employment opportunities can be created. Also, Jafar
al-Sayegh, member of Bahrain Economists Association, said
that the SMEs sector holds 28–30% of Bahraini economy
and can play an important role in reducing the
unemployment.
4.2 Main Organizations in Bahrain
Over the last few years, the Bahrain government has brought
many changes in SMEs sector regulations. Initially, mainly
two organizations, Tamkeen and Labor Market Regulatory
Authorities (LMRA); was overseeing the SMEs sector.
Recently, His Royal Highness Prince Salman Bin Hamad
Al-Khalifa introduced an SMEs Development Board to
coordinate with the Ministry of Industry, Commerce and
Tourism, Tamkeen, Bahrain Development Bank and Bahrain
Chamber of Commerce and Industry (BCCI). It aims to
foster the economic growth of microenterprises and assist
with the creation of more jobs and increase GCP
contributions.
The current government has also introduced an Integrated
Tasks Plan to develop the SMEs sector over the next five
years. This plan will focus on accessing market and finance,
streamlining the business environment and fostering skills
developments for reducing unemployment.
In 2006, Tamkeen was formed as national reform in
Bahrain, mainly for support and development of the private
sector, including individuals and enterprises, in order to
enhance their growth and productivity. It was classified into
two levels; individual support programs and enterprises
support programs (ESP). ESP aims to provide support to
existing and new businesses through different types of
schemes, including Tasweeq (marketing support), Tarweej
(support in exhibitions) along with many others (Saad Znad
Darwish 2014).
In 2017, a $100 million fund was launched in Bahrain for
the SMEs sector. This initiative was taken by Tamkeen with
the collaboration of Ibdar Bank and Islamic Corporation for
Development (ICD) (Arabian Business 2017).
The CEO of Tamkeen, Dr. Ebrahim Mohammed Janahi
said, “Through this partnership, we aim to provide further
support to enterprises in the kingdom, to achieve their
highest potentials.”
A substantial amount of work has been done over the
years to prove that micro and small-scale enterprises play a
pivotal role in alleviating unemployment. Last year, Industry, Commerce and Tourism Minister of Bahrain, Zyed Bin
Rashid al-Zayani introduced a national plan, along with the
collaboration of Economic Development Board, Bahrain
Development Bank, and Tamkeen, to further develop the
microenterprise sector of Bahrain. This plan will focus on all
the axes of the sector, including the legislative aspects. He
further assures that this new plan will increase the capability
of the SMEs sector and thus, there will be more creation of
jobs (Economic Development Bank Bahrain 2017).
5 Challenges Identified
One of the major challenges faced by micro and small-scale
enterprises in Bahrain include the lack of leadership. Most
small-scale firm owners are not properly trained when it
comes to exercising leadership skills. Given the challenges
of running a business and leading a workforce, it isn’t
exactly easy to manage all the matters without being skilled
to do so. Also, Bahrain micro and small-scale enterprises
lack a sound organizational setup. Owners of these firms
Table 1 Definition of SMEs in
the Kingdom of Bahrain
Category
Number of employees
Annual turnover (Bahraini Dinars)
Micro
Up to 5
1–50,000
Small
6–50
50,001–1 million
Medium
51–100
1,000,001–3 million
Source Ministry of Industry, Commerce and Tourism (2018)
Table 2 Distribution of different
enterprises in Bahrain
Category
Number of enterprises
Portion of enterprises (%)
Microenterprises
85,000
92.78
Small enterprises
5485
5.99
Average enterprises
950
1.04
Large enterprises
176
0.19
Total
91,611
Source Asharq Al-Awsat (2018)
38
H. Alawsi
al-Sayegh, member of Bahrain Economists Association, said
that the SMEs sector holds 28–30% of Bahraini economy
and can play an important role in reducing the
unemployment.
4.2 Main Organizations in Bahrain
Over the last few years, the Bahrain government has brought
many changes in SMEs sector regulations. Initially, mainly
two organizations, Tamkeen and Labor Market Regulatory
Authorities (LMRA); was overseeing the SMEs sector.
Recently, His Royal Highness Prince Salman Bin Hamad
Al-Khalifa introduced an SMEs Development Board to
coordinate with the Ministry of Industry, Commerce and
Tourism, Tamkeen, Bahrain Development Bank and Bahrain
Chamber of Commerce and Industry (BCCI). It aims to
foster the economic growth of microenterprises and assist
with the creation of more jobs and increase GCP
contributions.
The current government has also introduced an Integrated
Tasks Plan to develop the SMEs sector over the next five
years. This plan will focus on accessing market and finance,
streamlining the business environment and fostering skills
developments for reducing unemployment.
In 2006, Tamkeen was formed as national reform in
Bahrain, mainly for support and development of the private
sector, including individuals and enterprises, in order to
enhance their growth and productivity. It was classified into
two levels; individual support programs and enterprises
support programs (ESP). ESP aims to provide support to
existing and new businesses through different types of
schemes, including Tasweeq (marketing support), Tarweej
(support in exhibitions) along with many others (Saad Znad
Darwish 2014).
In 2017, a $100 million fund was launched in Bahrain for
the SMEs sector. This initiative was taken by Tamkeen with
the collaboration of Ibdar Bank and Islamic Corporation for
Development (ICD) (Arabian Business 2017).
The CEO of Tamkeen, Dr. Ebrahim Mohammed Janahi
said, “Through this partnership, we aim to provide further
support to enterprises in the kingdom, to achieve their
highest potentials.”
A substantial amount of work has been done over the
years to prove that micro and small-scale enterprises play a
pivotal role in alleviating unemployment. Last year, Industry, Commerce and Tourism Minister of Bahrain, Zyed Bin
Rashid al-Zayani introduced a national plan, along with the
collaboration of Economic Development Board, Bahrain
Development Bank, and Tamkeen, to further develop the
microenterprise sector of Bahrain. This plan will focus on all
the axes of the sector, including the legislative aspects. He
further assures that this new plan will increase the capability
of the SMEs sector and thus, there will be more creation of
jobs (Economic Development Bank Bahrain 2017).
5 Challenges Identified
One of the major challenges faced by micro and small-scale
enterprises in Bahrain include the lack of leadership. Most
small-scale firm owners are not properly trained when it
comes to exercising leadership skills. Given the challenges
of running a business and leading a workforce, it isn’t
exactly easy to manage all the matters without being skilled
to do so. Also, Bahrain micro and small-scale enterprises
lack a sound organizational setup. Owners of these firms
Table 1 Definition of SMEs in
the Kingdom of Bahrain
Category
Number of employees
Annual turnover (Bahraini Dinars)
Micro
Up to 5
1–50,000
Small
6–50
50,001–1 million
Medium
51–100
1,000,001–3 million
Source Ministry of Industry, Commerce and Tourism (2018)
Table 2 Distribution of different
enterprises in Bahrain
Category
Number of enterprises
Portion of enterprises (%)
Microenterprises
85,000
92.78
Small enterprises
5485
5.99
Average enterprises
950
1.04
Large enterprises
176
0.19
Total
91,611
Source Asharq Al-Awsat (2018)
38
H. Alawsi