SMEs Vital for Kuwait’s Economic Expansion and Diversification

Kuwait, 2 September, 2024 : Small and medium enterprises (SMEs) are pivotal to Kuwait’s economic growth and diversification. They generate job opportunities, contribute about 3% to the GDP, and help reduce the nation’s reliance on oil. As of 2020, SMEs represented 90% of all companies in Kuwait, with around 30,000 active businesses spread across sectors such as wholesale, retail trade, construction, and industry.

SMEs play a crucial role in diversifying the economy beyond oil, boosting economic resilience, and fostering innovation. They support skill development and entrepreneurship, adapting swiftly to market changes and seizing new opportunities.

However, SMEs face challenges like financial constraints, administrative hurdles, and market competition. The National Fund for Small and Medium Enterprise Development has supported about 1,084 entrepreneurs since 2016, financing around 760 projects with a total of 220 million dinars.

Business incubators are vital in assisting SMEs through their early stages, offering office space, technical support, and networking opportunities. Despite their benefits, many incubators focus mainly on office space and overlook other essential services. Enhancing SME support through improved incubators, streamlined regulations, and partnerships with educational institutions is crucial for Kuwait’s economic development.

Source : www.zawya.com