How can we encourage more women to pursue entrepreneurship?
Prior to the Covid-19 outbreak, Sana Afouaiz, founder of Womenpreneur, an organisation established to support women entrepreneurs, toured three countries in the Middle East and North Africa (Mena) to gain an insight into the challenges faced by women founders in the region. In this article, Afouaiz outlines the steps needed to overcome these challenges.
If we put together the words “Mena region” and “women-led startups” into the same sentence most of us probably would not expect the following statement: one in three startups in the Middle East and North Africa region is founded or led by a woman, which is a much higher percentage than in Silicon Valley. Women in Arab countries make up for 34-57 per cent of STEM graduates, a figure which is also much higher than in universities across Europe and the US. This led us to ask ourselves: how come, given these numbers, the proportion of female workforce in 13 out of 15 Arab countries remains among the lowest in the world?
The answer to this is neither short nor simple. It is safe to say, however, that the figures above unveil the amazing potential to be unlocked in the region. For this reason Womenpreneur Initiative and SANAD’s Entrepreneurship Academy joined forces to promote female tech entrepreneurship in the Mena region. The goal of this unprecedented empowerment campaign was to give visibility to women in tech, innovation and entrepreneurship as well as to provide platforms to assess the current state of the tech ecosystem in three countries: Morocco, Tunisia and Jordan.
During the Womenpreneur Tour we interviewed female tech entrepreneurs from diverse backgrounds. They shared with us what motivated them to launch their businesses, as well as every obstacle they encountered on their journey. Did you know that 71 per cent of Tunisian women started their enterprises with absolutely zero resources and zero support? Or that only 10 per cent of Moroccan women are entrepreneurs despite them representing half of the population of the country? Or that only 6 per cent of women entrepreneurs in Jordan are generating revenues exceeding $100,000?
Mindset as major drawback for women entrepreneurs in the region
Most of them point out mindset as the main barrier preventing women from having equal access to the job market or promotion opportunities. Traditional values in Arab countries are still deeply-rooted and this is reflected in recruitment processes for example, where women are still inquired about their marital status and left as second choice in the presence of a male competitor. High demands in the family setting are another major drawback for women to advance their career. This traditional mindset extends to the investment-seeking process too. Due to lack of precedent in the region, investors are more likely to distrust the profitability of women-led businesses.
What can be done to eliminate these constraints?
Many argued that a change of mindset is slowly emerging. For example, Jordan recently passed a new labour law providing equal day care obligations to both female and male parents in the workplace. This is a great achievement but real changes are taking too long to materialise. During our tour across these countries we also interviewed multiple experts from various fields who shared their recommendations to make the tech ecosystem more accessible and fairer to women. Most of them agreed on the need for gender quotas in the public administration to ensure the involvement of women in strategic decision-making at the political level as well as in board of directors in the private sector to promote that they reach top management positions. Recruitment processes should be revised from a legal perspective as well in order to prevent gender-based discrimination due to marital and family status. On the other hand, many pushed for the need to break the glass ceiling as well as gender roles and stereotypes which traditionally portray women as more suitable in social and human sciences and men as more capable for physics, mathematics and technology.
Further recommendations related to the financial sphere, where some of our experts suggest a democratisation of processes and requirements for opening a business bank account is needed. This would facilitate that women receive funds quickly to start their activities and demonstrate recorded payments and credit history. As a result, female tech entrepreneurs acquire financial credibility and are in a better position to fundraise further. Additionally, the creation of female-oriented or women-only funds for all stages of start-ups, in forms of government grants or equity investments, would facilitate women access to funding and present the investment-seeking process as one based on merit and business skills rather than a risk journey into gender discrimination.
After the great success of our tour we are embarking ourselves into a second edition that will explore three new countries: Algeria, Egypt and Lebanon. This time, however, in the context of the current Covid-19 crisis our aim is to find out how this pandemic is affecting female entrepreneurs’ lives across the Mena region and how the female talent is tackling this challenging situation and bringing about solutions.
If you want to know more about all the inspiring female tech entrepreneurs we met, then watch our documentary