An Overview of Bahrain’s Microenterprises
Role in Eliminating Unemployment
Husham Alawsi
Abstract
Unemployment is one of the most significant communal,
humanitarian, and economic issues that prevail in almost
all the developing and several developed countries across
the globe. It’s identified as one of the major factors that
deter economic growth and development. Microenterprises play a pivotal role in generating employment
opportunities, especially in countries with low income per
capita. Small-scale enterprises are found to be more
efficient in creating employment and generating income.
They also provide help in boosting the economy during
the economic crisis. In Bahrain, microenterprises also
show 99% of all the commercial industry, registered. As a
whole, the microenterprises sector contributes approximately 28% in the Gross Domestic Product (GDP) of
Bahrain. Despite huge significance of microenterprises in
Bahrain, there is not much researched or studied about
them. The purpose of the study is to provide a complete
overview of the SME sector of Bahrain, including its role
in eradicating unemployment, so that economic growth
can take place. This paper is quite beneficial for the
individuals of Bahrain, for providing guidance, regarding
the role of SMEs in reducing unemployment. This paper
defines that unemployment is a big problem but microenterprises in Bahrain play a positive role in reducing it. The
information for this paper is collected from research
papers, articles, and books which describe the role of
small enterprises in reducing unemployment. Microenterprises in Bahrain reduce the negative effects of
unemployment and also improve the standard of living.
This paper also attempts to explore the main aspects of
the current debate on the regulation and supervision of
microfinance in Bahrain, along with arguments related to
regulation and supervision of microfinance. In order to
reach its full potential and further grow as a credible
development tool in Bahrain, the microfinance industry
must eventually be able to enter in the area of licensed,
supervised financial intermediation to be able to capture
and minimize any financial crises or crimes that may
possibly occur. Steps to promote their establishment,
especially in low socioeconomic settings are also
included.
Keywords
Unemployment Á Microenterprises Á Bahrain Á Small
and medium enterprises (SMEs)
1 Introduction
In developing and developed countries, the role of
microenterprises as the main source of economic growth and
the creation of employment opportunities has been
acknowledged by all the economic and social policy
researchers and makers. Also, in Bahrain, the idea of economic growth and unemployment are considered to be the
most important, when policy makers discuss economic
policies. Currently, employment opportunities and increasing the rate of economic growth are considered as important
issues. As per the Labor Market Regulatory Body, almost
90% of registered companies have less than 10 employees in
Bahrain, and approximately 98% of them employed less than
50 people each. This shows that the economy of Bahrain
mainly depends upon its microenterprises sector. Thus, this
can play a pivotal role in the success of Bahrain’s economy
(Oxford Business Group 2018).
Unemployment demonstrates the fraction of people who
are capable of and are willing to work, but are unable to find
relevant jobs. The major reason for people to be unemployed
in Bahrain is the inadequateness of capital and investments.
Technological advancement has introduced more sophisticated machinery that requires less handling and manpower
for operations, hence depleting job opportunities in the
H. Alawsi (&)
Royal University for Women, West Riffa, Kingdom of Bahrain
e-mail: halawsi@ruw.edu.bh
© Springer Nature Switzerland AG 2020
M. Mateev and J. Nightingale (eds.), Sustainable Development and Social Responsibility—Volume 1,
Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-030-32922-8_4
35
Role in Eliminating Unemployment
Husham Alawsi
Abstract
Unemployment is one of the most significant communal,
humanitarian, and economic issues that prevail in almost
all the developing and several developed countries across
the globe. It’s identified as one of the major factors that
deter economic growth and development. Microenterprises play a pivotal role in generating employment
opportunities, especially in countries with low income per
capita. Small-scale enterprises are found to be more
efficient in creating employment and generating income.
They also provide help in boosting the economy during
the economic crisis. In Bahrain, microenterprises also
show 99% of all the commercial industry, registered. As a
whole, the microenterprises sector contributes approximately 28% in the Gross Domestic Product (GDP) of
Bahrain. Despite huge significance of microenterprises in
Bahrain, there is not much researched or studied about
them. The purpose of the study is to provide a complete
overview of the SME sector of Bahrain, including its role
in eradicating unemployment, so that economic growth
can take place. This paper is quite beneficial for the
individuals of Bahrain, for providing guidance, regarding
the role of SMEs in reducing unemployment. This paper
defines that unemployment is a big problem but microenterprises in Bahrain play a positive role in reducing it. The
information for this paper is collected from research
papers, articles, and books which describe the role of
small enterprises in reducing unemployment. Microenterprises in Bahrain reduce the negative effects of
unemployment and also improve the standard of living.
This paper also attempts to explore the main aspects of
the current debate on the regulation and supervision of
microfinance in Bahrain, along with arguments related to
regulation and supervision of microfinance. In order to
reach its full potential and further grow as a credible
development tool in Bahrain, the microfinance industry
must eventually be able to enter in the area of licensed,
supervised financial intermediation to be able to capture
and minimize any financial crises or crimes that may
possibly occur. Steps to promote their establishment,
especially in low socioeconomic settings are also
included.
Keywords
Unemployment Á Microenterprises Á Bahrain Á Small
and medium enterprises (SMEs)
1 Introduction
In developing and developed countries, the role of
microenterprises as the main source of economic growth and
the creation of employment opportunities has been
acknowledged by all the economic and social policy
researchers and makers. Also, in Bahrain, the idea of economic growth and unemployment are considered to be the
most important, when policy makers discuss economic
policies. Currently, employment opportunities and increasing the rate of economic growth are considered as important
issues. As per the Labor Market Regulatory Body, almost
90% of registered companies have less than 10 employees in
Bahrain, and approximately 98% of them employed less than
50 people each. This shows that the economy of Bahrain
mainly depends upon its microenterprises sector. Thus, this
can play a pivotal role in the success of Bahrain’s economy
(Oxford Business Group 2018).
Unemployment demonstrates the fraction of people who
are capable of and are willing to work, but are unable to find
relevant jobs. The major reason for people to be unemployed
in Bahrain is the inadequateness of capital and investments.
Technological advancement has introduced more sophisticated machinery that requires less handling and manpower
for operations, hence depleting job opportunities in the
H. Alawsi (&)
Royal University for Women, West Riffa, Kingdom of Bahrain
e-mail: halawsi@ruw.edu.bh
© Springer Nature Switzerland AG 2020
M. Mateev and J. Nightingale (eds.), Sustainable Development and Social Responsibility—Volume 1,
Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-030-32922-8_4
35