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|Title: ||Financing small business in Oman|
|Authors: ||Al-Kharusi, Abdulaziz|
|Issue Date: ||2003|
|Publisher: ||© Abdulaziz Al-Kharusi|
|Abstract: ||Small and medium-sized enterprises (SMEs) are now recognised as being of major
importance to the strategic agendas of many countries around the world since they can
lower unemployment and increase economic growth. This is particularly significant
for a small country like Oman which is seeking to diversify its production base.
However, it is well known that lending institutions are often reluctant to offer loans to
small firms because of the nature and size of such businesses.
This research study, therefore, is the first to carry out a detailed investigation of the
financing of small and medium-sized enterprises in Oman by focusing on the three
main sectors in which SMEs function: manufacturing, trade and services.
The study aims first to examine the procedures and problems faced by SMEs in
obtaining finance by considering the need for finance, the types of finance available,
and the difficulties that may be encountered in this process. Guidelines are then
offered to encourage the participation of such firms in Oman's development. The
study also seeks to examine the relationship between certain characteristics of firms
and their owner-managers and the need for finance, together with difficulties
encountered when seeking such finance. Finally, a comparison is made of the
procedures and problems faced by SMEs in the three sectors.
After a literature review, the thesis puts forward, in Chapter 4, the theoretical research
framework and a number of hypotheses. Data were gathered via questionnaires and
interviews from 397 small and medium enterprises in Oman; 94 from the
manufacturing sector, 180 from the trade sector and 123 from service firms. These
data were then analysed using the following methods: descriptive analysis, nonparametric
testing, and analysis of variance (ANOVA).
The findings showed that some significant differences did exist between firms, their
owner-managers' characteristics and the need to acquire external finance, as well as
the success or difficulties they faced in applying for such lending. The need for
external finance for such companies to expand their businesses was also clearly
demonstrated, especially in the trade and service sectors, the majority of respondents in all three sectors were aware of government sources of finance. It was found that the
main reasons for difficulties in raising finance were high rates of interest, incomplete
business plans, a lack of securities, and putting forward proposals considered not to be
A detailed analysis of the results can be seen in Chapter 6, with a summary of the
main findings in Chapter 7. The study ends with an examination of the implications of
the findings of this research for owner-managers, policy-makers, academics and
entrepreneurs. Finally, suggestions are made for future useful research in this area.|
|Description: ||A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.|
|Appears in Collections:||PhD Theses (Business School)|
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