Factors Affecting Saudi Arabian Small Scale Business Enterprenuers Doing Business In China

This study was carried out to investigate the affecting Saudi Arabia’s small scale entrepreneurs doing business in China. The objectives of the study were to determine the demographic profile of Saudi traders in China; to find out the factors that favor Saudi entrepreneurs doing business in China and to establish the challenges faced by Saud entrepreneurs in China. A cross sectional research design was adopted to undertake the study. Data were collected from200respondents using an open ended questionnaire and analyzed using the statistical package for social scientist computer (SPSS) program. The study found and concluded that the majority of Saudi’s small scale entrepreneurs in China are male, are between20and59years of age, have attained a minimum level of education and are traders. The factors favoring Saudi’s small scale entrepreneurs doing business in China as favorable business environment, favorable exchange rate, good Sino-Saudi trade and political relations, political stability in China, availability of cheap skilled labor, high return on investment, advanced technology and good infrastructure. The study found that the factors constraining Saudi’s small scale business entrepreneurs who do business in China as:restriction on foreign investment by the Chinese government, limited competition, limited market access, lack of consumer understanding of Saudi Arabian products, fraud stars and scams, fake products on the market, competition from other foreign traders, rising costs of labor, products and raw materials, difficulty in obtaining trading licenses and difficulty in obtaining product approval. The study recommends that the study recommended that in order to increase opportunities for Saudi entrepreneurs in China, the Saudi government should consider adding value to their products and create consumer awareness and understanding about Saudi products in international media.