Proceedings of The 3rd International Conference on Business, Management and Economics
Economic Development through Small & Medium Enterprise – A Conceptual Framework
Dr.Subrahmanian Muthuraman, Dr.Mohammed Al Haziazi, Dr.Rengarajan Veerasamy and Mr.Nasser Al Yahyaei
One of the significant characteristics of a flourishing and growing economy is a booming and blooming small and medium enterprises (SMEs) sector. SME plays an important role in development of country economy. The development of SMEs is seen as the way to accelerating the achievement of wider socio-economic goals of the country. SME are the major growing force behind the growing economy of Sultanate of Oman. Experts and economist are unanimous about the role of small and medium enterprise in the development of Oman’s economy. Government, academicians and developmental economists are of the view that enhancing small business development and promoting entrepreneurship would be a good strategy to contribute and promote economic development. From the socio-economic development viewpoint, SMEs provide a variety of benefits. The contribution which small and medium businesses can make to national economy and wealth creation need to be recognized by the governments from the beginning and be considered as part and parcel of the economic development process. The purpose of this study is to examine the link between economic growth and small and medium enterprise performance and develop a conceptual framework in Oman context. Desk Research technique was conducted for this study which basically involving collecting data from the existing online library which covered several academic databases. Small and medium enterprises, now representing the largest category in the economic sector, will complement the activities of large-scale businesses as industrialization gains pace in Oman. There is a need to emphasize the role of SME entrepreneur in economic development, and to ascertain the role of SMEs in capacity building, employment generation, promoting competitive market, technological development for economic growth of Sultanate of Oman.
Keywords: Capacity Building; Competitive Market; Economy Growth; Employment Generation; Technology.