also reduce costs in terms of transportation of resources and
raw materials (World Bank 2017). Women are a significant
part of microenterprises. Encouraging them to work by
educating them will not only promote women empowerment
but will also eventually improve the area’s GDP per capita
with an increase in the number of working class. Besides
empowering women, it promotes the betterment of the
society as it is. It is also important to reinforce the significance of the nonagricultural sector and people should be
encouraged to work in village-based industries rather than
just relying on farming. Last but not least, the government
should help create awareness about market opportunities,
improved technological setup, and skills that would be
beneficial to these microenterprises. This could be done by
organizing trade fairs and exhibitions, organizing buyer–
seller meetings, collaborating with large-scale firms, creating
awareness and publicizing (Wagner 2014).
7 Conclusion
Micro and small enterprises are recognized all across the
globe for their unique influences on economic growth and
their role in countering unemployment. It is safe to say that
micro and small enterprises are the backbone of both
developed and developing nations around the world and
hence particular attention should be given to this sector in
order to work on its betterment to fully exploit its potential.
In Bahrain, microenterprises represent more than 93% of
the total enterprises. Although, Bahrain government is quite
serious regarding the development of the SMEs sector, still,
there is lot of room for improvement. Many microenterprises
are facing capital issues, which should be resolved by government. Unemployment can also be alleviated only by the
development of the SMEs sector.
No doubt, Bahrain has invested in constructing a business
support environment for SMEs development. It also was in
the forefront to find new and innovative ways to provide
support to the SMEs sector in the form of capital and flexible
laws. Despite all the measures, the Bahraini government is
still facing some issues in development of the SMEs sector,
and thus there is also a significant percentage of unemployed
people in Bahrain.
As a whole, this research paper clearly outlines the seriousness of the problem that unemployment is and how
microenterprises in Bahrain play a significant role in countering it. This also provides extensive evidence through literature review from different regions of the world which
demonstrates how microenterprise setups have helped create
job opportunities, promote economic growth, promote
innovative thinking, and improve economies as a whole.
8 Recommendations
This paper covers unemployment as a problem affecting
economy of Bahrain and how microenterprises in the
underlying country can act as a major tool to counter it.
However, further work needs to be done in order to lay down
effective policies to implement the efficient set up of
microenterprises, especially in low-income settings. Further
research needs to be done regarding the factors that pose a
major challenge in the development of these small-scale
enterprises and ways to counter them should be discussed.
Research work including literature, targeting unemployment,
and efficacy of microenterprises in these regions can give
more direction to the topic.
The government of Bahrain should provide its focus to
increase their capital which will also reduce the country’s
unemployment. Advancement in technology has also
increased which reduces the need of people because technology performs more efficient work as compared to individuals. Microenterprises play an essential role in providing
more jobs to people and providing a positive contribution to
the economy of Bahrain. The government must reduce
barriers from microenterprises so that they can easily start
their businesses.
The government should also find more ways to reduce the
capital shortage and establish laws and regulations to support
the microenterprises. Tamkeen should also increase its pace
for development of SMEs. All the institutions should work
together for the growth of the SMEs sector, ultimately
contributing to the reduction of unemployment. The government can also initiate interest-free loan schemes for the
SME sector to encourage them to grow their business.
References
Alia, Y. A. (2014). The effectiveness of small and medium enterprises
adoption as a strategic option to solve unemployment problem in
the Arab World, an example of Algeria. International Journal of
Business and Social Science, 5(4).
Alrayes, S., & Abu Wadi, R. (2018, January). Determinants of
unemployment in Bahrain. International Journal of Business and
Social Science, 9(10).
Arabian Business. (2017, May 12). $100 m fund launched in
Bahrain to help SMEss growth. Retrieved from https://www.
arabianbusiness.com/-100m-fund-launched-in-bahrain-help-smesgrowth-673606.html.
Asharq Al-Awsat. (2018, January 23). Bahrain: Plan to develop more
than 6,300 SMEss. Retrieved from https://aawsat.com/english/
home/article/1152416/bahrain-plan-develop-more-6300-smes.
Bahrain Economic Development Bank. (2018). Invest in experience.
Financial services in Bahrain. EDB Bahrain.
Economic Development Bank Bahrain. (2017). Annual report.
Edinburgh Group. (2018). Growing the global economy through
SMEss.
40
H. Alawsi
raw materials (World Bank 2017). Women are a significant
part of microenterprises. Encouraging them to work by
educating them will not only promote women empowerment
but will also eventually improve the area’s GDP per capita
with an increase in the number of working class. Besides
empowering women, it promotes the betterment of the
society as it is. It is also important to reinforce the significance of the nonagricultural sector and people should be
encouraged to work in village-based industries rather than
just relying on farming. Last but not least, the government
should help create awareness about market opportunities,
improved technological setup, and skills that would be
beneficial to these microenterprises. This could be done by
organizing trade fairs and exhibitions, organizing buyer–
seller meetings, collaborating with large-scale firms, creating
awareness and publicizing (Wagner 2014).
7 Conclusion
Micro and small enterprises are recognized all across the
globe for their unique influences on economic growth and
their role in countering unemployment. It is safe to say that
micro and small enterprises are the backbone of both
developed and developing nations around the world and
hence particular attention should be given to this sector in
order to work on its betterment to fully exploit its potential.
In Bahrain, microenterprises represent more than 93% of
the total enterprises. Although, Bahrain government is quite
serious regarding the development of the SMEs sector, still,
there is lot of room for improvement. Many microenterprises
are facing capital issues, which should be resolved by government. Unemployment can also be alleviated only by the
development of the SMEs sector.
No doubt, Bahrain has invested in constructing a business
support environment for SMEs development. It also was in
the forefront to find new and innovative ways to provide
support to the SMEs sector in the form of capital and flexible
laws. Despite all the measures, the Bahraini government is
still facing some issues in development of the SMEs sector,
and thus there is also a significant percentage of unemployed
people in Bahrain.
As a whole, this research paper clearly outlines the seriousness of the problem that unemployment is and how
microenterprises in Bahrain play a significant role in countering it. This also provides extensive evidence through literature review from different regions of the world which
demonstrates how microenterprise setups have helped create
job opportunities, promote economic growth, promote
innovative thinking, and improve economies as a whole.
8 Recommendations
This paper covers unemployment as a problem affecting
economy of Bahrain and how microenterprises in the
underlying country can act as a major tool to counter it.
However, further work needs to be done in order to lay down
effective policies to implement the efficient set up of
microenterprises, especially in low-income settings. Further
research needs to be done regarding the factors that pose a
major challenge in the development of these small-scale
enterprises and ways to counter them should be discussed.
Research work including literature, targeting unemployment,
and efficacy of microenterprises in these regions can give
more direction to the topic.
The government of Bahrain should provide its focus to
increase their capital which will also reduce the country’s
unemployment. Advancement in technology has also
increased which reduces the need of people because technology performs more efficient work as compared to individuals. Microenterprises play an essential role in providing
more jobs to people and providing a positive contribution to
the economy of Bahrain. The government must reduce
barriers from microenterprises so that they can easily start
their businesses.
The government should also find more ways to reduce the
capital shortage and establish laws and regulations to support
the microenterprises. Tamkeen should also increase its pace
for development of SMEs. All the institutions should work
together for the growth of the SMEs sector, ultimately
contributing to the reduction of unemployment. The government can also initiate interest-free loan schemes for the
SME sector to encourage them to grow their business.
References
Alia, Y. A. (2014). The effectiveness of small and medium enterprises
adoption as a strategic option to solve unemployment problem in
the Arab World, an example of Algeria. International Journal of
Business and Social Science, 5(4).
Alrayes, S., & Abu Wadi, R. (2018, January). Determinants of
unemployment in Bahrain. International Journal of Business and
Social Science, 9(10).
Arabian Business. (2017, May 12). $100 m fund launched in
Bahrain to help SMEss growth. Retrieved from https://www.
arabianbusiness.com/-100m-fund-launched-in-bahrain-help-smesgrowth-673606.html.
Asharq Al-Awsat. (2018, January 23). Bahrain: Plan to develop more
than 6,300 SMEss. Retrieved from https://aawsat.com/english/
home/article/1152416/bahrain-plan-develop-more-6300-smes.
Bahrain Economic Development Bank. (2018). Invest in experience.
Financial services in Bahrain. EDB Bahrain.
Economic Development Bank Bahrain. (2017). Annual report.
Edinburgh Group. (2018). Growing the global economy through
SMEss.
40
H. Alawsi