| A new survey shows Saudi Arabia has a moderate-to-high cultural affinity for entrepreneurship. "Around 60% of the working-age population would prefer that everyone had a similar standard of living, nearly 70% of the same population consider starting new businesses to be a good career choice and that success earns social status and respect,” according to a new report on Saudi perceptions to building businesses published by Global Entrepreneurship Monitor. “Also, a high proportion perceive media as paying attention to new business creation, that it is easy starting new businesses, and that many businesses aim primarily to solve social problems.” GEM was established in 1999 as a joint project between United States’ Babson College and the United Kingdom’s London Business School, with the mandate to understand why some countries are more 'entrepreneurial' than others. The institute provides research to organisations such as the United Nations, World Economic Forum, World Bank, and the Organisation for Economic Co-operation and Development (OECD). Saudi citizens’ perceptions about entrepreneurship show high regard for the vocation and is a positive development in the wake of increased entrepreneurial activity expected in the coming years. The GEM survey highlights two perceptions that stand out in particular. First, is the low proportion of individuals fearing failure as an obstacle to start-up, and, secondly, the high percentage of people perceiving good business opportunities over the next six months in their local area. However, the good disposition and entrepreneurial characteristics of a population are not sufficient in themselves to generate significant levels of contribution to the economy from the entrepreneurial sector – many other factors, likewise analysed and evaluated across this report, come into play. The GEM report also noted that while most SMES typically start off with few employees, in Saudi Arabia early-stage entrepreneurial activity is better positioned compared with other economies in the region, because the percentage of such activity with no employees is very low. Currently, 47.1% of activities have more than five employees in 2017, compared to 36.6% in 2016. Still, there is much work to be done, as while Saudi perceptions of entrepreneurship and starting out on their own is high, many businesses still need support from the government. The survey showed that new business activity in the market (or those running from three to 42 months), saw a drop from 7.7% in 2016 to 6.7% in 2017.
BIG BUSINESSES SUPPORT SMALL BUSINESSSES For its part, the Saudi government has pledged to launch a raft of new initiatives to raise the economic contribution of small and medium enterprises (SMEs) through initiatives, such as the National Entrepreneurship Programme and the Strategic Partnerships Programme, aimed at strengthening the role of the private sector, according to the Ministry of Finance. The authorities have pledge to provide “the necessary support to these companies, opening greater horizons for expanding their business locally and abroad, and the creation and consolidation of economic and investment relations between countries of common interests through the building of global partnerships to promote the strength of the economy and diversification of industries,” the Ministry of Finance said in its preliminary budget 2019. Major government-related entities are also supportive of the SME sector. Aramco said it had identified 140 SME development opportunities across nine industrial segments, with a more than USD 16 billion market gap, a fraction of its USD 400 billion capital programme over the next decade. “Local content development is ultimately about sustainability, driven by the better integration and agility that come from sourcing our value chain from our own backyard,” according to Ahmad A. Al-Saadi, senior vice-president of technical services at Aramco. “By helping create quality jobs, building an innovative workforce and stimulating economic growth, localisation aligns with the economic and social aims of Vision 2030, the kingdom’s economic diversification programme.” Similarly, Saudi Arabian Basic Industries Corp. (SABIC) has launched a Local Content and Business Development Unit (LCBDU), which aims to position the petrochemicals giant as a key enabler of Saudi Vision 2030. “The LCBDU leads SABIC’s national initiative NUSANED, an integrated localisation engine that empowers collaboration between the SMEs, large multinationals and the government in Saudi Arabia by supporting the national industrial sector and, allowing national companies to become global,” the company said. | 
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