Investigation of Financial Challenges and Opportunities of SMEs in the Context of Oman Vision 2040

Abstract

This study investigates the financial challenges and strategic opportunities faced by small and medium-sized enterprises (SMEs) in the Sultanate of Oman, particularly within the framework of Oman Vision 2040. SMEs are key drivers of economic growth, job creation, and innovation; however, they encounter significant financial barriers that hinder their performance and sustainability. The research aims to examine the extent and impact of financial constraints such as limited access to capital, high interest rates, and inadequate financial literacy among SME owners. It also explores the strategies SMEs adopt to navigate these challenges, including financial planning, innovation, and leveraging government support programs. A quantitative approach was employed, using structured questionnaires distributed to 150 SMEs based in Muscat Governorate. Data was analyzed using SPSS, incorporating descriptive and inferential statistics to assess relationships among financial challenges, literacy levels, strategic responses, and performance outcomes. The findings reveal a strong correlation between financial literacy, strategic innovation, and improved SME performance. Additionally, the study emphasizes the importance of tailored financial policies and enhanced support mechanisms to strengthen the SME sector and advance the national goals of economic diversification outlined in Oman Vision 2040.