Women Entrepreneurs in the Arab Region The overthrow of authoritative regimes, who had denied their citizens political,

social and economic freedoms, has sparked intense activities in many Arab countries with the purpose of developing political mechanisms that will foster long-term economic development. Economic development is an essential element for the stability of a fragile state. Certainly, the state of Arab countries after the revolution has been far from stable. And according to Gayle Tzemach Lemmon, promoting entrepreneurship in vulnerable economies, especially small and medium enterprises (SMEs), contributes to a more durable and stable economic growth.i SME owners in vulnerable zones face a number of obstacles, regardless of their gender, however women tend to experience these challenges more acutely. In the wake of the Arab uprisings, questions have arisen about the space Arab women will be allowed in the economic and political domains. Arab women played a major role in these popular movements, therefore their participation in the aftermath is essential to help build more stable economies. In fact, a growing body of research show that allowing economic opportunities for women leads not only to peace and stability but also contributes to the economic growth of a country. Challenges facing Arab women According to the recent Gallup poll, only 32% of Arab women (ages 23-29) participate in workforce, the lowest rate of any region.ii High unemployment rates are one reason why a wide gender gap persists in workforce. When unemployment is high, there are not enough jobs to support the employment of women. Female job seekers become discouraged at the discovery of the limited employment opportunities offered by the private sector. This leads them to focus on public sector jobs because they perceive them to be the dominant source of employment and income. However, turning away from the private sector reduces the entrepreneurial spirit among young Arab women. Also, Arab women from the middle class particularly feel that they are completely shut out from financing sources whereas, the poor rely on micro-finance sources and the upper class women rely on their wealth and status.iii Another challenge facing Arab women is that they tend to experience poor access to markets, capital and networks, in addition to weak skills training and development. Women in the job market may also lack professional female peers to provide mentoring and networking opportunities to them. This is a major impediment especially in gulf countries which limit the intermingling of men and women and restrict womens mobility. In fact, social norms in individual countries may explain many of the gender gaps in employment. Social acceptance remains low and traditional norms limit a womans choice. Ensuring young women access to the job market and encouraging their entrepreneurial endeavours will certainly revive the untapped economic potential of Arab countries. Solutions and Policy actions Women clearly need better employment opportunities and an environment which fosters entrepreneurship. Sweet-talking women about their involvement in the workforce is not enough. Intentions should be followed by actual engagement efforts and supportive

initiatives. At the educational level, reforms should be applied in order to foster creativity, self-sufficiency, personal initiative and independent thinking.iv It is important to integrate entrepreneurship related content into teaching materials and classrooms at all levels of the education system. Business development services and enhancing womens access to these services are also crucial to their involvement in the entrepreneurial process. Formal skills training in customer service, networking, business plan writing, securing bank loans or other funding resources and in meeting quality standards are all key to fostering successful efforts for empowering women in vulnerable economies.v Equally important is the improvement of the financing environment which focuses on reducing the gender gap in order to encourage the creation of entrepreneurial start-ups and the growth of firms among women. Also, policies in individual countries that encourage decent job opportunities for everyone and encourage women to pursue higher education may help level the playing field. Womens participation in social, economic and political spaces is a determinant of a healthy economy, a stable society and a functioning democracy. Therefore, the time for reform is now to bring back hope to the lives of women and to invest in income generating activities by getting governments, the private sector, the development community and its funders more interested in womens empowerment and entrepreneurship.

Gayle Tzemach Lemmon, Promoting Entrepreneurship in Vulnerable Economies http://blogs.hbr.org/cs/2012/06/promoting_entrepreneurship_in.html?awid=4630738955875103802-3271

ii

Steve Crabtree, Two-thirds of Young Arab women remain out of workforce, http://www.gallup.com/poll/153659/twothirds-young-arab-women-remain-workforce.aspx
iii

At Dubai Forum, Arab Female Entrepreneurs Are Urged to Break From Traditional Choices, http://knowledge.wharton.upenn.edu/arabic/article.cfm?articleid=2820
iv

Hala Hattab, Presentation at Beyond Arab Uprisings, Creating Economic Opportunities for Women a Joint Conference by Women for Women International and the European Bank for Reconstruction and Development, http://www.womenforwomen.org.uk/events-supporting-women/assets/files/EBRD-2012/Dr-Hala-Hattab.pdf
v

Gayle Tzemach Lemmon, Promoting Entrepreneurship in Vulnerable Economies http://blogs.hbr.org/cs/2012/06/promoting_entrepreneurship_in.html?awid=4630738955875103802-3271