Understanding the Lack of Uptake of Entrepreneurial Opportunities: The Case of Saudi Arabia

Abstract

Long dependent on its oil resources, the Saudi government has come to realise that economic diversification is an essential aim if the country is to continue to develop and prosper. The private sector is seen as a major source of this change and the issue of entrepreneurship has risen up both the policy and research agendas. With entrepreneurship closely associated with Western values and practices, in particular those of the United States, the desire to energise the private sector in the Kingdom of Saudi Arabia has led to questions concerning its culture, its business ideology and, on a practical level, its entrepreneurial ecosystem. These questions ask how culturally, ideologically and practically prepared the kingdom is to support private business endeavour among its population. It has long been part of Saudi business ideology that big is best. Large-scale corporations are seen as a source of strength and security in the developing kingdom. However, this has come at the expense of recognition of the importance of small-scale entrepreneurs who have lacked the social acceptance widely seen elsewhere. Small-scale entrepreneurship is known to be a vital source of economic growth and employment opportunities and so encouraging this group should be a vital policy goal and understanding them an important research goal. Hence, this research pursues answers to a set of research questions aimed at shedding light on the mindset of Saudi’s aspiring entrepreneurs, on how they are experiencing the Saudi entrepreneurial ecosystem, the role of culture in the entrepreneurial process, and, on a practical level, what can be done to improve the current ecosystem and encourage more entrepreneurial intention to become action.