SMALL AND MEDIUM ENTERPRIZE SMALL AND MEDIUM ENTERPRIZE (SMES) & (SMES) &

ENTREPRENEURSHIPENTREPRENEURSHIP

DR. DR. ABDULLAH O. BAFAIL, DEANABDULLAH O. BAFAIL, DEAN

FACULTY OF ENGINEERINGFACULTY OF ENGINEERING KING ABDULAZIZ UNIVERSITY KING ABDULAZIZ UNIVERSITY

OutlineOutline

Why SMEs?Why SMEs?

Readiness For SMEs! Readiness For SMEs!

Entrepreneurship Program Entrepreneurship Program

Global TrendGlobal Trend

Faculty of Engineering, KAUFaculty of Engineering, KAU

Entrepreneurship ExperienceEntrepreneurship Experience

RecommendationsRecommendations

Why SMEs?Why SMEs?

Reduce UnemploymentReduce Unemployment

Increase ProductivityIncrease Productivity

Contribute to the GDPContribute to the GDP

Reduce Dependency on importsReduce Dependency on imports

SME Economical ImpactSME Economical Impact

SMEs represent over 95% of enterprises in SMEs represent over 95% of enterprises in most countries and generate over half of most countries and generate over half of private sector employmentprivate sector employmentIn the EU, SMEs account for 66% of In the EU, SMEs account for 66% of employmentemployment Asia Pacific Economic Cooperation (APEC) Asia Pacific Economic Cooperation (APEC) targeting 2020, having 81% of the people and targeting 2020, having 81% of the people and 66% of the people employed by SMEs66% of the people employed by SMEsSMEs in Saudi Arabia represent almost 93% SMEs in Saudi Arabia represent almost 93% of total enterprises and account for about of total enterprises and account for about 25% of employment25% of employment

Source:Source: Organization for Economic Co-operation and Development (OECD)Organization for Economic Co-operation and Development (OECD)

READINESS FOR SMES!READINESS FOR SMES!

INVESTMENT ADVANTAGE IN KSAINVESTMENT ADVANTAGE IN KSA

Largest market in the gulfLargest market in the gulf

Stable currencyStable currency

Availability of financial institutionsAvailability of financial institutions

Is the Society Ready? (1/4)Is the Society Ready? (1/4)

A survey was performed to study the acceptance A survey was performed to study the acceptance of entrepreneurs (not employees) by four groups of entrepreneurs (not employees) by four groups of the society including:of the society including:– Males (40 and 60 years old) Males (40 and 60 years old) (n = 215) (n = 215) – Females ( 40 and 60 years old)Females ( 40 and 60 years old) (n = 202) (n = 202) – Males (22 to 39 years old) Males (22 to 39 years old) (n = 277) (n = 277) – Females (22 to 39 years old)Females (22 to 39 years old) (n = 209) (n = 209)

The survey consisted of 12 questionsThe survey consisted of 12 questions

Is the Society Ready? (2/4)Is the Society Ready? (2/4)

Would you encourage your son/daughter or Would you encourage your son/daughter or brother/sister to start his/her own business?brother/sister to start his/her own business?

Question 1

187 166 234 177 764

21 26 31 24 1027 10 12 8 37

0%

20%

40%

60%

80%

100%

Group

Resp

on

se

Yes No Do not know

G1 G2 G3 G4 All

Is the Society Ready? (3/4)Is the Society Ready? (3/4)

Would you accept an entrepreneur (not an Would you accept an entrepreneur (not an employee) to marry your daughter or son?employee) to marry your daughter or son?

Question 4

144 137 178 125 584

30 39 5730

156

41 26 4254

163

0%

20%

40%

60%

80%

100%

Group

Resp

on

se

Yes No Do not know

G1 G2 G3 G4 All

Is the Society Ready? (4/4)Is the Society Ready? (4/4)

If you are employed, would you be willing to If you are employed, would you be willing to quit your job and create your own business?quit your job and create your own business?

Question 11

84 84 109 93 370

88 83103 63 337

43 35 65 53 196

0%

20%

40%

60%

80%

100%

Group

Resp

on

se

Yes No Do not know

G1 G2 G3 G4 All

Regulations (1/2)Regulations (1/2)

Australia Saudi Arabia

Chad

No. ofProceduresTo Setupa New Business

2

12

19

Source: International Finance Corporation (IFC) – World Bank Group 2005

UAE

5

12

USA

8

Croatia

Regulations (2/2)Regulations (2/2)

Australia Saudi Arabia

Chad

No. ofDaysTo Setupa New Business

2

64

956

Source: International Finance Corporation (IFC) – World Bank Group 2005

UAE

5

54

USA

75

Croatia

NOT TO SCALE

Promoting SMEsPromoting SMEs

Ease of RegulationsEase of Regulations

Development of new policies to protect Development of new policies to protect small investorssmall investors

Promote entrepreneurship culturePromote entrepreneurship culture

ENTREPRENEURSHIP ENTREPRENEURSHIP PROGRAMPROGRAM

Why Techno Entrepreneurship?Why Techno Entrepreneurship?InitiativeInitiative

The Faculty of Engineering took the initiative The Faculty of Engineering took the initiative

to prepare the first academic to prepare the first academic

entrepreneurship program in the Kingdomentrepreneurship program in the Kingdom

Paradigm ShiftParadigm Shift

XX Traditional Traditional

culturecultureXX Follow instructions Follow instructions

XX No mistakes or failure No mistakes or failure

XX Do not take initiative Do not take initiative

XX Stay within your Stay within your sandboxsandbox

Entrepreneurial Entrepreneurial cultureculture CreateCreate ExperimentExperiment Take responsibilityTake responsibility OwnershipOwnership

Engineering Entrepreneurship Engineering Entrepreneurship Implementation – USA (1/3)Implementation – USA (1/3)

On a Department Level – A courseOn a Department Level – A course– Drexel University – Biomedical EngineeringDrexel University – Biomedical Engineering– Muhlenberg College – Software EngineeringMuhlenberg College – Software Engineering

On a college level – A courseOn a college level – A course– Georgia Institute of TechnologyGeorgia Institute of Technology– University of MarylandUniversity of Maryland– University of California, IrvineUniversity of California, Irvine

Engineering Entrepreneurship Engineering Entrepreneurship Implementation – USA (2/3)Implementation – USA (2/3)

On a University Level – Multi discipline On a University Level – Multi discipline entrepreneurship coursesentrepreneurship courses– Duke UniversityDuke University

In addition to an engineering entrepreneurship In addition to an engineering entrepreneurship course (TechEval) with a mission to course (TechEval) with a mission to “transfer “transfer technologies from the university to the world)technologies from the university to the world)

Engineering Entrepreneurship Engineering Entrepreneurship Implementation – USA (3/3)Implementation – USA (3/3)

On a University Level – An On a University Level – An entrepreneurship centerentrepreneurship center– University of South FloridaUniversity of South Florida

promoting interdisciplinary technology promoting interdisciplinary technology entrepreneurship linking entrepreneurship linking business, engineering, business, engineering, science and medicinescience and medicine across the USF Graduate across the USF Graduate Certificate in Entrepreneurship and Master of Certificate in Entrepreneurship and Master of Science Degree in Entrepreneurship in Applied Science Degree in Entrepreneurship in Applied Technologies. Technologies.

Entrepreneur

Entrepreneurship Course ComponentsEntrepreneurship Course Components

Enterprise

Training Components

Environment

Engineer Development RoadmapEngineer Development Roadmap

Introduction to Engineering

Design - Reverse Engineering

Entrepreneurship Capstone Design

Soft Skills Business Skills Idea to the Market

Career ChoiceCareer ChoiceEmployee

Entrepreneur IntrapreneurEngineer

Nascent Entrepreneur

Active Learning Environment

Active Learning Environment

PrototypePrototype

RecommendationsRecommendations

Universities should lead an entrepreneurship Universities should lead an entrepreneurship awareness campaignawareness campaign among its constituents among its constituents

Entrepreneurship should be promotedEntrepreneurship should be promoted in the in the curriculum among engineering students curriculum among engineering students before before graduationgraduation

Special and new regulations and policies should Special and new regulations and policies should be established to protect and reduce the burden be established to protect and reduce the burden of entrepreneurs starting new businesses of entrepreneurs starting new businesses