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Talal Omar Saeed Bamthafar
200700364
Entrepreneurship in Saudi Arabia
Entrepreneurship project (SELF STUDY)
Dr. Osama ALkwifi
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Introduction
For a start and before establishing a new business in Saudi Arabia or Gulf States, it is
important to find a window of opportunities which can help to find clear ideas about
chances for the business of different processes. The idea of business will be discussed
through set of circumstances which can help to make sure that the opportunities will give
values to succeed and will achieve the objectives of our entrepreneurship. The main
opportunity lies in there is no steel or metal factory in Saudi Arabia which is considered
the window of opportunity to the entrepreneurship. Our business is based on the quality
of service and the type of products, and the opportunities allowed achieving the target of
our business idea as well. Our available opportunity is also based on giving the best
qualities in the essential factors that customers need to consider where our project has the
quality of attractiveness and durability especially all factories work on recycling products
are interested in the quality of products have. In addition, we respect the factor of time
because the service is basically related to other services for some specific products to
different customers. Many major companies deal with factories giving business services
focus on the quality of time and durability. Our opportunities deal with the principle of
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satisfying customers from all considerations in a service and / or a product. As our time
is a valuable element in our business entrepreneurship, we have scanned the availability
of market to the recycling process and the needs of firms to the materials and services to
their products. To make a successful opportunity it is important to consider observing
trends from the four sides.
There exists a considerable amount of research on factors that influence occupational
choices, and there is also some research that looks at which character traits are
fundamental for entrepreneurship and which persons are likely to become entrepreneurs.
However, these two strands of the literature are more or less unconnected.
Entrepreneurship is a phenomenon with many facets and its multidimensional character is
reflected in the great variety of types of programs that in one way or another deal with the
issue. The entire country of Kingdom of Saudi Arabia is in need of development in the
entrepreneurial sector if they are to move beyond its dependence on oil revenues.
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The importance of Entrepreneurship
There are several additional limitations associated with the above analysis. These
qualifications involve the measure of entrepreneurship, the countries included in the
analysis, the time period, and even the measure of growth. After all, the emergence of the
concept of jobless growth in recent years in policy debates reflects the value of not just
growth per se, but also growth that results in the reduction of unemployment as an
explicit policy goal. Thus, in this second analysis, a different measure of entrepreneurship
is used, along with a longer time period that extends until 1998 to identify the impact of
reductions in unemployment.
Saudi Arabia has an oil-based economy with strong government controls over major
economic activities. It possesses more than 20% of the world's proven petroleum
reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC.
The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and
90% of export earnings. About 40% of GDP comes from the private sector. Roughly 5.5
million foreign workers play an important role in the Saudi economy, particularly in the
oil and service sectors. High oil prices have boosted growth, government revenues, and
Saudi ownership of foreign assets, while enabling Riyadh to pay down domestic debt.
The government is encouraging private sector growth - especially in power generation,
telecommunications, natural gas exploration, and petrochemicals - to lessen the
kingdom's dependence on oil exports and to increase employment opportunities for the
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swelling Saudi population, nearly 40% of which are youths under 15 years old.
Unemployment is high, and the large youth population generally lacks the education and
technical skills the private sector needs. Riyadh has substantially boosted spending on job
training and education, infrastructure development, and government salaries. As part of
its effort to attract foreign investment and diversify the economy, Saudi Arabia acceded
to the WTO in December 2005 after many years of negotiations. The government has
announced plans to establish six "economic cities" in different regions of the country to
promote development and diversification.
The Importance of Business Strategy
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Business strategy is a very popular term in planning for different fields which can help all
stakeholders to work according to a long term action plan. This can lead to achieve the
objectives of any kind of business either small or big projects. Organizations are very
interested in building great protection in their business by using different kinds of
strategies. In leadership team and management, they work with plans of actions supported
by effective strategies work in other organizations and succeed. Most of planners and
leaders who set plans with strategic keys look for the strengths and the key terms of
success because their business should meet their desirable goals or objectives. In
addition, managing the performance is not ignored in all action plans where this area
leads the strategies among all employees with the tools of organization as one team of
work in all areas as the same importance for each.
The rest of the world understands the power of entrepreneurs and the usefulness of
entrepreneurship education. In the past decade, nearly every member of the Organization
for Economic Cooperation and Development (OECD) has unveiled a new national
entrepreneurship initiative. Many OECD countries include entrepreneurship in their
national education curricula. These efforts are starting to pay off, as worldwide
entrepreneurship rates are beginning to climb. America has long enjoyed a strong climate
for entrepreneurship, but this competitive advantage is beginning to erode. We can
continue to assume that past patterns will continue, or we can invest in efforts that
support the next generation of entrepreneurs.
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We believe that all of these explanations no longer hold true. Given the importance of
entrepreneurs to America's prosperity, we need to generate a new pipeline of
entrepreneurs who will create jobs and generate new innovations no matter what type of
education they choose. Our economic competitiveness depends on it.
Many companies in our area depend on computer in controlling their jobs and business
through the computer functions. Some people do not have the possibility to supervise
some departments in the private companies especially in the Eastern Region because it is
full of the factories and industrial cities in Dammam, Al—Khobar, and Jubail. So they
look for trustful supervisors to follow and control their business.
Any business must anticipate changes in its top management. It is not enough just to
select a person to step into the top job when it becomes vacant. That key job requires
much training and experience because the decisions the person makes can vitally affect
the company and its future.
When preparing someone for management succession, many small business owners have
concerns about passing the business on to their children. The next generation not only
needs the ability to operate the business but also needs the education, certifications,
talent, and desire to carry on the service.
It is recommended that a significant or major portion of the succession activities focus on
managing the family expectations and the family dynamics. This is achieved by actively
integrating the family into the process. Professional advisers tend to be more comfortable
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working through the technical components rather than the family components of the
family business succession process. Even though it may be viewed as more challenging,
it is the people component that is the most important since it is the people or family
members who will ultimately decide if the succession works or not.
Business plan is what is called a business strategy. There is no doubt that companies
work without a plan is a company without a real strategy. This is about planning to
success and planning to fail. All appropriate and experienced strategies are considered
plans to succeed and all action plans are executed according to the strategic policy. This
will help all companies to work effectively forward to achieve the company’s goal. Smart
objectives are impeded to raise the standards of performance with clear procedures and
process to achieve good quality at work. In addition, all companies look forward to
increasing the profits through clear vision and accurate strategic plans. This will help all
kinds of business achieve their smart objectives with wise guidance. The key
performance indicators are set to help all strategists to set effective appropriate action
plans. These plans are divided into some specific columns which include the key term,
period, objectives, responsible, and notes for the plan reviews. It is important before
starting any strategic plan to review the previous action plans because it is usually have
some objectives could not be achieved. So, it sometimes reset the same objectives after
recognizing the reasons of why they could not achieved. This action in strategic plans
needs a decision making from the leadership team. From different perspectives, strategic
business depends on different types of analysis to define the areas of strengths and areas
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need improvement. These ways would be very helpful for high performance and prove
the quality of assurance at work with more benefits to business organizations.
Saudi Economy
Saudi economy is one of the strongest economical trends in the region and in the Middle
East. There are many important industrial institutions and organizations, which Saudi
Arabia depends on them to support their development plans. Many parts in the kingdom
oil support many industries while using this product to have unique position and strong
economy. SABIC is one of these companies which take part in supporting the financial
means in the Saudi economy. SABIC helps Saudi economy to stand strongly and support
all government development plans.
SABIC uses oil products, chemicals, and minerals in different factories in different
regions in the kingdom. Supporting industries play important roles in helping SABIC to
maintain its reputation among other companies in the world. Good infrastructure in
SABIC helped it to extend its industrial fields using oil products. SABIC is very
interested in training its employees in service and externally. Well-trained employees
help SABIC to perform the assigned task with high quality. There are many important
industries that SABIC manage in the benefits of using oil products such as SAMAD,
SADAF, HADEED, MA'ADEN.
Project Support
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Our project emerges very interesting key points because all households suffer a lot from
their financial affairs which force wives to work as an attempt to support family.
Although people in this way may solve their financial problems, they still need more
support to meet their demands and desires as well. It will be very valuable to discuss the
economic factors in the business environment which can help us find a proper method to
have more than one fast growing company. Management also has a significant influence
to achieve success and change the firms from loss curve to the profit one particularly with
food products. Fast food helps to increase the profit of some companies in the Middle
East. In such countries, for instance, Saudi Arabia has a great number of fast food
restaurants where their companies do not even expect these profits. All ages in different
areas that they do not have time to stay at home and wait for food instead, they are
directed to another restaurant. The world crisis has a great affects on the international
economy and the world trade among countries. It attacked rich countries and poor
countries and made them in troubles economically and financially. This crisis caused
many problems to the banks where they could not re build their financial bodies and to
move their investments up again. Also, it shriveled the share and stock markets hardly
and pulled them down to the lowest rate which made all shares and stock markets suffer
from up till now. Till this moment of this research paper people, small and big
organizations, countries, GCC, EC, and all developed countries are suffering from this
crisis.
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For example, e-Intelligent Solutions Company is an ethical company works under the
base of values in the services of society around and gives more efficient work by using
online community services. E-products play very important roles in the national and
international trade because of globalization; all products are available in cooperation with
high quality of transportation. EIS company introduces a very significant service to all
communities particularly the smokers ones to participate in a great mission to face more
challenging in quitting smoking with "No Smoking e-Cigarette" NSEC. I expect to have
some resistance at the beginning of getting this product in the market for a few months
till media has been playing its distinguished role to give sufficient awareness and having
people get enough experience with NSEC. In this area marketing will carry out an
organized plan for this product on the basis of well analysis and good study to the
purposed area in the Middle East and the Gulf region. However, it takes time to have
NSEC the expected profits and the expected values in assistance of` the World Health
Organization.
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Local Markets
Marketers often spend too much effort on extending brands into categories just because
consumers allow this service in PMU. If our brand existing project research had revealed
that consumers thought Student service in PMU was a reasonable sounding brand
extension. The latter has especially gained importance due to a dramatic rise in costs for
introducing new products. Especially advertising expenses have exploded due to the
information overflow of consumers and the increasing number of products struggling for
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their attention. The explanation of these determinants of success serves to give an
impression of the aspects which have to be put attention on when planning and
implementing an extension strategy. In addition, greater effort is needed to extend high
equity brands, due to their greater dilution. Finally, managers need to understand that
consumer evaluations and feedback effects of the same brand extensions can vary due to
cultural differences between consumers and individuals. The expenses may be estimated
after ending the discussion of the project's idea. There will be some study to the
environment and the different factors of each step.
All organizations in all various fields consider economic factors as successful tools and
useful domain they work through. Moreover, economic growth and development is
another economic factor help organization to evaluate their performance and recognize
their positions among other companies. In the Middle East the economic growth is not
national, but it could be individual because small business in the field of fast food like
small restaurants could not be considered as economic growth to a country. According to
the case of societies in the Middle East, many companies suffer from lack of financial
growth while fast food companies were developing and increasing their profits. The
economic growth and development should be in many fields that economy considers in
its development plans. For many reasons in economic development, food stuffs
companies can also suffer from supplying materials which will cause many difficulties to
the society. So, many organizations open different channels to meet the requirements and
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the procedures of development and economic growth. This facto does not only affect
business, but also it affects environment and social life as well.
Managing Projects
Firstly, we have to make steering groups in the company by organizing different
employees from different departments. This is to involve all departments in our action
plan and carry out our plans properly and effectively.
Secondly, there are many traditional methods are used in carrying out our plans which
create many problems and decrease the quality at work. From this point it is a must to
support our employees with more different new easy methods which are able to motivate
willing employees and add more new regulations to employees who can achieve
professionalism at their tasks.
Thirdly, our action plan depends on the qualifications of the quality of materials which
should support our employees positions by introduce clear career path to the new and old
employees. Many new technology tools must be fixed at the workplace to change to
match new methods in all fields. Moreover, a part of our plan focuses on implementing
new methods in management by controlling employees' activities. However there are
many problems which managers can solve without any complications. Employees need to
understand the vision and the message of the company and the objectives of each point in
the plan.
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Fourthly, we need to connect all computers and internet work with controlling network
system. Using network system can help employees in workplace to perform highly and
increase their productive working hours instead of using individual system without
controlling. In all big companies time has a great value especially after implementing
network system at all administration work. Managers use controlling network system to
supervise information among employees at every department. This makes importance and
value time for all mutual documents among the different sectors in the company. In
addition, ICT plays important role in this field which makes egycel in the first places of
effective and high quality administration production. Network system makes work easier
and more professional than before.
Finally, Technology has many effective influences on administrative and office work in
accordance to organized plan and professional strategy. That's why computer is one of
the important tools to achieve the professionalism at work in big companies. The best
solution linked with establishing a pilot plan concentrated in a technological system to
control office work among the different administration departments. Working through a
network system is an evidence for quick improvement to the strategic leadership in the
company and effective outputs to the network system plan. Working through this system
developed employees' performance to better style using one of the ICT controlling
network system.
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The Importance of Analysis
According to the information given through meetings, discussions, and reports, we build
our point of view on SWOT analysis to give strength to my recommendations by
stopping the process of steeping forward to carry out our telecommunication project by a
company. For a start, the project has some strength in case we look to some imaginative
profits the company can achieve. This reflection causes some support to the project while
referring to some different facts to the area of the project can strongly change these
strengths to weaknesses. In some sharp investigation to the external environment to the
country of project where we discover some critical facts may create many obstacles to
achieve the company's targets and appointed ambitions. These weaknesses reflect the size
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of risk when recognizing the main interests of people and by defining more perspectives
about the political and social circumstances for the communities.
Investment is linked with economy and its problems in the last two years where countries
suffer from the effects of the world crisis and the key points that also individuals suffer
from. Banks play important roles to face this crisis while individuals failed to feel the
impact as early as countries because national economy is not as big as the international
one. In accordance with new procedures that banks have taken to give more facilities to
investment projects, financial rate raised to the green line which make individual feel
some stability in the stock market. In some companies in the Gulf regions, the recent
world crisis has impact on many big companies especially in stock money market and
reached to the lowest benchmark edge such as SABIC in Saudi Arabia, Emirates
Telecommunications Corp and some other companies in Kuwait, Bahrain , and Qatar
with exception in Oman. To take the view that the global crisis may have a deeper impact
on the oil-rich Gulf states than initially thought.
More and more effects to the global economy crisis can be produced when we find that
the industrial countries which they are controlling the world economy are only interested
in their economy positions only. In addition, developing countries must work hard to gain
some of their interests and controls to work out their development plans and support their
economy positions using their rich resources. It is very obvious to understand that
because of one bank in one country the problem happened, so what bank affects economy
of the entire world and the world countries cannot solve this problem and its effects.
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Cost Plan for Projects
Financially, the project will cost thousands of dollars which requires more stability and
scheduled plan to gain revenues which may not be achieved for some reasons. It is
important to consider the living standards for people which reflect some problems to
create more supporting facilities in our project. These obstacles will lead to some looses
to our company while we can convert the direction to another area in the world. The
amount targeted to build the project will need more partners which require more
operators and more equipment managers which will cause more different strategies may
not meet our plans.
The Importance of Investment in Saudi Arabia
Investment is a very important topic that people think about especially after the world
crisis. Investment is linked with economy and its problems in the last two years where
countries suffer from the effects of the world crisis and the key points that also
individuals suffer from. For instance, some banks reduced banking benefits to cover the
crisis and their loss while the benefit rates reached to the lowest level during that period.
In addition, investors try to help in solving this problem by increasing their projects
values and attract more money in the banks. In share markets the indicator reached under
the red level which affects the individual financial affairs in Saudi Arabia.
This topic becomes very interesting after the world crisis affected everyone
although the government declared that we are far from the negative effects of the crisis.
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However, the Kingdom is linked with the international trade which was also influenced
by the crisis. Also, the national economy in the country has a very ambitious
development plan to strengthen the national economy. Investors keep working in their
projects through the country's development plan because the government supports the
national banks to attract investors and their money. . Furthermore, the government
supports banking sector financially through the revenues of oil without touching the
inflation rates. After the world crisis it becomes very important to organize financial
deals because this will protect investors from any crisis in the future. Markets introduce
many options to investors to use their money, yet it is difficult to introduce convenient
offers like banks. This means that Saudi investors who have investment funds in banks
haven't been affected regarding to others who deal with other financial institutions.
Niches can be of several types like some niches have immense competition and
somewhere you would find a mixed bag people dealing with a same product. Presently,
competition is rising in the field of working from home with the aid of Internet. If you
can enrich your site with top class content, people will be in quest of this traffic and this
will endow your site with more and more income. Apart from everything, writing articles
in order to publish them through online gives you a trademark and as a result traffic
increases.
It is of paramount significance to research a great deal before getting into the online
business world because you can't achieve much success with your ignorance. You have to
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be optimistic and principled in order to provide your customers with their desired content.
You have to make your customers feel that they don't pay as much as they get from you.
If you can abide by these factors, competition will wither away and you will be the
champion. These are niches within the industry into which customers will look
specifically for the product they require and more quickly and easily recognize the
equipment that fits their needs. That means faster and simpler notability of the product or
service without having to delve through hundreds of thousands of unrelated products. If
you have a specific industry into which you want to enter into an Internet business, you
should most likely choose a niche market for advertisement and visibility.
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