Developing the Performance of Business Incubators to Increase the Percentage of the Contribution of SMEs in the Saudi GDP to Achieve Vision 2030

Abstract

Recently, Small 8 Medium Enterprises (SMEs) have been an important pillar for the growth and revitalization of the economy. However, the small business failure rate is larger than the rate of establishment. Business incubators (BIs) have been structured to support new ventures in order to raise the chance of success. This paper aims to discuss the impact of BIs on the performance of entrepreneurs and the national economy through forecasting the contribution of SMEs and private sectors in the Saudi Gross domestic product (GDP) in 2030 based on the data of General Authority of Statistics in Saudi Arabia from 2016 to 2019. Vision 2030 includes the specific targets that the government will establish more effective BIs to increase the contribution of SMEs in the total GDP from 20% to become 35 percent and increase the contribution of private sectors from 40% to 65%. It argues that although the forecasting contribution of SMEs and the private sector in the total Saudi GDP can surpass the targets of Vision 2030 by 39% and 67% respectively, the contribution of BIs in these goals is insignificant according to studies published in Saudi Arabia but it suggests that BIs may have a positive impact on the national economy in terms of increasing the number of jobs and GDP.