Abstract
The need to diversify income, driven by global economic trends, is forcing Saudi Arabia to pursue policies to attract foreign investment and encourage entrepreneurship. Small and medium-sized businesses can improve the country’s economic situation during the transition from oil dependence to alternative energy sources. However, the low level of economic education complicates the financial development of the region. Disadvantages of existing government training programs make them ineffective in stimulating SMEs. The results of works by Abou-Moghli and Al-Abdallah (2019), and by Bhardwaj (2014) formed the basis of the conceptual framework of this study. This research aims to identify and assess the role of the choice of economic training programs for successful entrepreneurship. The descriptive-analytical method and (SPSS) are used for research and data analysis. The research process involves reviewing the literature to form a conceptual framework for the study, based on which a questionnaire for data collection is compiled using a descriptive-analytical method. English teachers of Khartoum State high schools participate in the survey, which data then is analyzed using (SPSS). The study shows that awareness of the problems in Saudi Arabia limits the desire of young people to engage in entrepreneurship. The main directions of existing training programs and their disadvantages are also analyzed. In addition, a statistical relationship is revealed between the number of educational programs, GDP growth, and the number of small and medium-sized businesses. Based on the study results, recommendations are proposed for improving the quality of economic, educational programs for entrepreneurs in Saudi Arabia.
General Framework
Introduction
Due to the recently successive Global economic crises coupled with the worldwide trend towards alternative power sources, Saudi Arabia envisaged diverting its total dependence on oil and tending towards income diversification. In order to do so, Saudi Arabia has been implementing an international policy centered on facilitating the flow of foreign investments and investors into the country. Likewise, different national policies have been applied and amongst which is the provision of financial support to young entrepreneurs, as the government of Saudi Arabia considers entrepreneurs as national assets which are supposed to be motivated to the greatest possible extent. Furthermore, the government of Saudi Arabia strongly believes that successful entrepreneurs have the power to improve the standard of living, participate in the national economic boom and eventually increase the GDP and GNP.
Unfortunately, by focusing more on entrepreneurs, it is realized that several dilemmas are emerging and hindering the complete benefit of the entrepreneur’s invaluable assets. Some of the common dilemmas that researchers and economists highlighted are the lack of financial resources due to high competition, low levels of state, foreign direct investment, and reception of the required and appropriate training/education. The preceding outcomes are supported by several studies and researches, amongst of which is the study ‘A Systematic Review of Women Entrepreneurs Opportunities and Challenges in Saudi Arabia,’ which was carried out by both Azzam Abou – Moghli and Ghath Mustafa Al-Abdullah and published in the Journal of Entrepreneurship Education in December 2019. The aforementioned study concluded that several social, cultural, and financial factors impede women from participating in the flourishment of the region.
Moreover, the study concluded that women are to receive the appropriate training to achieve the desired success threshold within the entrepreneurial aspect in Saudi Arabia. (Azzam Abou – Moghli and Ghath Mustafa Al-Abdullah, 2019). The outcomes of the previous study tie-up with what Broto Truth Bhardwaj concluded in his study, ‘Impact of Education and Training on Performance of Women Entrepreneurs: A Study in the Emerging Market Context,’ which was published in the Journal of Entrepreneurship in Emerging Economies on February 2014. The study found that entrepreneurial education stimulates women to take up entrepreneurship as a career option. So the common denominator of most of the studies is education/training.
Based upon the various empirical researches on the impact of the training programs on the entrepreneurs, the new Saudi government programs are aimed at correcting the shortcoming and stimulating the development of small and medium-sized businesses companies, the changes require considerable time to become effective. For example, vision 2030, initiated by the government, makes it clear only by name that it takes another ten years to implement the program, but in practice, these steps may take even more years. In recent years, Saudi Arabian entrepreneurs have received only 2% of the available financing (Al-Akkad, 2018). Therefore, entrepreneurs should rely only on their financial capabilities and fundraising skills.
Importance of the Study
In order to have some positive input into vision 2030, which has been initiated by the government, the tangible long and short term practical significance of this study can be examined by measuring the contribution of entrepreneurship into the economic boom of a country and its significant role in reducing the levels of unemployment in a country which has been shifted recently from oil and gas production total dependence into the variation of the national income. However, to reach the desired and aimed goals, entrepreneurship should be grounded on a well-built and coherent infrastructure of which the selection of the appropriate training programs is considered to be the backbone of success.
The theoretical importance of this study lies in paving the way for more researches focusing precisely on Saudi Arabia’s variation of income resources and drawing the Saudi researchers’ attention to the importance of selecting the appropriate training programs for achieving the desired economic plans, and the decision-makers to take training programs into attention while planning for entrepreneurship or encouraging new and junior entrepreneurs.
Study Objectives
The main objectives of the study are to assess, identify and recognize the vitality of selecting the appropriate training programs for successful entrepreneurship and entrepreneurs.
Moreover, the role of training in stimulating developing small and medium-sized businesses companies and the entrepreneurs’ participation in the overall fulfillment of Vision 2030.
The following objectives directed this study:
- Prove the need for changes in training programs.
- The type of entrepreneurs training programs in Saudi Arabia.
- Identify gaps in educational programs for entrepreneurs in Saudi Arabia.
- Explore the impact of the training programs on entrepreneurs.
- Determine the entrepreneur’s participation in the overall fulfillment of Vision 2030.
Study Questions
The researcher seeks to answer the following questions:
- Is there a need to make changes in current training programs?
- What are the types of entrepreneurs training programs in Saudi Arabia?
- What are the gaps within the entrepreneur’s educational programs in Saudi Arabia?
- What are the impacts of training programs on entrepreneurs?
- How will the entrepreneurs participate in the overall fulfillment of Vision 2030?
Study problem
Entrepreneurial development in Saudi Arabia and other oil-producing Arab countries is extremely low because of the high dependence on oil and natural gas among other natural resources. The global crises can have a devastating impact on such countries, especially when the global markets are no longer accessible. The best way for the economy of Saudi Arabia to eliminate the dependence on oil is to tap into the entrepreneurial potential of the country. However, the low levels of commercial activity will need boosting not only in terms of favorable regulatory policies and finances but also in terms of entrepreneurial enlightenment.
This research seeks to examine the need for Saudi Arabia to change the current entrepreneurship training programs to implement new ones that will have a greater impact on the country’s business growth.
The concept of entrepreneurship has evolved and the massive changes in the business environment will require the entrepreneurs to update their knowledge and skills. The research is founded on the notion that there is a positive correlation between the types of entrepreneurial training programs and the level of entrepreneurial growth in an economy.
Study Model
The study model for this research will be a descriptive model usually used for documentation purposes (Heldal et al., 2016). According to Stattner and Collard (2015), descriptive modeling approaches seek to summarize data by identifying the relevant features to describe how things work and organize. The current research seeks to describe how entrepreneurship training links to entrepreneurial growth. Measurable variables such as the number of people (male and female) engaging in entrepreneurial activities and the level of entrepreneurship-related education will be highlighted. In essence, entrepreneurship training is linked with not only the entrepreneurial training but also the types of entrepreneurship training programs. The need to adjust the current courses is informed by the finding that the current programs fail to equip the Saudi Arabians with the necessary skills and knowledge to successfully start and run businesses. The descriptive model adopted here is as represented in the figure below:
From the above model, the elements on the left are the independent variables under the broader term entrepreneurship training. The elements on the right are the independent variables broadly categorized as entrepreneurial growth which simply reflect the measurable outcomes of entrepreneurial training.
Hypotheses
The hypotheses to be investigated in this research are based on the problem statement and the study model developed above.
Main Hypothesis:
- H1: There is no statistically significant relationship ((α ≤ 0.05)) between the components of entrepreneurship training and the components of entrepreneurial growth in an economy.
Sub Hypotheses:
- H1a: There is no statistically significant relationship (α ≤ 0.05) between the types of entrepreneurship training programs and increased incomes, growth in GDP, and the number of new businesses in an economy.
- H1b: There is no statistically significant relationship (α ≤ 0.05) between the content of the entrepreneurship training and increased incomes, GDP growth, and the number of new businesses.
- H1c. There is no statistically significant relationship (α ≤ 0.05) between the number of entrepreneurship training facilities and increased income, GDP growth, and the number of new businesses.
- H1d: There is no statistically significant relationship (α ≤ 0.05) between enrolment numbers in the entrepreneurship programs and increased incomes, GDP growth, and the number of new businesses.
Theoretical Framework and Literature Review
Overview
This chapter presents a theoretical framework and a review of the literature regarding the topic of entrepreneurship. The chapter defines the concept of entrepreneurship, discusses selected theories, and highlights some of the new approaches to entrepreneurship. Additionally, a literature review focusing on the role of entrepreneurship education on entrepreneurial growth in the context of Saudi Arabia will be presented. Lastly, the conceptual and operational definitions will be highlighted.
Entrepreneurship Concept
There is no universal definition of the concept of entrepreneurship. The term entrepreneurship has a long history dating back to the 17th century when French economist Richard Cantillion was first described as an entrepreneur who took risks to generate profit (Alessa & Hussain, 2017). In French, the term entrepreneur literary means ‘between-taker’ or ‘go-between.’ A more appropriate interpretation is ‘go-getter’ describing a person who drives the business world by making it more cost-efficient, productive, abundant, and economical (Mehmood et al., 2019). Most importantly, an entrepreneur is a risk-taker, creative, and growth-oriented person.
A better understanding of the definitions of entrepreneurship can be gained from the various theories developed by different researchers. Key names such as Joseph Schumpeter and Richard Cantillon are seen as the main contributors to the definition of the concept of entrepreneurship. The table below summarizes the key authors and theorists of entrepreneurship and their views regarding the subject (note that the list is not exhaustive):
Selected Entrepreneurship Theories
The concept of entrepreneurship as defined above has been based on several theories developed over time. These theories help to clarify what entrepreneurs do and what activities are classified as entrepreneurial. The selected theories, both classical and neoclassical, will add more substance to the theoretical framework regarding the concept of entrepreneurship.
Innovation Theory of Schumpeter
Schumpeter’s theory of entrepreneurship emphasizes that entrepreneurship is more than the mere act of starting and running a business. On the contrary, an entrepreneur is more of an innovator whom he describes as a developer and promoter initiating and recognizing technical improvements and successfully introducing them to the market (Mehmood et al., 2019). However, Schumpeterian innovation theory still sustains the notion that the reward for the entrepreneurial activity is profit. From his perspective, innovation is the key element of an entrepreneur involving finding new business ideas and products or services to introduce to the market. Businesses are expected to pursue new opportunities, processes, and products not only for profits but also for other higher and non-peculiar rewards of entrepreneurial accomplishments.
X-Efficiency Theory of Leibenstein
The X-Efficiency theory of entrepreneurship was developed in 1966 by American economist Harvey Leibenstein who emphasized that besides the allocative efficiency there is also non-allocative efficiency. Allocative efficiency is described as the efficiency gained when the market is under pressure from competition. Allocative efficiency is a concept that seeks a market without monopolies where efficiencies can be achieved when P = MC. On the other hand, allocative inefficiency is caused by market power that leads to a scenario where P ≠ MC (Frantz, 2018). The non-allocative inefficiency is an indicator of the inefficiency of the firm characterized by the failure to minimize costs of production as the firm uses more inputs than technologically necessary.
From the context of entrepreneurship, Leibenstein’s X-efficiency theory describes an entrepreneur and the entrepreneurial activity from the perspective of resource use within a firm. In essence, entrepreneurship entails the extent to which a business realizes (or fails to do so) its productive potential. The theory posits that the markets are not always efficient and perfect, and it is the role of the entrepreneurs to fill whatever gaps that are left. In other words, an entrepreneur is both a gap filler and an input completer.
Cultural Theory of Entrepreneurship
The cultural theory of entrepreneurship by Thomas Cochran stated that entrepreneurs are influenced by their attitudes towards expectations from new ventures, occupation, and the level of difficulty of the operational requirements. Cochran is among the authors who were interested in the social, institutional, and cultural factors that are key determinants of entrepreneurship. The theory has attracted various studies that seek to understand the regional differences and the historical and cultural factors affecting entrepreneurial behavior (López et al., 2016). The cultural theory of entrepreneurship has been expounded by popular works such as McClelland’s The Achieving Society of 1961 and other studies that proved the hypothesis that countries with higher levels of the need for achievement embraced entrepreneurial behavior more than those countries recording low need for achievement (Woodside et al., 2015). National cultures that embrace entrepreneurship are, therefore, more likely to have fully developed frameworks that support entrepreneurial growth. On the other hand, the national cultures that do not embrace entrepreneurship face various inhibitors to entrepreneurial growth.
Risk-Taking Theory
Perhaps one of the most important theories of entrepreneurship is the risk-taking theory proposed by Frank Knight in his 1921 book Risk, Uncertainty, and Profit. Frank saw the world of entrepreneurship as that of new opportunities for enterprises to make a profit and also one where there was an imperfect knowledge of what the future holds. Knight used the term ‘risk’ to describe measurable uncertainty, without which there would be no profits in a perfectly competitive market. Entrepreneurship according to Knight, therefore, is the creation of next-generation products whose nature remains unknown (Amoroso et al., 2019). The risk-taking theory fits in well with various other theories of entrepreneurship, including Schumpeter’s innovation theory which also sees entrepreneurship as the introduction of new ideas, products, and processes into the market. The essence of entrepreneurship is risk-taking where entrepreneurs undertake to invest time and resources in a business idea whose future and profitability are unknown.
New Approaches to Entrepreneurship
Most of the theories described above are largely the traditional theories of entrepreneurship founded in the classical and neoclassical eras. However, the whole concept of entrepreneurship has evolved with time and new ideas and approaches to the subject emerge. The motive of this research has been described as establishing the need to adjust the entrepreneurship training programs. The rationale for arguing for a change is that there are new concepts and/or approaches and ideas regarding entrepreneurship that are more contemporary and would benefit entrepreneurs navigating the contemporary world of their business. A few newer theories of and approaches to entrepreneurship would, therefore, be at the fore of any adjustments to the entrepreneurship training programs.
Some of the new approaches to entrepreneurship have been discussed by Garcia-Vaquero and Saiz-Alvarez (2017). The jack-of-all-trades theory was developed by Lazear in 2005 (theoretically) and mathematically by Kaiser in 2012. The theory posits that the main job of an entrepreneur is organizing professional teams (general and specialized) through the combination of intellectual capital (a combination of relational, human, and structural capital). In addition to the intellectual capital, the entrepreneurs add the physical one and ideas in the process of innovation to create new products and services for current and prospected customers. The jack-of-all-trades theory emphasizes that entrepreneurs are generalists who assemble the factors of production and who possess working abilities, skills, and knowledge in vast areas.
Another theory classified under new approaches is the O-Ring Theory established by Kremer in 1993 (seminally) and Fabel in 2004 (theoretically). According to Garcia-Vaquero and Saiz-Alvarez (2017), The theory suggests that entrepreneurship is the collection of skills and abilities supplied by different people with different capacities where the failure of one (specialist) may lead to the failure of the entire project. Entrepreneurship is, therefore, a matter of piecing specialist pieces together to make one whole establishment.
The resources and capabilities-based theory is seen as an ‘inside-out’ strategy formulation process. According to Garcia-Vaquero and Saiz-Alvarez (2017), this theory suggests that entrepreneurs focus on what resources an entity owns in assessing the potential for value creation defined in the business strategy. Value maximization is to be done in a sustainable way. The key resources include human, technological, physical, and human resources among others. Lastly, the theory of the optimal triangle states that the businesses with higher motivation for growth drive the formation of new businesses. Corporate entrepreneurship is, therefore, pursued by the need for growth among the companies.
Review of Literature: The Role of Entrepreneurship Training
The current research intends to examine whether or not there is a need to adjust the training programs for entrepreneurs in Riyadh, Saudi Arabia. With the statement of the problem declaring that entrepreneurship in Saudi Arabia as a whole is not fully developed, the review of literature should then seek to examine the current state of entrepreneurship training in Saudi Arabia before suggesting any changes. There are several studies focusing both on the state of entrepreneurship training programs and their roles in entrepreneurship growth. A case for Saudi Arabia and global is a perfect start for this literature review.
Various reviews of studies on entrepreneurship education reveal the main obstacles facing the development of entrepreneurship. In Riyadh, Saudi Arabia, among the hindrances identified include lack of incentive, business incubators, and strong relationship between the education and economic sectors (Alessa & Hussain, 2017). The lack of entrepreneurial culture adds to the inadequacy of the entrepreneurship training programs. However, it should be acknowledged that for a country depending largely on natural resources the need for alternative sources of income is not urgent. There are studies that reveal that entrepreneurship education in Saudi Arabia does have a positive impact on the attitudes towards entrepreneurship. Research by Ababtain and Akinwale (2019) shows that the majority of MBA students (71.4%) who have had entrepreneurship training as part of the school course expressed an interest in starting their own businesses. Such a study is critical in presenting evidence that the lack of entrepreneurial education in the country is the primary cause for the low development of entrepreneurship.
Saudi Arabia is going through an economic renaissance characterized by actively seeking alternative incomes through the diversification of the economy. A study by Yusuf and Atassi (2016) reveals that universities have a critical role to play in boosting entrepreneurial growth in the country. Besides offering entrepreneurial education, the universities will align their education programs to match the local and national economic goals and import the necessary knowledge to help the local entrepreneurs. The study is simply an appreciation of the role of education in the entrepreneurial growth of a country.
From a global perspective, there are several studies that acknowledge the critical role played by entrepreneurial education in the entrepreneurial growth of the country. For example, the effectiveness of entrepreneurship training programs in Malaysia is examined by Lamsali et al. (2015). The researchers express that higher learning organization are the key organizers for entrepreneurship training programs that have produced many entrepreneurs in the country. A similar study has been presented by Byun et al. (2018) who express that higher institutions have been offering entrepreneurial training as a driver of entrepreneurial growth. These studies reveal that entrepreneurship training programs are critical in the acquisition of the necessary knowledge and skills required for successful entrepreneurial activity. From a more general context, authors such as Sánchez García et al. (2017) express that with the growing job uncertainty and employment becoming a more sought-after alternative, entrepreneurship training strengthens the entrepreneurial spirit of a country. In Riyadh and indeed the entire of Saudi Arabia, graduate students without jobs are on the rise, and the country needs to tap into the entrepreneurial potential and capacities to drive entrepreneurship.
Conceptual Definitions
Value creation: the creation of something that has value and uses for someone else for a win-win price.
Innovation: development of new inventions, ideas, processes, or products and services that satisfy some needs.
Sociocultural values: comprises elements such as religion, language, culture, etc. Sociocultural values determine the beliefs and norms of a group of people, as well as their attitudes towards some things.
Entrepreneurial culture: can be defined as a culture where people embrace and have positive attitudes towards entrepreneurship activity.
Entrepreneurship training: entails imparting entrepreneurship-related knowledge and skills to equip entrepreneurs with a capacity and capability for entrepreneurship.
Risk/uncertainty: in the context of entrepreneurship risk and uncertainty involve the creation of products and services without knowing their future and profitability.
Entrepreneurial judgment: besides having the skills and knowledge needed for an entrepreneur, entrepreneurial judgment is the ability to make rational decisions in an environment characterized by uncertainty
Operational Definition
Methodology
Introduction
This chapter aims to review the preliminary procedures before data analysis, the response rate of the sample members, in addition to analyzing the basic data in the study sample, descriptive analysis, and reliability analysis to find the internal consistency of the data, calculate the averages, standard deviation and correlation of variables, and to reveal the nature of The relationship between the study variables and testing the hypotheses that were developed in the previous stages of the research before using the analysis in the hypothesis testing process.
Research Design and Methods
This chapter includes a detailed description of the research methodology that was utilized in the study. The chapter is organized into several sections that provide a framework within which to describe the research procedures, the researcher used the descriptive-analytical method and (SPSS) for the analysis. This kind of research is defined by Kothari (2004:3.4) as ” descriptive research includes survey and fact-finding inquiries of different kinds. The major purpose of descriptive research is a description of affairs as they exist at present”. In addition, he states that “the researcher has no control over the variable, he can only report what has happened or what is happening”, the researcher thinks this method is appropriate for this study.
Research Design and Duration
This is a descriptive cross-sectional-based study of the entrepreneurial aspect, in Riyadh, Saudi Arabia.
Research Population
The population used in this study is chosen from different Small and medium-sized companies in Riyadh, Saudi Arabia.
Sample Size
The sample size was calculated according to the following equation:
Where:
- n: sample size.
Square of the tabular value of Z at 95% confidence level = (1.96)2
- P: Ratio of availability of the measured characteristic (Small and medium-sized companies).
- q: The percentage of the property’s lack of availability.
Where the study population estimated (4929), by applying the above data in the equation we obtain the sample size at a confidence degree of 95% = 356
Where the researcher distributed (356) questionnaires to the study population to verify the study hypotheses and questions in all the proposed axes.
Tools of Data Collection
The instrument which is used as a data collecting tool is the questionnaire, the closed form of questionnaire is used, through which the researcher investigated the Justification of the Necessity to Adjust Training Programs for Entrepreneurs in Riyadh, Saudi Arabia. The questionnaire consists of four components so as to achieve the objectives of the study.
- Section A-socio demographic characteristics (age, Gender, Education level).
- Section B- Is there a need for changes in current training programs (composed of 7 items).
- The types of entrepreneurs training programmes in Saudi Arabia (composed of 10 items).
- Section D- gaps in educational programs for entrepreneurs in Saudi Arabia (composed of 8 items).
Open question: what is the entrepreneur’s participation in the overall fulfillment of Vision 2030
Primary Data
A Questionnaire that filled by people from different Small and medium-sized companies in Riyadh, Saudi Arabia.
Secondary Data
This data was collected from books, articles, previous studies, and Internet sources.
Data Analysis
The data were analyzed by Statistical Package for Social Sciences (SPSS) version 25, mean, and standard, and testing the correlation and relationships between the study variables at the level of statistical significance 95% (sig=0.05).
Study Scale
The degree of possible responses to the paragraphs was measured to a five-point gradient according to the Likert scale, in the distribution of the weights of the answers of the sample members, which is distributed from the highest weight for which he was given (5) scores and which represents in the answer field (strongly agree) to the lowest weight For him who was given a score of (1), which was represented in the answer field (strongly agree), and there are three weights in between them. The purpose of this was to allow the sample members to choose the exact answer according to the discretion of the sample members. As shown in Table (4-1).
Accordingly, the hypothetical mean of the study (3), and accordingly, if the mean of the statement is greater than the hypothesis mean, this indicates that the sample members agree to the statement.
Reliability and Validity
Reliability
To identify internal consistency reliability for item on the scale of the Justification of the Necessity to Adjust Training Programs for in Riyadh, Saudi Arabia.
Table (A): Shows the correlation coefficient of items on the scale of Justification of the Necessity to Adjust Training Programs for in Riyadh, Saudi Arabia as applied to the population of the current study.
From the above table, it can be seen that the correlation coefficients of all the items are statistically significant at the level of (0.05).
Validity
Identify the validity for the dimensions scores and the overall score of the scale of Identify the level of Justification of the Necessity to Adjust Training Programs for Entrepreneurs in Riyadh, Saudi Arabia. The researcher applied Cronbach’s alpha and the spearman-brown formula to the data of the primary sample. This procedure yielded the results shown in the following table.
Table (B):
From the above table, it can be seen that the validity coefficient on the scale of Justification of the Necessity to Adjust Training Programs for Entrepreneurs in Riyadh, Saudi Arabia individuals is more than (0.40), which Emphasizes the suitability of this scale in its final draft to measure the adjustment in the Identify the level of Justification of the Necessity to Adjust Training Programs for Entrepreneurs in Riyadh, Saudi Arabia in the present study.
Results
In this topic the researcher deals with a precise description of the method and procedures that I follow in carrying out this study, and this includes a description of the study community, the method of preparing the tool represented in the questionnaire, the procedures that were taken to ensure its effectiveness and impact, the method followed to apply it, and the statistical treatments by which the data were analyzed. And extract the results.
Demographic Characteristics
Age
Table (4-1) the distribution of the study sample according to the age:
Figure (4-1) the distribution of the study sample according to the age:
Looking at the table and the figure, we note for that the sample of the study is distributed according to the Age; the majority of the participants are of the age group with (26-35 years) a ratio 41.6%, the age group with(36-45years) a ratio 22.8%, the age group with(15-25years) a ratio 18.3% , the age group with(36-45years) a ratio 22.8% , and the lowest percentage Among the participants from (56 years and above) 6.5%.
Gender
Table (4-1): the distribution of the study sample according to Gender
Figure (4-2) the distribution of the study sample according to Gender:
Looking at the table and the figure, we note for that the sample of the study is distributed according to the Gender; the majority of the participants are of the Gender group with male a ratio 54.8%, and the lowest percentage Among the participants from female 45.2%.
Educational level
Table (4-3): the distribution of the study sample according to Educational level
Figure (4-3) the distribution of the study sample according to Educational level:
Looking at the table and the figure, we note for that the sample of the study is distributed according to the Educational level; the majority of the participants are of the Educational level group Bachelor a ratio 59.8% , the Educational level group Masters a ratio 23.3% , the Educational level group Diploma a ratio 10.7% , the Educational level group others a ratio 3.9% , and the lowest percentage Among the participants the Educational level group Doctorate a ratio 2.2%.
Profession. How long have you being working at this area
Table (4-4): the distribution of the study sample according being working at this area
Figure (4-4) the distribution of the study sample according to being working at this area:
Looking at the table and the figure, we note for that the sample of the study is distributed according to Profession the long have you being working at the area; the majority of the participants are of the working at the area group with(1-5 years) a ratio 43.0% , the working at the area group with(less than one years) a ratio 14.3%, the working at the area group with(6-10 years) a ratio 13.2% , the working at the area group with(11-15 years) a ratio 11.0% , the working at the area group with(above 20 years) a ratio 10.1% , and the lowest percentage Among the participants from (16-20 years) 8.4%.
Training. Have you attained any training related to entrepreneurship
Table (4-5): the distribution of the study sample according to attained any training related to entrepreneurship
Figure (4-5) the distribution of the study sample according to attained any training related to entrepreneurship:
Looking at the table and the figure, we note for that the sample of the study is distributed according to attained any training related to entrepreneurship; the majority of the participants are of the group not training a ratio 62.4%, and the lowest percentage Among the participants from training 37.6%.
Data Analysis
Firstly: the first dimension
Presentation and interpretation of the results of the answer to the first question of the study, and it states ” Is there a need for changes in current training programs due to the?” To answer this question, the researcher calculated the arithmetic averages and standard deviations of the responses of the sample members on the first dimension (Is there a need for changes in current training programs due to the), as shown in Table (4-6):
Table (4-6): The mean, standard deviation, and the items of phrases on the first dimension
The following table shows:
Phrase No. (5), which states (Inferiority of the community for entrepreneurship) came first among the expressions of the first dimension (Is there a need for changes in current training programs due to the), mean (3.28) and a standard deviation of (1.28), that is ,a degree of response ( Medium), while the statement No. (3), (Weakness of individual initiatives for youth) came among the expressions of the dimension, with an arithmetic mean of (2.55) and a standard deviation of (1.03), that is, a degree of (acceptable),while the statement No. (7), (Choosing an area of activity that does not match the capabilities and skills of the entrepreneur) came the expressions of the dimension, with an arithmetic mean of (2.55) and a standard deviation of (1.038), that is, a degree of (acceptable),while the statement No. (7), (Choosing an area of activity that does not match the capabilities and skills of the entrepreneur) came among the expressions of the dimension, with an arithmetic mean of (2.32) and a standard deviation of (0.814), that is, a degree of (weak), ,while the statement No. (4), (Fear of taking responsibility) came among the expressions of the dimension, with an arithmetic mean of (2.28) and a standard deviation of (1.090), that is, a degree of (weak) response ,while the statement No. (1), (Lack of awareness of young people entrepreneurship culture) came among the expressions of the dimension, with an arithmetic mean of (2.25) and a standard deviation of (0.863), that is, a degree of (weak) response ,while the statement No. (2), (Young people’s preference for government jobs) came among the expressions of the dimension, with an arithmetic mean of (2.22) and a standard deviation of (1.084), that is, a degree of (weak) response, while the statement No. (6), (Fear of risk and uncertainty of success) came last among the expressions of the dimension, with an arithmetic mean of (2.02) and a standard deviation of (0.897), that is, a degree of (weak) response , and these results are consistent with theories (Innovation Theory of Schumpeter).
This may be due to young people, awareness of the importance of entrepreneurship to create wealth and financial and social independence despite their awareness of the problems and obstacles facing entrepreneurship in Saudi society, which limit their orientation towards self-employment and entrepreneurship.
Secondly: The Second dimension
Presentation and interpretation of the results of the answer to the second question of the study, and it states ” the types of the entrepreneurs training programmers in Saudi Arabia?” To answer this question, the researcher calculated the arithmetic averages and standard deviations of the responses of the sample members on the first dimension (the types of the entrepreneurs training programmers in Saudi Arabia), as shown in Table (4-7):
Table (4-7): The mean, standard deviation, and the items of phrases on the second dimension
The following table shows:
Phrase No. (6), which states (I Entrepreneurship is characterized by a distance from routine work) came first among the expressions of the second dimension (the types of the entrepreneurs training programmers in Saudi Arabia), mean (4.08) and a standard deviation of (0.960), that is, a degree of(high) response, while the statement No. (7), (An entrepreneur is characterized by the ability to take deliberate risk) came among the expressions of the dimension, with an arithmetic mean of (4.01) and a standard deviation of (0.907), that is, a degree of ( high) response ,while the statement No. (9), (The entrepreneur is motivated to satisfy the need for achievement)came among the expressions of the dimension, with an arithmetic mean of (3.98) and a standard deviation of (0.834), that is, a degree of ( high) response ,while the statement No. (8), (An entrepreneur is characterized by the ability to adapt to changing demands)came among the expressions of the dimension, with an arithmetic mean of (3.88) and a standard deviation of (0.812), that is, a degree of (high) response ,while the statement No. (10), (An entrepreneur is characterized by the ability to distinguish the product or service that he will provide to overcome the risks of competition in the market)came among the expressions of the dimension, with an arithmetic mean of (3.85) and a standard deviation of (0.802), that is, a degree of (Medium) response, while the statement No. (1), (Entrepreneur needs to master organizational skills) came among the expressions of the dimension, with an arithmetic mean of (3.70) and a standard deviation of (0.830), that is, a degree of ( Medium) response ,while the statement No. (2), (An entrepreneur needs to be able to choose the right people for the job) came among the expressions of the dimension, with an arithmetic mean of (3.5) and a standard deviation of (0.815), that is, a degree of ( Medium) response ,while the statement No. (5), (An entrepreneur needs self-confidence to win more clients) came among the expressions of the dimension, with an arithmetic mean of (3.53) and a standard deviation of (0.806), that is, a degree of ( acceptable) response, while the statement No. (3), (An entrepreneur needs a high degree of commitment to business success) came among the expressions of the dimension, with an arithmetic mean of (3.48) and a standard deviation of (0.837), that is, a degree of ( acceptable) response while the statement No. (4), (Entrepreneur needs a high level of persistence) came last among the expressions of the dimension, with an arithmetic mean of (3.44) and a standard deviation of (0.802), that is, a degree of (acceptable) response, and these results are consistent with theories (X-Efficiency Theory of Leibenstein ) and (Risk-Taking Theory).
This may be of types the entrepreneurs training programmers in Saudi Arabia, characterized by the ability to take deliberate risk, a distance from routine work, the motivated to satisfy the need for achievement, the ability to adapt to changing demands, distinguish the product or service that he will provide to overcome the risks of competition in the market.
Thirdly: The third dimension
Presentation and interpretation of the results of the answer to the second question of the study, and it states ” gaps in educational programs for entrepreneurs in Saudi Arabia in ” To answer this question, the researcher calculated the arithmetic averages and standard deviations of the responses of the sample members on the first dimension (gaps in educational programs for entrepreneurs in Saudi Arabia in), as shown in Table (4-9):
Table (4-9): The mean, standard deviation, and the items of phrases on the Third dimension
The following table shows:
Phrase No. (2), which states (I Entrepreneurship is characterized by a distance from routine work) came first among the expressions of the third dimension (gaps in educational programs for entrepreneurs in Saudi Arabia in), mean (3.70) and a standard deviation of (1.211), that is, a degree of(medium) response, ,while the statement No. (4),(The inferior view of the community for entrepreneurship)came among the expressions of the dimension, with an arithmetic mean of (3.62) and a standard deviation of (1.198), that is, a degree of ( medium) response ,while the statement No. (1),(Customs and traditions in society do not encourage individual initiatives)came among the expressions of the dimension, with an arithmetic mean of (3.15) and a standard deviation of (1.151), that is, a degree of (acceptable) response ,while the statement No. (7),(ide to lead entrepreneurship)came among the expressions of the dimension, with an arithmetic mean of (3.05) and a standard deviation of (1.182), that is, a degree of ( acceptable) response ,while the statement No. (6),(Lack of qualified human cadres to market entrepreneurial products)came among the expressions of the dimension, with an arithmetic mean of (2.73) and a standard deviation of (1.014), that is, a degree of ( weak) response ,while the statement No. (4),(Lack of training programs for youth on entrepreneurship) came among the expressions of the dimension, with an arithmetic mean of (2.65) and a standard deviation of (1.001), that is, a degree of ( weak) response ,while the statement No. (8),(Weak laws to protect innovations by entrepreneurial projects)came among the expressions of the dimension, with an arithmetic mean of (2.60and a standard deviation of (1.088), that is, a degree of ( weak) response, while the statement No. (3),(Fear of failure in private projects)came last among the expressions of the dimension, with an arithmetic mean of (2.34) and a standard deviation of (0.867), that is, a degree of ( weak) response and these results are consistent with theories (Cultural Theory of Entrepreneurship).
This may be of gaps in educational programs for entrepreneurs in Saudi Arabia in, Fear of failure in private projects, Weak laws to protect innovations by entrepreneurial projects, Lack of training programs for youth on entrepreneurship.
Testing the Hypothesis
To examine the hypothesis of the study, the multivariate analysis through was used to test the main and sub-hypotheses in their null form wilks lambda and F test, correlation, Pearson Chi-Square Test.
Main Hypothesis
H1: There is no statistically significant relationship ((α ≤ 0.05)) between the components of entrepreneurship training and the components of entrepreneurial growth in an economy.
Sub Hypotheses
H1a: There is no statistically significant relationship (α ≤ 0.05) between the types of entrepreneurship training programs and increased incomes, growth in GDP, and the number of new businesses in an economy.
Table (4-10): correlations within the indicators
Table (4-10) shows the values of inter-correlation between each two indicators in types of entrepreneurship training programs. Two greatest inter relation values were observed between Master organizational skills and a high level of persistence (0.773) indicating a relatively strong, another strong inter relationship between a distance from routine work and the ability to take deliberate risk indicators (0.765). The previous mentioned two inter relation values indicate that the related indicator are in some correlate in a relatively high degree. On the other hand, relationship which was recognized between a high level of persistence, commitment to business success, persistence self-confidence to win more clients, the ability to adapt to changing demands (0.504, 0.642) considered to express moderate correlations. All the rest of inter relations came with a moderate degree indicating reasonable and satisfactory levels of correlations.
Thus, the alternative hypothesis is rejected and the null hypothesis is adopted, which is :“ There is statistically significant relationship (α ≤ 0.05) between the types of entrepreneurship training programs and increased incomes, growth in GDP, and the number of new businesses in an economy. ”
H1b: There is no statistically significant relationship (α ≤ 0.05) between the content of the entrepreneurship training and increased incomes, GDP growth, and the number of new businesses.
Table (4-11): Multivariate analysis among the seven different indicators according to each category
Looking to table above the results of multivariate analysis among the seven different indicators:
the entrepreneurship training according to each category. The Wilks lambda indicate how close the seven indicators in each category such that as the value converges to one the mean values of the seven indicators are so close to each other (not different statistically) and that when the value of Wilks Lambda converges to zero this indicates that the means of the seven indicators are different. Along with Wilks Lambda test is the F test which compares the eight indicators means and the result of comparison can be decided based on the sig value (last column). If the sig value was ≤ 0.05 the mean differences exist and if the sig value was> 0.05 the means differences do not exist. All the sig values (except in the fifth and seventh category ) indicate Significant mean differences concluding that the eight indicators are statistically different and distinct within each recognized category. As a result the five the content of the entrepreneurship training were significant differences. Thus, the alternative hypothesis is rejected and the null hypothesis is adopted, which is “There is statistically significant relationship (α ≤ 0.05) between the content of the entrepreneurship training and increased incomes, GDP growth, and the number of new businesses. ”
H1c. There is no statistically significant relationship (α ≤ 0.05) between the number of entrepreneurship training facilities and increased income, GDP growth, and the number of new businesses.
Table (4-12): correlations within the indicators
Table (4-10) shows the values of inter-correlation between each two indicators in relationship between the number of entrepreneurship training facilities and increased income. All the rest of inter relations came with a moderate degree indicating reasonable and satisfactory levels of correlations range between ( 0.132 – 0.497).
Thus, the alternative hypothesis is rejected and the null hypothesis is adopted, which is :“ There is statistically significant relationship (α ≤ 0.05) between the number of entrepreneurship training facilities and increased income, GDP growth, and the number of new businesses. ” H1d: There is no statistically significant relationship (α ≤ 0.05) between enrolment numbers in the entrepreneurship programs and increased incomes, GDP growth, and the number of new businesses.
Table (4-13): Multivariate analysis relationship the number of entrepreneurship training
Looking to table above the results :
indicators of numbers in the entrepreneurship programs and increased income. The Wilks lambda indicate how close indicator in each category such that as the value converges to one the mean values of the two indicators are so close to each other (not different statistically) and that when the value of Wilks Lambda converges to zero this indicates that means numbers in the entrepreneurship programs are different. Along with Wilks Lambda test is the Pearson Chi-Square test which compares the numbers in the entrepreneurship programs means and the result of comparison). If the sig value was ≤ 0.05 the mean differences exist and if the sig value was> 0.05 the means differences do not exist. As a result the numbers in the entrepreneurship programs were significant differences. Thus, the alternative hypothesis is rejected and the null hypothesis is adopted, which is “ There is statistically significant relationship (α ≤ 0.05) between enrolment numbers in the entrepreneurship programs and increased incomes, GDP growth, and the number of new businesses.
Hypothesis Test Summary
Was used to test the main and sub-hypotheses in their null form, wilks lambda and F test , correlation Pearson Chi-Square Test.
The Findings and Recommendation
Introduction
This chapter consist of summary of the research, it also includes the findings and results of the study and recommendations. Moreover, it ends by suggestions for further studies.
Conclusion
This research studied the opinions and views of recording Reacher for the study to investigate the problem. The researcher reviewed the related literature and the previous studies as conceptual, theoretical frame work of the study.
The researcher used the descriptive, analytical method for the study, and he established a questionnaire as a data gathering tool, the subject of the study was the English language teachers in secondary schools in Khartoum state, then the researcher used the (SPSS) TO analyze the data.
According to discussion of the results of the study approached the following results:
- To young people, awareness of the importance of entrepreneurship to create wealth and financial and social independence despite their awareness of the problems and obstacles facing entrepreneurship in Saudi society, which limit their orientation towards self-employment and entrepreneurship.
- Types the entrepreneurs training programmers in Saudi Arabia, characterized by the ability to take deliberate risk, a distance from routine work, the motivated to satisfy the need for achievement that he will provide to overcome the risks of competition in the market..
- The gaps in educational programs for entrepreneurs in Saudi Arabia in, Fear of failure in private projects, Weak laws to protect innovations by entrepreneurial projects, Lack of training programs for youth on entrepreneurship.
- There is statistically significant relationship (α ≤ 0.05) between the types of entrepreneurship training programs and increased incomes, growth in GDP, and the number of new businesses in an economy.
- There is statistically significant relationship (α ≤ 0.05) between the content of the entrepreneurship training and increased incomes, GDP growth, and the number of new businesses.
- There is statistically significant relationship (α ≤ 0.05) between the number of entrepreneurship training facilities and increased income, GDP growth, and the number of new businesses.
- There is statistically significant relationship (α ≤ 0.05) between enrolment numbers in the entrepreneurship programs and increased incomes, GDP growth, and the number of new businesses.
Recommendations
- Holding training programs, seminars and workshops among youth to raise awareness of entrepreneurship culture, and the characteristics and skills of an entrepreneur.
- Teaching one or more courses in entrepreneurship to university students.
- Forming associations and units of a special nature to take care of young entrepreneurs.
- To develop the spirit of creativity and innovation among young people.Guiding students to study the successful experiences of entrepreneurs.Encouraging individual initiatives, and correcting popular hereditary traditions that reduce the value of entrepreneurial work.
- Holding seminars to educate the local community about the importance of entrepreneurship.
- The necessity to facilitate the procedures and laws regulating the start of a special project.
- Providing adequate protection for innovations offered by pilot projects.
References
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Appendix A
Masters Dissertation Questionnaire
Dear respondents,
I am a student studying for a master in business administration at the University of Jordan. I am currently conducting my data collection for my entitled “Justification of the Necessity to Adjust Training Programs for Entrepreneurs in Riyadh, Saudi Arabia”. I hope you lend me a couple of minutes for answering the questionnaire.
Thanks.
Instruction: Choose and Tick (√) in the box the one that seems best for you from the alternatives that are beneath each question – And for those that you give direct answer, write the answer in the space provided.
Section A-socio demographic characteristics
- Age ) العمر (
□15-25 □ 26-35 □36-45 □46-55 □56 and above
- Gender (النوع (
□-male □female
- Education level مستوى التعليمي
□ Diploma □ Bachelor □-Masters □- Doctorate □-Others
- Profession How long have you being working at this area مند متى تعمل في هذا المجال؟
□- Less than one Year □-1-5 Years □ – 6-10 Years □-11-15 Years □-16-20 Years □ – above 20
- Have you attained any training related to entrepreneurship?
هل حصلت على أي تدريب يتعلق بريادة الاعمال؟
□-Yes □-No
Section B- Is there a need for changes in current training programs due to the
- Lack of awareness of young people entrepreneurship culture? (قلة وعي الشباب بثقافة ريادة الأعمال؟)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Young people’s preference for government jobs? (تفضيل الشباب للوظائف الحكومية)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Weakness of individual initiatives for youth? (ضعف روح المبادرات الفردية للشباب)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Fear of taking responsibility? (الخوف من تحمل المسؤولية)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Inferiority of the community for entrepreneurship? (النظرة الدونية من المجتمع للأعمال الحرة)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Fear of risk and uncertainty of success? (الخوف من المخاطرة وعدم التأكد من النجاح)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Choosing an area of activity that does not match the capabilities and skills of the entrepreneur? (اختيار مجال نشاط لا يتفق مع إمكانيات ومهارات رائد الأعمال ؟)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
Section C- the types of the entrepreneurs training programmers in Saudi Arabia
- Entrepreneur needs to master organizational skills? (يحتاج رائد الاعمال الي اتقان مهارات التنظيم )
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- An entrepreneur needs to be able to choose the right people for the job? (يحتاج رائد الاعمال الي القدرة علي اختيار الافراد المناسبين للعمل)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- An entrepreneur needs a high degree of commitment to business success? (يحتاج رائد الاعمال الي درجة عالية من الالتزام لنجاح العمل)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Entrepreneur needs a high level of persistence? (يحتاج رائد الاعمال الي مستوي عالي من المثابرة)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- An entrepreneur needs self-confidence to win more clients? يحتاج رائد الاعمال الي الثقة بالنفس لكسب المزيد من العملاء))
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Entrepreneurship is characterized by a distance from routine work? (تتسم ريادة الاعمال بالبعد عن الإجراءات الروتينية في العمل)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- An entrepreneur is characterized by the ability to take deliberate risk? (يتسم رائد الاعمال بالقدرة علي المخاطرة المدروسة ؟)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- An entrepreneur is characterized by the ability to adapt to changing demands? (يتسم رائد الاعمال بالقدرة على التكيف مع الطلبات المتغيرة)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- The entrepreneur is motivated to satisfy the need for achievement? (يتسم رائد الاعمال بالدافعية لإشباع الحاجة للإنجاز)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- An entrepreneur is characterized by the ability to distinguish the product or service that he will provide to overcome the risks of competition in the market? (يتسم رائد الاعمال بالقدرة على تمييز المنتج أو الخدمة التي سيقدمها للتغلب على مخاطر المنافسة في السوق ؟)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
Section D- gaps in educational programs for entrepreneurs in Saudi Arabia in
- Customs and traditions in society do not encourage individual initiatives? (العادات والتقاليد في المجتمع لا تشجع المبادرات الفردية)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- The values of Saudi society do not allow women to be empowered to be entrepreneurs? (قيم المجتمع السعودي لا تسمح بتمكين المرأة من ريادة الاعمال)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Fear of failure in private projects? (الخوف من الفشل في المشروعات الخاصة)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- The inferior view of the community for entrepreneurship? (النظرة الدونية من المجتمع للأعمال الحرة)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Lack of training programs for youth on entrepreneurship? (قلة وجود برامج تدريبية للشباب على ريادة الاعمال)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Lack of qualified human cadres to market entrepreneurial products? ( قلة الكوادر البشرية المؤهلة لتسوق منتجات المشروعات الريادية)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Lack of Saudi human cadres qualified to lead entrepreneurship? (قلة الكوادر البشرية السعودية المؤهلة لقيادة ريادة الاعمال ؟)
□- Strongly Agree □- Agree □-Uncertain □- Disagree □- Strongly disagree
- Weak laws to protect innovations by entrepreneurial projects? (ضعف القوانين الخاصة بتوفير الحماية للابتكارات التي تقدمها المشروعات الريادية)
- What it is the entrepreneur’s participation in the overall fulfilment of Vision 2030? (ما هي مشاركة رائد الأعمال في تحقيق رؤية 2030 بشكل عام)
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