Impact of small and medium enterprises on Oman economy

Abstract

There is a great role of SMEs in the development of Oman. The Government of Oman is taking serious action to strengthen the SME sector in Oman. Although the SME sector has shown remarkable growth, but still there is potential for improvement. The role of SMEs is critical for the economy of the Sultanate of Oman. The government's focus on developing SMEs has the potential for improving economic diversification and creating employment. The government has initiated a number of measures to give this segment a boost, including tying up soft loans and extending financial guarantees. So it has become very important for a study to analyse the growth of SMEs and its impact on the economic growth of Oman. The growth of SMEs is calculated by the number of SMEs per 1,000 people per year. Data of 2010 to 2015 are used for analysis. We also used the data of percentage share of SMEs on the Oman GDP for the same years. The GDP of Oman is used as dependent variable. The yearly data of GDP from 2010 to 2015 is also calculated.