Entrepreneurship in Saudi Arabia is flourishing, with 42% of adults planning to start their own businesses within the next three years, according to the National GEM Report. Launched at the Biban24 Forum, the report highlights the Kingdom’s economic achievements and the growing role of women in business.
Record High Entrepreneurial Intentions
Saudi Arabia has reached its highest level of entrepreneurial intent in eight years. The report, produced by Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC) in partnership with Babson Global, shows a surge in innovation and self-employment across the Kingdom.
Rise in Early-Stage and Established Businesses
The number of early-stage businesses has increased by one-third compared to 2022, now comprising 25% of entrepreneurs. Meanwhile, established business ownership (EBO) has jumped 40%, reaching a record high of nearly 14%.
Focus on Social and Environmental Impact
Saudi entrepreneurs are placing significant emphasis on social and environmental responsibility. According to GEM data, 80% of entrepreneurs and 84% of established business owners prioritise these impacts alongside profitability. This aligns with the goals of Saudi Vision 2030.
Fear of Failure Remains a Challenge
Despite abundant opportunities, fear of failure remains a hurdle. While 93% of Saudis recognize the potential for business ventures, over 57% cite fear of failure as a deterrent.
Leadership and Support for SMEs
MBSC Dean Dr. Zeger Degraeve emphasised the Kingdom’s supportive environment for SMEs, which continues to drive economic diversification. Similarly, GEM Saudi Arabia team lead Professor Muhammad Azam Roomi highlighted the role of SMEs as a growth engine, underscoring the responsibility to sustain this momentum.
Saudi Arabia’s dynamic entrepreneurial ecosystem is not only a testament to its economic diversification but also a promising pathway for future leaders and innovators.
