Saudi Electronic University College of Administrative and Financial Sciences

MGT402: Entrepreneurship and Small Business Management Assignment 4 – Sources of Finance and Financial Planning for Small Businesses Spring Semester 2025-2026 (2nd Semester)

Due Date: 5 May 2026 @ 23:59 Total Marks: 10 Assignment Type: Individual

General Instructions Submit your work on Blackboard only, in WORD format, through the allocated folder. Email submissions will not be accepted. Present your answers clearly so the reader follows each step without confusion. Use Times New Roman, size 12, double-spaced. Include a cover page with your name, ID, course code and CRN. Late submissions receive zero marks. All work must remain original; plagiarism results in zero. Reference sources in APA 7th edition style.

Learning Outcomes Students complete this task to achieve the following:

1. Explain different sources of finance available to small businesses in Saudi Arabia.
2. Prepare basic financial plans that support start-up growth and sustainability.

Assignment Task Select one small business idea that operates in Saudi Arabia. Prepare a financial plan that identifies suitable funding sources and includes simple projections for the first year of operation. Base your choices on real options available under Vision 2030 initiatives.

Part 1: Sources of Finance (3 Marks) List three realistic sources of finance for your chosen business. Give reasons for each source and explain why it suits the Saudi market.

Part 2: Financial Planning (5 Marks) Show a basic projected income statement or cash flow summary for the first twelve months. Describe two ways you will monitor expenses and reduce financial risks.

Part 3: Overall Benefits (2 Marks) Summarise how strong financial planning improves long-term success for small businesses in the Kingdom.

Your total submission should stay between 800 and 1,000 words. Support every point with evidence from your research and at least two academic sources.

Submission Requirements & Marking Rubric

Sample Response Excerpt A small organic farm near Al-Kharj chose personal savings for the first 30 percent of costs and applied for a government-backed loan through the Small and Medium Enterprises General Authority. Owners also used crowdfunding on local platforms to cover equipment purchases. They prepared monthly cash flow tables that tracked sales from farm produce and subscription boxes. Regular reviews helped them cut unnecessary transport costs and keep debt levels low. These steps gave the business steady cash flow during the first harvest season.

Financial literacy improves access to finance and supports sustainability for many Saudi small firms.

References

Alshammari, S. (2024). Financial literacy in Saudi Arabian MSMES: Insights from Islamic banks’ customers. Investment Management and Financial Innovations, 21(4), 25–34. https://doi.org/10.21511/imfi.21(4).2024.03

Masdupi, E., Imran, M., & Sintya, R. (2025). Financial literacy and sustainability of SMEs: The mediating and moderating effect of entrepreneurial financing choice, risk-taking and social capital. Management & Sustainability: An Arab Review. https://doi.org/10.1108/MSAR-01-2025-0003

Alshagawi, M. (2024). The impact of strategic entrepreneurship and entrepreneurial marketing, entrepreneurship values on small and medium enterprises’ performance: Evidence from Saudi Arabia. Cogent Business & Management, 11(1), Article 2316947. https://doi.org/10.1080/23311975.2024.2316947

Bilal, M., Alawadh, A., Rafi, N., & Akhtar, S. (2024). Analyzing the impact of Vision 2030’s economic reforms on Saudi Arabia’s consumer price index. Sustainability, 16(21), Article 9163. https://doi.org/10.3390/su16219163