More Than 77.3K SME’s Issue Establishment Size Certificate
The General Authority for Small and Medium Enterprises (Monshaat) reported that 77,312 micro, small and medium enterprises have issued the “Establishment Size Certificate” since its introduction until now.
It aims to benefit from the advantages of applying for government competitions and obtaining financing. It constitutes 6% of the total establishments operating in Saudi Arabia which add up to 1.27 million.
“Monsha’at” said that the number of micro-enterprises issuing the certificate reached 35,857, while the number of small enterprises reached 36,183, and 10,339 medium-sized enterprises.
The authority indicated that 45% of establishments issued the certificate with the aim of benefiting from the government competitions. Furthermore, 17.76% of establishments obtained a certificate for the purpose of obtaining financing, and 10.10% obtained indirect lending.
According to the Authority’s classification, micro, small and medium enterprises are those whose number of employees is not less than one employee and does not exceed 249 employees.
“Monshaat” also pointed out the advantages of the establishment size certificate. It enables the establishment that obtains it to be exempt from providing the initial guarantee. In addition, It works to provide greater opportunity through mechanisms that favor local small and medium enterprises.
“Establishment Size Certificate”
The SMEs must also provide the availability of revenue data or declaration filling in the process of issuing the certificate. In addition , the SMEs should also provide proof that annual revenues do not exceed SR200 million ($53 million). The applicant must have one of the roles approved by both the Ministry of Commerce and the Ministry of Human Resources and Social Development, enabling him to print the certificate.
Furthermore, under the Vision 2030 goals, the SME sector contribution in the Kingdom is eyeing a 35 percent contribution to the national gross domestic product by 2030.
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