Kuwait Employment and Career News
More small-scale businesses may help tackle unemployment in Kuwait
The small-scale businesses are one of the fundamental tools for solving problems pertaining to structural imbalance and unemployment in the labour market. During the last fiscal year, the public sector absorbed upto 75 percent of national workforce, while the rest 24 percent joined either the private sector or the unemployment group, or launched small enterprises.
As far as Kuwait is concerned, the public sector continues to be the most attractive for job seekers, as against private sector. The social, legislative and cultural environments are still not conducive for small enterprises to attract the labor force to free business activity.
The small enterprises could absorb the output of several academic and educational institutions, who join labour market annually. As per the statistics of International Labour Organization (ILO), the Arab world needs to create upto 80 million jobs during the coming decade. ILO statistics reveal that about 50 percent of Arab females and 27 percent Arab males who are educated, are still jobless.
Kuwait needs to develop a practical approach to foster medium and small size enterprises, to solve the problem of unemployment and enhance national economy. At present about 450,000 expatriate workers are employed in small size enterprises.
Kuwait needs to bring about a legislative framework for protecting small enterprises and promoting competitiveness. Today, the small enterprises in Kuwait mainly face three challenges. Firstly, the competition that it faces from the public sector, as a government profession brings with it many advantages. Secondly, being deficient of administrative experience, that could bring about disappointment in employers and employees, alike. Thirdly, insufficient capital that needs development of more funding tools.
At present, an affiliate of Kuwait Investment Authority, the Kuwaiti Small Projects Development Company, and the Industrial Bank of Kuwait are offering good funding facilities for small businesses, including soft loans, which could encourage small enterprises to play their role in national economy.
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