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Top1. Introduction
Development is a continuous and multidimensional process in an economy and based upon the progressive approach. Balanced progressive approach or equilibrium in the development of all sectors or resources is the fundamental key to get a robust and prosperous economy by a nation. The development of SMEs leads the equal sectorial development as well as optimum utilization of resources of an economy. In an economy, some sectors are the base but others are added ingredients to boost the economy. The Saudi economy is based upon the exports of petroleum products while the other sectors’ contribution is proportionately low or negligible. Shifting the economy from one sector to another sector is not only changing the pattern of the economy but also the utilization of different resources. The SMEs of a nation is vital for the economy in many ways. In Saudi Arabia, SMEs are also playing a significant role in wholesale and retail trade and motor vehicles, agriculture, etc. (Appendix 1). There is very low participation of category micro, small and medium enterprises in mining and quarrying, electricity, gas steam, and air conditioning supply. The numbers of total category micro establishments are more than 7 times of category small establishments while more than 100 of category medium establishments (Appendix 1). There is so much variation among the numbers of MSMEs establishments engaged in agricultural, forestry, and fishing and real estate activities. The number of micro-enterprises engaged in agricultural and forestry, fishing, and real estate is many more times above small and medium enterprises. This indicates the need for the introduction of category small and medium enterprises in the area of agricultural forestry, fisheries, and real estate. The participation of medium and small business establishments is satisfactory or comparatively higher than category micro establishments in the area of water supply, waste management, and remediation activities, construction, etc., (Appendix 1). Jaber, (2009) found that the Saudi Arabian Government framed many policies to support SMEs to lower the economic reliance on petroleum products. Further, the Saudi government established six institutions to provide financial assistance and technical support to improve the efficiency of employees and employers of SMEs. Hasbani and Kingsley (2011) stated that under the Kafalah scheme, the Saudi government guarantees to banks to repay of SMEs loans for certain types of businesses. In Saudi Arabia, government endeavors to achieve the goals of vision 2030 and while it is based upon the three pillars i.e. A vibrant society (Sociocultural development), A Thriving economy (Boosting small business by attracting new talents and investments) and an ambitious nation (Recognition as an emerging economy at worldwide level). Pillar 2 is related to the economical aspect of the nation and emphasize on national growth by encouraging the small-scale business by attracting new talents and investment to make the Saudi economy substantial and self-dependent. Lowering the unemployment rate, enhancing the private sector contribution and eradication dependency on the oil sector are the economic goals of the vision 2030. Presently, MSMEs of Saudi Arabia is contributing 20% to the GDP (https://o.monshaat.gov.sa/en/about). To achieve enhanced contribution of SMEs and private sector in GDP and removal of dependency on oil products, problems, and challenges of SMEs should be studied to facilitate suggestions to accelerate the growth of the Saudi Economy and explore new dimensions of development.