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THE ROLE OF CULTURE ON ENTREPRENEURSHIP DEVELOPMENT IN SAUDI ARABIA: Discussion

THE ROLE OF CULTURE ON ENTREPRENEURSHIP DEVELOPMENT IN SAUDI ARABIA: DiscussionIn order to thrive in economic development, particularly in entrepreneurship innovation, Saudi Arabia needs to unlock its door to accept changes and to transform. This transformation should not change the traditions of the country, but it should allow for more innovation to take place. Following is a figure showing the comparison between the ideal types of cultural dimensions in supportive of entrepreneurship and the ranking for Saudi Arabia. According to Kayed and Hassan, entrepreneurship is often used as a tool to address the issues of unemployment. The creation of new business entities (and the subsequent employment opportunities that accompany it) has the potential to hinder the negative implications of an imbalanced development.

Other than that, encouraging small business and entrepreneurial culture among the people would also lessen the struggle of the people due to the kingdom’s dependence on expatriates. As Kayed and Hassan has stated, Saudi’s dependency on foreign labour for development contradicts Hofstede’s proposal that “nobody can develop a country but its own population”. In line with that, a committed political role by the government is essential to provide a better life for its own people. Therefore, the government of Saudi Arabia is committed in encouraging entrepreneurship among the people of the kingdom. As reported by The International Bank for Reconstruction and Development & The World Bank, in July 2007, for instance, Saudi Arabia has reduced the minimum capital requirement to start a business. Not only that, the government has also simplified the procedures to start a business from 13 procedures to only seven, and the time to start fell from 39 days to only 15 days. Although the government has stepped up efforts to promote entrepreneurship among the populace, there are cultural barriers that hinder these efforts. Most of the cultural dimensions scores of Saudi Arabia are contrary to the ideal entrepreneurial culture. If entrepreneurship development is to gain grounds in the Kingdom, there must be a shift in paradigm, notably, ” Is Saudi Arabia ready to address the issue of Cultural Disconformity”? payday loan reviews

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This post was written by , posted on April 28, 2014 Monday at 11:31 am