Accessible Finance for Social Entrepreneurship: The Saudi Context

Abstract

This research paper investigates the significance of financial accessibility for social entrepreneurship (SE) in fostering sustainable development in the Kingdom of Saudi Arabia (KSA). It commences with an exploration of the importance of SE, followed by a discussion on the obstacles social entrepreneurs encounter in securing financial resources. This paper delves into various financing avenues: government initiatives, venture capital, angel investment, crowdfunding, investor collaborations, and corporate social responsibility. Data were gathered from 300 respondents representing social entrepreneurs across diverse regions in the KSA to prioritize the factors and challenges that impede financial access for social entrepreneurs. The findings, utilizing descriptive data analysis, reveal that the primary constraint is insufficient financial infrastructure, with 25% of respondents identifying this as a significant factor. In contrast, a mere 5% of respondents cited the lack of a regulatory framework, and only 12% pointed to the dearth of field expertise as a contributing factor. In addition, 19% of respondents reported that limited awareness of opportunities is another significant obstacle. This study evaluates the critical factors affecting Saudi social entrepreneurs and provides recommendations to enhance financial accessibility, drawing on examples from leading countries in the SE domain. KEYWORDS Access to finance, investors, entrepreneurs, recommendations, initiatives, sustainable development