International Journal of Social Science & Economic Research
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Hussein Mubarak AL-Zakwani, Swadhin Kumar Mondal

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1Hussein Mubarak AL-Zakwani, 2Swadhin Kumar Mondal
1. Research Scholar, Department of Economics, University of Nizwa
2. Assistant Professor, Department of Economics, University of Nizwa

AL-Zakwani, Hussein Mubarak, and Swadhin Kumar Mondal. "SMALL AND MEDIUM ENTERPRISES IN OMAN: CHALLENGES AND OPPORTUNITIES." Int. j. of Social Science and Economic Research, vol. 4, no. 5, May 2019, pp. 3953-3970, Accessed May 2019.
AL-Zakwani, H., & Mondal, S. (2019, May). SMALL AND MEDIUM ENTERPRISES IN OMAN: CHALLENGES AND OPPORTUNITIES. Int. j. of Social Science and Economic Research, 4(5), 3953-3970. Retrieved from
AL-Zakwani, Hussein Mubarak, and Swadhin Kumar Mondal. "SMALL AND MEDIUM ENTERPRISES IN OMAN: CHALLENGES AND OPPORTUNITIES." Int. j. of Social Science and Economic Research 4, no. 5 (May 2019), 3953-3970. Accessed May, 2019.


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Small and medium enterprises (SMEs) are the integral part of economic development around the world. It generates value, contribute in country's GDP, create employment and bring new innovations. Many countries especially Arab world made a plan to diversify the economy. SMEs can play an apex role on diversification and economic development. However, SMEs are facing some serious challenges of access to finance, lack of knowledge & skill and administrative challenges. This study addressing the key challenges facing the SMEs and find out some remedies by using primary survey data collected from the selected SMEs in Oman. The study found that more than 34 percent have no required knowledge for doing business because majority of them have no proper training when start the business. Access to finance and lack of skill labour are also the crucial factors that affect the business. This study found that government credit facilities, labour laws and license issuing systems are not very business friendly. More than 20 percent SMEs reported that for getting approval of loan takes more than a year. Also more than 50 percent SMEs reported that they did not receive any benefit from the government because there is no specific quotas system for SMEs. As a result, in Oman, majorities of SMEs are not successful. Therefore it needs an urgent policy intervention to overcome these challenges. Proper laws should be enacted that would facilitate the process of banks issuing loans to banks. The government should work closely with small and medium enterprises to find out issues affecting their operations and helps them overcome the problems.