The Impact of the Economic Condition on Entrepreneurial Development in the Kingdom of Saudi Arabia

Abstract

Objective: The study is aimed at examining the impact of the economic
condition on entrepreneurial development in the kingdom of Saudi
Arabia. In particular, the study has examined the impact of economic
growth, physical capital, human capital, poverty, and income inequality
on entrepreneurial development.

Data and methodology: Data is based on 13 different provinces over the
period of 21 years from 2000 to 2020. The Panel data method is
employed. OLS and fixed effect estimates are employed as the most
robust estimates to achieve the objectives of the current study.

Results: The findings of the study have revealed that the impact of
economic growth, physical capital, human capital, poverty, and income
inequality on entrepreneurial development is significant.
Significance: The study is among the pioneering study on the KSA
where, self-employment, small firms, firm start-ups, , young enterprises,
SMEss, and patents are indicators of entrepreneurship. There is a high
rate of income inequalities in KSA, which are similar to the high rate of
economic growth. When a crisis begins in the economy, income
inequalities start decreasing.

Practical Implication: The study will be helpful for policymakers,
practitioners, and researchers in developing and understanding on the
issues related to economic conditions on entrepreneurial development in
the kingdom of SaudiArabia.