Over the decades, Saudi Arabia still holds as a major oil producing and exporting country in the Middle East. Saudi Arabia’s economy basically rely on exportation of oil and petrochemical products that are supplied to most highly developed and oil-consuming countries, like the United States, Europe and Japan. On the other hand, the emerging economies of developing countries additionally demands Saudi Arabia’s increase of oil production that remain competitive in the world market.
The fast-growing trends of industries in Saudi Arabia has brought about numerous foreign investments in partnership with Saudi’s rich families and the “Kingdom keepers” that makes oil production the primary focus of economy. Meanwhile, secondary economic sources seemed in the peripheral development together with the manpower skills from majority of the population.
The recent recession of global economy has made Saudi Arabia’s government to realize sustainable economic framework that would complement the oil industry, and enhance the performance of the private sector by integrating its entrepreneurial skills in secondary industry-market-economic activities. The integration of micro-economic ventures has been encouraged to contribute in the “sustainable exploits” of oil and its by-products, through development of Small-Medium-Enterprise (SME) units that would contribute to Saudi Arabia’s national economy.
This paper aims to examine Saudi Arabia’s economic configuration in the perspective of establishing micro-economic ventures by developing the entrepreneurial skills of Saudi Arabia’s private sector. Likewise, the method of study shall focus on indicative problems of emerging Small-Medium-Enterprises (SMEs) by probing the potentials of the business environment and the existing governmental policies. A review of several literatures shall be the overall guidelines of the study.
Study parameter The study parameter proposes a microscopic view on the small business sector. Given the situation that Saudi Arabia’s small business sector is in its formative years, the potential characteristics merit extensive examination. The examination shall provide analytical and observed indication that would figure out the details of developments on “how” and “what” future holds the SMEs in Saudi Arabia’s industrial economy.
In brief, major situational gaps in the small business sector in Saudi Arabia have to be generally and specifically defined to enable familiarization and keen understanding of the industry. This research paper intends to address the issues surrounding the performance of the small business sector. On the other hand, several specific measures can be undertaken upon defining and finding the issues, in which a study could be earmarked to assess the situation and develop socio-economic programs for future integration. Overview
As a general rationale to the problem statement, the industrial-economic profile of Saudi Arabia is featured as a major exporter of crude oil, natural gas, and petrochemicals. In addition, gold mining and small-scale agro-industrial products [like dairy, textile and flowers to name a few] contributes to the national revenues. However, continuous exportation of the natural resources marginalizes the concern for manpower development and displaces the promotion of self-reliant economic activities that would enhance the entrepreneurial skills of the private sector.
Thus, the examination of the study point out the primary hypothetical questions, such as (1) how to use the small-business concepts to the transition of Saudi Arabia industrial economy, and (2) what products the primary business sector can produce that is supportive to the secondary business sector towards transformation of economies of scale and achieve sustainable development.