An analysis of entrepreneurship characteristics in Saudi Arabia

Abstract

Small and medium enterprises (SMEs), and entrepreneurship in general, are a critical component of growth in any society. Entrepreneurs create jobs, bring new products and services to the market, and, by starting of new businesses, positively impact on the level of productivity in a sector or the economy. Using data from the Global Entrepreneurship Monitor (GEM) Report for the Kingdom of Saudi Arabia 2009 and 2010 (Skoko et al. 2009, 2010), the fundamental aim of this chapter is to provide a snapshot of the state of entrepreneurship in the Kingdom of Saudi Arabia and describes its key characteristics which can be considered as a strong foundation for an informed policy debate about the relationship between entrepreneurship and economic growth and help governments identify what needs to be done to enhance the level and quality of entrepreneurship in their countries. To gather data, the GEM research utilized two types of surveys: the Adult Population Survey (APS) and the National Experts Survey (NES). The APS was administered to 2,000 Saudis in the summer of 2009, selected from a nationally representative sample of the adult population and yielding 1,881 usable results. The 36 national experts participating in the NES were selected on the basis of their knowledge and experience related to the set of entrepreneurial framework conditions known to have an impact on entrepreneurial activity levels at the country level.