Critical Success Factors for Small Business Enterprises in Saudi Arabia

The business will need to investigate the success and failures and determine why it was or wasn’t a success. There has to be at least one reason if not several reasons. The business could look for some of the following:

In Ronald Bailey’s article “Transhumanism: The Most Dangerous Idea? Why Striving to Be More Human Is Human”, Bailey poses an underlying question about which ideas, if embraced, would pose the greatest threat to the welfare of humanity? In particular, Bailey posed the question to 8 of the most prominent policy intellectuals editors of the “foreign policy” from the September and October issue. Of the 8 editors, the answer that caught Bailey’s attention the most was that of editor Francis Fukuyama. Fukuyama proposed in his Foreign “Policy article”, that the world’s most dangerous idea was that of Transhumanism.

I have identified five (5) factors that I believe to be among the top contenders for longevity in any business model; dedication to employee development, ability to adapt to change, brand marketing, strong financial resources, and a high level of quality. These factors are listed in no particular order because depending on the current trend of the business and the specific time period may call for a restructure of priorities. Some of these factors are internal while the others are external factors that may have some bearing on the success and direction of the business.

Small businesses are independently owned, for profit businesses which employees no more than 500 employees and are not dominant in its competitive area. Small Businesses are critical for the US economy because more than 99 percent of businesses in the US fall under the small business category (Farrell, Hirt & Farrell, 2009). This is clearly why small businesses are important for the US economy because of its percentage make up for the business industry. Small businesses also create opportunities for minorities and give women the opportunity to successful in the business world. Small business owners are not guaranteed

Personal characteristics that can contribute to the success of a new business are education, experience and even age as reported by Cooper & Dunkelberg (1981). The Psychological traits that which can influence success are leadership, drive, decision making abilities, and ability to motivate and inspire others (Kaish and Gilad, 1991). The work ethic and background experience are also considered important

It is a compilation and presentation of data collected by surveys of small business owners. It is a simple device designed to show how business owners feel about expanding their businesses, as well as how new entrepreneurs feel about opening businesses. It takes into account many factors to get an overarching index of business confidence. Some of the factors include the inventories, capital outlay, sales, and the economy. The report also takes into account subjective factors, such as whether the survey taker believes it is a good time to expand, as well as a brief explanation of why or why not. (Dunkleberg & Wade,

Partnerships and networks between big and small companies will contribute to the success in the future (Delaney, 2009).

Businesses operating as family holdings or small businesses have various common practices considered effective towards organizational performance. While small businesses may at times be viewed by outsiders to be easy to run, they subject the owners and managers to the same kind of business stresses that large businesses present. This makes it imperative to apply various basic principles of management, marketing and conflict resolution strategies that are also applicable in large businesses. Through interviews, some information was collected on running various types of small businesses in order to determine the

Numerous large businesses that are operating today were once started as small businesses. A new business is established to create a good or service that no other businesses have ever created or simply a product of higher quality than existing products, with the purpose of meeting customers’ needs and earning profits. Due to the technological advances at the present time, starting and operating a new business is less laborious. Nevertheless, would-be entrepreneurs should be familiar with the proper approaches to start their businesses.

The Bolton Committee (1971) sought to define small enterprise by the following criteria: they own a small market share, are managed by owners or co owners and operate independently of any large firm (as cited in Bach, 2007, p.15). Bach (2007) concluded that, in an effort to survive against the influence of larger businesses with their expanded budgets and reach, these small businesses must rely on their ability to innovate and segment the market. These enterprises are critical for employing workers across the job market and further spurning competitiveness (Bach, 2007). Gruber (2004) noted that, in addition to limited financial resources, small and new businesses are often restricted by the uncertainty of market predictability and marketing planning. Doyle’s research surmised that due to these externalities the process of building credibility and establishing competitive advantage - regarded as one of the most important determinants in early success - could most effectively be achieved through unconventional means (as cited in Gruber, 2004, p.188). This entirely different approach, in which large ad budgets don’t exist, has numerous benefits.

Starting a business and keeping it going is a difficult, competitive, and strategic process that helps make a business successful. A business’ success can be valued on how much profit a business makes. In business, you earn profit by selling products and services to customers who are willing to buy. Qualities needed in business are determination, math, good decision making skills, and many other attributes. Decisions are an important part of business. The complex process of decisions that make up a business include location, budget, choosing what industry you should go into which is based on demographics and what is best suited for your city. These and many other decisions determine the success of a business.

According to the textbook, there are 12 common reasons for the failure of new small businesses. This is not an inclusive nor industry specific listing.

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.

Sit down and take a look around. We are surrounded by hundreds of different businesses whether they’re locally owned or franchised all around the world. According to the United States Small Business Administration, approximately twenty-seven million small businesses operate successfully in the United States (PDF). A small business is usually defined as one not predominant in its area of operation. The SBA determines the size standards for different industries. More than 600,000 businesses are started each year in the United States and likely millions of others with the same aspirations ("Starting a Business: The Idea Phase."). However, many lack the knowledge on the first steps to take. Some might even ask themselves if they have the traits to be successful. To answer this

Small to medium businesses (SMB) currently represent a significant portion of the United States economy. In 2016 over one-third of the US population is employed by companies with less than 100 employees. Unfortunately, as reported by the Bureau of Labor Statistics, nearly half of these entities fail within the first four years of operation. As a result, many SMBs are in search of a successful model to guide them beyond sustainability toward profitability. Concerning success for SMBs, in research involving 3,800 SMB leaders, Vala Afshar highlights 6 key benchmarks indicating high-performing organizations: