SMEs and Entrepreneurship in Vision 2030

Three strategic objectives to develop SMEs and entrepreneurship in Saudi Arabia

are found in Vision 2030. First, innovation and entrepreneurship must be nurtured

and supported by providing all kinds of help to the younger generation. The main

target here is increasing the number of SMEs in Saudi Arabia from 50,000 to

104,000, whereas the global standard is 347,015. Second, SME contributions to

the economy must grow, with the main targets being to: 1) increase SME

contributions to non-oil national production, from 30% to 60%, 2) increase SME

contributions to GDP from 20% to 36%, where the global standard is 51%, and 3)

decrease SME failure rates during the first three years, where the global standard

is 82.5%, though there are no available statistics. Third, focus should fall on

increasing SME contributions to generating more job opportunities through

providing all necessary institutional support in the private and government sectors.

The main target here is to increase the workforce in SMEs from 51% to 53%.

In order to develop the entrepreneurship ecosystem in Saudi Arabia, different

supportive institutions have been built in the government and private sectors,

including business incubators, business speeding, investors, finance programmes

and joint working. The support from these institutions varies, in that some provide

business incubator programmes such as Wa’ed and 9/10ths, and others provide

business speeding programmes such as Wadi Makkah. Other institutions provide

investment opportunities in the technology sector such as STC programmes, or

finance programmes such as banks. Finally, other institutions provide support to

students and organising networking and meeting events for business cooperation

and support from investors and other businesspersons. Table 4-10 summarises

different institutional support in Saudi Arabia that is available in the government

and the private sector.

As mentioned before, the Small and Medium Enterprises Authority (SMEA) was

established recently in 2016 to support SMEs by providing several services, such

as facilitating resource access, revising regulations to remove obstacles and

creating developed networking and facilitating cooperation between SMEs and

other investors, incubators and customers. This authority has organised different

events since it was established, with some of the following forums and meetings

just a few examples:

1. Economic Forum in Riyadh and Jeddah

2. Arab Net Riyadh Forum

3. Family Business Forum

4. National Forum for Creative Industries

5. Fast Forward Investor Day 2017

6. Investment Opportunities Forum in Qatif Governorate

7. Launch your Business Meeting

8. Saudi Start-ups Meeting

9. SMEs and Opportunity Meetings

10. Innovation Award and Exhibition

Table 4-5 Summary of different Institutional Support in Saudi Arabia (Government and Private Sectors) Programme

Type

The Institutional Name Sector Type of support

Business incubators

Princess Nora University (Business Support and Development Centre)

Governmental Supporting leading female-owned commercial businesses and marketing the research results of innovators by providing them with the services and facilitates that guarantee the success of their promising projects

Wa’ed (Aramco’s Entrepreneurship Centre)

Private Funding offerings to expand or grow an established business or establish a new business. Providing a range of services such as training and mentorship, in addition to office space and amenities

9/10ths Governmental Provide seed funding, office space, mentorship, access to investors, exposure, stimulating environment, access to experts. Access to Saudi opportunities, access to knowledge and information of all markets and industries, access to freelances, access to apps services. Providing e-commerce solutions for home-based business. Provide an innovative suite of services designed to foster start-ups and help businesses grow

IDC Jubial (industrial development centre)

Governmental Provide support in planning for business and managing, office space, any logistic service, developing business strategies

Prince Mohammed bin Salman

Incubator Governmental Provide office space, logistics services, developing business strategies, mentoring and training, networking and easing procedures in government institutions related to business matters

Inspire U Private Provide support for idea/product with digital/ICT focus, unique ide with novelty, in Riyadh at least for six months. Support business with office space and mentoring

KAUST Governmental Provide industry collaboration programme, conduct R&D at KAUST, access to excellent talent. Provide corporate innovation training, research & technology parks, licence KAUST technologies and funding start-ups KFUPM Entrepreneurship Institute Governmental The programme is designed for KFUPM students who want to be entrepreneurs, to provide different types of

support, training courses and workshops covering all processes necessary to starting and managing a business

Business

Speeding Namaa Al Munawara Semi-governmental Support local business in AL Madinah City through mentoring, training, easing access to financial and marketing services

King Abdualziz University Business Accelerator

Governmental Provide knowledge, skills, counselling, training and supervision that help students in creating and operating their own business. Support its participants in their attempts to create prototype models and market their ideas and services in partnership with third parties in the labour market

Wadi Makkah Governmental Provide necessary technical services to transform innovative ideas into economically viable products. Provide consulting services, training, mentoring and funding and office spaces, in addition to accessing the market Centennial Accelerator Governmental Support business through easing access to financial resources and support the business during the early

stage

Ittjar Semi-governmental Support business through providing electronic base for electronic trade

Flat 6 lab Private Provide different types of support, such as financial support, mentorship, training and guiding entrepreneurs, office space and facilitating networking and cooperation with other institutions, entrepreneurs and investors.

Programme

Type The Institutional Name Sector Type of support

Investors RAED Ventures Private Investment in technology. Providing the funding to create substantial financial and strategic returns to its investors, while delivering exceptional value to its portfolio companies

BECO Capital Private Support the technology revolution in the Middle East through investing in smart, early-stage internet and mobile companies, founded by entrepreneurs that are creating transformational solutions that solve large regional problems

STC Venture Fund Public Support technical businesses through providing capital venture funding

Middle East Venture Private Provide financial support to certain types of SMEs, i.e. early-stage and innovative firms that are built on innovation and creativity, and these firms should be established in the GCC market

TAQNIA Investments Public This institution focuses on transforming technologies to Saudi Arabia through providing support to local and international investors. Concentrates on certain characteristics of SMEs, including technological-based, profitability, R&D, value chain and has an economic impact

Financing Programmes

Riyadh Semi-governmental Provide access to financial resources

Banks (8different banks) Private Funding business

Joint Works Bab Rizq Jameel Private An electronic base for entrepreneurs and jobseekers, which helps entrepreneurs to access qualified human resources

Oceaniat Private Supports entrepreneurs through networking and meeting events, to allow them to cooperate and meet other investors and entrepreneur

Mawhiba Governmental Fostering talented students, creating potential and innovation in school

Misk Private This institution provides support to talented people, creative potential and innovation through creating a positive environment that allows these talents and creative ideas to be invested in, educated and trained and networked and covered in the media, nationally and internationally