Women Entrepreneurs in Middle East

For many years in the Middle East, the harsh weather, the oil wealth, male dominance of the public space, as well as a traditional patriarchal society made it difficult—or unnecessary—for women to enter the business world. But some were able to break through and thrive in that sector. Arab Women Entrepreneurs have always existed, long before the term became a buzzword.



They were, however, considered outliers.
In the past 10 years, there has been much change. There has been a perfect storm that has led to increased numbers of female entrepreneurs in the Middle East: increasing numbers of educated women, rising unemployment for both genders resulting in economic hardships, and growing media attention focused on social enterprises from around the world. Women who could not find jobs in the private or public sectors, women who could not re-enter the work force after taking time off to raise their kids, women who wanted to become their own bosses, and women who loved creating new business all started thinking of entrepreneurship as a viable alternative to job security.

Barriers to Employment Are Spurring Entrepreneurship

Let us not kid ourselves, however; barriers to a woman’s meaningful participation in socio-economic and public life still exist. Women in the Middle East still suffer from a lack of opportunities, pay inequality, and a low glass ceiling. At 26 percent, women in the Middle East have the lowest rates of female work participation in the world, which averages 52 percent. Stories in which lawyers and MBAs were forced to work as teachers or bank tellers are not difficult to find in certain countries.
The silver lining is that these hurdles may have led more women to start their own entrepreneurship projects.
These projects are still mostly concentrated in the service industry and the production sector, often including products such as garments and food, which are seen as lower value-added sectors than, for example, tech, petrochemicals or construction. Recently, however, we have seen more and more women developing innovative ideas for starting social businesses and more women jostling for opportunities against their male counterparts at pitching events.
For example, Supermama and Trochet are two innovative social enterprises that aim at different sectors. Supermama, an Egyptian startup, aims to provide valuable information and budget and health management tools for new mothers. Trochet, based in Saudi Arabia and the winner of many accolades, (including best Arab startup awards from Harvard and MIT) helps disabled women find jobs, while also helping the environment by “upcycling” plastic bags that the women turn into various furnishing items. As more opportunities and sectors open up, more women are venturing out to take risks and to prove that their non-traditional ideas are worth investing in.
Access to Funding Remains a Key Barrier for Women Entrepreneurs
The problem facing most women, however, is funding.
Both genders face many challenges in launching new enterprises. The business environment in the Middle East is fiercely competitive and has very limited resources. Unlike other regions, funding opportunities—whether through banks or government funds—are extremely scarce for startups. The eco-system has not developed enough to enable a willingness to understand and embrace new business models. As a result, funding remains a tremendous barrier for new and innovative ventures.
Social businesses, in particular, struggle to be understood by potential funders. Many funders feel that if the main purpose of an organization is social good, then the enterprise should be an NGO or a charitable organization rather than a business. Mindsets are slowly coming around to the idea of combing the two—the idea that a business can achieve both social good and remain profitable—but we are still a long way from this becoming the norm.
For women working in this space, there is an additional problem. Studies have shown that around the world, men tend to secure funding during pitching events more often than women. Patriarchal viewpoints are pervasive in the business world, where people often perceive men to be more credible.
One viable solution for boosting women’s entrepreneurship in the Middle East is to enable women to gain special access to women-only funding. While this might be seen as a type of reverse discrimination, it is a solution that would help to level the playing field, by enabling women to compete against each other for funding rather than men. This would also help smooth the transition for women entrepreneurs into the business world and give them the opportunity to prove the financial success of their businesses and social enterprise models. A women-specific pool of funding would deliver a strong push for more women to explore ideas beyond the “traditional” sectors of fashion and food, to innovate, and to take calculated risks.
The possibilities are limitless—as are the potential rewards for women, their families, and societies as a whole. Let’s give women in the Middle East a fighting chance.


IMG_8025 (Photo credit: Holding Steady)

Muna Abusulayman is a thought leader for Women Powering Work, an initiative launched by Ashoka Changemakers and General Electric. Learn more about the work our social innovators right here.