The development of Micro, Small, and Medium Enterprises (MSMEs) has been recognized the world over as an effective mechanism to facilitate economic development. For, it is the MSME sector, which has the highest capital-employment ratio and it is this sector that provides opportunities for the youth and unemployed people to exhibit their entrepreneurial potential, by being job creators rather than job seekers. This assumes paramount importance in a situation when the unemployment levels are rising. It requires entrepreneurs who perceive opportunities and organize resources to set up and successfully run enterprises. One could argue in favor of supply-driven support like the availability of finance on favorable terms, consultancy support, policy support, concessions and subsidies, tax breaks, etc. However, experiences have shown that finance, facilities, and incentives could be necessary but not sufficient to ensure an entrepreneurial response. For, entrepreneurial growth requires a focus on human resources in addition to inducements by finance, subsidies, infrastructure, etc.
Considering that promotion of entrepreneurship is a key to economic growth and the primary engine for creating a country’s wealth, many governments of developing countries and economies in transition have renewed their focus on this vital factor of production. The Investment & Technology Promotion Office (ITPO) Bahrain in cooperation with the Ministry of Industry (MoI) and various entities in Bahrain concerned with the development of MSMEs was trying to stimulate domestic as well as foreign investment into the country to boost the manufacturing sector. It has been concluded that the unavailability of qualified entrepreneurs as well as a cohesive set of support services posed the major bottlenecks in Bahrain; accordingly, the issues were studied and discussed thoroughly, including an analysis of the experiences of other countries worldwide, with UNIDO.
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