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Saudi Arabia's entrepreneurial drive hits 8-year high, GEM Report finds

Riyadh - During the ongoing Biban24 Forum, organized by the Small and Medium Enterprises General Authority (Monsha'at) under the slogan "A Global Destination for Opportunities" from November 5 to 9 at the Riyadh Front for Exhibitions and Conferences, Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC), in partnership with Babson Global, announced the launch of the National GEM Report 2024-2023, highlighting the economic achievements and promising opportunities in the Kingdom, with a special focus on the role of women entrepreneurs.

The report reveals a remarkable 42% of adults in the Kingdom intend to launch their own businesses within the next three years, marking the highest level of entrepreneurial intentions recorded in eight years and showcasing a growing appetite for innovation and self-employment.

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%. Additionally, established businesses flourish, with Established Business Ownership (EBO) jumping a staggering 40% to a record high of nearly 14%.

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 2023 GEM data, an impressive 80% of entrepreneurs and 84% of established business owners prioritize 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% of Saudis see ample opportunities for starting businesses, over 57% of those who perceive these openings admit that fear of failure would hold them back.

"The latest national report reaffirms the ongoing progress of the Kingdom's dynamic entrepreneurial ecosystem," states MBSC dean Dr. Zeger Degraeve. "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 echoes this sentiment: "The 8th 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."

The report comes as part of the ongoing collaboration between MBSC, Babson Global, and Monsha'at to enhance entrepreneurship in the Kingdom by building a comprehensive ecosystem that meets international standards and provides opportunities for local and international entrepreneurs to explore the growing Saudi market potential.

The launch of the GEM report during the Biban24 Forum reflects the importance of the event as an international platform for exploring opportunities and supporting innovation. The report is expected to provide in-depth insights for investors and decision-makers, helping to accelerate the growth of emerging businesses and enhance the investment climate in the Kingdom.