Factors Influencing the Entrepreneurial Development of (SMEs) in Saudi Arabia

Almosallam, Sahar (2008) Factors Influencing the Entrepreneurial Development of (SMEs) in Saudi Arabia. [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (646kB)


The importance of entrepreneurial activities and the establishment of new businesses aimed at boosting economic growth has long been established. However, the role of mechanisms that influence entrepreneurial activity have not been well understood, particularly in emerging economies. This dissertation investigates the factors that are acting as constraints to entrepreneurial activity among entrepreneurial Saudi small and medium enterprises (SMEs). Based on a quantitative survey by way of a structured questionnaire, supported by in-depth interview, this study identifies (through factor analysis) the important factors that are impacting on rapid growth/development among entrepreneurial SMEs in Saudi Arabia. The study also uses descriptive and inferential statistics to establish the level of the gap between the importance of these factors (as perceived by SMEs) and the SMEs perceptions of the performance of government authorities in dealing with these constraints.

The following factors were found to have significant negative impact on entrepreneurial activity among Saudi SMEs' regulation requirements, communication between SMEs and government authorities, finance, human capital, marketing and technical/operational factors. Of particular concern are the regulatory requirements, human capital and the poor communication, which appear to be the most critical factors in entrepreneurial activity and the development of SMEs. Significant gaps were also identified between the SMEs' perceptions of the importance of the factors and the SMEs's perception of how the government authorities were performing. There was overwhelming evidence that the government authorities are perceived to be underperforming in all factors identified in this study.

These findings give insight into understanding the constraints that are negatively affecting entrepreneurial development in Saudi Arabia. The recommendations suggested for Saudi government policy practitioners include the need to establish an entrepreneurial economy.

Item Type: Dissertation (University of Nottingham only)
Keywords: Development of SMEs, Factors Influencing Development of SMEs, Saudi Arabia
Depositing User: EP, Services
Date Deposited: 13 Nov 2008
Last Modified: 27 Jan 2018 21:36
URI: https://eprints.nottingham.ac.uk/id/eprint/21984

Actions (Archive Staff Only)

Edit View Edit View