(MENAFN- The Peninsula) Enterprise Qatar (EQ), the promoter of small and mid-sized businesses, has come out with a definition of SMEs which will help them qualify for various SME-dedicated schemes.
According to the newly-formulated definition, companies registered in accordance with Qatari law, with less than 250 employees and an annual turnover of less than QR100m, will primarily come under the category of SMEs.
"This current definition of SMEs was evolved by EQ in coordination with different stakeholders, including the Ministry of Economy and Commerce, the Ministry of Finance, and Qatar Development Bank (QDB)," said Omran bin Hamad Al Kuwari, CEO of EQ.
Al Kuwari, told this newspaper on the sidelines of an event held on empowering SMEs recently, added: "Establishing a definition is an ongoing process as we cannot just copy and paste it from other economies. We have come out with this, which we think is quite reasonable. However we are in the process of engaging various stakeholders, including different ministries and organizations to have a more coordinated view on it."
However, there is an exception in the number of labour force, in case of companies operating in the 'creative industries'. For companies in these sectors (creative industries), the labour force should not exceed over 100 employees.
Creative industries understandably include all knowledge and information-based companies such as software, app developing companies, advertising, architecture, art, crafts, design, fashion, film, music, performing arts, publishing, and research and development companies.
Among other eligibility parameters to fall in the SME category include the participation of legal entities - whether governmental or non-governmental - should not exceed 25 percent of its total share capital or its voting right.
Meanwhile, on behalf of EQ, he also invited businesses to apply for 'Rating and Accreditation' services provided by EQ in collaboration with Dun & Bradstreet (D&B), an American public company headquartered in New Jersey.
The service is being offered free of charge (100 percent subsidised) for all 'actively Qatari managed SMEs' for the first time of issuing the certificate, which will be valid for one year. The renewal service will cost QR5,000. The rest of the companies have to pay the full amount of rating service and the issuance of the certificate.
"The rating and accreditation programme is a means to evaluate businesses on various parameters such as quality of the management, the industry, business model and their financial performance to come up with an over all rating which will help companies to facilitating their businesses by pre-qualifying them in winning contracts or obtaining bank loans," said Prashant Kumar, Associate Director- Research and Advisory Services at D&B, who was here recently to announce the findings of Business Optimism Index on Qatar for Q3 2014.
Kumar said that besides winning work contracts and finance, the rating will also help companies bridging the information gap between banks and the company concern with regard to associated risks called 'information asymmetry'.
According to EQ website, the cost of accreditation may vary between QR3,500 and QR11, 500, depending on the complexity of the business operations, and only 'Good' rated SMEs will be eligible for accreditation. Start-ups and newly registered companies are not eligible for the service.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.