Constraints on development
Small businesses in Saudi Arabia
Bibliographic Data
| ID | 10280404 |
|---|---|
| Authors | Bandar Al Hajjar (corresponding author), John R Presley |
| Year | 1992 |
| Volume | 28 |
| Issue | 2 |
| Pages | 333-351 |
| Publication date | 1992-04-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Middle Eastern Studies (JOURNAL) |
| Journal identifiers | ISSN: 0026-3206 • E-ISSN: 1743-7881 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/00263209208700904 |
| OpenAlex | W2083113509 |
| Language | EN |
| References cited | 12 |
The shift of emphasis towards 'small is beautiful' in both developed and developing countries has been justified by both the quantitative and qualitative contribution of the small business sector to socio-economic well-being. Typically small businesses account for over 90 per cent of firms and between 30 and 40 per cent of total employment (68 per cent in the case of Japan) in most developed economies;' a similar picture emerges in the developing world, with, in most cases, the proportion of total employment being much higher (60-80 per cent).2 The Bolton Committee in the United Kingdom provided qualitative reasons to confirm the significant role which small businesses can play in the economy. Small businesses are the seedcorn of future large businesses; they are more flexible and can adjust production more quickly to market change; they are a source of innovation and provide opportunities for those who wish to initiate their own business. They produce various specialised products and services which cannot be produced economically in large quantities and they allow larger firms to concentrate on the main activities of their business by providing spare parts and other services to them.3 In relation to developing countries, Staley and Morse have stressed the importance of small businesses as a source of capital formation, particularly in an environment where investment opportunities are very limited.4 There is general acceptance therefore that small business can contribute significantly to the growth and expansion of the economies of both developed and developing countries. This, in turn, justifies the necessity of promoting small businesses in order to enable them to contribute effectively to the development process. The emphasis of research in both developed and developing economies has been upon the identification and extent of the small business finance gap. Much evidence has been accumulated over the years on the inability of small businesses in most sectors of the economy to finance themselves either from internal or external sources. This has led to a criticism of financial systems which fail to provide institutional finance over short and long term, to small businesses for establishment, expansion, relocation
Business · Capital (architecture · Commerce · Developing country · Economic growth · Economics · Investment (military · Market economy · Small business · Spare part · Islamic Finance and Banking Studies · Marketing · Socioeconomic Development in MENA
| Citation velocity | historical |
|---|---|
| Highly cited | No |