Enforcement bodies advocate for an enhanced function of Kuwait's Small and Medium Enterprises (SME) development fund

Enforcement bodies advocate for an enhanced function of Kuwait's Small and Medium Enterprises (SME) development fund

The National Fund for SME Development, established by Law No. 98 of 2013, has been a significant player in supporting youth, reducing unemployment, and empowering the private sector in Kuwait. Since its inception, the Fund has financed 1,040 projects across various sectors.

Diverse Support for Kuwait's Economy

The Fund's activities have been concentrated in the commercial sector, accounting for the largest share of financed projects at 40%. The services sector follows closely with an allocation of 40%, while the industrial sector has received 14%, the crafts sector 4%, and agriculture 2%.

Key Steps for Strengthening the Fund

To strengthen the Fund, key steps include activating the Fund's core departments and staffing them with qualified national technical cadres. Establishing clear controls for external training programs, including candidate selection and board approval, is also part of the plan. Developing mechanisms to assist distressed entrepreneurs and settling outstanding debts is another crucial aspect.

Ensuring Compliance and Oversight

Ensuring project owners comply with regulations is a significant part of the plan. This includes auditing funded projects, verifying commercial licenses, and taking action against violations. Tightening oversight of contracted companies is also essential to ensure accurate reporting and proper account management of funded projects.

Innovation and Technology

Innovation and technology play a crucial role in the Fund's strategies. Providing free or low-cost digital platforms can enhance SMEs' operational efficiency and access to markets. Creating innovation hubs or incubators can foster a supportive environment for entrepreneurs to develop new ideas and technologies.

The Role of Banking Sector

Banks like the National Bank of Kuwait, which has been recognized for its support to SMEs, can play a crucial role by providing tailored banking services and participating in initiatives that enhance SME competitiveness.

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[1] Law No. 98 of 2013, Government of Kuwait. [2] R. Nguyen, "Supporting SMEs in Vietnam: Lessons for Kuwait," World Bank Group, 2021. [3] National Bank of Kuwait, "Supporting SMEs," NBK website, 2021. [4] Ministry of Commerce and Industry, "Enhancing the Role of the National Fund for SME Development," MoCI website, 2021.

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