The Relationship of the Entrepreneurial Characteristics of Saudi Women Entrepreneurs to the Business Performance of Small Companies in the Eastern Province

Abstract

Saudi women are able, educated and motivated to contribute to their own economic advancement and their country. Nevertheless, women in the Kingdom suffer great exclusion in the economic life. This study aims to explore the relationships among four entrepreneurial characteristics, and business performance of Saudi women entrepreneurs in Eastern Province of Saudi Arabia by using questionnaire-based survey of 105 Saudi female entrepreneurs. Quantitative methods were used to investigate the relationship between the entrepreneurial characteristics of those females and their small firms’ performance. The study employed a snowball sampling technique to contact Saudi female entrepreneur, who already own, manage, operate and have founded their own business. Overall, 105 participated women in the study. The findings revealed that self-efficacy, and risk-taking propensity were found to have positive and significant relationships with firm performance, while no positive significant relationship was found for the need for achievement, and locus of control on firm performance. Therefore, the study provided evidence showing the impact of entrepreneurial characteristics on firm performance. In the face of limited job opportunities for educated women, entrepreneurial opportunity could be the ideal employment opportunity for many Saudi women. Additionally, dual-earner households have become a necessity for meeting the rising costs of living. So, policy orientated towards the promotion of women entrepreneurs would allow them to contribute more fully to the economy. Further, policy makers are needed to design training programs considering these entrepreneurial characteristics.