Oman SMEs: Reality and Mechanisms of Development from the Perspective of Decision-Makers in Governmental and Private Institutions in the Light of Oman Vision 2040

Abstract

The study aimed at investigating the current situation of Omani small and medium enterprises (SMEs) and mechanism of their development. Data was collected by using a questionnaire consisting of (24) items distributed into (3) domains and semi-structured interview consisting of 3 questions.  The study sample consisted of (468) owners of SMEs and (28) of decision-makers in governmental institutions. 

The results showed that Oman SMEs contribution in the Omani GDP and employment is quite low compared to other developed and developing countries. It also showed that SMEs economic activities mainly focuses on service sector compared to industrial and agricultural sectors, which may not strongly support the achievement of Oman Vison 2040 priorities for economic diversification and enhancement of national GDP.   

The results also revealed that Oman SMEs face several challenges, such as financing and legislation-related challenges, hidden trade, complexity of procedures and strong competition. Thus, they strongly supported proposed mechanisms of developing the SMEs, such as finding new sources of financing, developing legislation and procedures, adopting industrial clusters, developing entrepreneurship basic and developed skills; creating initiatives for partnership between major companies and SMES and improvement of investment environment.