Bureaucracy in the government system is crippling the growth of the national economy, highlighted Bahraini businessmen.

They stressed the need to tackle the 'red-tape' at the major ministries and government agencies, which they said was posing a major challenge to start-up businesses and investors, reported the Gulf Daily News (GDN), our sister publication.

The topic was raised during the meeting of the Bahrain Chamber of Commerce and Industry's (BCCI) Entrepreneurs Committee titled 'Funding and Insuring of Entrepreneurs' yesterday at the BCCI headquarters in Sanabis.

Entrepreneur and Falak Enterprises chief executive Suhail Al Gosaibi said that the long wound procedures at the government level was killing the economy.

"As start-up businesses, the bigger hindrance than finding funds for business is the bureaucracy in the country, which is a challenge," said Al Gosaibi.

"The number of forms that has to be filled up, the documentation procedures and the time that it takes, is definitely not helping the economy.

"We had submitted our business plan to Tamkeen, which said that it was not Bahrain friendly (while we are franchisers).

"We were asked to change the Commercial Registration (CR), which the Industry and Commerce Ministry objected to, while Tamkeen insisted on it.

"It was almost seven months of wait, which was a waste of time and why would anyone spend so much of time and energy in Bahrain, when in neigbouring Dubai, everything is done within 24 hours?" he asked.

Al Gosaibi insisted that this situation must be tackled.

"For the economy in Bahrain to grow, we need to tackle red tape and remove this bureaucracy.

"This is a major challenge that is harming the growth of our economy and in a way killing it.

"Be it with the Tamkeen, Bahrain Development Bank (BDB), the Economic Development Board (EDB) or the ministries, red-tape must be tackled."

Bahrain Business Women's Society board member and BCCI Trade Exhibitions Committee head Feryal Abdulla Ahmed Nass pointed out that the business incubator system at the BDB was inactive.

"It takes ages for entrepreneurs at the BDB to get things sorted out, which is not encouraging," said Nass.

"At the same time, the business incubator system at the BDB is not making any progress nor is supporting beginners as what it was designed for," she said.

The Bahrain Business Incubator Centre (BBIC) established in June 2011 by the BDB was designed to provide infrastructure and technical support, together with entrepreneurship training.

"The start-up businesses are not benefiting from this system and the problem with small businesses is not finances but sustainability.

"I think there should be consultation centres to help small and start-up businesses to grow and expand," she added.

BCCI board member and Entrepreneurs committee vice chairman Hamed Fakhro suggested that all business related approvals be unified under the Industry and Commerce Ministry.

"To be able to attract foreign investment, we need to have simpler bureaucratic system," said Fakhro.

"At present, the ministry is just a middleman liaising with other ministries like the Electricity and Water Authority, Health, Interior, Municipalities and Urban Planning, on the many stamps and approvals needed to facilitate business.

"To make this process easy, why not we have it all unified under the ministry, with qualified experts from each ministry working with them?" he suggested.

Fakhro also pointed out that a strong leadership at the helm of affairs of key ministries was important.

"We need to work together to benefit Bahrain and not have individual benefits," he added.

Committee chairman Mohammed Adel Fakhro noted that Tamkeen has 'significantly' improved its speed in business procedures.

"As an entrepreneur, I am aware that bureaucracy is a big issue and can be a major hindrance for the growth of firms." - TradeArabia News Service