KUWAIT, — It is simply a glaring fact that the private sector is the locomotive of the world economies, and the main contributor in the GDP.
Kuwait has been offering support to the sector so that it could lead development in the country.
Part of this is an initial study recently submitted to Minister of Commerce and Industry Yusuf Al-Ali on regulating commercial licenses for home business, as they constitute part of the small and medium sized enterprises (SMEs) sector, and can contribute to economic growth, besides providing job opportunities.
Home business or home-based business (HBB) is a business whose primary office is in the owner’s home. The business can be any size or any type as long as the office itself is located in a home.
Issuing HBB commercial licenses aims in the first place to encourage the private sector and diversify the base of production, Undersecretary of the Ministry of Commerce and Industry for companies and commercial licenses sector, Dr. Abdullah Al-Awisi told KUNA on Monday.
The study submitted to minister Al-Ali aims to curb unlicensed HBBs, through offering licenses, with regulations on the types of businesses involved, he added.
The goals of encouraging legal HBB also seeks to encourage the Kuwaiti youth, productive families and even people with special needs to play a role in economic development, Al-Awisi said.
This will curb unemployment rates, improve the individuals’ standard of living and encourage people to have their own businesses.
A license will be offered to Kuwaitis, no younger than 21 years old. A house will have one single license, to be renewed annually, the ministry’s senior official said.
No doubt enhancing HBB through legalizing it is likely to create fresh jobs and add to the efforts to diversify production in the country, economics professor at the Kuwait University College of Business Administration Dr. Nayef Al-Shemmari told KUNA.
This will limit the jobless, reducing demand on government employment, which will help the state lessen wages budget, he added.
Moreover, HBB plays a vital role for boosting people’s income and better their living.
This all serves sustainable development in the country, he stressed.
According to Al-Shemmari, the regulations set for HBB have to consider the real needs of the market.
Homemade food must be included in the HBB, he said, with a special law to organize it, following example of other countries like Saudi Arabia, the UAE, Oman, Jordan and Egypt, he said.
Source: Name News Network