For many years in MENA, the harsh weather, the oil wealth, male dominance of the public space, as well as a traditional patriarchal society made it difficult—if not 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 considered outliers. In the past 10 years, there has been much change. A perfect storm has led to increased numbers of female entrepreneurs in MENA: greater numbers of educated women, rising unemployment for both genders, and growing media attention 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 widespread job insecurity. Barriers to Employment Are Spurring Entrepreneurship: Let us not kid ourselves, however; there are still barriers to a woman’s meaningful participation in socio-economic and public life that need to be overcome. Women in MENA continue to suffer from a lack of opportunities, pay inequality, and a low glass ceiling. At 26 percent, women in MENA have the lowest rates of female work participation in the world, which averages 52 percent. Stories of women with JDs and MBAs forced to work as teachers or bank tellers are not difficult to find in certain countries. But there has been a silver lining to these hurdles: they have inspired many more women to start their own entrepreneurship projects. These projects are still mostly concentrated in services and production sectors, such as garment or food making, which continue to be 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. The problem facing most women, however, is funding. Both genders face many challenges in launching new enterprises. The business environment in MENA is fiercely competitive and has been constrained by limited financial 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 have greater success in securing funding during pitch events than their female counterparts. Patriarchal biases are pervasive in the business world, where people often perceive men to be more credible. One viable solution for boosting women’s entrepreneurship in MENA is to enable women to gain special access to “women only” funds. While this might be seen as a type of reverse discrimination, it is a solution that would help to level the playing field, 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 MENA a fighting chance.
