Received: 2020-09-19  |  Accepted: 2020-12-10  |  Published: 2021-03-30

Title

Venture capital challenges in 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.


Keywords

venture capital, angel investors, entrepreneurial finance, entrepreneurship, Saudi Arabia


JEL classifications

L26


URI

http://jssidoi.org/jesi/article/781


DOI


Pages

291-302


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Siddiqui, Kamran Ahmed
Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia https://www.iau.edu.sa
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Al-Shaikh, Mohammad Emad
Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia https://www.iau.edu.sa
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Bajwa, Ishtiaq Ahmed
Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia https://www.iau.edu.sa
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Alenzi, Omar
Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia https://www.iau.edu.sa
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Journal title

Entrepreneurship and Sustainability Issues

Volume

8


Number

3


Issue date

March 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References