Topic > Women, Work and the Arab World - 687

Financial Barriers Since 2011, the MENA region has been experiencing severe political turbulence, resulting in weak and stagnant economic development. At a time when the region's economy is struggling to stay afloat, women's entry into the world of work is crucial. Unfortunately, due to the nature of the economy, women entrepreneurs face major obstacles that prevent them from starting businesses or expanding the ones they already own. Unfortunately, in the Middle East and North Africa, many businesses, particularly women-owned SMEs, lack access to the investment and financial resources they need to operate and expand. The most pressing challenge is women's access to finance, as well as the cost of financing. Since women are perceived as more “risky” entrepreneurs, the collateral requirements for women are much stricter than for men. Often the collateral needed for a loan is land or a property deed, of which women tend to have little. Furthermore, it is difficult for women to provide guarantees because they are often under the supervision of male relatives and cannot freely manage their assets. Women are also less likely to provide collateral because the risk of losing their land affects not only them but also their family. Greater access to suitable financing strategies and loans would enable women entrepreneurs to expand their businesses internally and externally. This would result in a significant influx of sustainable businesses into the country, resulting in substantial economic growth through increased job creation. Because women are often perceived as “risky,” commercial banks do not perceive women as a particular market share with distinct circumstances to consider. Because of this, banks providing women with a lot… half of paper… hinders business growth. Non-financial barriers Female entrepreneurs often have access to limited networks compared to their male counterparts and tend to have fewer connections with other entrepreneurs in their country or in the wider region. Men have greater access to connections and networks in the region which allow them to seek additional business opportunities, information and contacts. Because of this, women are significantly disadvantaged as entrepreneurs because they cannot connect with experienced professionals or seek mentorship opportunities to educate them on best business practices or appropriate management skills. In the long run, this is extremely detrimental to the overall success of their business. Expanding both personal and professional connections is a key resource women need to productively pursue their business ventures.