VENTURE CAPITAL CHALLENGES IN SAUDI ARABIA

The purpose of this exploratory research is to highlight the major Venture Capital (VC) Challenges in Saudi Arabia. A survey design using a questionnaire has been selected for this study. The respondents include entrepreneurs, investors, employees of VC firms, investment bankers, and other relevant groups. They answered the questionnaire for their problems, challenges, and prospects about venture capital in Saudi Arabia. A judgmental sample technique was employed to collect the data (N=122). Descriptive analysis using mean comparisons show the top three VC challenges, including 'lack of government support for VC'; 'bureaucratic procedures related to VC' and 'access to angel investors (funding without collateral).' Exploratory Factor Analyses show VC challenges can be grouped into six broader factors, including 'entrepreneurial ecosystem,' 'entrepreneurial culture', 'entrepreneurial attitudes', 'entrepreneurial mindset', 'entrepreneurial finance', 'entrepreneurial planning'. The research provides numerous recommendations to authorities and discusses the need for further research.