“Navigating Challenges: A Comprehensive Study on the Operational Hurdles Faced by SMEs in Oman, with a Focus on Technology Adoption and Policy Impact”
Small and Medium Enterprises (SMEs) play a pivotal role in fostering economic growth, innovation, and employment opportunities. However, the journey of SMEs is often marked by various challenges, especially in the context of adopting new technologies and navigating through regulatory frameworks. This study aims to critically investigate the multifaceted challenges faced by SMEs in Oman, shedding light on their difficulties in embracing technological advancements and understanding the impact of policies and procedures on their operations.
The Purpose of the Study:
The primary objectives of this study are threefold: firstly, to conduct a critical examination of the challenges encountered by SMEs in Oman; secondly, to analyze the difficulties faced by these enterprises during the adoption of new technologies; and thirdly, to scrutinize the impact of policies and procedures on SMEs. The study delves into these aspects with the intention of providing valuable insights into the hurdles that SMEs face in their operational landscapes.
Methodology:
Purposive sampling methodology was employed for this research study, aiming to collect comprehensive and representative data. A well-structured questionnaire was utilized to gather responses from 257 SMEs across Oman. The data collected underwent thorough recording, tabulation, and summarization. Statistical tests, including Chi-square tests, Kolmogorov-Smirnov tests, and regression analysis, were employed to derive meaningful results from the dataset.
Findings:
The findings of the study reveal that a significant number of respondents experienced delays in commencing their businesses due to financial constraints. Additionally, the study highlights the pressing need for technical support during the initial stages of SME establishment, emphasizing the importance of support in establishing robust IT infrastructure. These findings underscore the challenges faced by SMEs in securing adequate financial resources and navigating the complexities of technology adoption.
Research Limitations/Implications:
While the study provides valuable insights, it is important to acknowledge certain limitations. The research suggests that substantial support from the General Authority for SMEs could facilitate a smoother transition for SMEs during the setup phase. Moreover, interim financial advances from institutions can play a crucial role in mitigating time lags in business commencement.
Social Implications:
The study recommends increased governmental monitoring and follow-up on SMEs to prevent units from facing challenges that may lead to failure. Additionally, providing technical support, guidance, and nursing support for struggling SMEs can contribute to their sustained success. Simplifying the licensing process through a single-window system is also suggested to promote the ease of doing business for SMEs.
Originality/Value:
This study contributes to the existing body of knowledge by specifically examining the challenges faced by SMEs in Oman, differentiating between SMEs and micro-enterprises. The findings hold significance for policymakers, regulatory bodies, and financial institutions, offering insights that can shape more targeted and effective support mechanisms for the SME sector. Further research extending this study to encompass all Micro, Small, and Medium Enterprises (MSMEs) across different regions of Oman could provide a comprehensive understanding of the challenges faced by businesses of varying scales.
Abstract
Purpose: The objectives of the study were to critically investigate the challenges faced by SMEs; to analyze SMEs difficulties during adopting new technologies and to critically investigate the difficulties in the form of policies and procedures.
Design/methodology/approach: For this research study, purposive sampling methodology was adopted. Using a well-defined questionnaire, 257 samples were collected from all over Oman. The data collected was recorded, tabulated, summarized and the tests – Chi-square tests, Kolmogorov-Smirnov tests and regression analysis were carried to obtain the results.
Findings: The study reveals that most of the respondents got delay in the commencement of business due to lack of finance. It is also revealed that the SMEs are in dire need of technical support at the time of commencement of their businesses and need support to establish IT infrastructure.
Research limitations/Implications: The study suggests that the adequate support from General Authority for SMEs can change the scenario of setting up of the SMEs in a smooth transition and the interim advances by the financial institutions can help them avoid time lag.
Social implications: The study suggests that the Governmental authority should monitor and follow up SMEs to avoid the SME units becoming sick and provide technical support, guidance and nurse the units, if they become sick. Also, the licensing for the SME units should be made easier through single window system.
Originality/Value: Only a very few have examined the main challenges faced by SMEs in Oman. Our study includes selected samples of SMEs and not the micro enterprises. The study can further be extended to all the MSMEs in all the regions/Governorates of Oman.
Keywords: Small and Medium Enterprises, Challenges Faced by SMEs, Finance, Technology, Policies and Procedures, SMEs in Oman, Omanization, Technology Adoption
Al Buraiki, Abdullah and Khan, Firdouse, Finance and Technology: Key Challenges Faced by Small and Medium Enterprises (SMES) in Oman (July 7, 2018). International Journal of Management, Innovation & Entrepreneurial Research EISSN: 2395-7662, Vol. 4, No 2, 2018, pp 01-12, Available at SSRN: https://ssrn.com/abstract=3272189
source : SSRN
