Entrepreneurship in Saudi Arabia is thriving, with 42 per cent of adults in the Kingdom planning to launch their own businesses within the next three years, according to the National GEM Report.
Launched during the ongoing Biban24 Forum, the report was produced by Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC), in partnership with Babson Global. It highlights the economic achievements and promising opportunities in the Kingdom, with a special focus on the role of women entrepreneurs.
It shows that Saudi Arabia has the highest level of entrepreneurial intentions recorded in eight years and showcases a growing appetite for innovation and self-employment.
Saudi startups
The report showcased a thriving entrepreneurial ecosystem across all stages. The data reveals a one-third increase in the number of early-stage businesses (operating less than 42 months) compared to 2022, with the percentage rising to 25 per cent.
Additionally, established businesses flourish, with established business ownership (EBO) jumping 40 per cent to a record high of nearly 14 per cent.
The report unveils another compelling trend: a strong emphasis on social and environmental impact within the Saudi entrepreneurial scene. This focus aligns with Saudi Vision 2030 and the ongoing efforts of the Saudi leadership.
According to the GEM data, an impressive 80 per cent of entrepreneurs and 84 per cent of established business owners prioritise social and/or environmental impact alongside profitability or growth.
Despite the surge in entrepreneurial ambitions and activity, the report acknowledges a persistent challenge: the fear of failure. While a significant 93 per cent of Saudis see ample opportunities for starting businesses, more than 57 per cent of those who perceive these openings admit that fear of failure would hold them back.
MBSC dean Dr. Zeger Degraeve said: “The latest national report reaffirms the ongoing progress of the Kingdom’s dynamic entrepreneurial ecosystem. As the economy diversifies, the supportive environment established by Saudi Arabia serves as a catalyst for SME growth.
“The report’s findings fill us with optimism, but they also remind us of our responsibilities. MBSC will continue to play a significant role in developing Saudi Arabia’s next generation of transformative leaders, equipping them with the knowledge and entrepreneurial mindset that will lead them to success.”
GEM Saudi Arabia team lead Professor Muhammad Azam Roomi said: “The eighth consecutive edition of the report underscores the Kingdom’s thriving entrepreneurial landscape, reflecting the ongoing diversification of its economy.
“Saudi Arabia’s steadfast support for SMEs serves as a vital engine for growth. While the report inspires optimism, it also underscores our responsibilities.”
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