Small and Medium-sized Enterprises SMEs
According to the World Trade Organization SMEs represent over 90% of the business population, 60-70% of employment and 55% of GDP in developed economies
KSA
UK
Canada
USA
Based on Ministry of Commerce report the total number of existing commercial records in Kingdom of Saudi Arabia by the end of the second quarter of 2024 reached about 1.52 million records Riyadh region topped it with about 482.7 thousand records, constituting about 32% of the total records, followed by the Makkah AlMukarramah region with about 342.8 thousand records.
According to the latest data, up to 90% of startups fail. Across almost all industries, the average failure rate for year one is 10% However, in years two through five, a staggering 70% of new businesses fail
- Hiring a full-time team member is expensive. On average ,an employee actually costs 125% to 140% of their salary
- Failing to get necessary licenses and permits and not knowing the regulations can lead your business to fail.
- Poor marketing is a key issue to failure for startups,the role of effective branding and promotion is crucial in reaching target audiences and creating a market presence that supports long-term success
References
[1] Saudi Capital Market Authority Report. Argaam, 2024. Available at: https://www.argaam.com/ar/article/articledetail/id/1651926 (Accessed 21 October 2024).
[2] Saudi Business Growth Statistics. Argaam, 2024. Available at: https://www.argaam.com/ar/article/articledetail/id/1738660 (Accessed 21 October 2024).
[3] Startup Failure and Success Rates. StartupTalky, 2024. Available at: https://startuptalky.com/startup-failure-success-rates-statistics/ (Accessed 21 October 2024).
[4] Startup Failure Statistics. Exploding Topics, 2024. Available at: https://explodingtopics.com/blog/startup-failure-stats (Accessed 21 October 2024).
[5] Foundation Economies Worldwide: Small Business Analysis. International Federation of Accountants (IFAC), 2023. Available at: https://www.ifac.org/knowledge-gateway/discussion/foundation-economies-worldwide-small-business-0 (Accessed 21 October 2024).
[6] Small Business Formation Statistics. USA Today, 2024. Available at: https://www.usatoday.com/money/blueprint/business/business-formation/small-business-statistics/ (Accessed 21 October 2024).
[7] Small Business Statistics – UK Parliament Report. House of Commons Library, 2023. Available at: https://researchbriefings.files.parliament.uk/documents/SN06152/SN06152.pdf (Accessed 21 October 2024).
[8] Key Small Business Statistics 2023. Government of Canada, 2023. Available at: https://ised-isde.canada.ca/site/sme-research-statistics/en/key-small-business-statistics/key-small-business-statistics-2023 (Accessed 21 October 2024).