Saudi Arabian entrepreneurship ecosystem and microfinance

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Abstract

Microfinance is an important component of the entrepreneurship ecosystem (Iansiti & Levien, 2004). This research explores prominent microfinance models and introduces leading microfinance institutions, in a certain format, practicing these models across the globe. Using primarily qualitative methods of investigation, it then identifies the use of microfinance by different organizations in Saudi Arabia. The study contributes a model of microfinance in Saudi Arabia upon the contemporary conventions, procedures, and practices (Saudi Arabian microfinance model, SAMFIN). It would assist the microfinance landscape and practices of leading institutions. Eventually, the study would ascertain and pinpoint the challenges and opportunities for the Saudi Arabian entrepreneurship ecosystem stakeholders to introduce the changes and additions required to make the Saudi microfinance landscape more dynamic, and vibrant, and contribute to and satisfy the community needs. Also provided is a brief impact of the Saudi Vision 2030. This work would offer guidance and learning for practitioners, lenders, borrowers, and academics alike both in and outside the country. It can be concluded that the loan limit in Saudi Arabia is substantially high and equals $2666; the microfinance in Saudi Arabia is evolving and the differences identified and discussed above imply that the SAMFIN and global models are quite different in approach and modalities.

Keywords: Entrepreneurship Ecosystem, Microfinancing, Saudi Arabia, Microfinance Institutions, Microfinance Models

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G21, G38, L26, R51

Received: 21.12.2022
Accepted: 15.09.2023
Published online: 19.09.2023

How to cite this paper: Rahatullah, M. K. (2023). Saudi Arabian entrepreneurship ecosystem and microfinance. Corporate & Business Strategy Review, 4(4), 43–53. https://doi.org/10.22495/cbsrv4i4art5