Background overview Entrepreneurs share similar problems in terms of access to sufficient capital to start their business, ability to attract customers, developing a sufficient cash flow to sustain their venture and a variety of other issues that are involved in the process of developing a business (Zahra & Wright 2011, pp. 67-83). In this section, the various methods of capital access available to entrepreneurs within Saudi Arabia, and the difficulties that are associated with the process of obtaining sufficient funds to start a profitable business venture will be analyzed. Considering the fact that it is one of the wealthiest nations in the world, and part of the G20 group of states, the low rate of growth for its entrepreneurial sector engenders a number of questions that necessitates further research and analysis. It is expected that this section will act as the basis behind an assessment that would create effective suggestions as to how entrepreneurs within the country can best respond to various financial opportunities and challenges. Saudi Arabian Economy and SME SMEs in Saudi Arabia A majority of the start-up businesses in Saudi Arabia are in form of SMEs. Within the study Leading the way (2005, pp. 78-79), it was explained that in most market economies, small to medium scale enterprises (SMEs) make up the bulk of a country’s enterprises. This constitutes 80 to 90 percent of local businesses (Leading the way 2005, pp. 78-79). Such an orientation can also be seen in the case of Saudi Arabia, wherein SMEs make up 92 percent of local businesses within the country, and employ up to 80 percent of the workforce (Leading the way 2005, pp. 78-79). H.M. King Abdullah bin Abdul Aziz Al-Saud himself has been quoted as stating that “entrepreneurs are the backbone of the Saudi Arabian economy and are instrumental towards its continued growth and prosperity” (Kayed & Hassan 2010, pp. 379-413). (Kayed & Hassan 2010, pp. 379-413) It must be noted that despite the fact that SMEs constitute 92 percent of local businesses, they are still overshadowed by the country’s oil and natural gas industry which accounts for 90 percent of export earnings, 45 percent of the GDP and 80 percent of the government’s budget revenues (Kayed & Hassan 2010, pp. 379-413). This is in sharp contrast to the situation found in countries such as the US, UK, China and other industrialized countries where local SMEs make up more than 70 percent of GDP, 60 to 70 percent of local government revenue and 75 percent of export earnings (Kayed & Hassan 2010, pp. 379-413). While Saudi Arabia’s status as an oil exporter does entail a decidedly different economic structure, it must be noted that given the non-renewable state of its oil reserves, it is absolutely necessary to implement some measure of encouraging the development of start up businesses in order to have a strong local economy in place that is not dependent on resource that will inevitably dry up (Lindsey 2011, pp. 1). Entrepreneurial Growth Rate (Saudi Arabia 2012, pp. 1-18) (Outlook for 2011-15: Economic policy outlook 2010, pp. 7-9) Unfortunately, an examination of the development of local industries within the country reveals that entrepreneurial growth has remained low at 3.3 to 3.5 percent annually, with the much-lauded Saudi Fast Growth 100 group (a listing of the top 100 locally owned corporations that were started by entrepreneurs) gaining a combined annual revenue of $2.4 billion equivalent to $9 billion Saudi Riya