Small and medium enterprises are the thriving force for any economy and are considered one of the main drivers for innovation and employment generation, and in the Kingdom of Saudi Arabia (KSA), the vast majority of residents (67%) would like to be entrepreneurs. In fact, a new survey conducted by Bayt.com, the number one career site in the Middle East, and YouGov, a pioneer in online market research, entitled ‘Entrepreneurship in the MENA 2015' has revealed that 80% of respondents from KSA personally know at least one entrepreneur in their country of residence; 97% of whom are believed to have been successful in their endeavor. In KSA, both private and public sector employees think of starting their own business. In fact, 62% of all employees are currently thinking of starting their own business, while 23% have tried in the past but cite they have failed or could not do so for different reasons. Only 8% of the workforce in KSA have never thought of starting their own business. Perceptions vis-à-vis ease of starting up a business vary, with 17% of KSA respondents indicating they believe that setting up their own business is somewhat easy or even extremely easy, while 51% of general respondents believe to varying extents that entrepreneurship in KSA is somewhat difficult or very difficult. The main difficulties cited by those who have started their own business in KSA include the strict rules and regulations (57%); the unavailability of finances (56%); and a perceived need for personal connections or ‘wasta' (28%). Close to half (48%) of KSA respondents believe that one should gain some experience before starting their own business, while 41% believe that any time is a good time to start a business. In fact, the top three concerns for starting a business in KSA, according to respondents is procuring finances (62%), uncertainty of profit/income (37%); and hiring the wrong people (35%). Seventeen percent of the respondents from KSA, respectively, believe that communications and information technology and architecture and engineering are the most appealing industries for entrepreneurs in their country, followed by advertising, marketing and public relations (15%); hospitality and leisure (14%); and finance, insurance and real estate (13%). Close to three quarters of respondents from KSA (73%) perceive entrepreneurs as people who think primarily about profit, and 83% of respondent see entrepreneurs as opportunity-driven. Seventy three percent of respondents in KSA strongly agree or somewhat agree that entrepreneurs help in creating new jobs, while 67% agree that entrepreneurs truly benefit the society by creating new products and services. The best pieces of advice offered to budding entrepreneurs by respondents in the MENA region, including KSA, is to not be afraid of failure (38%); have a great business plan (13%); and have a great and well-researched business idea and marketing plan (both 11%). The role of education in defining entrepreneurship More than three quarters of respondents in KSA (77%) agree that the education they have received has helped them develop an entrepreneurial attitude either to a great extent or some extent. Only 10% of respondents disagree with this sentiment. Seventy seven percent of respondents in KSA agree – either strongly or moderately – that the education they have received has helped them acquire the necessary skills and know-how to become an entrepreneur. Another 68% believe that their education has helped them understand the role of entrepreneurs in society, while 71% agree that the education they have received has made them interested in becoming entrepreneurs – either to a great or some extent. Sixty seven percent of KSA respondents prefer to be their own boss, while 28% would rather seek employment in a company. When it comes to reasons for being self-employed, 58% of KSA respondents do it for personal fulfillment; 42% believe it affords them the freedom to determine their work-life balance; and 37% like the idea of being their own boss. Of the respondents from KSA who prefer to seek employment in a company, close to half (69%) prefer to work for private sector companies, while 31% would rather work for the public sector. The most important factor for KSA respondents choosing to work for pay is working for a company is regular income (32%). 30% of KSA respondents they lack the finances to start their own business, while 29% value the stability of employment offered by a company. Throughout the Middle East and North Africa (MENA) region, 70% of respondents that have started their own business have done so over the past five years, while almost 1 in five (18%) has started their business in the last 10 years. According to MENA professionals who run their own business, the top three reasons for working for themselves are: more income (34%), greater independence in what they want to achieve (31%), and a better work-life balance (28%). Currently, a third of MENA respondents (33%) who are self-employed are at the start-up stage of their business; 23% said they have an established business that is underperforming, while 22% have a well-established and well-performing business. "Encouraging entrepreneurship is a huge focus for many countries throughout the Middle East and North Africa region, it bolsters the economy and drives innovation. While people in KSA are keen to start their own business, financing it is still a key hindrance in achieving their aspiration. This may suggest that the region needs more investors to step in and help entrepreneurs," said Suhail Masri, Vice President of Sales, Bayt.com. "Our mission at Bayt.com is to empower people by giving them access to data that is well-researched and up-to-date regarding the employment and economic pulse of their country of residence. We have been helping start-ups to recruit top talent across the industry spectrum at all career levels. In fact, the Bayt.com platform has been instrumental in facilitating and enabling recruitment activities for entrepreneurial ventures from start-up phase through to maturity since our inception in 2000." "More and more people across the Middle East and North Africa are looking at entrepreneurship options. Despite the challenges, our research indicates that entrepreneurship has become more popular than ever before," said Elissavet Vraka, Research Manager, YouGov. "Encouraging more entrepreneurial ventures is beneficial in myriad ways to the economies of the region; entrepreneurs contribute to the country's GDP and help create job opportunities."
