The relevant statistics underline the problem facing a country so dominated by one export-driven sector. While Saudi Arabian SMEs, 500,000 businesses, account for 93 per cent of all enterprises in the country, they employ just 24.7 per cent of the workforce, and a smaller percentage still of the total GDP. The goal that SMEs will be responsible for 50 per cent of total industrial production within five years might, therefore, seem optimistic – especially in light of the oft-stated problems of limited access to financing, unwieldy regulation and insufficient collaboration between the public and private sectors. Institutional help has also been coming online to further assist SMEs. The Saudi Industrial Development Fund (SIDF) was created to promote commercial bank lending to SMEs and offer loan guarantees through their Khalifa program. The Saudi government to provide interest-free loans to help develop its citizens, and financing SMEs has become a critical part of its role established the Saudi Credit and Saving Bank.
NSK business incubation programs goal is to help create and grow young businesses by providing them with necessary support and financial and technical services. There are approximately 900 business incubators nationwide, according to the National Business Incubation Association.
Incubators provide numerous benefits to owners of startup businesses. Their office and manufacturing space is offered at below-market rates, and their staff supplies advice and much-needed expertise in developing business and marketing plans as well as helping to fund fledgling businesses. Companies typically spend an average of two years in a business incubator, during which time they often share telephone, secretarial office, and production equipment expenses with other startup companies, in an effort to reduce everyone's overhead and operational costs.
NSK Consultants provide support services towards SMEs in the following fileds:
- Advising and counselling towards business opportunities
- Prepare business opportunity studies,
- Arranging for funds
- Provide all sorts of information
- Assist in development of documents