Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East

Abstract

SMEs are one of the leading solutions for reducing unemployment and poverty and boosting economic growth. Due to this, the determinants of the survival and success of SMEs have received increasing scrutiny in recent years. Empirical evidence has been uncovered in different countries. Enriching this growing body of evidence, this paper explores the internal and external factors that affect the survival and success of SMEs in the middle eastern country of Oman. We used a quantitative approach to collect the data by distributing a survey questionnaire among SME owners and prospective entrepreneurs. The survey was distributed in different industries throughout Oman. The findings, based on 344 responses, show that for SME survival and success, the education system needs intervention. Other areas of intervention include transforming Omani business culture, focusing on managerial skills, and improving the procedures required for establishing a business. These findings offer vital implications for Oman’s economy and for SME owners. The findings of this study can help policymakers make the appropriate interventions at various levels to enhance SME survival and success in Oman. The study also provides insights for existing and prospective entrepreneurs to bridge the skillset gaps to keep pace with ever-changing market demands.