• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.673-685
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• 2021

This study aims to determine theoretically the best workers layoff/training strategy that entrepreneurs should apply to manage the COVID-19 crisis successfully. It also examines the impacts of the Saudi government's emergency measures on firm performance. The paper develops a theoretical framework in which the optimal control technics is applied to model the entrepreneur's hiring, layoff, and training behaviors. The results show that, during the current COVID-19 pandemic, the entrepreneur should first lay off the less productive workers to reduce labor costs. As more and more inefficient workers quit and profit increases, the entrepreneur starts expanding his activity and training workers. In the long run, only the training activity allows the firm efficiency to grow at a constant rate. This finding suggests that the key to long-run economic recovery in Saudi Arabia will rely on training, innovation, and adaptability to the new digital environment. The paper also shows that the Saudi government initiative of covering 60% of salaries for the small- and medium-sized entrepreneurs during the COVID-19 pandemic will enhance training activities in small- and medium-sized enterprises and improve their efficiency in both the short and long run. This policy will also prevent Saudi entrepreneurs from laying off half of their staff.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.201-210
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• 2021

COVID-19 presented the world with a severe loss of life and impact, which has no geographical bounds or expected time to when its effects will subside. It has affected countries across the globe, disrupting economic levels and businesses in every industry while also altering individuals' everyday lives. The current research aims to examine the impact of coronavirus pandemic on entrepreneur's business activities and their perceptions on the difference in consumer behavior during this time. The findings reveal the pandemic negatively impacted business productivity and profits, forcing many businesses to physically close permanently. Surprisingly, female entrepreneurs do not perceive a change in consumer behavior compared to pre-COVID-19 times. Interestingly, the results indicate there is a negative impact on employees' efficiency to conduct work in which almost no research has conveyed such a finding. For this purpose, a survey was conducted with 445 responses from male and female entrepreneurs in the capital city of Riyadh, Saudi Arabia, using a simple random sample over the period of four months. Ultimately, this research will help entrepreneurs gain more knowledge and a deeper understanding of this new environment necessary to undertaking certain measures and adaptability in order to sustain their businesses during unprecedented times.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.225-237
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• 2021

The current study aims to classify what determines entrepreneurial leadership among small and medium enterprises (SMEs) in the Saudi Arabian context. It also attempted to recognize the role played by entrepreneurial leadership by supporting SMEs in the nation's sustainable economic growth. The study is based on a primary survey administered among SMEs in the Riyadh region of Saudi Arabia. Overall, 152 responses were collected. However, after data cleaning, only 107 were found to be fit for final analysis. Structural Equation Modelling using SmartPLS® Software was applied for analysis. The findings emerged from the study immensely concluded that entrepreneurial leadership is an essential instrument for managers/owners of the SMEs sector who aim to improve the efficiency of tasks and contextual performance in Saudi Arabia. The study came across that "ability to absorb uncertainty," "ability to build commitment," "the ability to frame the Challenge," "the ability of path-clearing," and "ability to specify limits," are the five constructs that help frame the entrepreneurial leadership in the Saudi context. The study suggests that leadership trainers, SME policymakers must focus on precisely these skills to inculcate the ability of entrepreneurial leadership among Saudi entrepreneurs, SMEs owners, and managers.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.863-872
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• 2021

The main goal of this research is to understand how small and medium enterprises (SMEs) owners in Oman perceive the factors that drive or impede their growth and sustainability. Based on survey data of 395 SMEs in Oman, factor analysis was conducted to check if all the items load as one factor in each of the constructs. The results show that all the items measuring motivators and barriers loaded significantly for the respective scales, with high reliability (Cronbach alpha for Motivators = 0.991 and Barriers = 0.995). Relationships between the demographic factors of entrepreneurs and firm characteristics were tested and it was found that all the four variables: age of the entrepreneur (p = 0.00), qualification of the entrepreneur (p = 0.00), SME sector (p = 0.00), and age of the firm (p = 0.00) have a significant relationship with both the Motivators and the Barriers. The findings of this study could have significant implications for policymakers in Oman and other Middle Eastern countries. Since SMEs face similar problems and are given priority around the world, the findings could be applicable to other countries, as well. The findings also add important results to the empirical literature on SMEs.