Entrepreneurship in the Kingdom of Saudi Arabia

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Small and medium business review underway

JOE AVANCENA

DAMMAM: The Asharqia Young Businessmen Council is preparing an in-depth assessment and review of the state of the Kingdom’s small and medium enterprises (SME), with the objective of making this sector contribute more to economic and social development in Saudi Arabia.

The result of the study will be presented to the forthcoming SMEs Economic Forum 2011 to be held on March 29 and 30 at the Asharqia Chamber of Commerce and Industry in the Eastern Province, according to Khaled Amar Al-Dossari, chairman of the forthcoming forum.

The Asharqia Young Businessmen Council is a subcommittee of the Asharqia SME section, which is charged with promoting small and medium businesses, particularly to young Saudi entrepreneurs. “The young businessmen council has been tasked to conduct a study on the current problems facing SMEs, particularly those affecting young Saudis; the council will look at the specific problems experienced by owners of small and medium enterprises and how to provide solutions to these problems,” Al-Dossari said.

The Council of Saudi Chambers of Commerce and Industry has identified two major problems facing the Kingdom’s SME sector. These are the difficulty of obtaining funds from finance institutions and the lack of managerial and skills training of those going into SME ventures.

The study of the young businessmen group in the Eastern Province will focus on these two issues, in addition to other needs, to make SMEs viable and successful. The Council of Saudi Chambers pointed out that SMEs can best attract foreign investment and lead to the promotion of non-oil exports, in addition to creating jobs. According to the council, SMEs in the Kingdom represent almost 93 percent of total enterprises and provide for about 24.7 percent of total employment. SMEs are defined as companies having assets of SR50 million or less, a maximum of 250 employees, and a maximum turnover of SR10 million.

?”The holding of the SMEs Economic Forum 2011 will hopefully further foster the entrepreneurship spirit among our Saudi youth and encourage them to take up creative initiatives to secure their future,” Al-Dossari said.

 

© The Saudi Gazette 2011

http://www.zawya.com/Story.cfm/sidZAWYA20110130034712/Small%20and%20medium%20business%20review%20underway

 


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