considering the statistics (Hassan and Kashif 2016).
According to SMEsDA, microenterprises include those firms
that have less than 10 employees working for them and have
a fixed turnover of Rs. 2.5 million.
Small enterprises are exceptionally significant to all
economies across the globe, but more so to developing
nations. He said that small enterprises not only contribute
toward economic output but also endorse the creation of
decent job opportunities. He believed that micro and small
enterprises are seeds for large-scale industries of the future
and directly play a part in boosting economies (Sayre 2016).
In the European Union, microenterprises are defined as
independent firms employing fewer than ten employees and
the annual turnover for this firm should not exceed two
million Euros. In other regions including the U.S., micro to
small enterprises includes firms constituting employees
fewer than 500.
Similarly, a small enterprise in Japan may be considered
as a large one in other developing regions of the world. In
Yemen, an enterprise employing fewer than four employees
is considered to be small, whereas in Jordan, the number of
employees between two and 10 qualify for a small enterprise
(Alia 2014). In Africa, small enterprises are further divided
into three tiers based upon the capital invested. These levels
include firms with capital less than 100 €, capital between
100–700 € and capital between 700–10,000 €.
In Algeria, firms with one to nine employees and an
annual turnover of fewer than 20 million dinars are considered to be small enterprises. In Indonesia, firms employing
less than 20 employees and in Ghana firms employing one to
four employees are classified as microenterprises. Hence, the
definition of micro and small enterprises primarily depends
upon government policies varying from country to country
(World Bank Group 2019).
A study conducted in Mekelle city demonstrated that
microenterprises are quite efficient in creating job opportunities for a significant number of individuals. The average
number of employees working in small enterprises was
seven, and this number showed an increment in the consecutive years (Hassan and Kashif 2016).
Ghazala analyzed microenterprises to find a sound linkage with development in the economy. She discovered that
micro firms provide employment to four to five individuals
on an average and are more labor-intensive. They not only
promote capital generation, but also contribute to the betterment of family welfare by providing Rs. 52–Rs. 59 thousand on a monthly basis.
Levitsky discovered that the microenterprises, even
though constituting a single self-employed individual, were
the main source of income for more than half of the population in developing nations. He also concluded that with the
help of considerable attention given to these micro setups by
the government, a huge difference was made in their
development.
The aforementioned literature review provides evidence
from different regions of the world, regarding the important
role, microenterprises play in countering unemployment and
boosting economic growth. Apart from this, micro and
small-scale enterprises are also crucial to the generation of
exports, technological advancement, and improvement of
skills and promotion of innovative thinking. To summarize,
microenterprises support and strengthen the part played by
the private sector in economic growth and contribute significantly to the national economy, especially when it comes
to developing countries. They are an effective solution to the
problem of unemployment and are capable of providing jobs
to a large range of the workforce belonging to different
backgrounds, acquiring diverse skill sets. These micro setups
inevitably ensure political and social stability and provide
create job opportunities for individuals that lack academic or
financial support to work or get employed.
4 Main Findings
4.1 Microenterprise Sector of Bahrain
Bahrain is situated in western shores of the Arabian Gulf,
covering the total land area of 765.3 km
2 . Within the entire
Arabian Gulf in 1930, oil was first discovered in Bahrain. It
is classified as a “high income economy” with Gross
National Income per capita of 42,930 PPP dollars, in 2017
and has a 1.493 million population. It also placed as 62nd in
World Bank’s 2019, “Ease of doing Business” rankings out
of 190 economies of the world (World Bank 2018).
As per an official report of the Ministry of Industry,
Commerce and Tourism of Bahrain, SMEs cater to almost
30% of Bahraini economy, with almost 6335 enterprises in
the whole country (Asharq Al-Awsat 2018). Also, among all
Gulf countries, Bahrain is particularly friendly with the
SMEs sector, as almost 99% of all of Bahrain’s businesses
fall under the SMEs category.
As mentioned in Table 1, microenterprises contain up to
10 employees, with the annual turnover of Bahraini Dinars
(BD) 50,000. In the case of small enterprises, six to 50
employees are considered, with the annual turnover of
Bahraini Dinars (BD) 50,0001–1 million. On the other hand,
medium enterprises contain 51–100 employees and have an
annual turnover of Bahraini Dinars (BD) 1,000,002–3
million.
From Table 2, it can be observed that microenterprises
hold a major part of SMEs in Bahrain, consisting 92.78%,
which shows that it provides employment to millions of
people. With further development in this sector, more
An Overview of Bahrain’s Microenterprises Role …
37
According to SMEsDA, microenterprises include those firms
that have less than 10 employees working for them and have
a fixed turnover of Rs. 2.5 million.
Small enterprises are exceptionally significant to all
economies across the globe, but more so to developing
nations. He said that small enterprises not only contribute
toward economic output but also endorse the creation of
decent job opportunities. He believed that micro and small
enterprises are seeds for large-scale industries of the future
and directly play a part in boosting economies (Sayre 2016).
In the European Union, microenterprises are defined as
independent firms employing fewer than ten employees and
the annual turnover for this firm should not exceed two
million Euros. In other regions including the U.S., micro to
small enterprises includes firms constituting employees
fewer than 500.
Similarly, a small enterprise in Japan may be considered
as a large one in other developing regions of the world. In
Yemen, an enterprise employing fewer than four employees
is considered to be small, whereas in Jordan, the number of
employees between two and 10 qualify for a small enterprise
(Alia 2014). In Africa, small enterprises are further divided
into three tiers based upon the capital invested. These levels
include firms with capital less than 100 €, capital between
100–700 € and capital between 700–10,000 €.
In Algeria, firms with one to nine employees and an
annual turnover of fewer than 20 million dinars are considered to be small enterprises. In Indonesia, firms employing
less than 20 employees and in Ghana firms employing one to
four employees are classified as microenterprises. Hence, the
definition of micro and small enterprises primarily depends
upon government policies varying from country to country
(World Bank Group 2019).
A study conducted in Mekelle city demonstrated that
microenterprises are quite efficient in creating job opportunities for a significant number of individuals. The average
number of employees working in small enterprises was
seven, and this number showed an increment in the consecutive years (Hassan and Kashif 2016).
Ghazala analyzed microenterprises to find a sound linkage with development in the economy. She discovered that
micro firms provide employment to four to five individuals
on an average and are more labor-intensive. They not only
promote capital generation, but also contribute to the betterment of family welfare by providing Rs. 52–Rs. 59 thousand on a monthly basis.
Levitsky discovered that the microenterprises, even
though constituting a single self-employed individual, were
the main source of income for more than half of the population in developing nations. He also concluded that with the
help of considerable attention given to these micro setups by
the government, a huge difference was made in their
development.
The aforementioned literature review provides evidence
from different regions of the world, regarding the important
role, microenterprises play in countering unemployment and
boosting economic growth. Apart from this, micro and
small-scale enterprises are also crucial to the generation of
exports, technological advancement, and improvement of
skills and promotion of innovative thinking. To summarize,
microenterprises support and strengthen the part played by
the private sector in economic growth and contribute significantly to the national economy, especially when it comes
to developing countries. They are an effective solution to the
problem of unemployment and are capable of providing jobs
to a large range of the workforce belonging to different
backgrounds, acquiring diverse skill sets. These micro setups
inevitably ensure political and social stability and provide
create job opportunities for individuals that lack academic or
financial support to work or get employed.
4 Main Findings
4.1 Microenterprise Sector of Bahrain
Bahrain is situated in western shores of the Arabian Gulf,
covering the total land area of 765.3 km
2 . Within the entire
Arabian Gulf in 1930, oil was first discovered in Bahrain. It
is classified as a “high income economy” with Gross
National Income per capita of 42,930 PPP dollars, in 2017
and has a 1.493 million population. It also placed as 62nd in
World Bank’s 2019, “Ease of doing Business” rankings out
of 190 economies of the world (World Bank 2018).
As per an official report of the Ministry of Industry,
Commerce and Tourism of Bahrain, SMEs cater to almost
30% of Bahraini economy, with almost 6335 enterprises in
the whole country (Asharq Al-Awsat 2018). Also, among all
Gulf countries, Bahrain is particularly friendly with the
SMEs sector, as almost 99% of all of Bahrain’s businesses
fall under the SMEs category.
As mentioned in Table 1, microenterprises contain up to
10 employees, with the annual turnover of Bahraini Dinars
(BD) 50,000. In the case of small enterprises, six to 50
employees are considered, with the annual turnover of
Bahraini Dinars (BD) 50,0001–1 million. On the other hand,
medium enterprises contain 51–100 employees and have an
annual turnover of Bahraini Dinars (BD) 1,000,002–3
million.
From Table 2, it can be observed that microenterprises
hold a major part of SMEs in Bahrain, consisting 92.78%,
which shows that it provides employment to millions of
people. With further development in this sector, more
An Overview of Bahrain’s Microenterprises Role …
37