Trade and Investment Combination is planning to create funding chances for Small and Medium Enterprises, through five main hubs. First, through the major fund, next through the reformulation of the following program legislation "Guarantee of Funding Small and Medium Enterprises", in addition to increasing its capital, as well as establishing the Professional Association for Venture Capital and Private Equity, as well as encouraging all parties in the government and private sectors that provide and contribute in funding programs, also studying and presenting the investment opportunities and encouraging entrepreneurs to invest and engage in such activities, more than that launching e-services to support and help entrepreneurs.
This comes within the two initiatives of the Trade & Investment Combination for the realization of the National Transformation Program 2020, "Services and Funding Solutions for Small and Medium Enterprises," and "Applications and E-Services for Small and Medium Enterprises", which support the SME sector with electronic applications and distinctive funding solutions for enhancing the growth of this sector and enabling it to enter into new markets, also contribute to the creation of attractive investment environment, so that the contribution of this sector in GDP would be raised.
The initiative of "Services and Funding solutions for Small and Medium Enterprises" is endeavoring to provide new direct or indirect financing sources, through government financing sources, commercial banks and the private sector, which would contribute to the promotion of small and medium enterprises and ensure its sustainability.
Notably, setting up the major fund with a capital of four billion riyals, is considered one of the main financing solutions for small and medium enterprises, which aims to invest in the venture capital and the private ownership, in accordance with the business principles for supporting and stimulating the investment opportunities of the commercial facilities.
The establishment of the Professional Association of the Venture Capital and Private Equity comes to raise the contribution of small and medium enterprises sector in the GDP from 20% to 35%, according to the Kingdom’s Vision 2030, through providing the best global practices to stimulate investment in this sector, as well as to provide consultation and direct support for those interested in investment, besides raising the awareness of the importance of investing in Venture capital and the Private Equity, which have plenty of promising opportunities.
It is worth mentioning that increasing the capital of the program "Guarantee the Financing of Small and Medium Enterprises”, as well as the promotion of its funding program, also supporting the investors, would contribute in boosting the capabilities of small and medium enterprises, also would encourage entrepreneurs and support their initiatives and enterprises.
The second initiative "Applications and E-Services for Small and Medium Enterprises" aims to develop a range of electronic services, specifically designed to support small and medium enterprises, which include presenting and offering the investment opportunities, as well as training, advisory and financing services, besides providing the necessary data for investors and entrepreneurs through a consolidated and integrated e-platform, bringing together all services to facilitate and ease the procedures, and to be a link between the service applicant and the provider.