Advertisement

An Overview of Bahrain’s Microenterprises Role in Eliminating Unemployment

  • Husham AlawsiEmail author
Conference paper
  • 28 Downloads
Part of the Advances in Science, Technology & Innovation book series (ASTI)

Abstract

Unemployment is one of the most significant communal, humanitarian, and economic issues that prevail in almost all the developing and several developed countries across the globe. It’s identified as one of the major factors that deter economic growth and development. Microenterprises play a pivotal role in generating employment opportunities, especially in countries with low income per capita. Small-scale enterprises are found to be more efficient in creating employment and generating income. They also provide help in boosting the economy during the economic crisis. In Bahrain, microenterprises also show 99% of all the commercial industry, registered. As a whole, the microenterprises sector contributes approximately 28% in the Gross Domestic Product (GDP) of Bahrain. Despite huge significance of microenterprises in Bahrain, there is not much researched or studied about them. The purpose of the study is to provide a complete overview of the SME sector of Bahrain, including its role in eradicating unemployment, so that economic growth can take place. This paper is quite beneficial for the individuals of Bahrain, for providing guidance, regarding the role of SMEs in reducing unemployment. This paper defines that unemployment is a big problem but microenterprises in Bahrain play a positive role in reducing it. The information for this paper is collected from research papers, articles, and books which describe the role of small enterprises in reducing unemployment. Microenterprises in Bahrain reduce the negative effects of unemployment and also improve the standard of living. This paper also attempts to explore the main aspects of the current debate on the regulation and supervision of microfinance in Bahrain, along with arguments related to regulation and supervision of microfinance. In order to reach its full potential and further grow as a credible development tool in Bahrain, the microfinance industry must eventually be able to enter in the area of licensed, supervised financial intermediation to be able to capture and minimize any financial crises or crimes that may possibly occur. Steps to promote their establishment, especially in low socioeconomic settings are also included.

Keywords

Unemployment Microenterprises Bahrain Small and medium enterprises (SMEs) 

References

  1. Alia, Y. A. (2014). The effectiveness of small and medium enterprises adoption as a strategic option to solve unemployment problem in the Arab World, an example of Algeria. International Journal of Business and Social Science, 5(4).Google Scholar
  2. Alrayes, S., & Abu Wadi, R. (2018, January). Determinants of unemployment in Bahrain. International Journal of Business and Social Science, 9(10).Google Scholar
  3. Arabian Business. (2017, May 12). $100 m fund launched in Bahrain to help SMEss growth. Retrieved from https://www.arabianbusiness.com/-100m-fund-launched-in-bahrain-help-smes-growth-673606.html.
  4. Asharq Al-Awsat. (2018, January 23). Bahrain: Plan to develop more than 6,300 SMEss. Retrieved from https://aawsat.com/english/home/article/1152416/bahrain-plan-develop-more-6300-smes.
  5. Bahrain Economic Development Bank. (2018). Invest in experience. Financial services in Bahrain. EDB Bahrain.Google Scholar
  6. Economic Development Bank Bahrain. (2017). Annual report.Google Scholar
  7. Edinburgh Group. (2018). Growing the global economy through SMEss.Google Scholar
  8. Hassan, T., & Kashif, G. S. (2016). The role of microenterprises in employment and income generation-a case study of Timergara dir (l) Pakistan. Academy of Social Science Journal, 1(2).Google Scholar
  9. Hayat, U., & Malik, A. (2014). Islamic finance: Ethics, concepts, practice. CFA Institute Research Foundation.Google Scholar
  10. International Labor Organization. (2017). Policies for the formalization of micro and small enterprises. Regional Office for Latin America and the Caribbean.Google Scholar
  11. Juwei, Z. (2003). An international comparison of the definition for unemployment and the rate of unemployment in Urban China. World Economy, 5, 004.Google Scholar
  12. Ministry of Industry, Commerce and Tourism. (2018). SMEss definition in the Kingdom of Bahrain. Retrieved from MOIC: http://www.moic.gov.bh/en/Tiles/SMEss/smes-definition.
  13. OECD. (2017). Enhancing the contributions of SMEss in a global and digitalised economy. Paris.Google Scholar
  14. Oxford Business Group. (2018). New government initiatives support Bahrain’s small and medium-sized enterprises.Google Scholar
  15. Saad Znad Darwish. (2014, January). The role of universities in developing small and medium enterprises (SMEss). Future Challenges for Bahrain. The Kingdom University, 8, 70–77.Google Scholar
  16. Sayre, E. (2016). Young generation awakening (p. 64). USA: Oxford University Press.CrossRefGoogle Scholar
  17. Wagner, B. (2014). Types of unemployment. Montana Department of Labour and Industry, Research and Analysis Bureau.Google Scholar
  18. World Bank. (2017). Small and medium enterprises (SMEss) finance. Retrieved from https://www.worldbank.org/en/topic/smefinance.
  19. World Bank. (2018). Doing business 2019: Training for reform—Bahrain. Washington, D.C: World Bank Group.Google Scholar
  20. World Bank Group. (2019). Global economic prospects (p. 20433). Washington, DC: International Bank for Reconstruction and Development.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Royal University for WomenWest RiffaKingdom of Bahrain

Personalised recommendations