التنظيم القانوني وأثره في نمو قطاع المشروعات الصغيرة والمتوسطة في سلطنة عمان
This study examines the legal framework related to the Small and Medium Industry (SME) sector in Oman. As in most other countries, this sector has contributed significantly to the economic development and provided solutions to socio-economic problems that plague this country, such as, among the impo...
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| Summary: | This study examines the legal framework related to the Small and Medium Industry (SME) sector in Oman. As in most other countries, this sector has contributed significantly to the economic development and provided solutions to socio-economic problems that plague this country, such as, among the important ones, unemployment. However, apart from some general laws and by-laws implemented to curb the challenges faced by players in the SME Industry, no specific legislation is currently provided to regulate the sector which should be considered important at the time now in this country. Thus, this study focuses on the problems and challenges faced by this SME Industry related to the absence of specific laws. Based on the situation, the main objective of this study is to identify the problems and challenges faced by the SME industry in Oman in the absence of specific laws that regulate; review and propose remedial measures based on the new legal mechanisms and components that need to be constructed for each problem; and assess the impact of the implementation of such proposed mechanisms and components on the SME Industry. The Researcher adapts qualitative method by using semi-structured interview instruments as the main medium to identify challenges and problems that arise, as well as in the construction of proposed components and mechanisms for the solution to the problems. In addition, documentation analysis approach is also applied to the legal documents, acts and regulations referred to in this study. A comparative analysis approach is used in evaluating the practices and approaches of benchmarked countries in regulating SME Industry. Descriptive and analytical approaches are used in several descriptive sections throughout this study. From the aspect of the main problems and challenges, this study has identified the following problems; the absence of specific laws to regulate Small and Medium Enterprises in Oman is due to lack of attention given from the government sector; diversity of authorities and laws and regulations regulating operations that often lead to confusion and inconsistency in various aspects; and the competition faced from large and foreign companies that have a direct impact on the development and growth of this sector. The study has also found that the existing regulations are insufficient to regulate and do not support the development of the SME Industry in the country. Subsequently, this study has developed mechanisms and proposals that can contribute effectively to the development of the SME sector, the most important of which are the Small and Medium Enterprises law to regulate administrative and financial aspects and control the rate of competition, and the need to establish complementary relationships between large and small projects and leveraging foreign investment for SMEs rather than as their competitors, as well as the establishment of law in combating the phenomenon of commercial fraud that befell the sector. In addition, the study has asserted that there is a need to create a government body that oversees and supports the development of SMEs and has broad powers to achieve the objectives of its establishment |
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