Entrepreneurship is a source of economic growth in all parts of the world, and in many Middle Eastern countries it is one of the main economic drivers. Bayt.com, the Middle East’s leading job site, teamed up with YouGov, a pioneer in online market research, to ascertain the current levels of understanding and interest in entrepreneurship in Saudi Arabia. The ‘Entrepreneurship in the MENA’ report found that a vast majority of professionals in Saudi Arabia (73%) would prefer to be self-employed, citing ‘personal fulfillment’ (56%), the ‘ability to give back to the community’ (44%), and ‘the ability to be their own boss’ (34%) as the primary reasons for this preference.
On the other hand, over a quarter of respondents (19%) said that they would prefer to seek employment in a company, as opposed to setting up their own business. Based on the study, almost two thirds (64%) of employed professionals in Saudi Arabia are contemplating starting their own business, while17% have already attempted to do so in the past but either “could not do so” or “failed to do so”. Another14% also admitted that they had never thought of starting their own business.
The route to entrepreneurial success in Saudi Arabia
When it comes to the best time to start a business, it seems that ‘at any time’ (42%) and ‘mid-career’ (40%) are the most popular times among professionals in Saudi Arabia. Other respondents believe that the right time to set up a business is either ‘right after college’ (9%) or ‘after a lengthy career’ (5%).
Regardless of the best time to start a business, ‘not being afraid of failure’ is by far the best advice to give to aspiring Saudi-based entrepreneurs (41%). Other important tips include: ‘having a great business plan’ (16%), ‘performing an extensive amount of market research’ (9%), ‘having a great marketing plan’ (9%), and ‘having a great business idea (8%).
As for the best industries for entrepreneurship, respondents in Saudi Arabia feel that ‘Communications/Information Technology’ (23%) and ‘Advertising/Marketing/Public relations’ (18%) are the most favorable options for aspiring entrepreneurs. This is followed by ‘Hospitality and Leisure’ (13%), ‘Architecture and Engineering’ (11%) and ‘Finance/Insurance/Real Estate’ (10%).
To ensure business continuity and success, respondents cite three key factors, including ‘innovation’ (30%), ‘employing the right people’ (22%) and ‘being close to clients or customers’ (21%).
Challenges faced by entrepreneurs in Saudi Arabia
Almost half of the employed respondents (47%) claim that it is difficult to start a business in Saudi Arabia. In addition, almost two thirds (61%) agree that easing the law and regulations for setting up a business would immensely improve Saudi Arabia’s entrepreneurial landscape. This is followed by ‘facilitating access to skilled labor’ (15%), ‘regulating competition among businesses’ (13%) and ‘reducing taxation’ (8%).
“Entrepreneurship has been a proven driver of both economic activity and innovation across the Middle East and North Africa region, which is why governments should take note of the fact that laws and regulations with regards to starting a business are amongst the top concerns for entrepreneurs in the region,” said Suhail Masri, VP of Employer Solutions, Bayt.com. “We believe collaboration is a top priority for the public and private sector, as well as professionals looking for a job. In an effort to provide a channel for cooperation and exchange, Bayt.com offers Bayt.com Specialities, a platform where established business owners and aspiring entrepreneurs can share knowledge and interact before making the decision to work together. The website also provides special hiring packages to new business owners looking to hire top talents.”
Masri continued: “Our database of more than25.7 million job seekers enables us to offer new start-ups access to the best and most varied pool of candidates in the Middle East to help them meet their hiring needs and grow their business.”
Arleen Gonsalves, Associate Research Manager also added: “Despite many challenges, entrepreneurship is fast emerging as a transformational megatrend in Saudi Arabia providing both a personal sense of fulfilment and the ability to be your own boss. It also plays a vital role in the economic development as a key contributor to innovation and new job opportunities. There is a long way to go to reach a mature entrepreneurial landscape in Saudi Arabia, but the opportunities are sufficiently large and with better support from the government it will further accelerate the trend.”
Data for the Bayt.com ‘Entrepreneurship in the MENA’ report was collected online from May30 to July24,2016, with715 respondents from the UAE, KSA, Kuwait, Qatar, Oman, Bahrain, Lebanon, Syria, Jordan, Algeria, Egypt, Morocco and Tunisia.