In the 2nd and 3rd sessions of SME Forum 2018
The technical sector is a catalyst for entrepreneurs and business incubator programs and services are useful for the sector
The second session of the SME Forum (Bold Capital is the Gateway to Empowerment) that entitled "Financial Policies, Regulations and Programs in Support of Bold Investment" stressed the importance of benefiting from the financing opportunities offered by government institutions and large companies, joining incubators in order to enhance the knowledge and select the right market for investments.
The speakers at the session, which was conducted by a member of the executive board of Asharqia Chamber Young Businessmen, Anas Al-Dweyan, said that the opportunities ahead are promising, and the initiative is in the hands of the enterprises themselves.
The Deputy Minister of Finance for Revenue, Engineer Tarek Al-Shohaib, said that there are many developments in the financing sector for small and medium enterprises.
The Ministry has many programs, including government lending, which contributed to lending 700 projects with 11 billion riyals in health, education and hotel sectors, including a good number of small enterprises.
He added that the competition system in its new form will make a quantum leap for SMEs to enter the field of government competition, which will increase its contribution to GDP, one of the objectives of the Kingdom's Vision 2030.
In addition, the CEO of Badir Technical Incubator, Nawaf Al-Sahaf, stated that Badir is the largest incubator program in the Arab world.
Since next year, it will support 300 companies through 8 branches in the Kingdom. Financing is a key part of the success of projects, especially small ones, and the best for entrepreneurs is to join these incubators and benefit from the services they provide.
He stressed the need to move towards activity in the technical field.
The chief executive of Derayah Financal, Mohammed Al-Shamasi, pointed out that the challenge faced by investors in bold capital is that among 10 projects entering this type of investment, 7 of them are expected to fail.
Therefore, the owner of any such project looks forward from the remaining three projects for a huge financial return to compensate for the losses.
He pointed out that the reality of funding directed to small and medium enterprises is still being observed.
The establishments that make up 95% of the establishments operating in the market do not finance more than 4% of bank financing, while the rest obtained by the large enterprises.
He added, "so we have a responsibility to resolve this problem through the development of legislation necessary to enter the investment institutions other than commercial banks."
He stressed that the success of any small enterprise depends on several elements, including the presence of a team that has high efficiency, and that the target market is large and offers more opportunities and more areas of work.
The Director General of the General Department of Markets in the financial market (Tadawul), Mohammed Al-Rumaih, said that the access to financing has been one of the main challenges facing small and medium enterprises, unlike large enterprises.
But with the launch of the parallel market in 2017, opportunities are available, especially as many modifications and programs encourage small enterprises to enter the parallel market.
He called on the owners of enterprises to focus on activities and development and benefit from incubators.
The deputy head of the corporate sector in the communications business unit of Saudi Telecom Company, Engineer Mohammed Al-haqbani, stressed that a number of large companies (such as STC) supports local content through SME.
Therefore, these facilities should benefit from this through networking and attending events.
The third session was entitled "The efforts of large companies, banks and funds to increase sources of investment and financing," was conducted by a member of the executive board of Asharqia Chamber Young Businessmen, Turki Al Rajhi.
Omar Al-Majdoui, Partner and Founder of Raed Advanced Investments Co., Ltd., talked about modern business models and how family companies can benefit from them.
He said that the world is changing and moving towards speed in everything.
He noted that the information has become accessible to all.
He pointed out that the business environment has changed and required modernization in all aspects of culture and the quality of the entrepreneurs, as it has become stimulating and encourages investment and this is what is happening now.
For his part, the founder of Oqal Group, Fares Al-Rashid, emphasized that big companies, including family businesses, are now looking for successful investment opportunities.
He pointed out that there is support coming from initiatives and decisions that encourage the start of investment amidst the stimulating environment that we are currently experiencing.
The director of corporate finance at the General Authority for Small and Medium Enterprises, Sulaiman Al-Jabreen, said that business financing is an essential and important element, but not the most important for small enterprises.
He stressed that these projects need a full program of guidance and provide advice, in addition to the periodic follow-up of the project, "so that we can maintain it and protect it from failure."
For his part, the partner and founder of (Cown Ventures), Rakan al-Eidi, talked about the development of the business environment in the Kingdom. It is noteworthy that between 2006 and 2018, a major development had witnessed.
Investment has become very motivating. Many procedures have changed, which have made it easier for the entrepreneur to go to the investment and start.
The Director of the Private Equity Department of Riyadh Capital, Qusay Al-Seif, said that the past three years has witnessed a great development, as the number of incubators is increasing, and that Saudi Arabia has been receiving incubators from abroad.
The business sector witnessed the entry of subsidized entrepreneurs into the market.
He predicted that the next two years will witness many changes and improvements as well.
