Monshaat unveils 13 initiatives under National Entrepreneurship, SMEs Strategy

The General Authority for Small and Medium Enterprises (Monshaat) unveiled details of the initiatives included in the National Strategy for Entrepreneurship and Small and Medium Enterprises (SMEs), approved by the Council of Ministers, which aims to support the growth and competitiveness of SMEs through 13 initiatives covering access to markets and opportunities, financing, business environment, innovation, data and expansion.

According to a Monshaat statement, the initiatives related to access to markets and opportunities include developing open commercial innovation by linking private-sector research and innovation needs with entrepreneurs and facilitating market access for innovative enterprises. They also include enabling SMEs and startups in industrial cities and special economic zones, as well as supporting exports and international expansion by enhancing enterprises’ readiness and capabilities and enabling access to overseas markets.

The strategy also seeks to enhance SMEs’ participation in government procurement by addressing challenges that limit their chances of winning tenders, providing support and training, and developing relevant frameworks. It also aims to increase the share of SMEs and startups in procurement by large companies through stronger communication channels and partnerships, enhancing their competitiveness and expanding their participation in procurement processes.

On data and the business environment, the initiatives include establishing a comprehensive database for the SME sector and linking it to databases across the ecosystem, helping bridge data gaps and support better decision-making. They also include attracting and localizing innovative global startups, connecting them with partners and investors, supporting their expansion, reviewing sector-specific Saudization minimums, and reducing the cost of doing business.

On financing, the initiatives include raising financial awareness and developing capabilities related to lending and investment financing. They also seek to identify barriers, simplify procedures, enhance financing and investment readiness, enable access to financing opportunities, and attract and incentivize SME financing institutions, helping increase the supply of alternative financing and strengthen the presence of financial institutions in the local market.

The strategy also includes developing and activating an impact monitoring and evaluation framework covering the monitoring of the impact of initiatives, programs and services, as well as measuring the targeted contribution of SMEs to gross domestic product (GDP), in coordination with relevant entities.

The strategy is based on three main objectives: building an enabling and supportive ecosystem; supporting the growth of promising, existing and new enterprises in key and future sectors; and strengthening the entrepreneurship ecosystem and culture, contributing to a flexible, sustainable environment that supports innovation and competitiveness.

The strategy contributes to the objectives of Saudi Vision 2030 related to the SME and entrepreneurship sectors, most notably increasing the contribution of SMEs to GDP to 35%, creating more than 500,000 direct and indirect jobs, and ranking Saudi Arabia first globally in the Entrepreneurship Skills Index by 2030.