74% of small businesses in the Kingdom are optimistic about their business sector growing in 2023
Nearly half of small businesses intend to grow substantially in 2023
Jeddah, KSA – – GoDaddy, the company that helps entrepreneurs thrive, announced the results of its MENA Small Business Survey showing most small businesses are optimistic about growth in their business sector in 2023. The report also stated that nearly half of respondents intend to grow their small business substantially in 2023 by expansion into new international markets (18%) and developing employee skills (18%).
The top three business sectors perceived to have the most potential growth in 2023 in the region are food and beverage (27%), information and communication technology (23%) and eCommerce solutions (21%). The main industries the Kingdom seen to have the most potential are food and beverage (22%), information and communication technology (20%), restaurant and cafe (20%).
In the MENA region, two-thirds of businesses surveyed reported they acquire up to 30% of their customers through online channels. Furthermore, in Saudi Arabia, over 50% of small businesses responded that they use over 20% of their revenue through e-commerce. The top digital tools used in the Kingdom were reported to be social media channels such as Instagram and Facebook as well as websites.
Selina Bieber, Commercial Strategy Senior Director, International Markets at GoDaddy said: “As we slowly recover from a global pandemic, we are starting to see increased online activity and growth among start-up businesses in the Kingdom and wider region. The GoDaddy MENA Small Business Survey shows optimism with more sector growth in Saudi Arabia, and more and more small businesses investing in an online presence and digital tools to help acquire new customers. GoDaddy is there to support the region’s entrepreneurs and small business owners every step of the way.”
When looking at the economic outlook, small businesses reported rising fuel prices, inflation, currency fluctuations, increasing raw material costs, supply chain and COVID-19 to be the most common concerns for small businesses. Notably, respondents in the Kingdom cited changing regulations as key area of concern.
The survey shows that 28% of entrepreneurs and small business owners across the MENA region expect government support for their business growth represented in the deferral of tax, rent and debt support and other expenses such as utilities. While 27% expect their businesses to be supported by access to market, value chains and alternative sales channels, and cash grants. Additionally, two-thirds of businesses in the Kingdom said that government policies and regulations are addressing the challenges faced by small businesses.
The GoDaddy MENA Small Business Survey, conducted in association with YouGov, is part of the ongoing research efforts by GoDaddy to share insights and trends on startups and entrepreneurs across the region. GoDaddy offers support through digital tools, online solutions and resources available in English and Arabic languages for businesses to grow online.
