Earlier this month, the latest world bank study shows that Yemen is one of the most difficult places is the world to start a business as Yemen took 113th place out of a total 178 countries. These results came as a backlash to the country after promising to ease the way for businesses, whether small or large.

Experts from the World Bank also confirmed that Yemen is considered the second country in the rankings after Syria in the difficulty of opening a company, showing almost no improvement over the years. "To be ranked so low, how can the government say or admit to others that it is supporting businesses and companies. No support has been given to small or large companies," said Ateeq Ali Adani, who feels that Yemen would have been even worse than Syria in the rankings if more observers were sent.

Dr. Yahya al-Mutawakel, the Minister of Industry and Trade made it clear that Yemen is in dire need of supporting small businesses and making them stand on their feet.  “The development of small and medium industry is the best way to reduce unemployment, poverty and improve the economy,” al-Mutawakel said. However, study results show opposite of what was announced by the ministry.

Ironically, another report published by the Ministry of industry and Trade mentioned different results The report showed that the industrial sector in Yemen is set to witness a 6.6 percent growth during the next years of the third five year plan 2006-2010. The report held the government responsible for this growth rate as it had engineered a favorable investment environment, attracted national, regional and Arabian projects and improved human resources.

When comparing both reports, and turning the matter back to the public, citizens demanded facts and reality from the government instead of numbers said Mansoor Ali Tamer, a university graduate who tired to get support for his small business, and said that favoritism is also a factor in being accepted. "For the last two years, I have been trying to get support to open a small business, but I had to pay bribes even in this circumstance."

“Government official's kids get scholarships to study in foreign countries and have the option to stay there or come back. We are not asking to be like them, but the government should remember that we want to live to,” he concluded.

According to the report, small industries in Yemen form around 96 percent of the total number of industrial enterprises, with a majority of them being personal family business which were not supported of funded by the government, as part of their plan to support small businesses in Yemen.

Nationwide, around 42 percent of workers in the industrial sector work in small industries projects. Female workers form only 2.5 percent of small business employees, working mainly in sewing and weaving. The number of industrial projects around the country increased from 37,971 projects in 2005 to 38,160 projects in 2006.

Unfortunately, most of the investment oppurtunities have been towards supporting big projects which are run mostly by foreign organizations and not local. The General Investment Authority (GIA) scores reveal that the projects during the first quarter of 2006 exceeded 95 at a total cost of over 135 billion Yemeni Riyals. These projects provided more than 3,382 job opportunities. The industrial sector got the lion's share of these projects (55 projects at a cost of 117, 6 billion Yemeni Riyals, making around 2,266 job opportunities available. The tourist sector's projects reached 14, at a total cost of 13.6 billion Yemeni Riyals and helped create more 355 job opportunities while projects of the service sector totaled 13 for a cost of 1.7 billion Yemeni Riyals.

"All the profit and opportunities are going to big businesses, and rarely does small business get a share. We might get job opportunities in the companies but with little salaries to cover our daily expenses," said Sameer Ali Al-Malahi, a local who has not been successful in finding a job. "we might be doing all the work, while the foreigner is in his office relaxing and talking on the phone, but in the same time we are receiving more than 10 times less salary and payment than they are." Al-Malahi has been unemployed for over three years, and finds it near impossible to find a job if you have no connections or support from others.

The fourth Arab conference of small and medium industries was organized by the Ministry of Industry and Trade weeks ago, Locals who were optimistic for the conference left with no guarantees as only words were given and promises; same as the last conference.  "They have many conferences, but they come out with nothing. This week we will see no outcomes, believe me" concludes Tamer.