Small and medium-sized enterprises (SMEs) are now recognised as being of major importance to the strategic agendas of many countries around the world since they can lower unemployment and increase economic growth. This is particularly significant for a small country like Oman which is seeking to diversify its production base. However, it is well known that lending institutions are often reluctant to offer loans to small firms because of the nature and size of such businesses. This research study, therefore, is the first to carry out a detailed investigation of the financing of small and medium-sized enterprises in Oman by focusing on the three main sectors in which SMEs function: manufacturing, trade and services. The study aims first to examine the procedures and problems faced by SMEs in obtaining finance by considering the need for finance, the types of finance available, and the difficulties that may be encountered in this process. Guidelines are then offered to encourage the participation of such firms in Oman's development. The study also seeks to examine the relationship between certain characteristics of firms and their owner-managers and the need for finance, together with difficulties encountered when seeking such finance. Finally, a comparison is made of the procedures and problems faced by SMEs in the three sectors.

Small and medium-sized enterprises (SMEs) are now recognised as being of major importance to the strategic agendas of many countries around the world since they can lower unemployment and increase economic growth. This is particularly significant for a small country like Oman which is seeking to ...