Entrepreneurial dynamics and their impact on economic development in Saudi Arabia

Abstract Entrepreneurship has emerged as a critical factor in the development of human capital, employment creation, and economic growth in the contemporary era. The critical role of entrepreneurship in promoting innovation and expansion is underscored by the fact that the success of large-scale ini...

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Main Authors: Hanaa Abdelaty Hasan Esmail, Mohammad Jibran Gul Wani, Osama Nashaat Yasin Attia, Heba Elsayed Galal
Format: Article
Language:English
Published: SpringerOpen 2025-05-01
Series:Future Business Journal
Subjects:
Online Access:https://doi.org/10.1186/s43093-025-00518-6
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author Hanaa Abdelaty Hasan Esmail
Mohammad Jibran Gul Wani
Osama Nashaat Yasin Attia
Heba Elsayed Galal
author_facet Hanaa Abdelaty Hasan Esmail
Mohammad Jibran Gul Wani
Osama Nashaat Yasin Attia
Heba Elsayed Galal
author_sort Hanaa Abdelaty Hasan Esmail
collection DOAJ
description Abstract Entrepreneurship has emerged as a critical factor in the development of human capital, employment creation, and economic growth in the contemporary era. The critical role of entrepreneurship in promoting innovation and expansion is underscored by the fact that the success of large-scale initiatives frequently depends on innovative ideas. Entrepreneurship is a critical catalyst for the development of human capital and economic expansion due to the synergy that exists between entrepreneurial spirit, market access, and innovative ideas. This study employs the Granger causality analysis of Toda and Yamamoto (J Economet 66:225–250, 1995) to analyze data from 2005 to 2023, with the objective of determining the impact of entrepreneurship on economic development in the Kingdom of Saudi Arabia. The results indicate that entrepreneurship, as evidenced by the rise in the number of entrepreneurs in Saudi Arabia, has a substantial influence on both economic and social dimensions, thereby promoting sustainable development. The increase in entrepreneurial activity is consistent with established economic theories and prior empirical studies, thereby illustrating its function as a catalyst for economic growth and sustainability. The significance of cultivating a supportive environment for entrepreneurship to realize its maximum potential in promoting sustainable and inclusive economic development is emphasized by these findings. The research offers valuable insights for policymakers and stakeholders who are seeking to utilize entrepreneurship as a strategic instrument to achieve national development objectives in Saudi Arabia and beyond.
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issn 2314-7210
language English
publishDate 2025-05-01
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spelling doaj-art-92717dbaee9b49229f0dc58fa465bba72025-08-20T01:47:32ZengSpringerOpenFuture Business Journal2314-72102025-05-0111111410.1186/s43093-025-00518-6Entrepreneurial dynamics and their impact on economic development in Saudi ArabiaHanaa Abdelaty Hasan Esmail0Mohammad Jibran Gul Wani1Osama Nashaat Yasin Attia2Heba Elsayed Galal3Port Said UniversityJazan UniversityPort Said UniversityPort Said UniversityAbstract Entrepreneurship has emerged as a critical factor in the development of human capital, employment creation, and economic growth in the contemporary era. The critical role of entrepreneurship in promoting innovation and expansion is underscored by the fact that the success of large-scale initiatives frequently depends on innovative ideas. Entrepreneurship is a critical catalyst for the development of human capital and economic expansion due to the synergy that exists between entrepreneurial spirit, market access, and innovative ideas. This study employs the Granger causality analysis of Toda and Yamamoto (J Economet 66:225–250, 1995) to analyze data from 2005 to 2023, with the objective of determining the impact of entrepreneurship on economic development in the Kingdom of Saudi Arabia. The results indicate that entrepreneurship, as evidenced by the rise in the number of entrepreneurs in Saudi Arabia, has a substantial influence on both economic and social dimensions, thereby promoting sustainable development. The increase in entrepreneurial activity is consistent with established economic theories and prior empirical studies, thereby illustrating its function as a catalyst for economic growth and sustainability. The significance of cultivating a supportive environment for entrepreneurship to realize its maximum potential in promoting sustainable and inclusive economic development is emphasized by these findings. The research offers valuable insights for policymakers and stakeholders who are seeking to utilize entrepreneurship as a strategic instrument to achieve national development objectives in Saudi Arabia and beyond.https://doi.org/10.1186/s43093-025-00518-6EntrepreneurshipTotal early-stage entrepreneurial activity (TEA)Carbon dioxide emissionsSustainable development goalsEstablished business ownership (EBO)
spellingShingle Hanaa Abdelaty Hasan Esmail
Mohammad Jibran Gul Wani
Osama Nashaat Yasin Attia
Heba Elsayed Galal
Entrepreneurial dynamics and their impact on economic development in Saudi Arabia
Future Business Journal
Entrepreneurship
Total early-stage entrepreneurial activity (TEA)
Carbon dioxide emissions
Sustainable development goals
Established business ownership (EBO)
title Entrepreneurial dynamics and their impact on economic development in Saudi Arabia
title_full Entrepreneurial dynamics and their impact on economic development in Saudi Arabia
title_fullStr Entrepreneurial dynamics and their impact on economic development in Saudi Arabia
title_full_unstemmed Entrepreneurial dynamics and their impact on economic development in Saudi Arabia
title_short Entrepreneurial dynamics and their impact on economic development in Saudi Arabia
title_sort entrepreneurial dynamics and their impact on economic development in saudi arabia
topic Entrepreneurship
Total early-stage entrepreneurial activity (TEA)
Carbon dioxide emissions
Sustainable development goals
Established business ownership (EBO)
url https://doi.org/10.1186/s43093-025-00518-6
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AT mohammadjibrangulwani entrepreneurialdynamicsandtheirimpactoneconomicdevelopmentinsaudiarabia
AT osamanashaatyasinattia entrepreneurialdynamicsandtheirimpactoneconomicdevelopmentinsaudiarabia
AT hebaelsayedgalal entrepreneurialdynamicsandtheirimpactoneconomicdevelopmentinsaudiarabia