Dr. Sami Alwahaibi Conduct “The Role of Bold Capital in Supporting Small Enterprises” Seminar
As part of its 2018 Development Program: Empowering Business Family Generations, on Saturday and Sunday, 21 and 22 April 2018 at Al-Faisaliah Hotel in Riyadh, Awuael Holding held two workshops entitled "Creativity and Innovation" and "Grooming Family Leaders and Entrepreneurs".
Awuael welcomed the participants and provided an overview of the workshop providers and stressed the importance of the continuation of such workshops for its developmental benefits of business family members and Keeping abreast of everything new regarding their family and businesses.
Dr. Sami Alwuhaibi explained that entrepreneurship consists of four axes starting with the need and then the solution - which is meant by the commercial project that provides the product to the customers - through the culture, which - he says - is the container that contains the former axes and ends with the laws and regulations, which is an important axis in regulating the relationship between the investor and the entrepreneur.
Mr. Mohammed Almalki, Deputy Governor of the General Authority for Small and Medium Enterprises, said that more than 90% of Saudis want to set up their own projects, and that the volume of financing for small projects represents only about 2% of the volume of loan portfolio in the Kingdom.
Maliki said it was important to avoid mixing bold money with private ownership, because the latter needed more governance because they started to take a safe path and thus needed to take responsibility. If the company was exhausted in its early stages of governance requirements, this may hinder the progress of these small businesses.
Almaliki stressed that the issue of financing should not be overstated due to other challenges such as marketing, knowledge of the laws and regulations, and above all the appropriate choice of the idea in line with the priority sectors in the Kingdom as well as its different regions, advising entrepreneurs to invest in new and promising opportunities, and pay attention to the needs of the major strategic projects being implemented in the Kingdom such as the project "Qiddiya" and "NEOM" and other projects.
Mr. Qais Alissa explained that the bold investment comes from a simple idea that follows a consecutive process from paper to execution and financing, pointing to the difficulty of competing the partner with the idea owner because the success of the idea is the partner’s interest. He pointed out that the obstacles to the environment in general need more work on awareness, and noted that it is important to conduct such seminars to raise awareness of entrepreneurs.
Alissa stressed the need to respond to market variables and not to stop the bold capital at the limits of financial support only, but to go to other types of support, such as marketing and other types of subsidies, advising not to sell a large share in each stage of funding as well as full-time Is important for the success of projects.
Mr. Mazen Aldandashli, said that the investor's concern is the lack of the entrepreneur's ability to implement as well as the conflict of interest between the investor and the owner of the idea as if the investor takes the idea and implement it in a different way, stressing the importance of trust between the entrepreneur and investor with the clarity of the legal structure between the parties, pointing to the importance of identifying responsibilities or the presence of a monitor on the implementation of projects in the framework of primary governance, advising entrepreneurs of perseverance and good preparation of the idea and implementation.
At the end, Mr. Ibrahim Al-Sheikh, a Member of the Board of Directors of the Asharqia Chamber, presented commemorative shields to Mr. Mohammed Almalki, Deputy Governor of the General Authority for Small and Medium Enterprises for Finance, Mr. Qais Alissa, CEO of Rouaya Investment Company, Mr. Mazen Aldandashli, Head of Investment Banking at “Musharaka”, and Dr. Sami Al Wuhaibi, Professor of Strategic Management and Family Business.