Small and Medium Enterprises in Saudi Arabia challenges - remedies

Abstract

Small and Medium Enterprises (SMEs) are considered a major engine of economic growth in many economies, especially in developing countries. Despite their active socioeconomic roles, these enterprises face a number of obstacles and challenges. This study aims to discuss and diagnose the challenges facing these small and medium enterprises in the Kingdom of Saudi Arabia. The primary data was collected using a questionnaire from owners of small and medium enterprises in various regions of the Kingdom of Saudi Arabia. The study employed the descriptive analytical approach, whereby Statistical Packages of Social Sciences (SPSS) was used to analyze the data. The results of the study revealed that difficulty in accessing finance, bureaucracy, complexity of procedures, lack of advisory support and marketing problems are among the most serious obstacles that hinder the performance, growth and sustainability of most small and medium enterprises. Accordingly, the study recommended the importance of setting strategies and designing policies for small and medium enterprises in the Kingdom of Saudi Arabia. The results are also significant for practitioners, policy makers, the small and medium enterprises sector, stakeholders in small and medium enterprises, in addition to other researchers and academics in this field.