By Oxford Business Group
A renewed focus on entrepreneurship is at the heart of Bahrain’s efforts to diversify its economy and achieve the goals outlined in its long-term development plan, Economic Vision 2030.
In a sign of its commitment to promoting entrepreneurship, the country hosted the 10th International Entrepreneurship Forum on January 10-11, the first time the annual event was held in the Gulf. The forum was organized by Tamkeen, an independent authority tasked with investing in Bahraini employability and job creation, in partnership with the Centre for Entrepreneurship Research, the UK’s University of Essex and the OECD.
Focused on building a knowledge-based economy and encouraging young people to get involved in the national development process by starting their own business, the conference was attended by academics, researchers, policy-makers, chief executives and consultants from both Bahrain and abroad.
The conference addressed a number of issues that are key for any developing economy but that are especially important for Bahrain considering its long-term drive for diversification. This effort has paid significant dividends over the years as the country has built up substantial domestic industries in areas including finance, tourism and Aluminium production, among others. Bahrain’s relatively limited hydrocarbons reserves compared to its neighbours and the effects of the global slowdown on the financial sector – both locally and around the world – supporting the transition of workers into innovative entrepreneurship is necessary to further the country’s long-term development, facilitate diversification into new areas and increase employment opportunities for Bahrainis.
According to Tamkeen’s chairman and chief executive of the Bahrain Economic Development Board, Sheikh Mohammed bin Essa Al Khalifa, almost 99 percent of Bahrain’s private sector is made up of small and medium-sized enterprises (SMEs). This means that ensuring continued growth of independent businesses is vital to expanding the overall economy.
“SMEs are also the largest contributors to socio-economic development through the creation of job opportunities, creation of supply and demand, playing part of the value chain of large organizations and the recycling of resources within the economy,” Sheikh Mohammed told the conference’s opening session. “Entrepreneurship is a critical factor in the development agenda and an integral requirement that is highly effective and crucial to the continued evolution and diversification of the private sector.”
The conference is the latest way Tamkeen is reaching out to would-be Bahraini entrepreneurs. Its flagship offerings, under the Enterprise Development Support Scheme, provide a range of technical and business assistance to SMEs. Since the second phase started in 2009, approximately 400 enterprises have enrolled in the scheme.
For two weeks in early January, the authority opened an interactive stand at Bahrain City Centre, a mall in downtown Manama, to meet with prospective applicants and answer questions about its programs.
Mohammed Bucheery, Tamkeen’s private sector support senior manager, said that the stand was a result of public feedback that called for a more direct way of engaging with the organization. “Tamkeen always endeavors to respond to feedback from our participants, and the stand will provide a one-stop shop for Bahraini entrepreneurs who want assistance in growing their business and enhancing their profitability,” he told local media.
Creating employment opportunities, a key focus of the conference and aim of the support programs, is also a central plank of Bahrain’s Economic Vision 2030. Given the impact of the global slowdown on finance and construction, the government is now looking to build up other sectors and shift employment patterns from expatriates to nationals. This means creating jobs for Bahrainis in new areas – such as manufacturing, IT, tourism and transport – or helping to support them as they work to create opportunities for themselves through entrepreneurship.
Special attention is being paid to women, with the inaugural Middle East and North Africa Businesswomen’s Network (MENA BWN) assembly meeting held in Bahrain in early December 2010. The network is being incorporated in Bahrain as a non-governmental organization with the assistance of the Bahrain Businesswoman’s Society.
“The network’s goal is to increase the number of women in business and the value of their businesses, to advance the role of women in society, and to promote a regional culture of women’s entrepreneurship. Among the key aims is the provision of education, training, networking opportunities and communication programs,” Afnan Al Zayani, MENA BWN’s president, told local media.
In addition to conferences, Bahrain is also backing up its plans with some considerable budget outlays during 2011-12. Total state expenditure is expected to be BD5.25 billion ($13.9 billion), with generous allocations to sectors that support the country’s long-term development goals.
Introducing the draft budget, Sheikh Ahmed bin Mohammed Al Khalifa, the finance minister, told the press, “Our top priority in the budget is for the vital sectors that are closely associated with the daily lives of our people and which contribute to the development of the infrastructure in order to boost Bahrain’s assets to attract more local and foreign investments and create more employment opportunities.”
