An interpretive study of the failure of SMEs in the kingdom of the Essay

An interpretive study of the failure of SMEs in the kingdom of the Saudi Arabia - Essay ExampleFindings indicate that that main problems impacting growth and success of SMEs in the KSA ar regulatory difficulties, conviction and funding options, human capital, marketing and operational factors. Human capital (resource management), regulatory constraints and credit/funding options appear to be the main factors impacting SME success and growth in the KSA.Data released by the capital of Saudi Arabia Chamber of Commerce and Industry reveals that approximately 96% of Saudi backinges employ below 100 workers (Hertog, 2010). gibe to the Jeddah Chamber of Commerce and Industry, 95% of commercial messagely registered businesses in the KSA are owned by SMEs and 71% of industrial businesses are SMEs (Hertog, 2010). Moreover, Hertog (2010) reports that SMEs account for 28% of the KSAs overall economic activities.7The latest figures release bear witness that as of 2008, there were over 700,0 00 SMEs actively in business in the SDI primarily owned by a sole proprietor. A further breakdown demonstrated that 47% of the KSAs SMEs were attached to commercial and hotel industries 27% were attached to construction 12% were engaged in social services and 8% were mired in sundry other sectors (Hertog, 2010, p. 17). Be that as it may, SMEs in the KSA only contribute to about 10% of the employment rate in the KSA and only contribute 14% of the entire production in industries and 8% of the value of industrial goods exported (Hertog, 2010, p.19).7Despite the growing interests in SMEs in the KSA, all indications are that SMEs acquire faced significant challenges in moving forward successfully and economically. SMEs in the KSA are said to confirm difficulties in terms of funding and credit the function in a business climat that is decidedly hostile they face regulatory challenges and they operate without the availability of basic statistics and data needed to ensure sound business decisions (Bundagji, 2005, p. 1). It is