Eighty-nine percent of entrepreneurship activity in Saudi Arabia is concentrated in consumer-facing sectors, while only 4.5% of companies are classified as high-growth, according to Bandar Al Obeid, deputy governor of the General Authority for Small and Medium Enterprises, Monsha’at.
Speaking to Al Eqtisadiah, Al Obeid said the figures highlight the need to help businesses scale, expand and reach new markets. He added that Saudi Arabia ranked 30th globally in digital transformation, but startups and SMEs continue to face high automation costs and a shortage of talent in technology and innovation.
Most incubators and accelerators are also concentrated in Riyadh, Makkah and the Eastern Province, limiting access for companies in other parts of the country, he said.
Monsha’at’s assessment of the sector covered market access, ease of doing business, financing, digital transformation and growth, entrepreneurship culture, and support services. Priority areas include tourism, entertainment, culture, sports and technology, as well as opportunities linked to major and seasonal events.
Al Obeid said 13 initiatives will address the sector’s challenges. These include open commercial innovation, greater participation in government procurement, export and international expansion support, improved access to finance, lower business costs, a comprehensive sector database, and impact measurement.
The strategy aims to create more than 500,000 direct and indirect jobs and make Saudi Arabia the world’s top-ranked country for entrepreneurial skills and knowledge.
Source: Al Eqtisadiah
