Critical success factors for small businesses in the Kingdom of Saudi Arabia (KSA)

Abstract

Small and medium-sized enterprises (SMEs) play a vital role in the economic progress of any country because they are the backbone of development. They create job opportunities for the citizens and contribute to a country’s GDP. In the past, SMEs in the Kingdom of Saudi Arabia were hindered by various factors, including limited access to appropriate sources of funding, harsh regulations, slow digitization, and poor skills and experience by entrepreneurs. However, the government’s efforts to diversify the Kingdom’s economy, which for a long time depended on oil, have overturned these limitations into success factors. Therefore, the critical success factors for small enterprises in Saudi Arabia, as discussed in this paper, include increased access to funding, reformation of complex regulatory procedures, technological advancement, and entrepreneurial training and mentorship.