Asia Pacific Journal of Business Review

Kyung Hee University Management Research Institute (경희대학교 경영연구원)
권호 표지
DOI QR코드

DOI QR Code

Key Success Factors of Home-Based Business among Female Entrepreneur in Saudi Arabia

  • Received : 2018.10.05
  • Accepted : 2019.02.28
  • Published : 2019.02.28
Download PDF
⟨ Previous Next ⟩

Abstract

Home-based business (HBB) is one of the fastest growing form of business start-ups where the business is conducted from home. In develop economies, the HBB industry is an engine for economic growth that has proven its viability through significant contribution to the national GDP. In view of its importance, the Saudi Ministry of Commerce and Industry encourage local women to start and develop their own HBB as it gives them the flexibility while still contributing to the national economy. Although various initiatives have been taken place, little information is available about Saudi HBB. This study therefore aims to determine the factors that contribute to the growth as well as the challenges of female HBB in Saudi Arabia. The study was based on qualitative approach which adopted an in-depth interview with eleven Saudi females who run HBB. The findings revealed that HBB contributing factors comprised of access to funding, sufficiency of savings and the influence of the intrinsic and extrinsic motivation in starting the business. Meanwhile, the obstacles are government regulations and policies, culture, and home design. The study recommendations include improving banks and service institution policy and procedures to enable HBB to have access to funding and services and to develop legal policies to protect the right of the HBB operator and customers. Finally, the study also suggests future research on managerial factors that can contribute to HBB female success, the stress coping mechanism of HBB and the factors contributing to the difference between HBB in growth strategies.

Keywords

References

  1. Abu Bakar, A. R. and Ahmed, Z. U., 2015, Technology motivation in e - marketing adoption among Malaysian manufacturers. Journal of Transnational Management, 20(2). pp. 126-152. https://doi.org/10.1080/15475778.2015.1038949
  2. Afshan, A., 2015, Women entrepreneurs find increased success in KSA', Arab News, 25 Dec 2015.
  3. Ahmad, S. Z., 2011, Evidence of the characteristics of women entrepreneurs in the Kingdom of Saudi Arabia: an empirical investigation, International Journal of Gender and Entrepreneurship, 3(2), pp. 123-143. https://doi.org/10.1108/17566261111140206
  4. Ahmad, Z., Jabeen, F. and Khan, M., 2014, Entrepreneurs choice in business venture: Motivations for choosing home-stay accommodation businesses in Peninsular Malaysia, International Journal Of Hospitality Management, 36, pp. 31-40. https://doi.org/10.1016/j.ijhm.2013.08.006
  5. Al-Ghamdi, E. and Reilly, D., 2013, Social media based business in Saudi Arabia, In Dalhousie University Computer Science In-House Conference.
  6. Al-Ghamri, N. S., 2016, Causes of Small Businesses Failure: An Exploratory Study within Jeddah's Governorate in Saudi Arabia, International Journal of Small Business and Entrepreneurship Research, 4(2). pp. 1-35.
  7. Al-Rammah, A., 2016, Unstructured interview [In Person]. Analysis the Challenges of HBB, Interview by Sahar Al-Gosaibi, 16 Aug 2016.
  8. Al-Hajjar, B. & Presley, J., 1992, Constraints on Development: Small Businesses in Saudi Arabia, Middle Eastern Studies, 2, pp. 333. https://doi.org/10.1080/00263209208700904
  9. Alharbi, M, M., 2014, Barriers to Franchising in Saudi Arabia, Journal Of Marketing Channels, 21(3), pp. 196-209. https://doi.org/10.1080/1046669X.2014.913218
  10. AlKhateeb, M. S., Humphries-Smith, T. and Eves, B., 2014, Space Design and Privacy in a Saudi House, In: Time, Space and the Body 3rd Global Conference, 2014, 7-9 September 2014, Mansfield College, Oxford. pp. 1-11.
  11. Amanda, B. & Paula, B. (2005) 'Investigating the moderating influences of gender upon role salience and work-family conflict', Equal Opportunities International, 24(2), pp. 30-41. https://doi.org/10.1108/02610150510787999
  12. Australian Department of industry tourism and resource, 2004, Home- based business local opportunity. Endorsed at the meeting of small Business Ministerial Council. 28 July 2004, Australian, Yarra City Council, pp. 609-626.
  13. Beale, H. B., 2004, Home-based business and government regulation. SBA Office of Advocacy. [online]. Available from: https://www.sba.gov/sites/default/files/Home%20Based%20Business%20and%20Government%20Regulation.pdf (Accessed: 23 Jun 2016).
  14. Bokhari, A. A. H., 2012, Entrepreneurship and Unemployment in The Kingdom of Saudi Arabia, Assignment (PhD), King Abdul-Aziz University.
  15. Bosma, N., 2013, The Global Entrepreneurship Monitor (GEM) and Its Impact on Entrepreneurship Research, Foundations And Trends(R) In Entrepreneurship, 2, p. 143. https://doi.org/10.1561/0300000033
  16. Bosma,N and Levie, J., 2010, Global Entrepreneurship Monitor 2009 Global Report. Babson Park, MA: Babson College, Santiago, Chile: Universidad del Desarollo. UK: Global Entrepreneurship Research Association.
  17. Bowen, H and De Clercq, D., 2008, Institutional Context and the Allocation of Entrepreneurial Effort, Journal of International Business Studies, 4, p. 747. https://doi.org/10.1057/palgrave.jibs.8400343
  18. Briggs, A. R., Morrison, M. and Coleman, M., 2012, Research methods in educational leadership and management, Sage Publications.
  19. Chen, M., Sebstad, J. and O'Connell, L. 1999, Counting the invisible workforce: the case of home-based workers, World Development, 27(3), pp. 603-610. https://doi.org/10.1016/S0305-750X(98)00154-5
  20. Clark, D. and Douglas, H., 2010, Micro business: Characteristics of home-based business in New Zealand, Small Enterprise Research, 17(2), pp. 112-123. https://doi.org/10.5172/ser.17.2.112
  21. Cusumano, M. and Yoffie, D., 2016, Extrapolating from Moore's Law, Communications Of The ACM, 59(1), pp. 33-35. https://doi.org/10.1145/2846084
  22. Daniel, T. A., 2004, The Exodus of Women from the Corporate Workplace to Self-Owned Businesses, Employment Relations Today (Wiley), 30(4), pp. 55-61. https://doi.org/10.1002/ert.10108
  23. Elmahgop, Omer, F., Abdel-Wahab, A., Elzein, M., and Edrees, A., 2015, Small Businesses Financial and Marketing Constraints: Tabuk Region, Business Management Dynamics, 4(9), pp. 1-18.
  24. European Commission business, 2015, Annual report on European SMEs 2014/2015. SMEs start hiring again, Final report to the European Commission. Brussels.
  25. Ezzi, H., 2005, The social construction of Saudi women's marital life : patriarchy and domestic violence, British Library Ethos.
  26. Felstead, A. and Jewson, N., 2000, In Work, At Home. Towards An Understanding Of Homeworking, n. p.: London: Routledge, 2000., University of Liverpool Catalogue.
  27. Grady, M. P., 1998, Qualitative and action research: A practitioner handbook. Phi Delta Kappa International.
  28. General Authority Statistics in Kingdom of Saudi Arabia, 2016, A numbers of Saudi establishment by employee numbers.
  29. General Authority Statistics in Kingdom of Saudi Arabia, 2015b, Unemployed Persons (15 years and Above) by Sex For Saudis and Non Saudis during (1999-2015).
  30. Hartog, C., Hessels, J. and Wennekers, S., 2011, Global Entrepreneurship Monitor 2010 The Netherlands :The emergence of an entrepreneurial society, Zoetermeer : EIM.
  31. Hertog, S., 2012, A comparative assessment of labor market nationalization policies in the GCC. In: Hertog, Steffen, (ed.) National employment, migration and education in the GCC. The Gulf Region: economic development and diversification.
  32. Hessels, J, Van Gelderen, M, & Thurik, R., 2008, Drivers of Entrepreneurial Aspirations at the Country Level: The Role of Start-Up Motivations and Social Security, International Entrepreneurship And Management Journal, 4(4), pp. 401-417. https://doi.org/10.1007/s11365-008-0083-2
  33. Intaratat, K., Choosamay, V. and Yenjabok, P., 2006, Homeworkers and ICTs: Thailand, Sukhothaithammathirat Open University, Nonthaburi, Thailand.
  34. John, S., 2014, SMEs in Saudi Arabia: How the Supreme Economic Council Can Support SME Growth in the Kingdom, Electronic Journal of Saudi.
  35. Kelley, D. J., Bosma, N. and Amoros J. E., 2011, Global Entrepreneurship Monitor 2010 Global Report. Babson Park, MA: Babson College, Santiago, Chile: Universidad del Desarollo. UK: Global Entrepreneurship Research Associatio.
  36. Kotler, P. and Keller, K. L., 2012, Framework for marketing management. 5th edition, Upper Saddle River, NJ: Pearson Prentice Hall.
  37. Krajnakova, E., Navikaite, A., and Navickas, V., 2015, Paradigm shift of small and medium-sized enterprises competitive advantage to management of customer satisfaction, Engineering Economics, 26(3), p. 327-332.
  38. Kuiper, S., 2008, Modern Business Report Writing. Dongbei University of Finance & Economics Press.
  39. Latiff, Z. A. and Safiee, N. A. S., 2015, New Business Set Up for Branding Strategies on Social Media-Instagram.
  40. Loscocco, K. and Smith-Hunter, A., 2004, Women home-based business owners: Insights from comparative analyses, Women in Management Review, 19(3), pp. 164-173. https://doi.org/10.1108/09649420410529870
  41. Mahembe, E., 2011, Literature review on small and medium enterprises ; access to credit and support in South Africa,. Underhill Corporate Solutions. National Credit Regulator (NCR): Pretoria, South Africa.
  42. Mahmud, S. 2003, Women and the transformation of domestic spaces for income generation in Dhaka bustees, Cities, 20(5), pp. 321-329. https://doi.org/10.1016/S0264-2751(03)00049-0
  43. Mason, C., 2010, Editorial: Home-based business: Challenging their Cinderella status, Small Enterprise Research, 17(2), pp. 104-111. https://doi.org/10.5172/ser.17.2.104
  44. Mason, C. and Reuschke, D. 2015, Home truths: the true value of home-based businesses, Project Report, Federation of Small Businesses in Scotland, Glasgow.
  45. Mason, C., Carter, S., and Tagg, S., 2011, Invisible Businesses: The Characteristics of Home-based Businesses in the United Kingdom, Regional Studies, 45(5), pp. 625-639. https://doi.org/10.1080/00343401003614241
  46. Meutia and Ismail, T., 2012, The Development of Entrepreneurial Social Competence and Business Network to Improve Competitive Advantage and Business Performance of Small Medium Sized Enterprises: A Case Study of Batik Industry in Indonesia, Procedia - Social And Behavioral Sciences, 65, International Congress on Interdisciplinary Business and Social Sciences 2012 (ICIBSoS 2012), pp. 46-51.
  47. Organization for economic co-operation and development (OECD), 2012, Women in business: policies to support Women's Entrepreneurship Development in the MENA Region, OECD Publishing.
  48. Reuschke, D, Mason, C, Syrett, S & Van Ham, M., 2015, Connecting entrepreneurship with homes and neighborhoods, Entrepreneurship in Cities : Neighborhoods, Households and Homes, pp.1-16 , Edward Elgar Publishing.
  49. Reuschke, D. & Houston, D., 2016, The importance of housing and neighborhood resources for urban microbusinesses, European Planning Studies, 24(6), pp. 1216-1235. https://doi.org/10.1080/09654313.2016.1168364
  50. Sadi, M. A. and Al-Ghazali, B. M., 2010, Doing business with impudence: A focus on women entrepreneurship in Saudi Arabia, African Journal of Business Management, 4(1), p. 1.
  51. Saudi Arabia 2030 Vision, 2016, Governance Model for Achieving Saudi Arabia's Vision.
  52. Saudi Arabia Monetary Agency, 2010, Small and medium enterprises.
  53. Sayers, J. G., 2010, Home-based businesses in the city, Small Enterprise Research, 17(2), pp. 165-176. https://doi.org/10.5172/ser.17.2.165
  54. Schensul, S. L., Le Compte, M. D. and Schensul, J. J., 1999, Essential ethnographic methods: Observations, interviews, and questionnaires, Vol. 2.
  55. Simsim, M. T., 2011, Original article: Internet usage and user preferences in Saudi Arabia, Journal Of King Saud University - Engineering Sciences, 23, pp. 101-107. https://doi.org/10.1016/j.jksues.2011.03.006
  56. Sivakumar, A. and Sarkar, S., 2012, Women entrepreneur in small and medium scale business in Saudi Arabia, International Journal Of Finance & Policy Analysis, 4(1), pp. 25-32.
  57. Skoko, H., 2011, The state of entrepreneurship in the kingdom of Saudi Arabia (KSA)', Proceedings Of The International Scientific Conference, Juraj Dobrila University Of Pula, Department Of Economics & Tourism 'Dr. Mijo Mirkovic', pp. 503-515.
  58. Spinelli, S. and Adams, R., 2012, New venture creation: entrepreneurship for the 21st century. New York: McGraw-Hill.
  59. Sulaiman, R., Shariff, S. S. M. and Ahmad, M. S., 2009, The e-business potential for home-based businesses in Malaysia: a qualitative study, International Journal of Cyber Society and Education, 2(1), pp. 21-36.
  60. Surangi, HS., 2016, The role of female entrepreneurial networks and small business development: a pilot study based on Sri Lankan migrant entrepreneurs of tourism industry in London', International Journal Of Business & Economic Development, 4(1), pp. 56-70.
  61. Walker, E. and Brown, A., 2004, What Success Factors are Important to Small Business Owners?', International Small Business Journal, 22(6), pp. 577-594. https://doi.org/10.1177/0266242604047411
  62. Walker, E., Wang, C. and Redmond, J., 2008, Women and work-life balance: is home-based business ownership the solution?, Equal Opportunities International, 27(3), pp. 258-275. https://doi.org/10.1108/02610150810860084
  63. Wynarczyk, P. and Graham, J. 2013, The impact of connectivity technology on home-based business venturing: the case of women in the North East of England, Local Economy, 28(5), pp. 451-470. https://doi.org/10.1177/0269094213491700
  64. Wapshott, R. and Mallett, O., 2012, The spatial implications of homeworking: a Lefebvrian approach to the rewards and challenges of home-based work', Organization, 19(1), pp. 63-79 https://doi.org/10.1177/1350508411405376
  65. World Bank, 2016, Ease of doing business in Saudi Arabia.
  66. World Economic Forum, 2014, Youth unemployment rates in the GCC countries.
  67. Wynarczyk, P and Graham, J., 2013, The impact of connectivity technology on home-based business venturing: The case of women in the North East of England, Local Economy, 28(5), p. 451-470. https://doi.org/10.1177/0269094213491700
  68. Yang, Y, & Tu, Y., 2004, Analysis of Factors Influencing Taiwan's Unregistered Overseas Investment Behavior, Asian Economic Journal, 18(2), pp. 213-231. https://doi.org/10.1111/j.1467-8381.2004.00190.x
  69. Zinger, J., Lebrasseur, R., Robichaud, Y., and Riverin, N., 2007, Stages of small enterprise development: a comparison of Canadian female and male enterprise', Journal Of Enterprising Culture, 15(2), pp. 107-131. https://doi.org/10.1142/S0218495807000071
  70. Quast, L., 2011, Causes And Consequences Of The Increasing Numbers Of Women In The Workforce, Forbes.