small and medium enterprize (smes) & entrepreneurship dr. abdullah o. bafail, dean faculty of...
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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