Small business owners and entrepreneurship in KSA (Kingdom of Saudi Arabia) is not as simple as it looks. Small business owners and entrepreneurs face various challenges that tend to stand out and are unique to certain markets. Saudi Arabia is a developed country that is rich in oil and other natural resources. So many people dream to start and own business in Saudi Arabia, however starting a small business or making business large from small is not easy and overnight in Saudi Arabia (Burton, 2016). This essay discusses the three major issues which the entrepreneurs and owners of small business face in the kingdom of Saudi Arabia.

Owners of Small Business Facing Three Issues in the Kingdom of Saudi Arabia

Following are the three major challenges which the owners of small business face in the kingdom of Saudi Arabia:

-         Improper Kingdom-wide coverage: the ecosystem in Saudi Arabia is made up of various smaller ecosystems that are quite different than each other in terms of target demographics and market dynamics. Some of the incubators have been doing a fantastic job and built a significant national presence, for example, Badir Incubator that has mortar operations and bricks in five cities while having a sustainable and consistent model to assist startups. However, the incubators’ lion shares enjoy their own cities’ comfort only (Sloman, 2004).

-         Selling and marketing: Small business owners and entrepreneurs face challenges while marketing and advertising their products because there are various factors that have to be considered while marketing and advertising such as displays of immorality, avoiding musical instruments’ usage and taboo entertainment, gender roles and women dressing, and avoiding ambiguous transactions or defaming competition (Cader, 2015). Small businesses are perceived to be less reliable and stable by their customers than their larger competitors so this lack of business credibility hinders the ability of small business owners and entrepreneurs to trade. Hence establishing a sound reputation is very challenging for small business owners and entrepreneurs in Saudi Arabia due to advertising and marketing barriers.

-         Legislation and regulation: regulation changes and missing legislation form barriers for small business owners and entrepreneurs in Saudi Arabia. The legal framework for business activities is established at a federal level with each small business owner and entrepreneur exercising the tailored set of regulations and policies within the respective territory. The businesses are required to be licensed and establish a formal legal presence that requires prior approval from authorities or certain ministries that is a tiring and tough process (Sloman, 2004).

Conclusion on Small Business Facing Issues in the Kingdom of Saudi Arabia

In a nutshell, small business owners and entrepreneurs face various challenges in the ultra-competitive business world of Saudi Arabia. Most three out of those various challenges are improper Kingdom-wide coverage, selling and marketing, and legislation and regulation. However, contemporary times, fortunately, have blessed small business owners and entrepreneurs in Saudi Arabia as well with more resources and opportunities to tackle the challenges they face.

References of Small Business Facing Issues in the Kingdom of Saudi Arabia

Burton, E. (2016). Business and Entrepreneurship in Saudi Arabia: Opportunities for Partnering and Investing in Emerging Businesses. John Wiley & Sons.

Cader, A. A. (2015). Islamic challenges to advertising: a Saudi Arabian perspective. Journal of Islamic Marketing, Vol. 6 Issue: 2, 166-187.

Sloman. (2004). Economics for Business. Pearson Education India.