Challenges Facing SME Businesses in Saudi Arabia - Essay Example

The paper "Challenges Facing SME Businesses in Saudi Arabia" is a worthy example of an essay on business. Investing wisely in a particular type of business can be thought-provoking and this needs a SWOT analysis of the business so that every bit of its features is scrutinized for overall potential. Investcorp is an investment company that focusses its activities on international investments and revival of sectors, which have difficulties to rise from their challenges. My role in the company has offered me great opportunities to interact with executive leaders in various organizations and this has attuned me with the observations I have made on opting for private equity investment in many countries. This directly points out the prerequisites investors should have before choosing an appropriate investment, especially for local deals.

The Middle East has the challenge of managing Small & Medium Enterprises (SMEs) and my focus will be on Saudi Arabia. The businesses have no professionalism in management decisions and the fundamental standards of investment have not been utilized well. For instance, accounting, present-day financial drills, and management styles have been shoddily employed and most of their achievements are dependent on the macroeconomy as well as market growth. Then again financiers with considerable liquidity and limitless appetite have been pursuing inadequate local opportunities. In a deeper perspective, the SMEs are the underdogs when it comes to investing with reference to the poor organizational and financial ethics. The businesses are deprived of access to financial capitals, are not noticeable to investors and abandoned by financial organizations. The framework for administrative arrangements is often restrictive, inflexible and duplicated while lobbying is often politically inclined, biased and not synchronized with SME structures (Harvie, 2004).

The major role I will play in tackling the above challenges in the medium term is firstly to aid in funding and financing the SME sector by increasing the percentage of funds available for then on an annual basis especially in areas where the business is a boom. By coordinating with policymakers, I will ensure that the legislative and regulatory framework is harmonized so that the effectiveness of SMEs is exploited. Furthermore, the institutional capacity of the sector will be scrutinized so that dissemination of information is enhanced among similar sectors so as to achieve international standards and excellence and turn out to be competitive. The preceding recommendation will operate in harmony with the application of Information and Communication Technology (ICT) so as to hasten the development of regional SMEs. In every activity mentioned above, there will be a need to incorporate a wide-ranging marketing strategy designed for SMEs in the region. With respect to the aforementioned solutions, I have a strategy to inaugurate a business that provides Business Enhancement Services to SMEs. The objectives of this business will emphasize better-quality transparency hence making SMEs attractive to banks and financiers and subsequently support with raising capital and clearing long term debts as well as applying resourceful structures that do not exist in Saudi Arabia, for example, convertible notes and mezzanine debt. When these businesses are ripe for the corporate world, an introduction to mergers and acquisitions will be applied to attain optimal productivity since currently, there are no special providers of such services in the region (Harvie, 2004).

In conclusion, the above recommendations can be launched perfectly with the full cooperation of the business owners. However, there will be anticipated challenges to deal with reference to the SME owners. I expect a lack of knowledge in such practices and challenges in comprehending the value of delivered service. Also, finding competent management in the country and training young entrepreneurs; emotional connexion to their businesses and its effect of disagreeing to amalgamate business with new associates even if it means missing the chances to grow; unwillingness to unleash power and consent to up-to-date management practices; and above all my competence in getting tangled in operations and implementing business strategies. The success of the plans will call for cooperation among the businesses, guarantee for implementation and timelines, continuous inventiveness and modernization as well as creating an empowering environment.