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Determinants of early‐stage entrepreneurship in the Kingdom of Saudi Arabia: Evidence from the Global Entrepreneurship Monitor Database

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  • Suheela Shabir
  • Jabir Ali

Abstract

This study aims at identifying the determinants of early‐stage entrepreneurial activities (TEA) in the Kingdom of Saudi Arabia based on the Global Entrepreneurship Monitor (GEM) survey. Out of 4,048 adult populations surveyed in Saudi Arabia, about 11.4% have reported early‐stage entrepreneurial activity. Analysis indicates a significant association between demographic characteristics and early‐stage entrepreneurship. Further, the regression estimates indicate that all three components of the theory of planned behavior, i.e., attitude towards entrepreneurship (ATE), Perceived Subjective Norms (PSN), and Perceived Behavioral Control (PBC), have a positive and significant impact on the early‐stage entrepreneurial activities among the adult population. The analysis indicates the individuals choosing entrepreneurship as a career choice and perceive greater economic opportunities with social orientation are induced to start an enterprise at an early stage. Moreover, self‐efficacy is a strong factor inducing early‐stage entrepreneurs, while risk perception towards entrepreneurship hinders entrepreneurial growth. The study provides insights for developing schemes and policies towards strengthening the entrepreneurial ecosystem in Saudi Arabia and provides further research direction on entrepreneurial initiatives.

Suggested Citation

  • Suheela Shabir & Jabir Ali, 2022. "Determinants of early‐stage entrepreneurship in the Kingdom of Saudi Arabia: Evidence from the Global Entrepreneurship Monitor Database," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1566-1578, July.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:5:p:1566-1578
    DOI: 10.1002/mde.3474
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