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Venture capital challenges in Saudi Arabia

Author

Listed:
  • Kamran Ahmed Siddiqui

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

  • Mohammad Emad Al-Shaikh

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

  • Ishtiaq Ahmed Bajwa

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

  • Omar Alenzi

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

Abstract

The purpose of this exploratory research is to highlight the major Venture Capital (VC) Challenges in Saudi Arabia. A survey design using a questionnaire has been selected for this study. The respondents include entrepreneurs, investors, employees of VC firms, investment bankers, and other relevant groups. They answered the questionnaire for their problems, challenges, and prospects about venture capital in Saudi Arabia. A judgmental sample technique was employed to collect the data (N=122). Descriptive analysis using mean comparisons show the top three VC challenges, including 'lack of government support for VC'; 'bureaucratic procedures related to VC' and 'access to angel investors (funding without collateral).' Exploratory Factor Analyses show VC challenges can be grouped into six broader factors, including ‘entrepreneurial ecosystem,’ ‘entrepreneurial culture’, ‘entrepreneurial attitudes’, ‘entrepreneurial mindset’, ‘entrepreneurial finance’, ‘entrepreneurial planning’. The research provides numerous recommendations to authorities and discusses the need for further research.

Suggested Citation

  • Kamran Ahmed Siddiqui & Mohammad Emad Al-Shaikh & Ishtiaq Ahmed Bajwa & Omar Alenzi, 2021. "Venture capital challenges in Saudi Arabia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 291-302, March.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:3:p:291-302
    DOI: 10.9770/jesi.2021.8.3(17)
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    References listed on IDEAS

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    More about this item

    Keywords

    venture capital; angel investors; entrepreneurial finance; entrepreneurship; Saudi Arabia;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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