MINISTRY OF MANPOWER

IBRA COLLEGE OF THECHNOLOGY

DEPARTMENT OF BUSINESS STUDENT

Role of SMEs in economic development of Oman

Submitted by

Qasim Suliaman Saliyyem Alhasani

Ali Abdullah Saeed Alaamri

Supervisor

Dr.Salma Said Humaid Alnaamani

Semester 2, 2019-2020

1. Your Project Title 3. Project Learning Objectives

Role of SMEs in economic To examine the impact and role of SMEs in the national economy,To
development of Oman
identify the challenges and the chances that SMEs get in Oman and To

find out if there is any suggestions from concerned ministries to

develop SMEs sector.

RQ

What are the logical role of SMEs in Oman and its impact on the

economy in Oman?

What are the challenges that may face by SMEs in Oman?

What are the chances that SMEs get in Oman?

What are suggestions and solutions a for further could be provided by

concerned ministries and institutions in Oman to develop the SMEs in
sultanate of Oman could provide solution for further development?

2. Purpose of the Project and the Reasons for Choosing It.

In order to reduce the economic stagnation and high unemployment, the role of small and medium enterprises has
begun to emerge. The purpose of the study is to cover the role played by small and medium enterprises and their
impact on economic growth and development in Oman as well as finding the challenges that stand in the face of
small and medium enterprises in the Sultanate of Oman and the activities supporting these projects. Nowadays
after seen benefit of it most government gone on to expand and diversification those enterprises (SMEs), which
lead to give raise self-employment of small companies than the growth large companies because of SMEs are
grater dense-worker. Vision Oman 2020 looking to reach a sustainable and diversified economy1 also tries to keep
income of individual within flexible in economic progress. The events that happen today in Oman is require
making proper studying about SMEs and clarification it role to development economics of Oman.

4. Sources of Data 5. Relevant Past Studies

1
Planning, S.C. (1995).The Supreme Council for Planning. Retrieved 1 23, 2019
https://www.scp.gov.om/en/Page.aspx?I=14
In our research, we will use primary and
secondary sources of data collection. The
primary data will be collecting through
interview and the secondary data will be
collect through old related studies and
website of concerned ministries and
center of statistic and information.
2
Harb byan. (2006). the Role of Small and Medium Enterprises in Economic and Social Development: The
In 2006, Dr. Bayan herby conducted study about the role of SMEs in
development Economic and social development in Syrian.2 The main
objective of the study in this field is to improve the reality of these
projects by focusing on the achievement of a SMEs style for them and
the definition of barriers to work growth and development. The
researcher was collected data through fieldwork by interviewing about
SMEs within interested parties such as Chamber of Industry and
Commerce and the Syrian Craftsmen Association. This had based on
three hypotheses, including that the Syrian government provides
elements to activate these projects and there are many obstacles to
these projects and the possibility of activating these projects on large
projects. However, the results revealed that there are many obstacles
and difficulties faced by these projects in Syria and these difficulties
or sanctions, including the absence of direct relations between the
competent authorities, laws, and legislation to help in the
establishment of small and medium enterprises, high interest rate in
loans and increase the rate of competition.
In 2008, Karbala University published a scientific study of nashat
Majid Hansen alwandawi3, which focuses on the importance of small
and medium enterprises in the economic development and ways to
promote them in Iraq. The aim of the study was to clarify the role and
importance of these projects in many countries and to know the
mechanisms of the other countries, helped them to the success of their
experiences and the possibility of benefiting from them in Iraq. The
results obtained by researcher high that there is great importance to
these projects for their role in building the economy.
Blossom Christina et al, (2014) 4conducted study about challenges and
barriers encountered by the SMEs owners in Muscat. The main
objective of the study was to explore the challenges facing small and
medium-sized enterprises. A simple random sample with the size of
the sample data from 35 owners of SMEs with using structured
questionnaire. Descriptive statistics, tables and AnovA analyzed the
data. The results found by the researchers are that the SMEs owner
face challenges in the form of policy and management.
Badriya Hilal Said Al Bulushi et al, (2017) growth strategies of
SME in Oman issues and challenges5 .The objectives of this research
were to identify the current growth strategies of SMEs in Oman and to
describe challenges. These projects used to simplify the light of how
SMEs manage them and overcome the challenges and issues to
implement these growth strategies. The researchers investigated
quantitative and qualitative research, quantified use of the
questionnaire in order to collect data, and used directed interviews.
They found that SMEs had challenges in financial constraints due to
the lack of credit to expand and grow these projects and the constraints
of procrastination as lack of marketing knowledge and these projects
do not possess sufficient skills.
6. Proposed Methodology 7. Anticipated Problems

Twenty experts in the concerned ministries and Rufd  Our study Costly because we look
Fund, directorate general of SMEs in three
Governorates which are Muscat ,Al Sharqiyah and to conduct interview to collect data
Al Dakhiliyah are taking as part in this study to
reach our research objectives and will represent all so we need to travel form Ibra to
SMEs in Oman . We are using mixed type of
research. Muscat.
We will provide some important hypothesis in our
research, which are null and alterative:  Difficult to reach some of

H0: There is no significant relation between role of information that consume allot of
SMEs and economic development in Oman.
H1: There is significant relation between role of time to find.
SMEs and economic development in Oman.
H2: SMEs have negative challenges while starting in
Oman.

H 3: There are no significant relation between

chances give by government of Oman and
challenges faced by SMEs in Oman.

H4: Concerned ministries have given positive

suggestion to SMEs owner.

Syrian Experience. Journal of Damascus University for Economic and Legal Sciences - Volume 22 - Issue 2 -.
http://www.damascusuniversity.edu.sy/mag/law/images/stories/2-20006/a/111-129.pdf
3
Alwandawi, n. M. (2008). the importance of small and medium enterprises in the economic development and
ways to promote them in Iraq. Journal of the University of Karbala Scientific - Volume VI - Number III / scientific
/ , 1-131.
4
Blossom, A. N. (September 2014). CHALLENGES AND BARRIERS ENCOUNTERED BY THE SMES OWNERS IN .
International Journal of Small Business and Entrepreneurship Research , 1-13. http://www.eajournals.org/wp-
content/uploads/Challenges-and-Barriers-Encountered-By-the-SMES-Owners-in-Muscat.pdf .

5
Al Bulushi, B. H. S., & Bagum, S. (2017). Growth strategies of sme in Oman-Issues and challenges.
International Journal of Small Business and Entrepreneurship Research, 5(2), 21-61.
http://www.eajournals.org/wp-content/uploads/Growth-Strategies-of-SME-in-Oman-Issues-and-
Challenges.pdf

6
Karadag, H. (2016). The Role of SMEs and Entrepreneurship on Economic Growth in Emerging Economies
within the Post-Crisis Era: An Analysis from Turkey. Journal of Small Business and Entrepreneurship
Development, 4(1), 22-31
https://www.researchgate.net/publication/314074436_The_Role_of_SMEs_and_Entrepreneurship_on_Econo
mic_Growth_in_Emerging_Economies_within_the_Post-Crisis_Era_an_Analysis_from_Turkey
Outline of Chapters

 Rationale of the study

 Statement of the problem
Chapter1 introduction  objectives of the study
 Research questions
 Scope and limitation
 Significance of the study
 Definitions of terms
Chapter 2 literature review  Related literature
 Conceptual framework
 Research gap

Chapter 3 research methodology  Type of research

 Research design
 Research respondents
 Research instruments
 Research procedure
 Gathering of data
 Treatment of data

Chapter 4 presentation, analysis, and interpretation Duration of chapters:

of data
The overall time scale starting on 15 Jan
Chapter 5 finding & discussion 2019, and ends on 20 Mar 2019.
We will complete first three chapters
Chapter 6 conclusion & recommendation From 27Jan 2019
collecting primary data Between 20-21 Feb
References 2019

Data analyzing and Expecting date of

writing full report starting from 10-19 Mar
2019

Submission of full report will be on 20th Mar

2019
References:

Al Bulushi, B. H. S., & Bagum, S. (2017). Growth strategies of sme in Oman-Issues and
challenges. International Journal of Small Business and Entrepreneurship Research, 5(2),
21-61. http://www.eajournals.org/wp-content/uploads/Growth-Strategies-of-SME-in-Oman-
Issues-and-Challenges.pdf

Alwandawi, n. M. (2008). the importance of small and medium enterprises in the economic
development and ways to promote them in Iraq. Journal of the University of Karbala
Scientific - Volume VI - Number III / scientific / , 1-131.

Blossom, A. N. (September 2014). CHALLENGES AND BARRIERS ENCOUNTERED BY

THE SMES OWNERS IN . International Journal of Small Business and Entrepreneurship
Research , 1-13. http://www.eajournals.org/wp-content/uploads/Challenges-and-Barriers-
Encountered-By-the-SMES-Owners-in-Muscat.pdf .

Harb byan. (2006). the Role of Small and Medium Enterprises in Economic and Social
Development: The Syrian Experience. Journal of Damascus University for Economic and
Legal Sciences - Volume 22 - Issue 2 -.
http://www.damascusuniversity.edu.sy/mag/law/images/stories/2-20006/a/111-129.pdf

Karadag, H. (2016). The Role of SMEs and Entrepreneurship on Economic Growth in

Emerging Economies within the Post-Crisis Era: An Analysis from Turkey. Journal of Small
Business and Entrepreneurship Development, 4(1), 22-31
https://www.researchgate.net/publication/314074436_The_Role_of_SMEs_and_Entrepreneur
ship_on_Economic_Growth_in_Emerging_Economies_within_the_Post-
Crisis_Era_an_Analysis_from_Turkey