Impact of policies vis‐à‐vis small and medium enterprises (SMEs) on economic development of the border city of Al Buraimi in Oman

Abstract

AbstractSince the industrial revolutions in Europe and the USA, the small and medium enterprises (SMEs) have been considered as the backbone of the economies. Apart from being blessed with huge reserves of natural resources, Oman enjoys certain location‐related advantages. Furthermore, it is also one of the key members of the Gulf Cooperation Council (GCC). All these factors open new doors and strongly pave the way for new ventures to be launched particularly in the small and medium enterprises sector of the economy. This study aims to highlight the role of small and medium enterprises in the economic development of the Al‐Buraimi Governorate in Oman. It also examines the effectiveness of economic policies vis‐à‐vis SMEs success stories. It also highlights the role of the investment environment for the SME sector in Al‐Buraimi. A randomly selected sample of 57 SMEs stockholders is used to obtain an understanding of the impact of the economic policies for SME sector on the economy in the Al‐Buraimi Governorate. The results show that the ownership structure can be a factor for survival in SMEs. As the manufacturing and household businesses make up the largest portion of the SME sector in Oman, the government policies may promulgate other businesses in the service sector like trade, tourism, logistics, etc. The stringent regulations and complicated administrative procedures being the major reported factors, the policy‐makers may focus more upon such challenges for accelerating the development and contribution of SME sector in the regional economic development. This study enriches the literature and proves helpful for Omani policy‐makers.