Saudi Arabia’s latest GEM National Report reveals a significant uptick in established business ownership (EBO). A company is classified as an established business if it has been operating and paying salaries for more than 3.5 years. Underscoring the Kingdom’s growing entrepreneurial strength, EBO in Saudi Arabia increased by more than 40% over the previous year, reaching a high of 19% in 2024.
Among high-income economies, Saudi Arabia reported one of the highest EBO rates – twice as high as the United Kingdom. Only the Republic of Korea, at 22%, recorded a higher EBO rate.
“The presence of a strong base of established businesses is an important indicator of ecosystem maturity, signaling a resilient entrepreneurial environment where ventures are not only launched but successfully sustained over time,” note the report authors, Muhammad Azam Roomi, Donna Kelley and Alicia Coduras. “The EBO growth in Saudi Arabia signals a strengthening entrepreneurial environment.”
Positive societal attitudes toward entrepreneurship
Societal attitudes toward entrepreneurship remained remarkably positive and stable in Saudi Arabia:
- 96% of adults see entrepreneurship as a good career choice.
- 96% believe entrepreneurs are held in high status.
- 94% agree that entrepreneurs receive positive media attention.
- 93% believe it is easy to start a business.
In addition, 94% of adults personally know an entrepreneur, the highest figure reported since 2016. Capability perceptions (93%) and opportunity perceptions (95%) also remained very strong. While fear of failure peaked at 57% in 2022, it stayed at that level in 2024, indicating a steady mindset toward entrepreneurial risk.
Among 20 high-income economies surveyed, Saudi Arabia ranked highest across societal attitudes, personal affiliations with entrepreneurs, and opportunity and capability perceptions.
Also noteworthy is that entrepreneurs in Saudi Arabia are focusing on societal goals with 83% of those in the Total Early-Stage Entrepreneurial Activity (TEA) phase and 85% of those in the EBO phase prioritising social and environmental impact over profitability or growth.
In 2024, women reported a TEA rate of 23%, compared to 28% for men. This marks the continuation of a gender gap that reappeared in 2022 after several years of gender parity or near parity. A wider gap appeared in EBO rates, with women just under 15% and men just below 23%.
Strong adoption of Artificial Intelligence (AI) among Saudi entrepreneurs
AI is seen as a critical part of business strategies:
- 85% of entrepreneurs and 89% of established business owners consider AI necessary today.
- 84% of entrepreneurs and 86% of business owners expect AI tools to be essential in the next three years.
Concerns about AI center primarily on data security and privacy, cited by 61% of entrepreneurs and 69% of established business owners. Despite these concerns, the majority see AI as a path toward customer personalisation, innovative products, and increased business growth.
The report is made possible thanks to the following sponsors: The Babson Global Center for Entrepreneurial Leadership (BGCEL) and the Prince Mohammed Bin Salman College (MBSC) of Business and Entrepreneurship.