Encouraging the growth of innovative small and medium-sized enterprises (SMEs) as a pivotal strategy for diversifying resource-rich economies

Husam Arman, Ahmad Alawadhi and Shaikha Al-Fulaij

Chapter 6 in Economic Challenges in the Gulf Cooperation Council Countries, 2026, pp 109-133 from Edward Elgar Publishing

Abstract: Like most GCC countries, Kuwait is trying to diversify its economy and achieve sustainable economic growth. One sustainable mechanism is through the development of SMEs, in particular innovative SMEs. These types of firms can contribute significantly to the economy and job creation in a sustainable manner even in times of crisis such as COVID-19, which was a cruel test for them. The chapter utilizes survey data to determine the impact of COVID-19 on sales, employment, and the response measures undertaken by SMEs. The key emphasis of this chapter is on the role of technological innovation in enabling SMEs to be among the high-growth firms that are sustainable and resilient to crisis. The link between organizational innovation and business continuity management systems was also explored. The chapter concludes by emphasizing SMEs’ role in advancing economic diversification and recommends a list of practical strategies.

Keywords: SMEs; Economic Diversification; Innovation; COVID-19; Crisis (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035358434
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