Small and medium enterprises are a basic pillar in the economy of any country, and the Kingdom of Bahrain is not an exception. These institutions represent a large percentage of the Bahraini economic fabric, and contribute effectively to supporting economic growth and contributing to the economic diversification that the Kingdom seeks. In light of the global and local economic challenges, the importance of these institutions is highlighted as a tool to enhance economic stability and create new job opportunities. Small and medium enterprises in Bahrain constitute more than 90% of the total institutions operating in the Kingdom and with growth of 8.6% according to the latest statistics. These institutions not only provide job opportunities for Bahrainis, but also contribute to enhancing local production and increasing non -oil exports. Since Bahrain seeks to reduce its dependence on oil as one of its goals of economic vision 2030, these institutions play a pivotal role in achieving this goal. Small and medium enterprises provide job opportunities for Bahraini youth, which helps reduce unemployment rates and enhance social stability. These institutions are often more flexible in employment compared to large companies, which makes them able to accommodate more employees. Small and medium enterprises also have the ability to innovate and adapt to rapid changes in the market. This innovation contributes to the development of new products and services, which enhances the economic competitiveness of Bahrain at the regional and international levels. Through support sectors such as manufacturing, tourism, technology, and financial services, these institutions contribute to reducing dependence on oil and enhancing other economic sectors. This is compatible with the goals of Bahrain Economic Vision 2030, which aims to build a diversified and sustainable economy. However, these institutions still face a number of challenges, the most prominent of which is difficulty in obtaining adequate financing to start activity or expansion. Banks often impose strict conditions on granting loans. Severe competition, whether from major companies or from imported products, is another challenge that limits its ability to expand and grow. Besides, some institutions suffer from a lack of technological infrastructure needed to enhance their efficiency and ability and also lack the necessary information to competition in the global market. Entrepreneurs also face challenges related to organizational procedures and licenses as well as daily operational challenges, in addition to the need to develop administrative and technical skills To keep pace with the rapid developments in the markets. The “Tamkeen” program is one The leading government initiatives aimed at enhancing the role of small and medium enterprises in the national economy. The role of “Tamkeen” is to provide the appropriate environment for the growth of these institutions and enable them to compete locally and regionally. One of the most prominent roles of the program is the provision of soft and grant loans to small and medium enterprises, which helps them start or expand their activity. The program also works to facilitate access to financing through partnerships with banks and financial institutions. The program also provides specialized consulting services in areas such as marketing, financial management, and strategic planning. In addition, “Tamkeen” provides training programs for entrepreneurs to enhance their skills and enable them to manage their business efficiently, and other many and varied services provided by Tamkeen to support small and medium enterprises, which contributed greatly to the success of these institutions and play their role in supporting development and economy. Small and medium enterprises In the Kingdom of Bahrain is not only part of the economy, it is a major engine for economic growth and diversification. By supporting these institutions, Bahrain can achieve their ambitious economic goals and enhance their position as a regional economic center. This requires concerted efforts by the government, the private sector and society to ensure that these institutions can prosper and contribute more to building a sustainable and diverse economy.
