One third of working-age adults (aged 18-64) in Saudi Arabia intend to start a business in the next three years, according to the 2018/19 Global Entrepreneurship Monitor Saudi Arabia National Report. It added that 83% of these adult's express high confidence in their abilities to start a business, the highest rate among the countries assessed in the MENA region. The findings of the report were discussed at a forum hosted by Babson Global Center for Entrepreneurial Leadership (BGCEL) and Prince Mohammad Bin Salman College (MBSC) held at Bay La Sun Hotel and Marina in King Abdullah Economic City (KAEC). "The latest GEM study has revealed an increasingly positive culture for entrepreneurship within the Kingdom, and continues to demonstrate promising growth over the past three years. The strengthening of entrepreneurial activity within the Kingdom is an important pillar of Vision 2030, and the 2018/19 Saudi Arabia Report offers unique insights into how the nation can foster the entrepreneurial drive of Saudi youth," said Fahad Al-Rasheed, Vice Chairman of MBSC's Board of Trustees. The Report also indicated that entrepreneurs in Saudi Arabia have become substantially more competitive in 2018, with over twice as many entrepreneurs (46%) stating they have no or few competitors compared to 2016 (21%). With respect to gender, 14.7% of men, versus 8.5% of women, identify themselves as entrepreneurs. This represents an increase over the prior two years for men, and a decline for women. Necessity plays a greater role in the motivation for entrepreneurship among women than among men. Entrepreneurs in Saudi Arabia averaged 37 years of age. Overall, the age profile shows higher rates among older age groups, indicating these individuals may have the resources, experience and networks to leverage. But it also reveals an opportunity to boost entrepreneurship among the younger population. Three-fourths of entrepreneurs in Saudi Arabia have at least a post-secondary degree. The Forum featured a keynote presentation by Dr. Abdullah Elyas, co-founder of Careem, and a panel discussion on the entrepreneurship ecosystem in Saudi Arabia. An expert assessment of national conditions for entrepreneurship revealed that government policies and support, and government programs, received among the highest ratings for Saudi Arabia, an increase over the previous two years these conditions were measured, which reveals a positive longitudinal trend. Experts identified support for new and growing firms as high priority and recognized the importance of government programs in stimulating these businesses. Asma Siddiki, Interim Dean of MBSC, noted that "with Saudis exhibiting the highest levels of confidence in their abilities to start a business among the Middle East and North Africa (MENA) region, organizations such as Monsha'at play an ever-crucial part in augmenting the role of small and medium-sized enterprises (SMEs)." She added that "the role of academia has significantly evolved in its capacity as an entrepreneurial facilitator. With nearly three-quarters of entrepreneurs and business owners having at least some form of postgraduate qualification, the need to cater our educational pedagogy towards ideation, implementation, and scalability is now more important than ever." Ahmed Linjway, Group CEO of King Abdullah Economic City, said "the GEM report continues to inspire confidence in the advancement of the Saudi entrepreneurial ecosystem. For our part, we are proud to be building a unique entrepreneurship ecosystem that inspires creativity and innovation, designed for businesses and startups to invest and experiment within the Kingdom." He noted that "KAEC is a key enabler for the entrepreneurship sector and a major contributor to the successful outcome of the Kingdom's Vision 2030. Entrepreneurship is at the core of KAEC and we are deeply engaged in helping people build and develop the skills they need for their future enterprises to be successful." Donna Kelley, professor of Entrepreneurship at Babson College and Member of the GEM Board of Directors, underlined that "governments can play a key role in fostering entrepreneurship nationally. This includes eliminating barriers for potential entrepreneurs and implementing policies and programs that can facilitate their efforts. With Vision 2030, it is clear that the Saudi Arabian government views entrepreneurship as a key contributor to economic growth, industry diversification, job creation, and global competitiveness in the Kingdom. Saudi Arabia has the potential to take a leadership position in growing entrepreneurship in the MENA region and globally." The latest GEM report moreover revealed that among Saudi Arabia's working-age population (18-64 years), the majority of people (78%) believe that those who successfully start a new business enjoy a high level of social status and respect. Two-thirds consider starting a business a desirable career choice. Supporting these positive attitudes are the ease of starting business (65%) and frequent representations of successful entrepreneurs in the media (71%), both of which increased by over 4 percentage points from the prior year. Media attention for entrepreneurs in Saudi Arabia is among the highest in the MENA region. Besides, most people in Saudi Arabia (79%) personally know an entrepreneur, and a majority see good opportunities around them for starting a business (76%), the highest rates on these indicators in the MENA region. The Report further showed that in 2018, over 12% had started or were already running a new business less than 3 1⁄2 years old. Opportunity motives accounted for 69% of entrepreneurs, a slight increase over 2017. Jeddah reported the highest total entrepreneurial activity (TEA) rate, jumping up to 23% in 2018, while Riyadh also exhibited high levels in 2016 (20.5%). This suggests that Riyadh is an established center for entrepreneurship while Jeddah is an up-and-coming attractive start-up location. The majority of entrepreneurs (80%) operate in the consumer sector, an increase of 8 percentage points from 2017. Decreasing from the prior year was participation in the transforming sector, accounting for less than 14% of entrepreneurial activity. All entrepreneurs surveyed in 2018 expected to hire at least one employee in the next five years, with over 30% projecting to hire more than five employees. Market innovation accounted for 37% of entrepreneurs in Saudi Arabia, where some or all customers would consider their products or services to be new or unfamiliar. The Report also noticed that entrepreneurs are leveraging the latest technology to start their businesses, with over 59% saying they are incorporating technology less than five years old into their business activities. In 2018, 12% of the adult population in Saudi Arabia provided funds to entrepreneurs—the highest level among the countries assessed in the MENA region. This is an increase over the prior two years and suggests some role in the upward movement in TEA. Experts interviewed about national conditions for entrepreneurship indicated that sufficient funding was available from informal sources and private investors in Saudi Arabia, but crowd-funding and initial public offerings were less common. They added that entrepreneurs have a strong physical infrastructure in which to conduct their business activities, including advanced and low-cost communications and utilities. The Report cited that experts also revealed an increasingly positive national culture for entrepreneurship, pointing out support for individual success through one's personal efforts and the emphasis on self-sufficiency, autonomy and initiative. — SG
