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Small-Medium Entrepreneurs

The development of emerging global economies is found to be comprised of newly restored industries and markets being participated in by a growing numbers of Small-Medium Entrepreneurs (SMEs) as a result of continuing economic diversification worldwide. The Middle East Policy Council (2006) has acknowledged this development as a phenomenal breakthrough of economic independence, referring to the diversified economy that is actively advocated by the small businesses in the private sector.

Accordingly, the small businesses in the private sector realize the fact that their country generates the economic resources for the foreign investors, in which they would want to share for the nationalization of economy. So far, the realization is yet to be proven with the capabilities of the small businesses to contribute in the diversification processes, urging their government and other stakeholders to support the venture to diversify and nationalize the economy.

This paper will discuss the issues of the small business sector in Saudi Arabia, specifically to examine the capabilities, performance and problems that evolve in the situation of establishing the Small-Medium Enterprises. Overview of study parameters This section of the paper will emphasize and outline the initial findings to develop the framework of key indicative questions that addresses the study parameter, such as a ‘problem statement and the identification of problem areas’. Problem Statement

In summary, the small business sector in Saudi Arabia is confronted with “situational gaps“that impedes the establishment of SMEs. The situational gaps pose to be a problem to the performance of the small business sector to acquire the needed and adequate support from the government and other stakeholders of the industry in Saudi Arabia. One of the situational gaps is the familiarization of small business sector’s role in the establishment of SMEs and the understanding on how to enable their role in national economic integration that would lead towards diversification and nationalization of Saudi Arabia’s economy.

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