Effects of entrepreneurial characteristics on the success of SMEs in the Saudi Arabian market

Abstract

Small and Medium Enterprises (SMEs) play an important role in almost all national economies ranking them as the key drivers of economic growth. There has been concerted efforts directed towards enhancing their survival and eventual growth of which researchers, policy makers and governments alike tend to put more emphasis on. The threat to survival is real and unless there is intensive effort from concerned parties, the situation might become out of control. The study was guided by the following research objectives which include: finding out what role is played by entrepreneur's innovation, leadership, networking and risk-taking competencies on the survival of SMEs in KSA. The study reviewed past activities and this was explained by the literature review. The literature review evaluated the relationship between each of the various entrepreneurial competencies and their effect on survival of SMEs worldwide. The study therefore opted to adopt a descriptive research design. The findings revealed that entrepreneurial competencies (innovation competency, leadership competency, networking competency and risk-taking competency) of the SME owner-managers (entrepreneurs) have a positive and significant effect on the survival of SMEs in KSA thereby increasing their chances of survival. The study therefore recommends that SMEs through the management should embrace innovation competency as a means of enhancing their survival, enhance leadership competency which is a key aspect in firm survival and performance, ensure that they embrace networking competency as a way of gaining competitive advantage and widening their customer base and adopt calculated risk-taking strategies in their operations.

Date of Award	2020
Original language	English