by Faisal Mohammed Maghamis
ABSTRACT
Saudi Arabia has a special socio-economic landscape with the majority population being under thirty-five
years of age. This makes the region attractive for digital business based economic development with the aid of
new technologies, particularly when aligned with the Vision 2030 plan. This study adopted a mixed methods
design to identify three factors that affect the success of digital businesses in the Kingdom of KSA viz.,
technology readiness, financial support systems, and regulatory landscape. Quantitative data was collected
from 300 micro-entrepreneurs and economic actors between the ages of 25-35 years. Qualitative data comprised
24 semi-structured interviews with a selected subgroup. The study devised seven hypotheses to examine the
relationships between the three factors and digital business performance. Data analysis comprised descriptive
and inferential statistics, including multiple regression and moderation tests, and thematic analysis for
qualitative data. Results indicated that both technology readiness and supportive regulatory environment are
optimization factors in ensuring the success of digital businesses in KSA. Moderate but positive impacts were
observed on access to finance and the availability of VC. Qualitative data emphasized persistent issues such
as infrastructure shortages, complex licensing norms, and inadequate VCs that thwarted growth of businesses.
The study concluded with recommendations for government agencies, financial institutions, and academic
institutions to foster scalable digital entrepreneurship and help achieve the economic diversification target
spelt out in Vision 2030.
