Businessmen confirmed that the Council of Ministers’ decision to extend the exemption of small enterprises from the financial fees for a period of 3 years helps in overcoming the challenges they face, noting that the challenges of commercial activities are diverse and renewable, pointing out that the most prominent challenges are the change in sales patterns as a result of the increasing purchasing traffic through websites. Electronic services, in addition to the increasing entry of foreign products into local markets, as well as the financial burdens associated with operating costs, as well as the decline in purchasing power as a result of pressures on the volume of internal spending, in addition to the continued high level of interest on bank loans.
Hani Al-Afaleq, Chairman of the Commercial Committee of the Eastern Chamber, explained that the Council of Ministers’ decision to extend the exemption for small establishments with 9 workers or less for a period of 3 years helps these types of establishments overcome the challenges they face, indicating that the responsible authorities have realized the importance of extending it again. As a result of small enterprises raising their demand to extend the exemption from the financial compensation, he stressed that extending the exemption from the financial compensation is a helpful element in giving momentum to small enterprises to continue, as well as reducing the percentage of establishments exiting the market, in addition to encouraging entrepreneurs to engage in the business sector, which reflects positively. On the national economy.
He stated that the challenges of commercial activities are numerous, diverse, and renewable, such that it is difficult to accurately quantify them, pointing out that the most prominent challenges facing small enterprises are related to successive changes in local and global markets, for example, changing sales patterns as a result of increasing purchasing activity through electronic sites, in addition to The increasing entry of foreign products into local markets, in addition to the financial burdens associated with operating costs, as well as the decline in purchasing power as a result of pressures on the volume of internal spending, in addition to the continued high level of interest on bank loans, in turn constitutes one of the most prominent challenges facing the commercial sector, stressing that the statistics Issued by the Ministry of Commerce, it indicates an increase in the numbers of extracting commercial records, but the challenges facing small enterprises still exist, adding that the financial burdens on the consumer in terms of spending capacity are still minimal.
He pointed out that the financial compensation constitutes a good percentage of the operational cost for commercial establishments, especially for small enterprises, pointing out that there are other no less important costs that put pressure on establishments regarding the operational cost.
Bandar Al-Jabri, a former member of the Board of Directors of the Eastern Chamber, confirmed that the Council of Ministers’ decision to extend the exemption for small establishments with a number of 9 workers or less will reflect positively on this type of establishments, pointing out that the financial compensation poses a real challenge to these establishments, which requires putting in place appropriate treatments. To help them overcome some of the obstacles that limit their growth, considering that small enterprises constitute a fundamental pillar in the structure of the national economy, which requires moving towards removing some of the challenges that prevent them from continuing to perform their commercial activity.
He stated that the decision carries with it the encouragement of full-time dedication for owners of establishments, by including the exemption for full-time owners of establishments, which reflects positively on their activities, especially since full-time dedication constitutes one of the basic factors in overcoming many challenges, pointing out that the failure of some establishments It is linked to the lack of full-time ownership of the owners, and therefore the requirement of full-time to include the financial compensation aims to reduce the exit of small commercial activities from the markets, considering at the same time that the financial compensation constitutes one factor among the many challenges facing establishments of all kinds, and small ones in particular, and thus The state is trying to remove one of the challenges with the aim of devoting itself to addressing the rest of the other challenges facing the establishments.
Saadoun bin Khalid Al-Khalidi, a former member of the Board of Directors of the Eastern Chamber, said that the Council of Ministers’ decision to extend the exemption for small establishments with a number of 9 workers or less reflects the leadership’s keenness to support small investors, stressing that the decision carries with it the desire and will of the state to advance the establishments sector. Small enterprises move forward and contribute to paving the way at a steady pace without obstacles, adding that the small enterprises sector is one of the most important pillars of the Kingdom’s Vision 2030, which requires taking all necessary measures to remove the various challenges that stand in the way of its growth.
He pointed out that exempting financial fees from small enterprises for a period of 3 years represents a golden opportunity for existing establishments in various economic activities, with the aim of moving towards development and growth with the cancellation of financial fees, especially since financial obligations are considered one of the biggest challenges facing small enterprises at the beginning of their journey, and thus Working to alleviate part of the financial burden helps in taking action and drawing appropriate strategies to continue the path of growth and expansion to increase its participation in the national economy.
It is noteworthy that the Ministry of Human Resources and Social Development clarified that the implementation of the Council of Ministers’ decision to extend the work to exempt small establishments with a total of nine workers or less, including the owner, from paying the financial compensation, for a period of 3 years, will be as follows:
Exemption for “2” expatriates working in the facility if its owner is full-time working there and registered with Social Insurance.
Exemption for “4” expatriates working in the facility if its owner is full-time working there and registered with Social Insurance, in addition to if at least one of the workers there (other than the owner) is a Saudi national and full-time working there and registered with Social Insurance. The maximum number that can be exempted is only “4” expatriates.
