Introduction
Economic Analysis of Small and Medium Enterprises: Small and medium enterprises (SMEs) are the backbone of modern economies, contributing to the growth of production, diversifying sources of income, and creating widespread job opportunities, particularly in countries that embrace ambitious visions for sustainable economic development, such as the Kingdom of Saudi Arabia under its Vision 2030. These projects constitute a significant percentage of the total number of establishments operating in the Kingdom and play a significant role in driving innovation, raising the efficiency of the local value chain, and enhancing economic competitiveness.
The Importance of Economic Analysis for These Projects
The success of any project, regardless of its size, requires a thorough analytical study of the surrounding economic foundations. Economic analysis for small and medium-sized enterprises (SMEs) includes a set of tools and methods aimed at assessing the project’s financial, technical, social, and environmental feasibility, while taking into account local and regional dynamics. The basic aspects of this analysis can be summarized as follows:
Economic Environment Analysis
This includes studying the overall economic situation, national income levels, interest rates, inflation, and ease of doing business. These factors shape the investment environment and directly impact the success or failure of the project.
Market Analysis:
This involves assessing supply and demand for the target product or service, identifying the target customer segment, measuring gaps and opportunities, and analyzing competitors. A thorough understanding of the local market is the difference between a successful project and a failed one.
Cost-Revenue Analysis
This analysis relies on examining investment costs (capital, equipment, and operational costs, human resources, raw materials, and maintenance), and estimating expected revenues based on market size and customer purchasing power. Financial indicators such as payback period, net present value (NPV), and internal rate of return (IRR) are used to assess the project’s feasibility.
Economic and social impact analysis:
This analysis includes estimating the number of jobs the project will create, its impact on local supply chains and surrounding communities, and its potential to support young people or disadvantaged groups in terms of economic opportunities.
Risk analysis:
It is important to identify potential risks that the project may face, whether financial, operational, legislative, or related to market changes. It proposes contingency plans and strategies to address these risks.
The Role of Value for Feasibility Studies and Business Solutions
In this context, the role of specialized consulting firms such as Value for Feasibility Studies and Business Solutions is crucial. Value is a partner for business plans and investors in the Kingdom of Saudi Arabia. The company plays a pivotal role in supporting small and medium-sized enterprises (SMEs) from the initial idea stage through the operational and growth phase, through the following:
Preparing Professional Feasibility Studies
Value provides accurate and comprehensive feasibility studies covering technical, financial, economic, and marketing aspects, helping investors make an investment decision based on clear data. The company relies on the latest economic analysis models, tools, and financial modeling to ensure accurate project forecasting and project estimation.
Providing Practical and Customized Business Solutions
Value goes beyond preparing the study itself, offering integrated solutions in the areas of strategic planning, business model design, operational plan development, and administrative and organizational structures, which increases the project’s chances of success and sustainability.
Empowering Entrepreneurs and Investors
Value supports entrepreneurs by providing specialized advisory services, including preparing financing documents, analyzing project strengths and weaknesses, and providing consulting for continuous development and improvement. It also helps investors select the best economic sectors and areas based on market analysis and national vision priorities.
Linking Projects to Financing
Value plays a pivotal role in facilitating projects’ access to appropriate funding sources, whether through banks, government funds, or investment partners, by preparing clear investment proposals supported by robust feasibility studies.
Supporting Projects’ Digital and Technological Transformation
Value believes that excellence in the modern market can only come through innovation and digital transformation. Therefore, the company offers services in developing technology solutions, designing applications and systems that focus on operational efficiency, customer experience, and reducing operating costs.
For example, Value recently conducted a feasibility study for a food products factory project in the Qassim region, targeting both the local and export markets. Through a comprehensive market analysis, competitive monitoring, and profitability metrics assessment, the investor was able to make a sound investment decision that led to the launch of a successful project and the creation of more than 120 local job opportunities.
In light of the rapid economic changes and strategic transformations taking place in the United Kingdom, small and medium-sized enterprises (SMEs) are no longer a secondary option; they are becoming an essential component in building a resilient and diversified economy. However, challenges and competition are increasing, and relying on specialized expertise in economic analysis and feasibility studies is becoming an indispensable necessity.
At Value Feasibility Studies and Business Solutions, we share our expertise at your service, accompanying you from idea to success with a well-thought-out plan, a clear vision, and practical, implementable solutions. Whether you are a beginner or an entrepreneur looking to invest in opportunities, we guarantee professional support that will increase your chances of success in the Saudi market with efficiency and confidence. Do not hesitate to contact us via WhatsApp or call us. Our team is ready to answer your inquiries and provide you with the support you deserve.