3rd International E-Conference on Engineering, Technology and Management - ICETM 2020
Author(s) : Dr. Mohammed Al Haziazi, Dr. Rengarajan Veerasamy, Dr. Subrahmanian Muthuraman, Nasser Al Yahyaei
SMEs are recognized as a driving force for innovation, entrepreneurial spirit, and competitiveness, which are seen as keys to achieving sustainable development. The development and performance of SMEs have a positive impact on economic development. In most of the developing economies, SMEs not only contribute significantly to improved living standards, employment generation, and poverty reduction but they also bring about substantial domestic or local capital formation and achieve high levels of productivity and capability. Since the world today has become more complex, innovation has been considered as a prerequisite for competitive advantage for SMEs. In today's dynamic and uncertain economic environment, SMEs and organizations are trying to find new ways of achieving their strategic goals and ensuring long-term success. The current state of development shows that there are many opportunities for synergy between sustainable development and entrepreneurship. As the Omani economy moves into a more complex phase of industrialization and because more global, in its activities, there is a huge expectation from the SME sector. However, SMEs have not played a significant and crucial role they are expected to play in Oman's economic growth, development, and industrialization. SMEs in Oman are also facing difficulties and obstacles that are complicating their growth and performance to achieve sustainable development. This paper will try to understand the contribution of entrepreneurship development in the economic development of the country and how innovation and entrepreneurship development of SMEs will lead to sustainable development in the Sultanate of Oman. The paper is built on the analysis and synthesis of scientific literature. The key feature of sustainable entrepreneurship is to create new values and innovations and transforming companies, sectors, or economies towards sustainable development. However, there are barriers to the practices of innovation in SMEs in Oman which resulting in low productivity. Omani SMEs need to sharpen their focus on strategic planning to succeed in what they do without which existence would be in question. SMEs should realize the opportunity to increase their contribution to the Omani economy. The government of Oman should take more serious action to strengthen the SME in Oman. SMEs' competitiveness in Oman should uninterruptedly engage in innovation to improve its competitive advantage and achieve sustainable development.