, Available at: www.researchpublish.com
Overview on the Current Status of SMEs in Oman: Challenges and Recommendations Khalid M. S. Al-Maadi1, K. Ramanathan2 Khalid.masaud.saleh.almaadi@hotmail.com1, k.ramanathan@limkokwing.edu.my2 1,2
Center of Post Graduate Center, Limkokwing University of Creative Technology, Cyberjaya, Malaysia
Abstract: Small & medium enterprises (SMEs) are very important and play great role in Oman economy. The SME sector has shown an incredible growing in the past few years in Oman and yet there is potential for more growing and improvement. However, SMEs contribution to the national economy is still relatively small. Moreover, limited research conducted on SMEs in Oman. This study aimed to highlight the current challenges faced in the SME sector in Oman based on the previous literature review in order to identify the current gaps and overcome the current obstacles. In spite of this, SMEs are still facing heaps of challenges and obstacles that deter them from further expanding their businesses and sustainable growth. Different challenges were highlighted related to different points of view such as social responsibilities in SMEs and women entrepreneurs. Keywords: small and medium enterprises, SME, Oman, Challenges.
I. INTRODUCTION In each country, small & medium enterprises (SMEs) are very important and play great role in its economy due to the contribution to increase the country’s economic and employment growth. The sultanate of Oman’s government is taking serious of actions to support and strengthen SME sector due to the critical economy role in the country. Even though the SME sector has shown incredible growth, but still there is potential for improvement. In Oman governments’ 2040 vision, creating economic diversification and private sector partnership is one of its economy pillars [1]. The SME sector is noteworthy growing in the past few years, and yet it still growing. According to the Public Authority for SME Development (Riyada), over 40,000 SMEs are currently registered and the number is keep increasing. Based on the current statistics, over 30500 micro enterprises, over 8900 small enterprises, over 3300 medium enterprises, and over 40 large enterprises are registered in Oman [2]. The following Fig. 1 presents the current registered enterprises in Oman.
Large
44
Medium
3311
Small
8988
Micro
30664 0
5000
10000
15000
20000
25000
30000
35000
Figure 1: Current statistics of registered enterprises in Oman
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