Small Businesses in Kuwait

Prepared For:

Prepared By:

March 23, 2013

I.INTRODUCTION3

How Kuwait Can Employ US Business Law9

1. Small Businesses Promotes The Elimination Of Unemployment12

2. Small Businesses Helps The State On The Growth Of Its Economy And Diversify Sources Of Income15

Recent Trends18

Economic Landscape of Kuwait for Small Businesses19

3. Churning and Economic Growth20

Origin and distribution23

Determinants24

Impact24

VI. CONCLUSION27

Endnotes29

Small Businesses in Kuwait

INTRODUCTION

Small business in Kuwait

Nowadays the Government of Kuwait is trying to boost small businesses but they do not have appropriate and practiced laws to deal with them. US have the leading edge in business laws and many countries are also benefiting from these laws. Kuwait may also adopt them to support and manage small businesses in Kuwait. In the course of the legislative and legal divisions of the management, US business laws have sufficiently run the wealth of the nation and commerce, whilst mirroring US customs. Nowadays, bankruptcy legislation, antitrust legislation, and the trade articles appeared to handle the increase in small businesses.

Description of Area

Kuwaiti government possesses the oil industry and therefore directs the major part of Kuwaiti economy (75% of GDP). The country's considerable oil revenues are distributed all over the residents by widespread community works, such as free and compulsory education and a comprehensive health-care system. Health services meet high standards and are provided for free to all residents. With a population growth rate of almost 3.5 percent, life expectancy of seventy-seven years, and literacy rate of 84 percent, Kuwait has, as of 2003, a per capita GDP of U.S.$19,000. Kuwaiti citizens enjoy one of the finest living standards in the planet, often receiving, for instance, subsidies for housing and child care.

Thesis

Kuwait does not have laws for small enterprises therefore government of Kuwait should adopt U.S. laws.

Sign Posting/Forecasting

Laws governing business transactions have been traced to the earliest human civilizations. Archaeological evidence has revealed that standardized codes of commercial conduct existed in ancient Egypt and Babylonia (a city-state located in what is now Iraq). The Hammurabi Code, a system of laws created by the Babylonian king Hammurabi in the eighteenth century BC, includes a number of regulations relating to business transactions, including rules governing contracts between merchants and fair wages for manual laborers. The Bible contains numerous references to laws governing business practices, notably rules governing the charging of interest on loans. In most cases business regulations in the ancient world were enforced by merchants themselves and generally remained outside the jurisdiction of civil courts (the government division accountable for enforcing and interpreting laws). This practice changed in the Roman Empire, when business laws became incorporated into the broader legal system.

With the destruction of the Roman Empire by barbarian hordes during the fifth century ad, many of Europe's long-standing commercial networks were left in ruins, and business transactions fell into a state of near anarchy. Over the subsequent some 100 years more and more established trade routes began to form between cities throughout Europe and merchants once again began to draw up codes regulating business ...