The General Authority for Small and Medium-Sized Enterprises has revealed that work is underway to prepare the National Plan for Small and Medium-Sized Enterprises, with expectations that it will be completed before the end of this year and then submitted to the highest authorities for approval. It is expected to play a major role in charting a roadmap for these enterprises.
The Authority stated that it visited 17 countries to learn from their experiences, noting that those countries rely heavily on the growth and development of small and medium-sized enterprises to support their economies.
Dr. Ghassan Al-Suleiman, advisor to the Ministry of Commerce and Investment and governor of the Authority, explained that small and medium-sized enterprises are characterized by their significant impact on the economy and society through job creation and their contribution to increasing gross domestic product, noting that in some countries, the sector accounts for more than 70% of the economy, represents about 90 % of the labor market, and accounts for 58 % in the European Union, In the Kingdom, the figure stands at 53 % of the labor market and 21 % of GDP.
Dr. Al-Suleiman stated that the Authority aims to increase its contribution to GDP to 1.7 billion riyals by 2030 through the capabilities of young people, adding that the countries the Authority has visited focus on innovation and technology, noting that 80 % of innovations in the United States come from small and medium-sized enterprises, and highlighting the Authority’s aspiration for innovations to help combat poverty and create opportunities for male and female entrepreneurs, explaining that statistics indicate that 38 % of the companies established in the Kingdom last year are owned by women.
He noted that the Biban program will launch this year in Riyadh and will serve as a springboard to support, finance, and empower small and medium-sized enterprises, which will be launched through the forum; the number of projects is expected to exceed 25, and about 200 initiatives. He explained that all obstacles facing these enterprises have been identified and efforts will be made to remove them in cooperation with other relevant government agencies, emphasizing that a committee comprising representatives from all these sectors has been formed to overcome these obstacles.
He emphasized that, in line with Vision 2030, the Authority welcomes foreign investment in this sector; what matters to us is the extent to which this contributes to the national economy, GDP, job opportunities for Saudi youth, and the development and transfer of technology to the Kingdom.
Al-Suleiman noted that 1,999 cases of fronting in the Kingdom are concentrated in the small and medium-sized enterprise (SME) sector, adding that the Authority expects the National Plan for these enterprises, once approved, to play a major role in eradicating this phenomenon once and for all.
