Strategies for Smes in Saudi Arabia
Strategies for SMEs in Saudi Arabia
Exploring Strategies for Small and Medium Enterprises in Saudi Arabia. Ahmed Al Saleh
Submitted to: RIBM Doctoral Symposium 2012 14th -15th March
Ahmed Alsaleh 71 Bishops Corner Stretford Road Hulme, M15 4UW Manchester Tel:+44(0) 1612266875 E- Mail: A.Al-Saleh@stu.mmu.ac.uk
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Ahmed Al Saleh
Strategies for SMEs in Saudi Arabia
Abstract: The small and medium enterprises sector in Saudi Arabia form the highest percentage of all the businesses with a large number of employees but their contribution to the economy and the growth of it is low. They are fast disappearing from the market and their ability to compete and grow is limited. There are many challenges SMEs face, but the main obstacle is the lack of strategy; the right plan to continue and develop. This research aims to explore appropriate strategies for SMEs in Saudi Arabia to enable them to stay in business and grow. The research applies qualitative research methods to gather data and use documentary sources.
Key words: Small and medium enterprises, strategy, Saudi Arabia.
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Introduction:
Small and medium enterprises (SMEs) are considered a key component of the economy in many different countries around the world. SMEs serve the customised needs of the people in various industries. In Saudi Arabia, most of the business are part of the SMEs sector, as they form 92 percent of businesses and employ more than 80 percent of the workforce in the Kingdom, but their contribution to the economy is only 33% of the GDP. In addition, the average age of Saudi SMEs is seven years (Eu-Gcc Chamber Forum, 2010). It means that their ability to survive and grow is limited. Therefore, exploring strategies for SMEs in Saudi Arabia is an important subject to discuss and study, because without appropriate strategies SMEs cannot succeed and continue their growth in the market.
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The objectives of this research are as follows: Identify strategies
Exploring Strategies for Small and Medium Enterprises in Saudi Arabia. Ahmed Al Saleh
Submitted to: RIBM Doctoral Symposium 2012 14th -15th March
Ahmed Alsaleh 71 Bishops Corner Stretford Road Hulme, M15 4UW Manchester Tel:+44(0) 1612266875 E- Mail: A.Al-Saleh@stu.mmu.ac.uk
1
Ahmed Al Saleh
Strategies for SMEs in Saudi Arabia
Abstract: The small and medium enterprises sector in Saudi Arabia form the highest percentage of all the businesses with a large number of employees but their contribution to the economy and the growth of it is low. They are fast disappearing from the market and their ability to compete and grow is limited. There are many challenges SMEs face, but the main obstacle is the lack of strategy; the right plan to continue and develop. This research aims to explore appropriate strategies for SMEs in Saudi Arabia to enable them to stay in business and grow. The research applies qualitative research methods to gather data and use documentary sources.
Key words: Small and medium enterprises, strategy, Saudi Arabia.
1.0-
Introduction:
Small and medium enterprises (SMEs) are considered a key component of the economy in many different countries around the world. SMEs serve the customised needs of the people in various industries. In Saudi Arabia, most of the business are part of the SMEs sector, as they form 92 percent of businesses and employ more than 80 percent of the workforce in the Kingdom, but their contribution to the economy is only 33% of the GDP. In addition, the average age of Saudi SMEs is seven years (Eu-Gcc Chamber Forum, 2010). It means that their ability to survive and grow is limited. Therefore, exploring strategies for SMEs in Saudi Arabia is an important subject to discuss and study, because without appropriate strategies SMEs cannot succeed and continue their growth in the market.
1.1
The objectives of this research are as follows: Identify strategies
References: Source: EROP- GCC (2011). Source: EROP – GCC (2011).