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Title: The role of business model information systems and human capital in the barriers to the growth of small and medium-sized enterprises (SMEs) in Kuwait
Author: Khuraibet, Salman
ISNI:       0000 0004 8499 0098
Awarding Body: Royal Holloway, University of London
Current Institution: Royal Holloway, University of London
Date of Award: 2016
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A substantial amount of research has been undertaken on growth in developed nations, and to a lesser extent in developing nations. In comparison there have been very few studies which have looked at barriers or limits to growth and also business development, especially utilising large scale data sets and econometrics and linked to theory. There has been no large scale study of entrepreneurship, per se, in Kuwait, and no prior academic studies, qualitative or quantitative on barriers or limits for businesses in Kuwait. To fill this gap, this study utilises the first large scale survey of entrepreneurship in Kuwait. The aim of the study is to shed new light on business model configuration and resource abundance in Kuwait, an oil rich nation in transition to an entrepreneurial economy. The sample framework used information from the Chambers of Commerce in the six Kuwaiti governorates (Al Jahra, Al Asimah, Al Farwaniyah, Hawalli, Mubarak AlKabeer, and Al Ahmadi). A response rate of 35 per cent was obtained. Using data from 396 entrepreneurs the researcher explores the relationship between characteristics of entrepreneurs and their firms against barriers to growth. Six groups of barriers to growth are assessed: finance, market, managerial and technical know-how, inputs, economic/regulatory and infrastructure. A business model configuration was used to bring together human capital theory, the resource based view of the firm, social network theory and the diffusion of innovation in a multi-theory framework. 62.1% of the entrepreneurs indicated that corruption was an important or a crucial factor which limited growth in Kuwait and this was ranked as the number one barrier in Kuwait. The second and third most mentioned barriers in rank order is registration and red tape which is mentioned by 60.6% of entrepreneurs, and closely followed by bureaucracy in government agencies which was mentioned by 59.6% of entrepreneurs. Four barriers are mentioned by less than one third of the entrepreneurs and they are: inadequate access to new technology (32.4%), low quality of electricity/water supply (30.8%), difficult to raise capital from family (27.5%), and difficult to raise capital from friends (24.3%). The econometric results provide strong evidence that entrepreneurs encounter fewer barriers to growth when they have a greater level of education, indirect political contacts, and they use social media sites. Product or service and process innovative firms and firms with higher start-up finance encounter fewer barriers to growth. Entrepreneurs who follow business models in which revenue is captured through ecommerce also encounter fewer barriers. Several control variables are also systematically related to barriers to growth. Entrepreneurs in team businesses, with a greater number of full-time employees, and a smaller number of part-time employees encounter more barriers to growth. By utilising the business model theory and 396 entrepreneur?s responses this study provides advances for theory, practitioners, policy makers and entrepreneurs themselves. Prior to this study barriers and problems for entrepreneurs in Kuwait was only understood at an anecdotal level. Overall, the results present a complex picture of the role of political, human, economic and social capital in explaining barriers and limits to entrepreneurs achieving their objectives in Kuwait.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available