The Impact of the Economic Condition on Entrepreneurial Development in the Kingdom of Saudi Arabia

Objective: The study is aimed at examining the impact of the economic condition on entrepreneurial development in the kingdom of Saudi Arabia. In particular, the study has examined the impact of economic growth, physical capital, human capital, poverty, and income inequality on entrepreneurial development. Data and methodology:Data is based on 13 different provinces over the period of 21 years from 2000 to 2020. The Panel data method is employed. OLS and fixed effect estimates are employed as the most robust estimates to achieve the objectives of the current study. Results: The findings of the study have revealed that the impact of economic growth, physical capital, human capital, poverty, and income inequality on entrepreneurial development is significant. Significance: The study is among the pioneering study on the KSA where, self-employment, small firms, firm start-ups,, young enterprises, SMEss, and patents are indicators of entrepreneurship. There is a high rate of income inequalities in KSA, which are similar to the high rate of economic growth. When a crisis begins in the economy, income inequalities start decreasing. Practical Implication: The study will be helpful for policymakers, practitioners, and researchers in developing and understanding on the issues related to economic conditions on entrepreneurial development in the kingdom of SaudiArabia.