The Impact of Financial Inclusion on Entrepreneurship in Saudi Arabia | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Mohamedelhassan Babiker: NA

2. Fathi Albouzidi: NA

Abstract:

This study investigates the correlation between entrepreneurship and financial inclusion in Saudi Arabia, with an emphasis on the moderating effects of patent registrations and Gross Domestic Product (GDP). It is becoming increasingly critical to comprehend the factors that encourage entrepreneurship as part of the nation's Vision 2030 initiative, which is designed to promote economic diversification. The research uses secondary data to examine the impact of financial inclusion on the establishment of new enterprises, which is supported by economic growth (measured by GDP) and innovation (identified by patents). The findings suggest that financial inclusion has a substantial impact on entrepreneurial activity, and this relationship is further bolstered by a robust economic environment and a robust intellectual property regime. The research posits that Saudi Arabia's entrepreneurial endeavors can be significantly improved by the implementation of effective financial inclusion strategies and policies that promote economic development and safeguard intellectual property. To facilitate innovation, it is recommended that the patent system be strengthened and technological access to financial services be improved. Although the study offers valuable insights, its limitations include the exclusion of qualitative factors, such as cultural influences, and its dependence on secondary data. These results could be further developed in future research by incorporating a broader array of variables and utilizing a longitudinal approach to monitor changes during Saudi Arabia's economic reforms. This research provides the strategic understanding that is essential for the cultivation of a flourishing entrepreneurial ecosystem that is consistent with Saudi Arabia's overarching economic objectives.

Page(s): 6344-6360

DOI: 10.57239/PJLSS-2025-23.1.00494

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

Gross Domestic Product Financial Inclusion Entrepreneurship Patent

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