Muscat, Sept 16 - More than 50 per cent of small and medium enterprises (SMEs) in the Sultanate are not directly managed by citizens, but expatriates who work for them, said the Al Raffd Fund chief.
“While more than half the SMEs are managed by third parties, owners are just provided with steady monthly incomes,” said Tariq bin Sulaiman al Farsi, Chief Executive Officer, Al Raffd Fund, told the Observer.
“Had the SME owners worked full-time in their organisations,
they would have seen better success,” he said.
He said there are cases where SMEs, more often than not, are managed by part-timers and not full-timers.
“Expatriates are working for both salary and in some cases, for commission, in many of these businesses. Citizens get their income, which is a percentage of the profit,” said Al Farsi.
More than 30,000 SMEs are registered with Riyada and the number is ever increasing. A majority of the owners work for other companies or the public sector, while their companies are managed by third parties.
“Citizens need to change their mindset and involve themselves in their businesses on a full-time basis,” he said.
“I encourage all Omanis to run their businesses full-time because only then can they see more success, develop their business further and qualify for government support,” said Al Farsi.
“We offer incubation, finance from government, training and other support for SMEs. If citizens change their mindset, the difference will reflect on the national scenario.”
Al Rafd Fund was started on January 1, 2014 after the historic SME Forum in Seeh Al Shamkhat in line with the Royal Decree No 6/2013 to empower Omani youth to establish private businesses. The fund received 1,008 applications in the first year.
The fund plans to integrate social security and women into the economic cycle while catering to those who want to establish/support private enterprises, including job-seekers, graduates of educational and training institutions, and those who are under social security law, rural women, artisans and professionals. It launched the first package of finance programmes through facilitation of procedures, including flexible procedures and conditions that have been carefully studied in accordance with International Financial Reporting Standards (IFRS).
KABEER YOUSUF
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