By Majd Othman
KUWAIT: In a recent decision approved by the government, the requirement for an official office space in order to license small businesses in the country has been withdrawn. This marks a progressive and supportive step that has been officially approved to provide monthly financial support to citizens who own freelance or home-based projects. This step is aimed at encouraging local entrepreneurs to create their own small businesses instead of relying solely on government jobs. It is expected to bring multiple benefits to the country on various levels.
Firstly, it will reduce the burden on the public sector as fewer citizens will need to seek government employment. Additionally, it will stimulate the business market, contributing to the overall financial development of the country. Furthermore, it opens up opportunities for new sectors to enter the market, whether in industry, entertainment or other progressive fields. To provide a more detailed perspective, small and medium enterprises (SMEs) in Kuwait are typically categorized based on the number of employees, asset size and revenues.
SMEs are defined as establishments with fewer than 50 Kuwaiti employees, an asset base worth less than KD 500,000 and revenues not exceeding KD 1.5 million. The new decision extends its support to a different category of small businesses, including home-based or freelance businesses, which will now be eligible for the government's labor support. A 2020 report published by Al-Markaz revealed that, prior to the pandemic, small and medium-sized businesses accounted for 90 percent of the companies in the Kuwaiti market.
With the growing number of freelancers and home business owners, the country has taken this progressive step to better support and organize the work of these entrepreneurs, many of whom have achieved international success in various fields such as reporting, photography, videography and other specialized careers. Ali Al-Aradi, a budding entrepreneur entering the business market, expressed his excitement about this important step. He believes it will not only provide financial benefits but also create a supportive environment, signaling positive changes for business owners in Kuwait.
He pointed out that Kuwait's market has been experiencing enterprise migration due to unfavorable business conditions. However, with the government's swift actions, many entrepreneurs and small business owners are likely to stay in the country and focus on growing their businesses. He concluded by emphasizing the importance of persistence and continuity in this endeavor, particularly for new projects in sectors such as entertainment, food and beverage and imports, which will undoubtedly rejuvenate the market.