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Do We Need to Review our Starting ?
Entrepreneurial Enterprise in Saudi Arabia
Analyses of Legal Challenges Facing Entrepreneurial Enterprise
Dr. Faisal M. Atbani, PhD (Lond)
Assistant Professor of law
King Abdulaziz University - IEI
famaat@gmail.com
Wednesday 01-11-2017 (12-02-1439H)
Abstract
Entrepreneurship enterprise is increasingly becoming a pressing area of study in Saudi Arabia as a result of a trend of numbers of young people, who failed to find proper conventional jobs, aiming to find out alternative source of income to start their careers. The last decade emerged several attempts form governmental and non-governmental entities to put forward some incentives to promote jobseekers to initiate their own careers. However, still there is almost a lack of theoretical framework to build a proper legal structure for such initiatives. This field of study demands that researchers in faculties and research centers to provide a broad range of literature to cover various legal and business relating arguments. One of the most important aspects that have to be focused upon, however, regards the issue of legal challenges; by which an entrepreneur faces when s/he starts up her/his idea. The legal challenges include several issues, but the most important one is how to finance the entrepreneurship and how to articulate contracts and define shares to each party. This issue totally has different perception between Islamic and conventional finance. As Islamic finance depends not on loans, but on profit and loss sharing (PLS), financiers require several legal guarantees and stable efficiency and effectiveness of entrepreneur projects to insure their rights on the business. A prudential legal framework and regulatory supervision will enhance and improve the entrepreneurial enterprises as well as to encourage financiers to take smooth decision making process.
As a new trend in Saudi Arabia seeking economic development, entrepreneurial enterprises need to be regulated to protect related parties from misconduct and taking advantage of others’ trusts. This research argues that internal governance and external regulation constitute an adequate legal framework to stabilize the field of entrepreneurship as well as to support young professionals and to encourage financiers. Therefore, this paper explores the governance tools as well as laws and regulation through in-depth analysis and comparison with conventional laws and corporate governance.
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