Riyadh, November 07, 2024 — During the ongoing Biban24 Forum, held from November 5 to 9 at the Riyadh Front for Exhibitions and Conferences, the Small and Medium Enterprises General Authority (Monsha'at) unveiled significant findings on Saudi Arabia’s entrepreneurial landscape. In partnership with Babson Global, Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC) released the National Global Entrepreneurship Monitor (GEM) Report for 2023-2024, highlighting the Kingdom’s economic achievements and the growing opportunities within its entrepreneurial ecosystem. This year’s report, launched under the theme “A Global Destination for Opportunities,” emphasizes not only the rise in entrepreneurial intent but also the expanding role of women entrepreneurs and the increasing focus on social and environmental responsibility in business.
The GEM report reveals a notable 42% of adults in Saudi Arabia intend to launch their own businesses within the next three years, marking the highest level of entrepreneurial intent observed in eight years. This indicates a strong shift towards innovation and self-employment, driven by the Kingdom’s ongoing economic diversification efforts under Saudi Vision 2030. Furthermore, the report highlights a 33% increase in early-stage businesses, defined as those operating for less than 42 months, now representing 25% of all businesses in the Kingdom. Established businesses are also flourishing, with Established Business Ownership (EBO) jumping by 40%, reaching an all-time high of 14%.
In addition to these encouraging growth statistics, the report underscores the increasing emphasis on social and environmental impact within the Saudi entrepreneurial scene. According to the 2023 GEM data, 80% of entrepreneurs and 84% of established business owners prioritize social and/or environmental impact alongside profitability. This trend aligns with the broader objectives of Saudi Vision 2030, which seeks to foster sustainable business practices and ensure that economic growth is inclusive and socially responsible. Professor Muhammad Azam Roomi, GEM Saudi Arabia team lead, noted that these findings reflect the Kingdom’s evolving entrepreneurial culture, where sustainability and responsible business practices are becoming central to the business ethos.
Despite the positive momentum, the report acknowledges a significant challenge: the fear of failure. While 93% of Saudis believe there are ample opportunities to start a business, more than 57% of potential entrepreneurs cite fear of failure as a key barrier. This highlights an area where further support is needed to help aspiring entrepreneurs overcome obstacles and fully realize the potential of the Kingdom's business ecosystem.
The GEM report 2024-2023 is the result of a collaborative effort between MBSC, Babson Global, and Monsha'at, aimed at building a world-class entrepreneurial ecosystem that meets international standards. The report serves as a valuable tool for investors and decision-makers, offering deep insights into Saudi Arabia’s evolving business climate and identifying key trends that could accelerate the growth of emerging businesses. Its release during the Biban24 Forum underscores the importance of the event as a global platform for exploring business opportunities, fostering innovation, and connecting entrepreneurs with potential investors.
As Saudi Arabia continues to diversify its economy, the GEM report stands as a testament to the Kingdom’s growing role as a global hub for entrepreneurship, innovation, and sustainable development, aligning closely with the ambitions outlined in Saudi Vision 2030.