Abstract

Small businesses are the essential constituents in the development of economy and generating employment opportunities within country. Unemployment is the major concern, which is spreading its roots in various forms and dimensions. The objective of the study was to examine the role of small businesses in alleviating the acuity of unemployment rate. Quantitative approach has been utilized to examine the role of small businesses. Therefore, data was collected from general statistics, directorate of the Kingdom of Saudi Arabia, during the years 2005-2013. Multiple Regression Analysis using the time series approach has been implemented to analyze the gathered information through SPSS version 20.0. The findings have stated that there was a significant impact of small projects on the unemployment rate of Saudi Arabia (p=0.097). Furthermore, statistically insignificant results were revealed for amount of funding variable (p=0.451). A negative relationship has been determined between unemployment rate and amount of funding; while positive and direct relationship was determined between unemployment rate and population. Small businesses are vital in escalating the economy of the country and sustaining the environmental protection. However, small businesses must amend themselves according to the strategies devised for large projects to contribute more to alleviate unemployment rate in the Kingdom of Saudi Arabia.

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