Exploring pathways and barriers to entrepreneurship and innovation in Dissertation

Exploring pathways and barriers to entrepreneurship and innovation in kuwait - Dissertation Example However, no more than 300 entrepreneurs have applied for the subsidy, which is a number small enough to make the study of exploration of barriers in the way of entrepreneurship and innovation in Kuwait as done in this research, worthwhile. Research question The research question is; What are the pathways to entrepreneurship and barriers to the establishment of SMEs in Kuwait? Research objectives This research tends to Study the historic contribution of SMEs in the economy of Kuwait Identify the pathways to entrepreneurship and barriers to innovation in Kuwait Develop a concise and objective method of capturing and evaluating the business ideas proposed by the SMEs. Devise ways to improve the tendency of entrepreneurs to take financial aid from the government to establish SMEs. Literature review Small businesses and entrepreneurship is a separate and quite developed field of study in UK supported by a lot of research in the past. Research on SMEs largely commenced in UK in 1970s (Blac kburn and Smallbone). Such a late start as compared to US can be attributed to the difference of the external conditions. In the 1970s, UK had the lowest new firm formation and small business ownership rate in the West (Bolton). â€Å"It is from this research base that we launch our attempt to describe developments since 1971 and make projections through the next decade† (Curran and Stanworth 16). Small business cultivated in UK in 1980s and in the 1990s, this field was institutionalized, consolidated, and legitimized (Blackburn and Smallbone 22). Past research has conventionally explored the link between entrepreneurial competitiveness and ethnic diversity (Kitching and Hill). Last two decades have shown a tremendous growth in the literature of SMEs (Castel-Branco 1). There is no specific definition of small firms. At sectoral level, the definition of small firms narrates the objective measure of the firm’s size which includes the sales turnover, number of workers, ne t worth of the business and its profitability. Thus, all firms may be considered small in some sectors, and yet there can be sectors where no firm is considered small (Storey). Entrepreneurship has been largely considered as a means of â€Å"decentralisation, economic restructuring and movement in the direction of market economy† (Venesaar and Loomets 1). According to (Frazer 15), there are three factors necessary for entrepreneurial endeavor, namely the trigger, pre-disposing factors, and the enabling factors. The triggers are basically of three types of triggers i.e. need for money which may be instigated by loss of job, health scare and divorce. Prior experience of job and formal education are two pre-disposing factors controlling an individual’s entrepreneurial endeavor. Availability of finance, socioeconomic factors and societal support are some of the potential enabling factors for the entrepreneurs. Kuwait has recently taken certain steps to improve her economic al strength. After a careful study of the important economic factors, Macinzee Consulting Company passed certain recommendations one of which was to strengthen the economy of Kuwait by investment in SMEs. The government released 1 billion pounds to be managed by the Kuwait Investment Authority. The funds were to be distributed among the willing entrepreneurs via four organizations, three of which were private and one organization was state-owned.