Small and medium enterprises which used the term (SME) and even called "small and medium businesses", (SMBs). The SMEs definition is the number of employees which is less than 10 employees in the company or depends on the profit of the business. Everywhere around the world SMEs is mostly increasing in the number of business which around 99% companies and employs nearly 65 million people in Europe and US. (Online) Available from URL:http://www.environmental-courses.com/mod/glossary/view.php?id=57&mode=letter&hook=S&sortkey=&sortorder=&fullsearch=0&page=-1In Oman the number of small business is increasing these days as young generation start their own business.
The government of Oman supports the small-medium business and it helps the economy to develop. There are two main programs which supports the small business "Oman Youth Fund" and "SANAD" this type of program it helps people to get loan and plan the business (Business Plan) which enable them to open their own business. Even the commercial banks help in small-medium enterprises with give loan, deposit and letter of credit to start the business.
The small and medium enterprises in Oman are very important like it was discussed above since then it helps many people to get jobs and to participate in the country's economy development. In this research the focus will be on analyzing the government and commercial banks support to small-medium business in Oman.
Rationale
The aim of this research is to analyze the government and commercial banks support availability to small-medium business in Oman. To see how the government is supporting the small-medium business and commercial banks as well. The new young generation starts their own business by the government support. The programs support them to plan the business from choosing the business activity, objective and the financial. The benefits of small business it increases the economy of the country and gives the opportunity to other people to start their own business and even helps others to get jobs.
Objectives
To study the role of the government in supporting the small and medium enterprises.
To analyze the services provided by the commercial banks to small and medium enterprises customers.
To recommend strategies of small and medium enterprises for what? These recommended strategies to do what?
Chapter Two
Literature Review
This chapter includes articles about small and medium enterprises which includes the finances in small business, the supporting of governments and commercial banks in the small and medium enterprises.
Small business finance
Datta (2009) studied tested small business finance implication of delay in loan Sanctions by formal sector. The researcher used model sample which was the companies collect from borrowers the cash through legal process and there are different rate charged to the borrowers. The study has found improve in the credit policy which helps to reduce the delay of payment. The study indicated that the formal creditors are useful in the business and has lot of benefits but the informal creditors services are against by the low in many countries and in Oman the most credit facilities used in the market is the formal operating credit.
Canovas and Solano (2010) aim of the study is on the Small-medium enterprises relationship between the firm and bank. They use a sample of 530 companies of non-financial from the sample took 322 and check the balance sheet and profit & loss it show that there were errors in the balance sheet and profit & loss values. At the end the sample of companies was taken 182 small-medium enterprises with a statistical error of 7.34 percent at the 95 percent confidence level. The period of the study from year 1999 to 2000 and it took place in Southeastern Spain. They found that the firms which have relation with more than one bank they get cheaper loans and the firms with long relationship with bank can get longer loans. The study indicated building trust between the banks with the firms help in improving the access to finance and reduces borrowing.
Beck, Demitguc-Kunt and Maskismovc (2004) the aim of this study is investigate how financial and institutional development affects on the small, medium and large firms. The researcher survey data to investigate proportion of investment companies and focused on the differences between small, medium and large companies. The survey defined that the small firm are those with 5 to 50 employees and medium firms are those with 51 to 500 employees and the large firms are those with employees more than 500 employees. The study showed that the small and medium firms are using less external finance especially bank finance and it is less risky comparing with large firms.
Government policy with SMEs
Marri and others (2002) the article focuses on the government supporting the small and medium enterprises and the implementation of computer integrated manufacturing (CIM) in small and medium enterprises. A field research was conducted for small and medium enterprises with the British forces operating from 10 to 500 with the help of a questionnaire. The result were of the questionnaire were ranked from 0 to 6 as very little to very good respectively. They found out that 8% were undelivered, 7% were policy restriction, 4% were not in practice, 4% were in practice and 77%were not responded. The study indicated that the government is supporting the SMEs and the implementation of CIM in SMEs which the government should support the SMEs by providing them necessary funding in the form of low interest loans for a certain period of time that would encourage SMEs to penetrate into new markets by implementing new concepts and technologies.
Commercial banks policy with SMEs
Roeden and Conine Jr (2005) the aim of the study was to determine the relationship between workplace learning and job satisfaction in the context of small business and the small commercial banks. The researcher used three specific questions about the workplace learning and job satisfaction in commercial bank. The study used quantitative and it was the appropriate way to address the research questions. The study has found the workplace learning shows that 41 percent of the variance associated with being recognized for a job well-done is accounted for by Incidental learning; that 42 percent is accounted for by informal learning; and 28 percent is accounted for by formal learning. The study indicated that there is learning in working place and satisfaction in small commercial banks.
Miss I saw article about financing SMEs in Africa the objective of the article are:
Improving business conditions
Making the financial system more accessible to SMEs
Helping SMEs meet the requirements of formal financing
Expanding the supply of finance through
the non-financial private sector
Can I write about it??
