Abstract
The current study dealt with the obstacles and problems facing SMEs in the Kingdom of Saudi Arabia. The study followed the descriptive analytical approach and found that there are multiple problems facing these institutions, the most important of which are the lack of funding, availability and capacity of employees, weak demand, government regulations and regulations in addition to some obstacles represented in fees. Labor and workers system recruitment, Competition, employment of Saudis, issuance or renewal of licenses, bureaucracy, and government measures. One of the most important findings of this study is the possibility of developing this sector in the presence of the General Authority for Small and Medium Enterprises, which relied on the division of institutions into three types (micro, small and medium) according to labor standards and revenue size. Through these results, the study recommends that the Saudi Arabian Monetary Agency (the Central Bank of Saudi Arabia) should have an encouraging policy for financing SMEs with a unified definition and a specific percentage of financing ceilings to be financed, with a legal and legislative basis and a mechanism for the development of SMEs. And to consider the establishment of banks specialized in the financing of these institutions to play their role in accordance with the Kingdom's vision 2030.
Highlights
Various experiences and economic studies research in the field of obstacles facing Small and medium-sized enterprises (SMEs) are one of the most important engines of economic development
There are administrative and regulatory obstacles that make the flow of credit loans needed by small industries to capitalize and finance working capital necessary for employment is almost impossible from the point of view of financial institutions represented in: 1) Small industries are not adopting for accounting systems and systems for keeping information about their production and consumption of raw materials
This study deals with small and medium enterprises in the Kingdom of Saudi Arabia and the obstacles and problems faced by them. It deals with a sample of small and medium enterprises in Riyadh, which represents about 25% of the number of small and medium enterprises in Saudi Arabia according to the report of the General Authority for Statistics for 2017
Summary
Various experiences and economic studies research in the field of obstacles facing SMEs are one of the most important engines of economic development. Those enterprises are considering one of the main pillars of economic renaissance in all economies of all kinds, developing or on the path of growth, planned or following free market mechanisms. The conviction of the importance of large industries in economic and social activity remained dominant in economic thought until the mid-1970. This conviction soon changed in the mid-1970 with Professor" Schumacher" Small's Beautiful, Economic growth. We will discuss in the second part, the various obstacles facing those enterprises in Saudi Arabia
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