Plugging growth loopholes

By Captain Mahmood Al Mahmood

Heard about the phantom delivery company? An enterprising entrepreneur apparently set up a full-fledged delivery company which promised to deliver food and groceries from selected establishments to customers dialing in.

They proudly declared that they would tap into the enthusiasm of Bahraini youth and hire all Bahrainis for the jobs available.

Quite rightly, they were fully supported by different jobs creation organisations in the Kingdom. Now, here’s the trick: a couple of months after they started operations, the company ran aground and shut shop, throwing their Bahraini employees out of work.

It turns out that in the busy Bahraini start-up world, many companies are started as magnets to attract funding and once the funds are safely tucked away out of reach, the company cites business trouble and closes down. I do believe that we need more due diligence and follow-up when precious funds are allocated to entrepreneurial ventures.

There is no doubt that MSMEs which seek such help are the silver lining for future growth.

The majority of them do their best to make a success of their venture. However, a few do try and trick the system and they, unfortunately, give the authorities reason to add even more clauses which make getting aid difficult for the real entrepreneurs. Just like we have LMRA inspections to track labour violations, we should institute a growth check for new MSMEs so that they can be advised of any problem areas and implement course correction.

If this is made mandatory, then the cheats who try to fiddle the funds away will understand that we mean business when we invite them to grow with us in business-friendly Bahrain.