Khalid Ansari, Partner in Charge, KPMG Oman who has a deep knowledge on the SME sector in Oman says that to become competitive, SMEs in Oman need to be cost and market focused.
What is your opinion on the state of affairs of SME sector in Oman at present? What should SMEs in Oman do to grow more competitive and dynamic?
SME sector in Oman will have to grow significantly to play their part in the growth of the economy and development of manpower, job creation and wealth creation. The SME sector currently is at the growth stage of development and has a distance to go before maturing. Some of the large successful companies of Oman today were SMEs 40 years ago.
To be competitive and dynamic, SMEs should be market and cost focused. The two elements drive the business and hence sustainability.
Could you please tell us about KPMG’s association with projects aimed at helping the SME sector in Oman?
KPMG has always worked with our SME clients and provided full range of professional services. We have Owner Manager Business (OMB) unit which focus only on SMEs. We also run tailored courses for SMEs to help them improve skill sets.
What is your assessment on the different public and private sector initiatives in Oman aimed to help the SME sector?
All these initiatives will help the SME sector, but to get the best results all should work together, rather than each work as a ‘silo’.
Do you think SMEs in Oman have succeeded in creating employment opportunities for the jobless youth to the desired level? If not, what more they need to do?
The employment opportunities will come in due course. It is a long journey and real success can be achieved when majority of the University leavers voluntarily go for self-employment rather than prefer Government jobs.
Several SME owners say access to financing is one of the key challenges faced by them. What is your response? Do you think that Oman needs to develop a venture capital market to provide financing to SMEs?
Access to capital by SME has not been easy in the past, now there are many opportunities available. The Government initiatives of setting up Al Rafd Fund and mandatory lending limits to SME by the banks are some of the new options. Venture capital will develop as there is a need for them, there is also need for Angel investors. The key for SMEs is to go prepared for financing, if people go with half baked proposition, no one will finance. It is important to get professional help from the start rather than seek help when crises hits them.
How do you rate the future prospects of SME sector in Oman?
The future of SME in Oman is very good.