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THE ROLE OF CULTURE ON ENTREPRENEURSHIP DEVELOPMENT IN SAUDI ARABIA
Khloud Abdullah, A. Mohammad, Z. Ahmad
Entrepreneurship, and the activities associated with it, is not new in the Muslim world. In fact, a major economic activity during the time of Prophet Muhammad (peace be upon him) was business and industry, and the Prophet himself was exemplary in t…
Entrepreneurship, and the activities associated with it, is not new in the Muslim world. In fact, a major economic activity during the time of Prophet Muhammad (peace be upon him) was business and industry, and the Prophet himself was exemplary in this regard. History describes the Prophet as a very trustworthy and successful merchant. The importance of entrepreneurship to the economy (of the individual and society at large) can be illustrated by the oft-quoted hadith which reads, “The Prophet (peace be upon him) once said that 90 percent of rezqi comes from business-related activities”. The concept of entrepreneurship then and now may differ. But its importance as a tool for economic development is globally-recognized. Saudi Arabia is no exception. Today, due to the fast developing economy, the government attempts to encourage Saudis to participate more actively in entrepreneurial industry, hence returning to the main economic activity of Muslim men. However, although a lot of funds are allocated for entrepreneurial training, there are still weaknesses in the effort to create more entrepreneurial minded Saudis. Past studies have shown that national culture is one of the factors that influence entrepreneurial development in many countries. Therefore, the same factor may also affect the efficiency of entrepreneurial development in Saudi Arabia. This concept paper reviews Hofstede’s five cultural dimensions that can be expected to impact entrepreneurial development efforts in Saudi Arabia. The paper analyses Hofstede’s cultural dimensions of Saudi Arabia to understand whether these dimensions encourage or, conversely impede, the development of entrepreneurship in the Kingdom. The review may help the authorities to address the challenges in developing successful entrepreneurial culture among Saudis, and suggests further research directions.
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 2 2012