Saudi Arabia's ambitions to diversify its economy are getting a significant boost, fueled by a surge in entrepreneurial intentions among its citizens. According to the eighth edition of the "Kingdom of Saudi Arabia GEM National Report 2023-2024" released today by the Prince Mohammed bin Salman College of Business and Entrepreneurship (MBSC), the Babson Global Center for Entrepreneurial Leadership,a record number of Saudis are expressing their desire to take the entrepreneurial leap.

The report was launched during the Biban 24 Forum, a globally prominent event in the entrepreneurship sector focused on empowering the entrepreneurial ecosystem in the Kingdom for both local and international entrepreneurs. Organized by the Small and Medium Enterprises General Authority (Monsha'at) and held under the slogan A Global Destination for Opportunities, from November 5th to 9th, 2024, in Riyadh.

The report reveals a remarkable 42% of adults in the Kingdom intend to launch their own businesses within the next three years, marking the highest level of entrepreneurial intentions recorded in eight years and showcasing a growing appetite for innovation and self-employment.

Entrepreneurial Activity Surges

The report dives deeper, showcasing a thriving entrepreneurial ecosystem across all stages. The data reveals a one-third increase in the number of early-stage businesses (operating less than 42 months) compared to 2022, with the percentage rising to 25%. Additionally, established businesses flourish, with Established Business Ownership (EBO) jumping a staggering 40% to a record high of nearly 14%.

Social Impact Takes Center Stage

The report unveils another compelling trend: a strong emphasis on social and environmental impact within the Saudi entrepreneurial scene. This focus aligns with Saudi Vision 2030 and the ongoing efforts of the Saudi leadership.

According to the 2023 GEM data, an impressive 80% of entrepreneurs and 84% of established business owners prioritize social and/or environmental impact alongside profitability or growth.

Fear of Failure Remains a Hurdle

Despite the surge in entrepreneurial ambitions and activity, the report acknowledges a persistent challenge: the fear of failure.

While a significant 93% of Saudis see ample opportunities for starting businesses, over 57% of those who perceive these openings admit that fear of failure would hold them back.

Building the Next Generation of Leaders

"The latest national report reaffirms the ongoing progress of the Kingdom's dynamic entrepreneurial ecosystem," states Dr. Zeger Degraeve, Dean of Prince Mohammed Bin Salman College of Business and Entrepreneurship. "As the economy diversifies, the supportive environment established by Saudi Arabia serves as a catalyst for SME growth. The report's findings fill us with optimism, but they also remind us of our responsibilities.

MBSC will continue to play a significant role in developing Saudi Arabia's next generation of transformative leaders, equipping them with the knowledge and entrepreneurial mindset that will lead them to success."

Professor Muhammad Azam Roomi, GEM Saudi Arabia Team Lead, echoes this sentiment: "The 8th consecutive edition of the report underscores the Kingdom's thriving entrepreneurial landscape, reflecting the ongoing diversification of its economy. Saudi Arabia's steadfast support for SMEs serves as a vital engine for growth. While the report inspires optimism, it also underscores our responsibilities."

This report comes as part of the ongoing collaboration between Prince Mohammed Bin Salman College of Business and Entrepreneurship (MBSC), Babson Global Center, and the Small and Medium Enterprises General Authority (Monsha'at) to enhance entrepreneurship in the Kingdom by building a comprehensive ecosystem that meets international standards and provides opportunities for local and international entrepreneurs to explore the growing Saudi market potential.