The Dialectical Relationship Between SMEs Financial Support and Funding Determinants

Abstract

SMEs represents a micro-economic sectors, which holds a large interest from the world's countries, all international and regional organizations, researchers, and also different bodies. Under the global economic changes and remittances, SMEs play a central role in production, employment, income generation, innovation, and technological progress as well as its role in achieving economic and social objectives of all countries. SMEs play a vital role in influencing the overall data and results of the work of economies of the developed and developing world, and their countries. Also, its role is not limited to direct financial data only it beyond the direct impact on all other data, especially social. The experience, in many countries of the developed world as well as in the Arab world, has recently been under many political and social changes and challenging. It proven that the SMEs are more capable of great resilience in the face of changes, crises, economic fluctuations, and in achieving sustainable development projects through an enabling environment with creating and facilitating access to funding under different financial structures, and strengthening the role of corporate social responsibility (The support that SMEs get in the Kingdom of Bahrain, research paper presented in the five international conference, 2014). These projects are considered the backbone of economic development in developed and developing countries alike because of the important role they play in the fight against unemployment, increased industrial added value, support for large national industries, and improve the competitive in both commercial and industrial sector. In this context, we remember the inspiring quote from a book by Professor Younus, Grameen—Social Business building (Yunus in Bangladesh banker and economist, Gulf Emirati Newspaper, Economic Section, 2014) “… The poor are like Japanese Bonsai trees, when the best seed of the tallest tree planted in a small flower pot, we can get a replica of the tree dish, but with a length of only several inches. There is nothing wrong in the seeds that were planted, only the soil area were not sufficient for growth. Poor people are bonsai people, there is nothing wrong with the seed, but the community did not provide them with a sound basis for growth. All that is needed for poor people out of poverty is to create an enabling environment for them.” In light of the results, the micro, small, and medium enterprises (SMEs) in the Kingdom of Bahrain need to be supported financially, mainly, and all other types of support, in all its details to ensure that it continues to play an efficient and effective role at all levels socially, economically, and also politically. Therefore, all official, non-official, stakeholders need to reconsider and discuss ways to facilitate and simplify procedures for providing such financially and other supportive elements, even with that liquidity fund, 2019, for these projects in order to develop them and maintain their sustainability, growth, and success.