Entrepreneurship support programs worldwide are shifting to meet evolving needs. Saudi Arabia aligns with this transformation to achieve its Vision 2030. Key trends in Saudi entrepreneurship include the rise of venture studios, proliferation of accelerators, increasing governmental support, virtual entrepreneurial programs, a focus on social impact, crowdfunding platforms, and leveraging emerging technologies. These trends fuel Saudi Arabia’s entrepreneurial surge, making it a Middle East hub.
In an everchanging dynamic global landscape, entrepreneurship support programs worldwide are evolving to cater to the needs of enterprising minds. One notable transformation is the shift from long-term support models that offered co-working spaces and general services to startups, commonly known as business incubators, to short-term and intensive programs known as business accelerators. These accelerators are designed to keep pace with the changing needs of entrepreneurs and the pressing necessity for companies to rapidly expand and secure investment.
The Kingdom of Saudi Arabia is keeping pace with the evolution of the entrepreneurial landscape to offer unique prospects for entrepreneurs. This transformation is guided by several factors that contribute to the realization of Saudi Vision 2030, mainly technological advancements and population growth. Saudi Vision 2030 aspires to diversify the economy and create job opportunities, with a targeted increase in the contribution of SMEs to the GDP to a substantial 35%. Entrepreneurship is deemed to be an essential element of this strategic vision.
Technological advancement and the adoption of cutting-edge technologies have heralded the rise of new sectors like FinTech and e-commerce and opened up uncharted opportunities for entrepreneurs. The growing population, Saudi Arabia’s openness to the world, and a relatively high per capita income have collectively expanded the consumer base, giving rise to demand for products and services. Thus, entrepreneurship support programs are undergoing continual adaptations to cater to the needs of aspiring entrepreneurs.
In recent years, we have witnessed a plethora of new trends within the entrepreneurship support landscape. Innovations like venture studios and virtual entrepreneurship programs have risen, business accelerators have proliferated, and a multitude of other groundbreaking developments have appeared. In this article, we delve into some of the major trends and opportunities that are currently shaping the landscape of entrepreneurship in Saudi Arabia.
Rise of venture studios: Venture studios, a relatively novel approach to entrepreneurship, are gaining traction in Saudi Arabia. These tech-centric enterprises specialize in establishing and launching new startups. They offer a team of experts proficient in all facets of business inception, including product development, marketing, sales, and financing. Notable names for startup studios are BIM Ventures and CyberME.
Proliferation of business accelerators: Business accelerators areshort-term, intensive programs designed to provide entrepreneurs with the essential resources for business inception and growth. These popular accelerators offer invaluable mentorship from seasoned entrepreneurs and investors, in addition to access to angel investors, venture capital firms, and other vital resources. The number of accelerators is expanding in Saudi Arabia, whether they are sector-specific like FinTech accelerators, or sector-agnostic like Misk accelerator.
Governmental support increase: Governments worldwide recognize the pivotal role of entrepreneurship in driving economic growth. They support entrepreneurs through an array of programs and initiatives, as well as a variety of benefits, including grants, loans, and business facilitation. Saudi Arabia is no exception. The government extends its support to entrepreneurs, through the Small and Medium Enterprises General Authority (Monsha’at), the Ministry of Communications and Information Technology, and other government entities spanning across diverse sectors, by offering programs laden with benefits like loans, financial grants, and shared office spaces.
Virtual entrepreneurial support programs: Online platforms are revolutionizing entrepreneurship support, from developing business models and securing financial advice to gaining mentorship and forging networking opportunities. These programs hold immense value by expanding their reach to a broader audience across diverse regions while accommodating the unique needs of all segments of society. A prime example is the Mohammed bin Salman Foundation (Misk), offering two virtual programs – SPARK and Misk Launchpad. They aim at empowering aspiring entrepreneurs to develop, build, and launch their projects and services.
Emphasis on social impact: A growing awareness of social impact is inspiring Saudi youth to create businesses that leave a positive mark on society. Institutions are fostering this trend by providing resources and support to social entrepreneurs, hence contributing to establishing a more sustainable entrepreneurship environment in the Kingdom. Misk Foundation, with its Misk Initiatives Incubator and Impact Accelerator, is at the forefront of transforming youth-driven social initiatives into thriving non-profit organizations. Meanwhile, the King Khalid Foundation and Monsha’at spearhead support for businesses with a social impact through dedicated accelerators, financing, and other services.
Crowdfunding evolution: Crowdfunding is a way of raising money from a large number of backers to finance a project, business, or organization. With Saudi Arabia’s venture capital investment on the rise and the establishment of the SME Bank, online crowdfunding platforms are flourishing. These platforms offer entrepreneurs various financing solutions like debt and equity crowdfunding, such as the Manafa, Scopeer, and Sukuk.
Leveraging emerging technologies: Emerging technologies are transforming the support landscape for entrepreneurs. For example, virtual reality and augmented reality are fostering interactive learning experiences, while artificial intelligence is providing tailored guidance and support to entrepreneurs. Although leveraging emerging technologies to support entrepreneurship is still a novel practice, it holds the potential to revolutionize how entrepreneurs access needed assistance.
Saudi Arabia’s entrepreneurial sector is undergoing a remarkable surge, driven by a tech-savvy youth demographic, unwavering government support, and a growing technology sector. As the available support evolves, these factors offer a myriad of opportunities for entrepreneurs to thrive.
These trends are just a glimpse into the ever-evolving world of entrepreneurship in Saudi Arabia. This support ignites the spark of inspiration among Saudi entrepreneurs, increases the odds of success, and propels the Kingdom into a leading entrepreneurial hub in the Middle East.
