Barriers to Growth : Key Challenges Facing Bahraini Small and Medium Enterprises

Abstract

The purpose of this paper is to identify the main barriers to growth for Bahrain’s Small and Medium Enterprises (SMEs). An exploratory design was used due to paucity of research literature on SMEs in Bahrain. Required data was collected through focus groups and a questionnaire administered on 200 owner-managers of Bahraini SMEs. Findings showed that the main barriers to growth for Bahraini SMEs were the scarcity of qualified human resources, lack of finance, and fierce competition. To a lesser extent, other barriers were fees applied by governmental organizations such as Labour Market Regulatory Authority (LMRA), bureaucracy in procedures, and the imposition of the Bahrainization percentage. The political instability of the country since February 2011 has also affected the growth of SMEs in terms of sales and employment.

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