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Article

The Role of Small Industries in Achieving Sustainable Development in Qassim Region (KSA)

by
Mohammed Aldagheiri
1,* and
Hadeel Alfawzan
2
1
Department of Geography, College of Languages and Humanities, Qassim University, Buraydah 52211, Saudi Arabia
2
Department of Infrastructure and Logistics Analyst, Ministry of Industry and Mineral Resources, Riyadh 12211, Saudi Arabia
*
Author to whom correspondence should be addressed.
Sustainability 2024, 16(16), 6754; https://doi.org/10.3390/su16166754
Submission received: 9 May 2024 / Revised: 3 July 2024 / Accepted: 11 July 2024 / Published: 7 August 2024
(This article belongs to the Section Sustainability in Geographic Science)

Abstract

:
Small industries are one of the most important pillars of sustainable development. Accordingly, many governments have supported the establishment and growth of small industries. In this respect, Saudi Arabia has taken great steps ahead to ensure the spread and growth of this important economic sector. This study sought to know the role of small industries in achieving sustainable development in Qassim (KSA). It used the historical, inductive and spatial analysis approaches. The population included all small industries in Qassim, and this study was applied to the entire study population, which resulted in 112 small industries. The findings revealed that small industries in Qassim have achieved sustainable economic and environmental development, yet they have failed to achieve sustainable social development. Thus, this study recommends that small industries in Qassim should increase the rate of national workforce so as to achieve sustainable social development.

1. Introduction

Small industries play a significant role in the growth and sustainability of the Saudi economy. This important sector has received much support from the Saudi government that realized its importance for achieving sustainable development at all levels. In this respect, Saudi Vision 2030 has significantly stressed the need to develop small industries as an important component of social, environmental and economic sustainable development. These types of industries spread in all regions of Saudi Arabia, including Qassim, which is located at the center of the Kingdom with a total area of 73,293 km2, equivalent to 3.41% of the total area of the country. The region’s elevation above sea level generally ranges between 700 and 800 m in the west and 550,650 m in the east. However, the mountain massif in the Arabian Shield range exceeds the height of 100 m and may reach about 1300 m [1].
This important region is known for having many small industries. Each industry has its own industrial system approved by the Ministry of Industry and Mineral Resources. The number of employees in each industry ranges from 6 to 49 workers with revenues amounting to SAR 3–40 million. Specifically, Qassim includes 112 small industries which employ 3352 workers. Their capital is SAR 500,997,826 million, with an annual revenue of SAR 770,009,545 million.
This research studies the relationship between small industries and sustainable development in Qassim. It is a geographical study that is carried out by discussing issues related to the dimensions of sustainable development and measuring the role of small industries in achieving them through global indicators of sustainable development. Twenty indicators were selected to address the economic, social and environmental dimensions of sustainable development for small industries.
The novelty of the topic is evident through being different from other studies in terms of its methodology, population and findings. For example, it differs from, a study applied to small industries in Iraq, highlighting the relationship between small industries and employment rates [2]. Additionally, a study investigated the role of Russian small industries in achieving sustainable development goals [3]. It was revealed that small industries significantly participate in achieving sustainable development. The current study is applied to all the small industries in Qassim, KSA, which has not been investigated by the previous studies. It is also unique with regard to attempting to reveal some of the obstacles to achieving the developmental dimensions of small industries.

Research Purpose

The current study aims at examining the role of small industries in achieving sustainable development in Qassim, KSA. It specifically aims at the following:
  • Highlighting the contribution of small industries in Qassim to achieving the economic dimension of sustainable development;
  • Identifying the contribution of small industries in Qassim to achieving the social dimension of sustainable development;
  • Highlighting the contribution of small industries in Qassim to achieving the environmental dimension of sustainable development.

2. Literature Review

The role of small industries in achieving sustainable economic, social and environmental development has caught the attention of many researchers from different countries. In this respect, a research examined the relationship between small industries and employment rates. The research stressed the importance of small industries in decreasing unemployment [2]. This point is supported by other research that evidently unveiled the potential of small industries in increasing the employment rates [3,4]. Additionally, these types of industries play a great and significant role in achieving the SDGs, especially the goals of Poverty Alleviation (Goal 1), Decent Work and Economic Growth (Goal 8) and Industry Innovation and Infrastructure (Goal 9) [3,4].
Significantly, recent studies revealed a decline in small industries’ activity towards the achievement of the SDGs. In this respect, a study examined the role of Russian small industries in achieving sustainable development goals [5]. The study concluded with suggesting that the Russian small industries significantly participate in achieving sustainable development. However, their role is limited as they require the attention of both governments and managers of those industries, who are urged to adopt plans which help in promoting the small industries’ activities. The study agrees with other research like [2,3,4] that revealed a strong link between small industries and employment rates.
Other researchers focused on the formation of new links between small industries and renewable energy that has a positive effect, which is represented in diversifying the country’s fuel and energy balance and reducing the negative anthropogenic impact on nature without increasing electricity prices for end consumers [6]. Significantly, the study aligns with [4,5], which found a link between small industries and social development. Apart from this, a research examined innovation with small industry players to create shared value in the experience of the COVID-19 period in Indonesia [7]. The research concluded with stressing that small industries can be a key impetus for economic growth and sustainable development. Moreover, they can become a decisive power in tackling climate change and promoting green thinking and sustainable awareness [8].
The presence of small industries is a crucial factor positively affecting the prosperity of the regions. In this regard, small business as a factor in sustainable rural development was the subject of a recent research [9]. The research revealed that small industries should be viewed as a factor of sustainable development of rural areas. This is consistent with other studies like [3,5,6,8]. In this respect, a research was carried out on village small industries [10]. The research stressed that small industries significantly help in achieving sustainable development. They are the fuel for rural and social development. This point makes the study similar to other previous studies like [4,5,8].
Another study intended to propose ways to support small business as a factor in the sustainable development of the Krasnoyarsk region districts [11]. It emphasized that small industries play a significant role in achieving sustainable development. This evidently matches the findings of [3,4,5,8,9]. Furthermore, a study investigated small business as a factor in the sustainable development of rural areas of the regions of Russia with the example of social service enterprises [12]. The research concluded with stressing the significant role played by the Russian small industries in achieving sustainable development in rural areas. The outcome of the research aligns with previous studies like [3,4,5,7,8]. Apart from this, the result of a recent research supports the creation of employment, the promotion of small industries within the waste sector and the role that such industries play in environmental responsibility [13]. Other researchers have stressed that small industries should focus on their social responsibility, which can be a tool to achieve sustainable development in small industries [14].
In a sense, sustainable development might be achieved by small industries with social responsibility, by innovative small industries run by innopreneurs that not only respect the 21 Agenda advices, but innovate in technologies that reduce the impact of ecological footprint or might regenerate natural resources [15].

3. Research Methods

3.1. Research Design

This study used the historical approach, which involves tracing the course of the phenomenon from a temporal perspective, in terms of the emergence and development of the phenomenon, and the factors that led to its development and emergence [16]. It is an appropriate approach for this type of research which deals with the role of small industries in sustainable development. This phenomenon is historical in nature, and it happens through a period of time as the very term ‘sustainable development’ suggests. In this study, the extent to which small industries achieved the dimensions of sustainable development in Qassim was tracked through various indicators during the period 2015 to 2019. The inductive approach was also used, as this approach was applied in analyzing indicators of sustainable development for small industries, and revealing the extent to which these indicators achieved their goal. Furthermore, the study used the spatial analysis approach to study spatial variations in sustainable development indicators in Qassim.
There are two types of data in this research: primary data and secondary data. The primary data are the statistics related to the small industries in Qassim, while the secondary data are represented in journal articles, books and theses that deal with similar phenomena. The first type is collected through referring to the publications of Saudi authorities of statistics, while the second type is collected through surveying the related journals and books.

3.2. Participants

This study selected all the small industries in Qassim, KSA. It was applied to the entire study population, which comprised 112 small industries. The comprehensive inventory method was used, as all small industries in Qassim were selected out of a total of 299 industries. The study population, according to the ISIC4 classification, consists of (16) industrial categories, namely: food products, textiles, wood, paper, printing, chemicals, pharmaceutical and plastic products, non-metallic mineral products, base metals, formed metals, electrical equipment, machinery, vehicles, furniture, electricity and gas. These very different productions, as shown in Table 1, produce different quantities of pollution, which indicates that they have different levels of sustainability. Therefore, the selection of all these productions is motivated by the need to highlight the way each production contributes to the sustainable development in Qassim, KSA. But it is urgent here to indicate that the focus of this research is not on all aspects of sustainable development, as each production may, to some extent, have different levels of sustainability. Rather, it is limited to investigating the contribution of small industries to achieving economic, social and environmentally sustainable development, as other levels of development which may be specific to each production cannot be covered in such a small-sized study. Thus, the selection of these different productions will significantly show how different productions can contribute to the three mentioned levels of sustainable development.

4. Results

4.1. Contribution of Small Industries to Achieving Sustainable Economic Sustainable Development

To measure the extent to which small industries contribute to achieving the economic goals of sustainable economic development, the following indicators are presented and analyzed.

4.2. Annual Growth Rate of Real GDP per Capita

It is argued that the annual growth rate of real GDP per capita of small industries is an indicator of sustainable development. This is evident through the increase in the employment rates associated with high growth rate of real GDP per capita. Evidently, ref. [16] found scientific evidence of this relationship, though it is limited to some SDGs, as the growth rate of real GDP per capita is the outcome of industrial activities that may cause pollution through carbon emissions. Significantly, the scientific way to prove the growth rate of real GDP per capita as an indicator of sustainable development is through the calculation of GDP on the basis of (the production method). This is due to its compatibility with the objectives of the study, which is the total monetary values of final goods and services produced within the local economy by the elements of production located within the geographical area during a specific period of time, not less than the first quarter of the year (3 months), and does not exceed one year, and is calculated between two consecutive years. It is also calculated in one of two ways: the value-added method or the final value of the commodity method. The study relied on the final value of the commodity in measuring this indicator because the value added to the GDP will be applied in another indicator.
After extracting the real GDP, the indicator (annual growth rate of real GDP per capita) was applied for the period (2015–2019). It is argued that this indicator achieves sustainable economic development in the region if it achieves at least 7% annually. This percentage of annual growth, which is set by the WHO as the minimum requirement and indicator of poverty reduction in the developing countries, is necessary for outpacing and alleviating poverty. The per capita total is a measure of the average standard of living of the population. A positive percentage change in real GDP per capita can be interpreted as an increase in the average standard of living of the population [18].
After applying the indicator, geographic statistical analysis was performed using (GIS) and the (Optimized Hot Spot Analysis) technique, so that it becomes obvious if the spatial groups of the indicator are groups of adjacent spatial units between which there is a positive spatial autocorrelation (Hot Spot), or if the contiguous spatial value extremes are locations where there is a negative spatial autocorrelation (Cold Spot). This means that the indicator has succeeded and has achieved sustainable economic development. But if the adjacent spatial units are (zero), it means the indicator has failed. It also indicates that it has not achieved sustainable economic development [19]. Table 1 and Table 2 show the nominal and real GDP and growth rate of real GDP per capita in small industries in [17].

4.3. Manufacturing Value Added

This indicator aims to promote inclusive and sustainable industrialization for all and achieve a significant increase in industry’s share of GDP by 2030. It provides manufacturing value added as a percentage of GDP and per capita. Table 3 shows the added value of small industries according to the order of the total value added in [17].

4.4. Percentage of Small Industries in the Total Value Added of Industries

This indicator reveals the increasing opportunities for small-sized industries to integrate into value-added chains and global markets. This is shown in Table 4.

4.5. Percentage of Small Industries That Have a Loan

Small industries have achieved sustainable economic development with this indicator if the value is positive as follows: (1–30) = stagnant (weak) achievement, (30–65) = moderate (moderate) achievement, and (65–100) complete achievement. However, if the value is negative or zero, it indicates the failure of the indicator, and small factories have not achieved sustainable economic development [18]. This is shown in Table 5.

4.6. Sustainable Transport

This indicator was calculated in the following way: the distance the worker traveled by annually compared to the type of transportation. The indicator will achieve sustainable economic development if workers’ movements are by mass transportation. A mass transit line must be provided for all movements exceeding 400 m, and the stop should be every 10 or 15 min near industries. Moreover, transportation must be by environmentally friendly means of transportation, such as electric buses, bicycles, or walking, and through an urban design that is compatible with the moderate use of energy resources so that it includes creating pedestrian, bus and bicycle paths, thus reducing the level of dependence on traditional energy sources.

4.7. Contribution of Small Industries to Achieving the Social Dimension of Sustainable Development

Among the important indicators associated with achieving social equality used in the study are two main indicators: “unemployment and income”. The role of small industries in this comes through raising the annual growth rate of Saudization in their factories, and their role as well in reducing the unemployment rate in the region in the process of nationalization and absorbing the workforce. Poverty is a very important indicator to measure social equality in the social dimension of sustainable development by checking whether small industries succeed in generating adequate income for their employees [21].
Evidently, Table 6 reveals that the correlation coefficient (x%–y%) in relation to Buraidah Province is −99.99, as the value of wages and salaries (r) is 23,149,161 (99.99%), while the number of workers (X) is 1377 (0.01%). This evidently reveals that the contribution of small industries in Qassim to employment rates is low. It is also revealed that the correlation coefficient (x%–y%) in relation to Alrass Province is −99.99, as the value of wages and salaries (r) is 15,985,905 (99.99%), while the number of workers (X) is 799 (0.00%). This indicates the failure of small industries in Qassim to absorb the national workforce.
Furthermore, the correlation coefficient (x%–y%) in relation to Unayzah Province is −99.99, as the value of wages and salaries (r) is 9,996,308 (99.99%), while the number of workers (X) is 605 (0.01%). This indicates the very low contribution of small industries in Qassim to the employment of Saudi workforce. Moreover, it is shown that the correlation coefficient (x%–y%) in relation to Al-Bada’I Province is −99.99, as the value of wages and salaries (r) is 7,582,080 (100%), while the number of workers (X) is 286 (0.00%). The correlation coefficient (x%–y%) in relation to Ryiadh Al-Khabara Province is −99.98, as the value of wages and salaries (r) is 1,627,535 (99.98%), while the number of workers (X) is 161 (0.01%). The correlation coefficient (x%–y%) in relation to Al-Bakiriya Province is −99.98, as the value of wages and salaries (r) is 1,069,892 (99.99%), while the number of workers (X) is 83 (0.01%). The correlation coefficient (x%–y%) in relation to Al-Asyah Province is −99.98, as the value of wages and salaries (r) is 600,000 (100%), while the number of workers (X) is 25 (0.00%). The correlation coefficient (x%–y%) in relation to Al-Muthannab Province is −99.99, as the value of wages and salaries (r) is 225,000 (99.99%), while the number of workers (X) is 15 (0.01%). These values evidently reveal the failure of small industries in Qassim to absorb the national workforce.
Therefore, the main factor that limits the contribution of small industries to achieving the social dimension of sustainable development in Qassim is represented in the failure of those industries to absorb the workforce and reduce the unemployment rate.

4.8. National Informal Employment in Small Industries

This indicator aims to encourage the formalization and growth of small industries in ways that enable them to access financial services. The role of small industries in formalizing the employment of national workers is shown in the results in Table 7.

4.9. Real GDP Per Working Person

This indicator aims to measure the efficiency of human capital in achieving higher levels of economic productivity through employment. It was calculated by dividing total employment by GDP at constant prices. There is also no classification required for the result of this indicator, except that the indicator has achieved social sustainable development if the value is positive, and it has failed if the value is negative [18]. This can be shown in Table 8.

4.10. Contribution of Small Industries to Achieving the Environmental Sustainable Environmental Development

Like other types of industries, small industries play vital role in the environmental sustainability [22]. They can either positively or negatively impact the environmental development of any nation. One aspect of enhancing their contribution to environmentally sustainable development is through supporting green entrepreneurial orientation for enhancing SMEs financial and environmental performance [21,23]. Therefore, this subsection focuses on three environmental issues compatible with small industries in Qassim. First: the land issue represented by the physical impact of mining resources, the environmental impact or ecological impact of industrial spaces, the relationship of population growth to the amount of consumption of natural resources, and renewable energy in terms of quantity of fossil fuel consumption with traditional energy. Second: The issue of fresh water, represented by the physical impact of water resources. Third: The issue of the atmosphere represented by renewable energy and liquid, solid and gaseous environmental pollution. This study also attempted to discuss the basic indicators related to the three issues in terms of identifying the physical effect, per capita and gross domestic product, measuring the pressure exerted by humans on industrial spaces, revealing the relationship between population growth and sustainable development, and identifying the extent of separation of traditional (depleted) energy emissions. On the consumption of nature in terms of subtracting renewable energy from traditional energy, revealing the amount of small industries’ annual withdrawal from ground and surface water, methods for small industries to dispose of environmentally solid waste, and identifying the quantity and quality of environmentally polluting gaseous waste issued by small factories. These issues can be analyzed through indicators, as in the following part.

4.11. Material Impact

The physical resources in Qassim are divided into mining resources and hydrological resources. Thus, the study applied the physical impact indicators of mining resources and water resources on small industries in Qassim. The results of the indicators were as follows:
A.
The physical impact of mining resources
Qassim is divided geologically into two different parts: the western part and the eastern part. Mining development in Qassim is limited to the non-metallic and metallic minerals sector, and includes salt, kaolin, gypsum, basal underground rocks, and marble. These deposits are the basis for current industries in the field of cement, tiles, silica sand, clay products, dolomite, and bauxite used in the aluminum industry [21]. The extent to which small industries exploit mining resources in Qassim can be presented through a chronological sequence as in Table 9.
The results revealed that the small industries’ material effect per GDP for the year 2015 is −1.430. Moreover, their material effect for the years 2016, 2017, 2018 and 2019 are −1.561, −1.578, −1.243 and −1.204, respectively. Moreover, the material effect of small industries in Qassim records −8,018,760, −9,775,152, −10,577,669, −9,295,223, −9,271,081, for the years 2015, 2016, 2017, 2018 and 2019, respectively. These negative values indicate that the small industries in Qassim have succeeded in keeping their polluting effect below the 0.01 level. Therefore, they potentially participated in the environmental sustainability in Qassim.
B.
The physical impact of water resources
The Kingdom of Saudi Arabia is geologically divided into two main parts: the Arabian Shield, which occupies (27%) of the area of the Kingdom of Saudi Arabia, and the Arabian Shelf (sedimentary formation), which occupies (73%) of the area and consists of sand and calcareous rocks with pores whose properties include water storage in Qassim. One of the most important hydrological characteristics in the region is the presence of major water-bearing layers and secondary water-bearing layers that often form valley paths in the region [23], as is evident through the digital elevation model (DEM), in which the hydrological layers of resource paths appear to measure the consumption of water by small industries in the region. The demand for water from small factories was measured, and the extent to which wells were exposed to the risk of a water shortage was detected. The index was calculated in the following way: (percentage of total well production m3/year) to (the percentage of the total annual withdrawal of small factories from well water, m3/year), and the indicator has achieved environmentally sustainable development when it does not exceed the safe rates of withdrawal known internationally, which do not exceed (20%) of the available water. The result of the analysis is shown in Table 10.

4.12. Environmental Impact

This indicator aims to identify the productive space necessary for a given society to meet its resource consumption requirements. It measures the pressure exerted by humans on nature [23,25]. It was calculated in the following way: the unit of measurement is the cubic meter, and the average ecological footprint of each individual can be obtained by dividing the area of industrial land by the number of residents. The result is calculated as follows: (0.01–3 = weak positive), (3–6 = moderate positive), (6–12 = strong positive) and is calculated in the same way if the result is negative [24]. The indicator result can be revealed when tracking the analysis result, as shown in Table 11.

4.13. The Relationship between Population Growth and Consumption of Natural Resources

This indicator was calculated in the following way: dividing the consumption of natural resources by small industries by the population, and the percentages are collected in the last field of the table and divided by the number of governorates to obtain the average percentage of industrial growth in resource consumption. This percentage is taken as a measure to identify consumption trends between governorates [26]. The indicator is believed to have achieved environmentally sustainable development if it fulfills the condition that the rate of natural resources does not lag behind the rate of population growth (meaning that the total rate of natural resources is equal to the rate of population growth). However, if the growth rate of natural resources lags behind the population growth rate, the indicator has not achieved environmentally sustainable development [27]. The industrial growth factor method was adapted to measure this environmental indicator, which is useful in determining the development of small industries’ consumption of natural resources over two periods of time, and identifying the degree of the relationship between increasing population and increasing consumption from 2015 to 2019. Geographical analysis was also performed using the Moran’s I correlation coefficient between resource consumption and population, so that if the Moran’s value becomes as follows: positive = direct correlation, negative = inverse correlation, close to (+1) = agglomeration, close to (−1) = spread, close to (zero) = random.

4.14. Environmental Pollution

Environmental pollution caused by small industries in Qassim has three basic forms: water pollution, soil pollution and air pollution. This result is consistent with [21,22,28], which evidently emphasized that small industries can cause environmental pollution. This study reveals that there are also three types of polluting waste for the main sections: liquid waste, solid waste and gaseous waste. It is discussed in the following sections.
  • Liquid industrial waste
Considering small industries in Qassim and the degree of the impact of their liquid waste on water and soil, it became clear through the field study [29] that groundwater and soil in Qassim were not affected by the liquid waste resulting from the industrial operations of small industries in Qassim region. The reason for this is that the provincial municipalities require each factory to establish sanitation rooms, to which the factory’s liquid waste is transferred. After that, these wastes are at the disposal of the municipality and are treated by the municipality.
2.
Solid industrial waste
This indicator aims to identify the methods used in Qassim to dispose of solid industrial waste for small industries and the percentage of each method. It was calculated in the following way: quantity of solid waste by disposal method ÷ total waste × 100. So, if the percentage of disposal method by recycling increases, the success of the indicator means achieving environmentally sustainable development. However, if the percentage of backfilling or burning using safe methods increases under the supervision of government agencies, then the indicator will have achieved moderate environmentally sustainable development. In this case, it is a failure to achieve environmentally sustainable development if the percentage of disposal method by filling or burning increases without government supervision and in unsafe methods [30]. The General Authority for Statistics analyzed eight years to calculate this indicator. Therefore, the study counted the quantities of industrial waste and methods of disposal during the period from 2012 to 2019 to reveal the extent to which small industries achieved environmentally sustainable development through this indicator in Qassim.

4.15. Gaseous Industrial Waste

The impact of gaseous waste issued by small industries in Qassim can be measured through the industrial projects classification index to assess environmental impacts and the air quality index.
The first indicator: industrial projects classification guide to assess invasive environmental impacts. This indicator is based on classifying industrial projects of various types based on the level of impacts expected from these projects and is divided into three categorical indicators. It aims to evaluate the nature and volume of industrial activity and the quality of energy used. It consists of the first category indicator; it is on factories with limited environmental impacts and includes factories from which no tangible negative impacts are expected. The second category index is that it stipulates factories with significant environmental impacts and includes factories that can or are expected to cause some important environmental impacts that may require the preparation of a specific environmental assessment report related to specific environmental or technical particles. The third category indicator is that it involves factories with hazardous environmental impacts, which are projects that, when operated or constructed, are expected to have severe negative impacts on humans and the environment, which requires preparing a comprehensive study to evaluate their environmental impacts.
The second indicator: air quality. The air quality index is a simplified way to define the state of air quality and is based on data received from air quality monitoring and control stations. Concentrations of pollutants are converted into simple numbers that the general public can understand and shown in the form of specific colors. The index aims to improve infrastructure and modern industries to make them sustainable, while increasing the adoption of clean and environmentally sound technologies in industrial processes. The index stipulates that the air quality index measures the following major air pollutants: ground-level ozone O3, nitrogen dioxide NO2, carbon monoxide CO, dust particles PM 2.5, dust particles PM 10 and sulfur dioxide SO2 [31]. The main pollutants and their environmental measurement and calculation guide were expressed. The study also submitted a report on small factories producing in the Qassim region to the General Presidency of Meteorology and Environmental Protection, with the aim of obtaining all data on gaseous pollutants released by them to measure the indicator. All types and quantities of gaseous waste issued by small factories for the year (2019) were obtained as in the Table 10 [24] noting that the Meteorological and Environmental Protection Authority indicated in the study that the amount of gaseous waste issued by each small factory is almost constant annually or changes slightly and does not change significantly. It was also identified through the field study (2019) about the extent of small factories’ commitment to placing purification filters inside the factory. It was also known about the extent to which factories maintain the purity of the air surrounding the factory [32].
Generally, the study applied [20] sustainable development indicators to small industries in Qassim to reveal their role in achieving the three dimensions of sustainable development (economic, social, environmental). It found (five indicators) successful, while (fifteen goals) ranged between failure, average achievement of the goal and stagnation, due to several obstacles. The annual growth rate of real GDP per capita proved the failure of small industries in Qassim to achieve sustainable economic development, as the indicator result did not rise above (7%) during the years of the tenth plan. The “Optimized Hot Spot Analysis” technique used to measure the spatio-temporal analysis of the annual growth rate of real GDP per capita for small industries for the period (2015–2019) in the Qassim region demonstrated that the indicator failed to achieve sustainable economic development in all governorates of the Qassim region in which there are small factories.
The obstacle of shrinking purchasing power ranked first among the obstacles facing small industries in the region, at a rate of (22.80%). Additionally, the weak real GDP of small industries has led to a decline in their contribution to the GDP. The manufacturing value added index as a percentage of gross domestic product and per capita proved that small industries in Qassim failed to achieve sustainable economic development with this index, as the performance evidence or index result appeared negative (6.84%).
The per capita share of manufacturing value added in small industries recorded a negative result (4.59). This value shows that the per capita in the Qassim region did not have its share of manufacturing value added in small industries.
Geostatistical analysis of the index (ratio of manufacturing value added to gross domestic product) demonstrated the trend in the variance index at the variance point (−127), which means the indicator failed.
Small industries in the Qassim region face the obstacle of shrinking purchasing power, and this obstacle ranked first at a rate of (22.80%). Moreover, the obstacle of contraction in purchasing power led to the failure of the annual growth rate indicator of real GDP per capita, which reached (0.049%). It also led to a loss in annual profit (value added).
The manufacturing value added index as a percentage of GDP proved that small industries in the Qassim region failed to achieve sustainable economic development with this index, as the index result appeared negative (6.84%). The indicator of the percentage of value added by small industries out of the total value added by industries in the Qassim region recorded a negative result of (0.50%). This indicates the failure of small industries to achieve economic sustainability through value added in the Qassim region and the weak opportunity for small industries in the Qassim region to integrate into value added by chains and global markets.
The obstacle (high total financing costs and low return on capital) is due to the high value of machinery and equipment, the value of cars and means of transportation, the value of raw materials and the value of fuel. The indicator of the government’s ability to provide a good infrastructure base in water, electricity, communications, a good road network for the client and work environments recorded the highest factor with an average score of (0.11). Thus, the indicator achieved sustainable economic development.
The increase in access opportunities for small industries in the Qassim region to financial services and affordable loans reached (8.92%). It is clear that the indicator achieved weak economic development, which shows that small industries in the Qassim region did not receive much attention from the government in terms of financial services and affordable loans.
Small industries have achieved sustainable economic development through sustainable transportation in all governorates of the Qassim region where there are small factories. They did not achieve the national indicator in contributing to reducing unemployment and raising the Saudization rate, as the result appeared negative. They also failed to raise income levels. Therefore, small industries did not achieve sustainable social development in Qassim.
The reason for the failure of small industries to achieve sustainable social development is through the national index (reducing the unemployment rate from 11.6%–7%). Their failure to raise the rate of Saudization and raise income levels is due to the labor shortage, as this problem is considered a major obstacle to small factories. The industrial correlation coefficient between labor and wages is a weak inverse of (−0.21), due to the rise in wages that is not proportional to the size of the workforce. This led to a decrease in the income level of the Saudi worker below SAR (36) thousand annually. It also led to the failure of small industries to achieve sustainable social development through the national indicator “reducing the unemployment rate from (11.6%) to (7%)”.
Small industries did not achieve the social dimension in the result of this indicator, and they did not commit to formalization in employing national workers except by a weak rate of (13%).
The result of the indicator of the percentage of workers who live on less than USD 1.90 per working person per day shows that small industries have not achieved sustainable social development in Qassim. Additionally, small industries in the Qassim region failed to achieve sustainable social development and absorb the workforce from the industrial sector in the Qassim region and obtained (11.66%) in the result of the indicator of industrial employment in small industries as a percentage of total employment.
The indicator of the annual growth rate of real gross domestic product per working person demonstrated the success of small industries in Qassim in achieving sustainable social development with a positive result. Moreover, the material impact on small industries did not record any positive value. Thus, the material impact of small industries in Qassim did not achieve sustainable environmental development.

5. Conclusions

This study has examined the contribution of small industries in Qassim to sustainable development. The focus has been made on their contribution to social and environmentally sustainable development. The analysis of social sustainability has been enriched. Additionally, the contribution of small industries to environmental sustainability has been discussed. Significantly, it has been revealed that small industries in Qassim succeeded in achieving the environmentally sustainable development index (annual withdrawal of small industries from ground and surface water as a percentage of the total available water), and they achieved a percentage of (3.70%) of the amount of annual water consumption from wells in the Qassim region. It became clear from the geographical distribution of small industries in Qassim that water is a major factor in the process of industrial settlement of small industries there, as small industries relied for their industrial settlement on the network of ground and surface water resources in Qassim. Significantly, small industries in Qassim have achieved sustainable economic and environmental development, yet they have failed to achieve sustainable social development.

6. Recommendations

The study recommends the following:
  • Small industries in Qassim should increase the rate of national workforce so as to achieve sustainable social development;
  • Small industries in Qassim should conduct intensive training programs to their workforce, specifically to increase their awareness of environmental problems and the effective ways to deal with them;
  • Small industries in Qassim should provide incentives for local hiring so that they effectively participate in reducing unemployment rates;
  • Small industries in Qassim should make improvements in labor conditions so that they can attract more national workforce.

Author Contributions

Methodology, M.A.; validation, H.A.; formal analysis, M.A.; data curation, H.A.; writing—original draft, M.A.; writing—review and editing, H.A.; project administration, H.A. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

The data that support the findings of this study are available from the corresponding author upon reasonable request.

Acknowledgments

Firstly, the researchers would like to thank the Deanship of Graduate Studies and Scientific Research at Qassim University for financial support (QU-APC-2024-9/1). Secondly, the researchers would like to express cordial thanks to Department of Geography at Qassim University for providing the opportunity to conduct this research.

Conflicts of Interest

The authors declare no conflicts of interest.

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Table 1. Annual growth rate of real GDP per capita in small industries in Qassim, 2019.
Table 1. Annual growth rate of real GDP per capita in small industries in Qassim, 2019.
YearReal GDP per Capita in USDReal GDP in USDReal GDP in Saudi Riyal (SAR)PopulationIndicator Result
2015109149,484,581.18560,584,9781,366,9380.0496
2016228317,888,618.451,192,120,1691,389,9290.049
2017229326,251,981.441,223,483,7761,423,9350.049
2018224327,485,289.211,228,108,8271,455,6930.049
2019220327,662,817.441,228,774,5791,488,2850.049
Source: The researchers, based on data from Table 1 and the General Authority for Statistics [17].
Table 2. Nominal and real GDP of small industries in Qassim, 2019.
Table 2. Nominal and real GDP of small industries in Qassim, 2019.
Production
Quantity
Nominal
GDP in
SAR
Nominal
GDP
Base Year Prices (Fixed Price) in SARReal GDP in
SAR
Market Price
in SAR
201536,250,358560,584,978560,584,97815.46426046560,584,97815.46426046
201677,088,728626,144,278626,144,27815.464260461,192,120,1698.122384352
201779,116,863670,187,545670,187,54515.464260461,223,483,7768.470855891
201879,415,943747,297,545747,297,54515.46,4260461,228,108,8279.409918422
201979,458,994770,009,545770,009,54515.464260461,228,774,5799.690653081
Source: The researchers, based on the Ministry of Industry and Mineral Resources, 2019 and the field study, 2019 [20].
Table 3. The added value of small industries according to the order of the total value added in Qassim, 2019.
Table 3. The added value of small industries according to the order of the total value added in Qassim, 2019.
ProvincesAnnual Revenues (Production Value at Selling Price) Value in Million SAROperating Expenses (Value in Million SAR)Added Value (Value in Million SAR)
Al-Bada’i83,592,59161,813,13921,779,452
Alrass254,075,100233,769,86920,305,248
Riyadh Al-Khabara19,049,40015,686,9683,362,432
Al-Bakiriya11,208,00010,045,0971,162,904
Al-Asyah3,680,0003,107,684572,316
Buraidah286,740,367343,935,140−56,420,864
Almuthannab5,000,00035,990,599−30,990,599
Unayzah106,664,087119,130,343−12,465,582
Total770,009,545823,478,839−52,694,693
Source: The researchers based on the Ministry of Industry and Mineral Resources, (2019) and the field study, (2019) [20].
Table 4. Small-scale industries index of the total value added by industries in Qassim, 2019.
Table 4. Small-scale industries index of the total value added by industries in Qassim, 2019.
ProvincesManufacturing Value Added from Small IndustriesTotal Manufacturing Value AddedResult
Buraidah−56,420,8647,816,803,778−0.72%
Alrass20,305,248228,821,7168.87%
Unayzah−12,465,582347,210,054−3.59%
Al-Bada’I21,779,4521,865,894,3241.16%
Riyadh Al-Khabara3,362,43214,075,08423.88%
Al-Bakiriya1,162,90423,521,6164.94%
Al-Asyah572,31615,438,0003.70%
Almuthannab−30,990,5993,861,565−802%
Nabhaniyya02,147,5160%
Aqlat Al-Saqour02,364,1950%
Oyoun Al-Jawa040,991,3700%
Al-Shamsiyah0488,7500%
Dharia000
Total52,694,69310,361,617,970−0.50
Source: The researchers, based on the Ministry of Industry and Mineral Resources (2019) and the field study (2019) [20].
Table 5. The percentage of small-scale industries that have a loan in Qassim, 2019.
Table 5. The percentage of small-scale industries that have a loan in Qassim, 2019.
ProvincesNumber of Small IndustriesSmall Industries with LoansResult
Buraidah45511.11
Alrass2800
Unayzah19315.78
Al-Bada’I9111.11
Riyadh Al-Khabara 6 1 16.66
Al-Bakiriya 3 0 0
Al-Asyah 1 0 0
Almuthannab 1 0 0
Total 112 10 8.92
Source: The researchers, based on the Ministry of Industry and Mineral Resources (2019) and the field study (2019) [20].
Table 6. Industrial correlation coefficient between employment and salaries according to employment ranking in Qassim, 2019 [20].
Table 6. Industrial correlation coefficient between employment and salaries according to employment ranking in Qassim, 2019 [20].
ProvincesAnalysis of Industrial Correlation Coefficient (x%–y%)Wages and Salaries (r)Number of Workers (X)
Buraidah 23,149,1611377
% −99.9999.99%0.01%
Alrass 15,985,905799
% −99.9999.99%0.00%
Unayzah 9,996,308605
% −99.9999.99%0.01%
Al-Bada’I 7,582,080286
% −99.99100%0.00%
Ryiadh Al-Khabara 1,627,535161
% −99.9899.98%0.01%
Al-Bakiriya 1,069,89283
% −99.9899.99%0.01%
Al-Asyah 600,00025
% −99.99100%0.00%
Al-Muthannab 225,00015
%Total−99.9999.99%0.01%
Source: The researchers, based on the Ministry of Industry and Mineral Resources (2019) and the field study (2019) [20].
Table 7. National informal workers in non-agricultural activities in small industries in Qassim, 2019.
Table 7. National informal workers in non-agricultural activities in small industries in Qassim, 2019.
Industrial Activity According to ISIC4 ClassificationInformal National EmploymentFormal National EmploymentTotal Workers (National + Foreigner)Result
10—Manufacture of food products.711456612.54%
13—Manufacture of textiles.70808.75%
16—Wood making00450%
17—Paper making.24816314.72%
18-Printing.1103036.66%
20—Manufacture of chemicals.804020%
21—Manufacture of pharmaceutical products.383010%
22—Manufacture of plastic products413431912.85%
23—Manufacture of other non-metallic mineral products.19249129114.87%
24—Manufacture of basic metals.17012413.70%
25—Manufacture of formed metal products, excluding machinery and equipment.8193482.29%
27—Manufacture of electrical equipment.925018%
28Manufacture of machinery and equipment not classified elsewhere.1939021.11%
29—Manufacture of trailer and semi-trailer motor vehicles.60669.09%
31—Furniture makers.1527021.42%
35—Connecting electricity, gas, steam and air conditioning.924022.50%
Total440141335213.12%
Source: The researchers based on the Ministry of Industry and Mineral Resources (2019) and the field study (2019) [20].
Table 8. Annual growth of real GDP per worker in small industries in Qassim, 2019.
Table 8. Annual growth of real GDP per worker in small industries in Qassim, 2019.
YearTotal WorkersReal GDP at Constant Prices in SARResult
20152357560,584,9784.20
201627121,192,120,1692.27
201730521,223,483,7762.49
201832071,228,108,8272.61
201933521,228,774,5792.72
Source: The researchers, based on the Ministry of Industry and Mineral Resources (2019) and the field study (2019) [20].
Table 9. Annual growth of the physical effect index, the per capita physical effect, and the gross domestic product’s share of the physical effect in small industries in Qassim (2019).
Table 9. Annual growth of the physical effect index, the per capita physical effect, and the gross domestic product’s share of the physical effect in small industries in Qassim (2019).
YearsMaterial Effect per GDPThe Physical Footprint of Each IndividualMaterial EffectDirect ExportsLocal ExtractionDirect Imports
2015−1.430−5.866−8,018,76045,095,71623,424,97713,651,979
2016−1.561−7.032−9,775,15247,592,96023,987,07913,830,729
2017−1.578−7.428−10,577,66948,608,62224,080,89313,950,060
2018−1.243−6.385−9,295,22348,768,62224,206,59315,266,806
2019−1.204−6.229−9,271,08148,768,62224,207,72515,289,816
Source: The researchers, based on the Ministry of Industry and Mineral Resources (2019) and the field study (2019) [20].
Table 10. Small industries’ annual consumption from ground and surface water as a percentage of the total available water in Qassim, 2019.
Table 10. Small industries’ annual consumption from ground and surface water as a percentage of the total available water in Qassim, 2019.
ProvincesResultThe Annual Withdrawal of Small Factories from Well Water Is m3/yearTotal Well Production m3/YearTotal Well Production m3/DayFactory SpecificNumber of Wells
Public
Buraidah02.33%260,18410,904,96334,078.011234
Alrass036.85%296,100507,3601585.5280
Unayzah16.75%131,513H6536002042.542
Al-Bada’I45.91%138,437163,080509.6290
Ryiadh Al-Khabara7.37%29,300368,488981.6514
Al-Bakiriya0.14%24001,667,814.45211.92 6
Al-Asyah0.24%50002,092,0326537.603
Al-Muthannab0.01%1002,524,2407888.25010
Nabhaniyya00781,606.42442.52011
Aqlat Al-Saqour00217,92068101
Oyoun Al-Jawa002,832,960885307
Al-Shamsiyah000000
Dharia00180,147.2562.9601
Total3.63%863,03422,894,21171,374.535479
Source: The researchers, based on the Ministry of Environment, Water and Agriculture (2019) and the field study (2019) [24].
Table 11. The average ecological footprint.
Table 11. The average ecological footprint.
ProvincesNumber of PopulationIndustrial Area in Thousand m2Result
Buraidah724,944779,5421.07
Alrass134,094354,6162.64
Unayzah203,151743,2923.65
Al-Bada’I70,396459,0736.52
Ryiadh Al-Khabara30,361105,1373.46
Al-Bakiriya71,43839,7070.55
Al-Asyah47,327330,0016.97
Al-Muthannab53,57897600.18
Total1,335,2892,821,1282.11
Source: The researchers, based on the Ministry of Industry and Mineral Resource (2019) [20], the General Authority for Statistics (2019) [17] and the field study (2019).
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Aldagheiri, M.; Alfawzan, H. The Role of Small Industries in Achieving Sustainable Development in Qassim Region (KSA). Sustainability 2024, 16, 6754. https://doi.org/10.3390/su16166754

AMA Style

Aldagheiri M, Alfawzan H. The Role of Small Industries in Achieving Sustainable Development in Qassim Region (KSA). Sustainability. 2024; 16(16):6754. https://doi.org/10.3390/su16166754

Chicago/Turabian Style

Aldagheiri, Mohammed, and Hadeel Alfawzan. 2024. "The Role of Small Industries in Achieving Sustainable Development in Qassim Region (KSA)" Sustainability 16, no. 16: 6754. https://doi.org/10.3390/su16166754

APA Style

Aldagheiri, M., & Alfawzan, H. (2024). The Role of Small Industries in Achieving Sustainable Development in Qassim Region (KSA). Sustainability, 16(16), 6754. https://doi.org/10.3390/su16166754

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