The impact of economic and social factors on new venture creation in Saudi Arabia

Abstract

This dissertation examines the factors influencing entrepreneurship in Saudi Arabia, focusing on economic, social, and cultural aspects. Three hypotheses guide the study: 1) Economic factors. 2) The social environment. 3) There is a positive relationship between prior and subsequent venture creation. Using panel data from 13 regions between 2008 and 2022, findings show that positive economic changes, higher income per capita, lower unemployment, and higher business density significantly boost new venture creation. Access to finance and prior venture creation also positively influence subsequent entrepreneurial activities. However, a higher proportion of foreign workers and marriage rates negatively correlate with new venture creation, while the female population ratio has a complex impact. This research provides insights for policymakers and entrepreneurs, emphasizing the need for supportive economic environments and policies addressing social dynamics to enhance entrepreneurial growth in Saudi Arabia.