MANAMA, 28 June 2007 — Bahrain’s 40,000 small- and medium-size enterprises (SMEs), most of them fund-starved organizations and on the brink of closure, yesterday get a lifeline as the Labor Fund unveiled a package for the firms enrolled within the Enterprise Development Support (EDS) Program.
The first batch of the SMEs can avail the funding and technical expertise by enrolling with the EDS program by July 8, the acting CEO for the Labor Fund Abdulellah Al-Qassimi said.
He said that government has set aside BD5 million, initially for two years, and this program will be spread over four years with a clear commitment to keep the wheel of this segment of the industry moving which constitutes 96 percent of the total industry.
He said: “Under the EDS program, small- and medium-enterprises are being offered co-financing, business and IT consultancy to enhance their productivity. The program offers a number of schemes under this initiative — Business Information Scheme (BIS), Business Development Scheme (BDS), and now the Technical Assistance Program (TAP), a co-financing scheme designed to support SMEs to make the conversion from reliance on cheap labor toward greater utilization of advanced equipment and technology.
This will help to reduce work costs, increase production capacity, and increase job opportunities for Bahrainis.
Al-Qassimi added that in addition to TAP, “we will also be adding further communication facilities via the Internet, Mobile Short Messaging Services, Bulk messaging and a call center. We will continue to enhance and add further schemes and facilities to improve the productivity of the private sector.”
In addition to the new communication facilities, forums will be part of a continuous roadshow aimed at keeping the media members, consultancy firms and SMEs up to date with all the activities and latest developments within the EDS program. A brochure with information on the various schemes has been produced, and the official Labor Fund website will also be launched during the first week of July. An awareness campaign on the various benefits of the program is also currently under development.
Mohammed Shubber, acting vice president for the private sector support department at the Labor Fund, said at present there are 43 consultancy firms and about 200 small and medium enterprises enrolled into the program, with 85 registered and another 186 are being processed.
He added: “The positive response and increasing number in applications has created a need to appoint an agency to manage and monitor the operational and day to day issues and relationship between the consultancies and beneficiaries to ensure the quality and the effectiveness of the EDS program.”
The EDS program is part of the Labor Fund’s strategy to grant the private sector the driver’s seat in the journey toward economic growth.
The fund will continue to hold consultation and talks with the private sector, NGOs, and other entities to maximize the benefits to the private sector and to ensure that schemes devised serve the market requirements and needs. The EDS program is among a number of schemes and programs designed to create a fruitful relationship between the Labor Fund and the private sector.
“The communication channels will continue to be open between the Labor Fund and its stakeholders and urged small- and medium-enterprises to benefit from the available schemes and facilities and opportunities are still available for consultancy firms or organizations who believe they are capable of serving this vital sector.”