Oman has grappled with economic turbulence, thrusting the financial struggles of small businesses into the forefront of governmental concerns. In response, the Omani government has introduced several policies aimed at bolstering Small and Medium-sized Enterprises (SMEs) to ensure their sustained contribution to economic growth. Despite endeavors to fortify SMEs, they continue to confront formidable challenges, resulting in a notable rate of failures. A significant number still find themselves in need of crucial financial support to navigate the increasingly competitive global market. Securing these funds, however, presents a formidable obstacle, as the processes involved are beset by numerous hurdles. This study sought to comprehensively investigate the financial challenges encountered by SMEs in Oman and scrutinize the impediments inherent in prevailing policies and procedures. Data was gathered through research questionnaires distributed to 326 SMEs in Oman. Employing Likert scale questionnaires for the quantitative aspect and open-ended questions for the qualitative component, the collected data underwent rigorous analysis using statistical tools. The findings underscored the multifaceted challenges facing SMEs in Oman, encompassing both external and internal factors. Specific challenges identified included the indifference of commercial banks, exorbitant borrowing costs, inadequate financial collateral support demanded by financial institutions, a dearth of modern accounting systems, and limited awareness about the intricacies of accessing financial assistance. The exacerbated financial challenges experienced by SME owners were found to moderately impact overall SME performance, potentially stemming from economic downturns, limited job opportunities, and delayed international market entry. Addressing these challenges necessitates the formulation of specific operational strategies by SMEs, coupled with robust support at the national level. It is imperative for commercial banks and financial institutions to accord special attention to SMEs, recognizing their pivotal role in the economic landscape. Through collaborative efforts, SMEs can overcome these obstacles and thrive in a dynamic business environment.
Al-Abri, R., & Al-Mughairi, H. (2020). "Challenges in Accessing Finance: A Study on Small and Medium Enterprises in Oman." Journal of Business and Economic Policy, 3(1), 32-47.
Al-Hadi, A., Al-Badi, A., & Al-Ajmi, J. (2021). "The Impact of Financing Sources on the Financial Performance of Small and Medium-sized Enterprises: Evidence from Oman." International Journal of Finance and Economics, 6(2), 45-62.
Al-Jabri, M., & Al-Ajmi, Y. (2021). "Methodological Challenges in Studying SME Financing: Insights from Oman." Journal of Small Business Research, 8(3), 78-94.
Al-Kindi, R., Al-Farsi, K., & Al-Balushi, Z. (2022). "Evaluating the Financial Performance of SMEs in Oman: A Longitudinal Analysis." Oman Economic Review, 15(4), 112-129.
Al-Mamari, F., & Al-Khabori, N. (2020). "Determinants of Financing Preferences among Omani SMEs." Oman Journal of Economics, 5(2), 135-150.
Hossain, M. I., Teh, B. H., Dorasamy, M., Tabash, M. I., & Ong, T. S. (2023a). Ethical Leadership, Green HRM Practices and Environmental Performance of Manufacturing SMEs at Selangor, Malaysia: Moderating Role of Green Technology Adoption. In International Scientific Conference on Business and Economics (pp. 85-104). Cham: Springer Nature Switzerland.
Hossain, M. I., Kumar, J., Islam, M. T., & Valeri, M. (2023b). The interplay among paradoxical leadership, industry 4.0 technologies, organisational ambidexterity, strategic flexibility and corporate sustainable performance in manufacturing SMEs of Malaysia. European Business Review.
Hossain, M. I., Ong, T. S., Tabash, M. I., & Teh, B. H. (2022a). The panorama of corporate environmental sustainability and green values: evidence of Bangladesh. Environment, Development and Sustainability, 1-27.
Hossain, M. I., Teh, B. H., Tabash, M. I., Alam, M. N., & San Ong, T. (2022b). Paradoxes on sustainable performance in Dhaka’s enterprising community: a moderated-mediation evidence from textile manufacturing SMEs. Journal of Enterprising Communities: People and Places in the Global Economy, (ahead-of-print).
Hossain, M. I., San, O. T., Ling, S. M., Said, R. M. & Teh. B. H. (2022c). Nexus of Stakeholder Integration, Environmental Investment, Green Technology Adoption and Environmental Sustainability Practices: Evidence from Bangladesh Textile SMEs. Journal of Social Sciences and Humanities. 30 (1), 253 – 281. https://doi.org/10.47836/pjssh.30.1.14
Hossain, M. I., Ong, T. S., Tabash, M. I., Siow, M. L., & Said, R. M. (2022d). Systematic literature review and future research directions: drivers of environmental sustainability practices in small and medium-sized enterprises. International Journal of Sustainable Economy, 14(3), 269-293.
Hossain, M. I., San, O. T., Ling, S. M., & Said, R. M. (2020). The Role of Environmental Awareness and Green Technological Usage to Foster Sustainable Green Practices in Bangladeshi Manufacturing SMEs. International Journal of Advanced Science and Technology. 29 (7s), 3115-3124.
http://sersc.org/journals/index.php/IJAST/article/view/17392/8789
OECD. (2004). Financing Innovative SMEs in a Global Economy, 2nd OECD Conference of Ministers responsible for Small and Medium-sized Enterprises, Organization for Economic Cooperation and Development, 1-47.
OECD. (2005), Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data: The Measurement of Scientific and Technological Activities, 3rd ed., OECD Publishing/European Communities, Brussels, available at: www.oecd-ilibrary.org/ Retrieved November 6, 2014.
OECD. (2017). enhancing the contribution of SMEs in a global and digitalized economy Paris: https://www.oecd.org/mcm/documents/C-MIN-2017-8-EN.pdf
Ross, G. (1977). The determination of financial structure: the incentive signaling approach, Bell Journal of Economics & Management Science 8: 23–44.
World Economic Forum. (2009), Educating the Next Wave of Entrepreneurs Unlocking entrepreneurial capabilities to meet the global challenges of the 21st Century, Global Education Initiative, Switzerland.alam
Xie, H. M., Wang, X. B., & Wu, S. (2008). The impact of tacit and explicit knowledge on IJV management innovation: Empirical research in South China. Advances in Management of Technology, Pt 1, 230–235.
