The Financing of Small Businesses in Saudi Arabia Essay

The Financing of Small Businesses in Saudi Arabia - Essay Example Moreover, differences have been identified between the measures taken by governments in developed and developing countries regarding the limitation of inequalities in the support offered to entrepreneurs worldwide; the form and the level of governmental support to business activities have been also found to be related with the size of the firm involved – a fact that can offer the chance to foreign firms to enter the market – domestic firms that are already well developed are also likely to increase their power (Keren et al., 2002, 17). It seems that the financing of small firms can be a challenging effort in most markets internationally. Of course, the personal involvement of the entrepreneur – owner of a small firm – in the relevant effort could increase the chances for success – however, a positive outcome cannot be guaranteed. Various factors, like the local culture and ethics and the position/ strength of the national economy, seem to influence the effectiveness of the particular initiatives. The above issue is highlighted in the study of Busenitz et al (2001). The above study refers to the effectiveness of strategies of small firms in China; it has been proved that ‘younger business owners with a higher need for achievement, greater commitment, and perceived limitations in physical facilities were more likely to expand’ (Busenitz et al., 2001, 12). From a different point of view, it is supported that ‘differences in environmental conditions in different country markets, in terms, for example, of market size and growth, rate of technological change, or barriers to entry, may also lead to differences in strategy’ (Douglas et al., 1989, 440). The view of Douglas et al. (1989) highlights the potential involvement of a series of factors in the development of business activities – in accordance with this view, the local culture can affect business plans –almost at the same level with the size of the firm.