Int Entrep Manag J (2010) 6:163–181 DOI 10.1007/s11365-010-0144-1
Women entrepreneurship in Middle East: Understanding barriers and use of ICT for entrepreneurship development Viju Mathew
Published online: 20 March 2010 # Springer Science+Business Media, LLC 2010
Abstract The main objective of the paper is to elaborate and suggest positive note on basic agenda existing in Middle East resisting the women entrepreneur growth development and use of ICT. The entrepreneurship among the women in Arabic countries has been lately given due consideration. In order for develop women entrepreneurship for economic growth their must be strong move by all stakeholders. ICT enables women entrepreneurs to extend equal participation compared to the male in the growth and development of the nation’s economy. The extended use of ICT will help the entrepreneur for creating advantage, research; participate in the global world of business for technology transfer, training, collaboration, and development initiatives at the global level. The paper tries to highlight the barrier for women for entrepreneurial growth and use of ICT with special reference to Middle East countries. The case related to women in two gulf countries will elaborate the deep insight of the issue. Keywords Women entrepreneurs . Middle East . ICT . Barriers . Development Introduction The role of women entrepreneurs in the process of economic development has been recognized form nineties in various parts of the world. Today, in the world of business, entrepreneurship has become an essential movement in many countries and has been accepted in all areas of working. Entrepreneurship is essential for the continued dynamism of the modern market economy and a greater entry rate of new businesses which can foster competition and economic growth (Klapper and Quesada Delgado 2007; Djankov et al. 2002). The entrepreneurship among the women in Middle East (Arabic) countries has been lately given due consideration. V. Mathew (*) Department of International Business Administration, COAS, Salalah (MOHE), Salalah, Sultanate of Oman e-mail:
[email protected] e-mail:
[email protected]
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By this time, entrepreneurship has developed it way to be well accepted as a career option among women and flourished in recent years. However, very little studies has been done to focus women entrepreneurs in Arab countries identifying their basic challenges, environmental condition and success, particularly where women play a recessive role in the society and development of enterprise for reducing their reliance on oil. The development of the entrepreneurship in the Arabic countries will reduce the overall reliance on the import done by the countries to fulfill their needs. In order for developing women entrepreneurship and women owned business enterprises to contribute effectively to economic growth their must be strong move by all stakeholders, including policymakers, society, financial institution, market, media and other stakeholders. Various researchers and scholars have defined entrepreneurs in many ways which gives the quality and the main substance of the entrepreneurs. Some of the explanations are: Joseph Schumpeter defined entrepreneurship as “the assumption of risk and responsibility in designing and implementing a business strategy or starting a business” (Schumpeter 1949). In Schumpeter’s word, to reform or revolutionized the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up anew source of supply of materials or a new outlet for products . . . . Entrepreneurship, as defined, essentially consists in doing things that are not generally done in the ordinary course of business routine. Ronstad’s definition of entrepreneurship as: Entrepreneurship is the dynamic process of creating incremental wealth. This wealth created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources. Entrepreneurship, has been defined in the literature as “the catalytic agent in society which sets into motion new enterprises, new combinations of production and exchange” (Collins and Moore 1970). For the purpose of strengthening the economies of the countries in the region, the government should reform policies related that of gender stereotype and mentor the families and communities (inhibitors) to recognize the women in economic participation. In contra, disparity in economic growth between advanced and less developed countries can narrow owing growth of entrepreneurial activity (Galor and Stelios 2006). Although women in the Arabic countries especially in Middle East region are increasingly entering the world of business through entrepreneurial activity and starting their own businesses and contributing to the national economy. The unique capabilities of women entrepreneurs should be harnessed and incorporated into national development strategies and encourage at the basic level from the primary and tertiary education level. The combined substance of entrepreneurship and the use of information and communication technology (ICT) will enable to solve the basic problem of impeded growth of women entrepreneur in Middle East region. The impact of globalization and the changing patterns of trade and evolving technological revolution is calling for the development of skills that women entrepreneurs do not possess in large within the Middle East countries.
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The region also faces another important challenge—empowering women— particularly in the economic and political spheres, where their participation remains the lowest of any region. The encouragement of women entrepreneurship in the region seems difficult with various challenges at basic level but not impossible. It has been observed and explained that the women-led entrepreneurial businesses have shown a lower propensity to grow and a higher propensity to exit under unfavorable industry and competitive conditions. Promoting women’s entrepreneurship in Middle East should address the policy producing a cadre of women leaders inclined towards taking risk and start business activities, strong economic rights to participate equally with male counterpart in business and market place required for economic and social development, development through trained female orientation system from the basic education level. These issues will directly answer the challenge of facing gender-based barriers or socio cultural barriers common to every female in Middle East. The purpose of the paper is to elaborate and suggest some positive note on basic agenda existing in Middle East resisting the women entrepreneur growth and development. Some issues are: & & &
Overview and characteristics of women entrepreneurship and female-owned businesses in the region. To analyze barriers that exists across the region for developing women entrepreneurs. To identify and highlight various other factors related to business environment that might affect women’s entrepreneurship.
The female entrepreneurs in the Middle East region are mostly in the informal micro sector producing less sophisticated goods and services. Female-owned firms are also active in developing more of domestic requirement product and looks for domestic and neighborly market to sell due to various socio cultural factors existing in the Middle East. Female-owned firms in Middle East region are less inclined for use ICT tools like email and internet in their information interactions and services. Also female owned businesses in the region are substantially less profitable and innovative than male owned businesses due to limited access to market which will directly affect the investment and outward growth. Female-owned businesses are likely to employ an upper share of female workers at both on professional and managerial levels as this is seen commonly across the Middle East region. Various factors affecting the entrepreneur in the Middle East Region are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Access to finance Access to land Anticompetitive practices Awareness of business support Business licensing Cost of finance Equality rights Information & Telecommunications Labor regulations Lack of role model
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11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.
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Lack of structured framework Lack of support providers Networking Non representation at policy development level Policy restrictions Social rights Social trade regulations Tax administration Tax rates Technology Transportation Unavailability of skilled workers
The research of the business experiences among women in Middle East is parallel to those of their counterparts from other parts of the world with a few distinct differences. These differences relate to above factors affecting women entrepreneur in Middle East. From these above practices the women entrepreneurs in other region like in Asian region, South American the above half exist and are represented as constrains. With the end of 19th century, the participation of women in the global economy has been tremendous in the recent past and estimated that approximately one third of all businesses are owned by women (Lerner and Almor 2002; OECD 2000). As the part of the contribution various countries and groups are defining the role of women entrepreneurs in the process of economic development. Various studies done have shown that business creation and development in the competitive world has created greater challenge for women than men to undertake entrepreneurial activity. Access to credit, cultural barriers, networking, policy restriction have becomes the major obstacles that women business owners have to overcome in order to succeed in their venture (OECD 2000).
Middle East entrepreneurial context and ICT Entrepreneurship has been considered as the major force for development for the any growing economy. In concern to the Arab countries the international organization like United Nation reports that ’the social and economic problems in Arab countries would benefit from a greater receptivity to private enterprise and the development of the small business sector’ (Fergany 2002). The presence of oil and natural gas reserve in the Middle East countries especially in the gulf region has raised the economic development at higher rate compared to the other region and part of the world. The economic development in the oil rich countries has created the effect on the society and restricted various other areas to grow and contributed to the economic growth. Information and technology as compared to the other Asian, American and European region has not rooted in the daily activities. During the past few years the countries are encouraging other area in entrepreneurship, ICT development, private sector development as the nations found it difficult to sustain the growth of population growth and unemployment among nationalities (Gause
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2000). The growth of private sector in Middle East has created a growing graph in respect to the industrialization, use of ICT job creation and contribution to the regions economy. Entrepreneurial growth in respect to the women entrepreneurs has been regarded and given due consideration with the growth of industrialization. Female entrepreneurs can play a significant role in fostering the development of the small business sector and facilitating the evolution of enterprise in transition economies (Hisrich and Lerner 1997). In the past, most of the research on women entrepreneurs and their challenges has been revealed in the western context. While in the Middle East the social, economical and cultural factor is entirely different than any other region which makes the women entrepreneur to face different type and intensity of challenge from various environmental factors commonly faced by the rest of the world. This reason will also suffice that the learning from the past experience or from the experience from other countries or region stands void. This paper will give scant attention to the women entrepreneurship in Middle East region with concentration on Gulf region and examines the experiences and challenges of women entrepreneurs with the suggested way out with the background of industrialized and developing countries. Information and communication technologies (ICT) have been used in most of the other region to develop and leverage advantage. The countries are adopting wide range of technological assistance to support and develop the revolution in businesses and move ahead in creating competitive advantage. ICT has proven to be the most powerful tool for development (Hafkin and Taggart 2001). The information and communication technological system has been used to create share and transfer knowledge and leverage the capabilities even with the existing at different location, broaden in different economy and among multiple people. The communication has been widely accepted in building the bridge among countries, region and help the firms to opens opportunities, connects people, and creates channels for development of the business (Geldof and Unwin 2005) Entrepreneurs in most of the developed and developing economies in Asia and West have been using wide range of ICT tools and techniques for product development, marketing, planning, and other strategic purposes. ICT act as an effective tool for the women entrepreneurs to develop and find opportunities in-spite of various factors affecting adverse in some of the region worldwide. ICT enables women entrepreneurs to extend equal participation compared to the male in the growth and development of the nation’s economy. According to the explanation of Huyer and Sikoska (2003) ICT provides women with an avenue to express the development of their personalities and capacities. ICT tools are acting as the major shield to develop business and extend the growth beyond the boundaries which seems impossible in past few decades back. The ICT has become the integral part of the business world around the globe. This change has also affected Middle East region in terms of utility and benifits. But the extended availability and usage of these tools and techniques is not regular among the women entrepreneur within the region. The revolution for the use of ICT tool can bring the entrepreneur from there social shell to express the dexterity and boom the economic growth. Use of ICT increases women capacities to share and access information and knowledge (Copper and Weaver 2003) helpful and support to develop their entrepreneurial business activities and leads to promote women
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understanding in broader scope. The extended use of ICT will help the entrepreneur for creating advantage, research; participate in the global world of business for technology transfer, training, collaboration, and development initiatives at the global level. The use of ICT among the women entrepreneur will differ from any region to the Middle East as a matter of fact that the differences at basic surface societal setup and the mindset of the people toward the women varies. Although ICT is one effective tool to empower women socially and economically which has been given due recognition, but the use of ICT in Middle East region is very less for the women social empowerment and economic growth. The few women entrepreneurs engaged business in some of the Gulf countries are using ICT tool for information exchange. But the extensive use of ICT has not taken place and is in the initial stages of its birth. For example the use of ICT tools like internet among general females in Middle East in not more than 4% when compared to rest of the world. Internet World Stats, (2006) also clears that the women population is as low as 4% of Internet users in Arab countries, one of the lowest in the world in quantitative terms. With specific countries showing the percentage of internet user in Kuwait is 3.7%, Oman 1.5%, Qatar 1.0%, United Arab Emirates 8.0% with percentage of Middle East which is very low (Ayman 2007). It has been very much surprising that women based network within the region has not been established and countries have not recorded the number of women entrepreneur engaged in small and medium scale enterprises within the country. The web portal to share the information and solving the problem of women entrepreneurs through government and other agency need to be taken into consideration. This process will be useful for supportive action when the use of ICT among the women with recorded data is done. The lack of use of ICT tools will create problem for disseminating information, raising awareness, problem solving, mentorship, and knowledge transfer among the women in the region. The affect will also leads to the low opportunity, lack of access to resources, lack of training, information sharing and women empowerment and development. It has been urgent need that the government should take initiative to raise awareness through promotion for the use of ICT through seminars, conferences, brochures, meeting, public address, flyers and using other means and modes through radio and TV channels in the Middle East.
Women entrepreneurs: Understanding challenges The women in the Middle East countries are engaged in household activities which consumes most of there time. The women are not much involved in the the external activities which need travel and approach to the market. The women engaged in entrepreneurial activities have challenging demands for time for which they are fully engaged in the family nourishment. Women in Middle East lack education and skills which help them to operate business. Also, they lack time among the interested women. Women are deprived of involving themselves in the family business as well. Generally, the females don’t have any exposure to develop business plan, arranging finance, look for the better resources, developing the market, information on credit, look for the business advices, attending training programs during the education in the school and college level.
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Lack of women empowerment in the men dominated society creates foremost effect on the developing women at the society level. The mind set will directly affect the participation in business network and create positive impact. Low level of participation in the education and training had direct impact on the women interested in undertaking entrepreneurial activity. It is the time that the government existing in the Middle East countries should take firm step to bring girls into regular education program through strong initiatives reforming the policies. Many countries have already started and reform the policy towards bringing females for education which paid and resulted in growth of female education statistics. The lack of basic school education system to females in few countries existing in the Middle East region create inappropriate environment for promoting women entrepreneurs at later stages. The informal discrimination to look at women to be unsuccessful in business creates negative effect to the investor to provide support for women started business activity. This will affect the women growth and development as entrepreneurs in terms of raising finance, taking credits, and developing long term relation with other business partners. Lack of availability of finance to the women started project will loose it charm to attract customers, suppliers, distributors and channel members too. Due to lack of assets, capital prerequisite for starting a firm and raising the capital is difficult. Women entrepreneurs’ relationship with different financial institutions might suffer because of gender stereotyping and discrimination (Carter et al. 2001; Storey 1994). Various factor affecting the investment barriers to the female owned firms are: tax rates, tax administration, macro instability, policy uncertainty, transportation, telecommunication, cost of finance, anticompetitive practices, corruption, skills of workers, access to land, electricity, customs, access to finance, labor regulations, legal system, business licensing. Existing social and cultural norms has also been blamed for low female participation in business. Participation of married female is very less as compared to the unmarried or others. Married female participation in business activities has been very less when compared to the total contribution especially in Middle East. This indicate that the female participation in business is very less and for short period. Lack of technological awareness among the women and entrepreneurs makes them incapable to handle the competition set by global firms. The use of technology for quality and quantity improvement is essential. The excess to the information and communication technology (ICT) among the women are limited in the Middle East region, in other words negligible percentage of women are using ICT tools like internet for accessing information related to business and creating networks. The constraints of family and society as a whole make it harder for women to work on a full time basis and to engage her in an entrepreneurial career. The constraints will also make them to loose the opportunities due to lack of support from the family. In contrast, the literature proves that the Asian and American women entrepreneurs are available with the family support in terms of finance and motivation. Lack of women involved in managing business and entrepreneurial activities compared to men handling the business (Burt 2000) suppress the women to take part in development affairs. There are evidences to prove that women are less involved in
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networks than men are, and their type of network is different (Aldrich and Zimmer 1986; Granovetter 1985). The researches (Lin 1999) also highlight that the women having personal and social network are restricted toward the up bringing of the family and linked to the family affairs only which prove to be a hindrance to the females in the Middle East region. Lack of business network among the business women in Middle East countries becomes obstacle for the growth of women entrepreneur. Women and women managed entrepreneurial business lacks the kind of network as of men reducing the access to investment, access to critical resources, expansion of business market, support activities and information very much necessary for successfully start and manage a entrepreneurial firm. Lack of entrepreneurial skills development, awareness, orientation, and experience among women is also causing challenge. It has been observes that the females coming out of the education system prefer to do job rather than taking and entrepreneurial activity. The percentage of women taking entrepreneurial activities in the Middle East countries are very few and negligible. This is due to the reason that the women are not oriented and aware of entrepreneurship and have very less motivation towards the issues. Due to lack of entrepreneurial skills the business activity they start will have less probability of survival and this picture can also demotivate other interested who wish to take entrepreneurial activity. Lack of strong organizations for women entrepreneurs in the region will reduce the scope of being represented and putting the agenda in a strong way. The association representing women entrepreneur to the society and other authority support the upbringing of new generation. The existence of the strong network amongst women entrepreneurs and organizations is very much essential for increasing the attention to the needs. Lack of access to information and communication system among women in Middle East countries has become a critical point. The survival of the firm in this highly competitive era needs availability of appropriate information and communication to and from all its stakeholders’ decision making. Lack of female role models as women entrepreneurs deeply demotivates the individual to undertake the entrepreneurial activities. Entrepreneurial attributes urge to be successful in the business and become a role model for others. Due to the conventional pattern of business, networking and influence from the male dominated society very few women entrepreneur has been named as role models in some Middle East countries and it happens only within these recent years.
Personal characteristics of female entrepreneurship in Middle East 1. Businesses are often forced by either as “push,” or “pull,” (Robinson 2001). Push motivation can be commonly seen among women within developing economies (Dhaliwal 1998). Pull factors is related to the need for selffulfillment, need for achievement, wealth or power. The female entrepreneurs are combination of push and pull factors (Orhan and Scott 2001). 2. Female entrepreneurs have more educated than the average adult female (DeCarlo and Lyons 1979; Bowen and Hisrich 1986; Hisrich and Lerner 1997)
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3. Women business owners tend to be older having families (Devine 1994). This observation stands true in case of the Middle East women entrepreneurs. 4. Female entrepreneurs are more likely to have experience concentrated in the service sector, administration and personal services (Hisrich and Ozturk 1999). 5. Power Distance, Uncertainty Avoidance and Low in Individualism have “more difficulties in doing things their way since existing organizations and structures are less suited for them” (Wennekers et al. 2001).
Barriers for women—ICT context Socio-cultural norms Socio-cultural norms in most of the Middle East countries restrict women’s involvement in the market place, networking and limit their mobility. In addition, most of the women in the Middle East region especially in Gulf countries are deprived of using ICT tools and technique. Factual findings relate that the ICT sector are traditionally male-dominated and differentiates women for the access. Many initiatives have been taken for gender empowerment in various parts of the region. The region has lots of socio-culture gender barriers. Studies indicated that women are greatly underrepresented (Albarwani et al. 2006) in the Middle East despite of various efforts taken by various authorities in due respect. Time constraints and family As characterized in some of the studies in Asian countries, Middle East females are engaged in regular family day today work activities of the family. Family and its support affect almost all of a woman’s decisions. The girl shares some of the work and burdened with responsibilities of her mother supporting the family activities. The mother share common responsibility from all sides and all members of the family. The time involved in regular family work restrict the women even to think about other issues lien with starting of business. The family places a crucial role from the childhood of females in the society. The family is deeply involved in female education, her work activities, career, mobility, and interaction with others limiting her to take use of ICT tools. Time and family barrier affects females of all ages and that they are always burdened by family responsibilities from younger ages. The studies and research conducted in the Middle East countries revealed that the average of 20% of women reported obstacle from various environmental discourages studies related to ICT fields and undertaking work. The scenario is changing in a slow pace due to various reforms in the social policies existing in the Middle East countries. Female stereotyping Due to the framework existing in the social norms the females are discriminated in all area of life from her childhood. This creates a timid mindset among the women in general and can be seen in workplace or business. Women are considered to be organized, particular, persistent dedicated, meticulous in workplace and do not
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object for any discrimination done in the work place. ICT sector dominated by male counterpart lies on the advantages side due to social norms and provide very less opportunities for women to enter and develop. The stereotyping lies in the category of ICT jobs in “female” or “male” jobs. The participation of female in any ICT promotion activity is very less in Middle East. Despite of female enrolment in ICT related education program at higher level is very nominal females adopting for undertaking jobs in the sector. Career guidance Apart from education the female lack guidance in selecting the career field, job selection and other areas of their life. This affects female’s to join the ICT sector if the opportunity is available. Due to mentoring and guidance which can motivates the female to select ICT related field. Females at the senior school level don’t know about ICT and the field related where they can develop their career to opt work in much better way in compared to tradition jobs. Females are not exposed to mentoring and carrier counseling programs which can lead to success stories and raise their awareness about ICT. Due to the lack of awareness and counseling few women who are undertaking entrepreneurial business activity are rarely using ICT tools and techniques in regular business which can actually generate income, making systematic procedures and develop networking. Use of ICT will also help educate women to search for jobs, understanding issues, and getting the guidance through web information system and e-learning. Information and communication technology Access to the ICT tools and equipment are very rare among the females in the Middle East Region. Lack of sufficient access to ICT makes them retiring towards the ICT tool. ICT illiteracy is one of the major reasons that the female in Middle East are not much inclined towards using ICT. Unavailability of ICT tool like Internet connections in the past also acts as barriers to the women. Lack of financial mean to access the ICT tools like PC and ICT related education make obstacle for females preventing them from using ICT. Motivation Motivation among the women in the Middle East region is low and various factor of motivation are less as compared to other regions. Fulfillment of Needs in Community (Pilz 1995), Self-Actualization (Pilz 1995; McClelland 1987), Desire to Serve (Pilz 1995), Desire to Achieve Change and enhance social connections (Hisrich and Brush 1984), independence, Self-Evaluation (Pilz 1995; Bilodeau and Slivinski 1996) are examined to be low. Although many of the women working in the jobs believed their work did not address problems relevant to them such as conscious of the human motivation for change. Women’s have less motivated toward self and accomplishing in work. This innate place character put in frame of restricting themselves to take initiative for doing entrepreneurial activity and build inbred dependency mechanism on the family members.
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Lack of education and suppressed conditions, combined with social norms provide sympathetic corner towards women which in term create dependency and lack of seriousness in undertaking work. Due to this reason women in the Middle East region are shying away from more responsibilities and the self-imposed duties needed for development and necessary for taking business activities in their life time. The lack of social network in the society within the house wife’s and working women act as barrier for motivating the women for undertake entrepreneurial activity. Social connection and involvement will help the individual to learn and grow which will directly motivate the person to change and adopting the positive side of the successful women in business. Entrepreneurial women in the West are often sees themselves as feminists who undertake unconventional roles (Brush 1992; Fischer et al. 1993; Allen and Truman 1993; Moore and Buttner 1997). Feminist ideology, within the Middle East region has been a major concern towards understanding, recognizing women often resulting from the values and norms held in society. Lack of cognizant of these problems the rural women due to the traditionalist social norms are not recognized for the contribution she make in the family, society and economy and subordinates the male family member loosing all interest and keen to enter towards the economic contribution.
Other barriers restricting entrepreneurial development and ICT among women in Middle East 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.
Accessibility to support service (Sullivan 1989; Sadowski 2010) Conditions of work in economic activity Consistently high level of activity and responsibility in home Dependency on family Family pressure Forces into the field of community development.’(Kabeer 1991b.) Formal political rights for women Formal socio cultural norms Gender-based demands in ICT sector Higher Education related to entrepreneurship and business Household structure and control over resources Increased female participation in household activity Indefinite Gender roles—in the countries both inter- and intra- sectorally. Inflow of skilled workers Informal credit systems predomination (Hoodfar 1990; Vaa et al. 1989.) Irregular development for women in business sector to use ICT Lack of credit and extension services Lack of entrepreneurial activity Lack of investment in ICT inputs, improving practices or technology for women’s Lack of involvement in welfare issues Lack of Personal Status Law Lack of policy reforms Lack of women rights
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24. 25. 26. 27.
Lack of women’s access to credit Low income (Hoodfar 1990) Low level of access to land Low participation rates- participation in economic activity (Papps 1992; World Bank 1990). Low reported statistics of successful female entrepreneurs No independent women’s activities Non dependence of pragmatic practice Poor integration of financial markets (Kabeer 1991a) Preference for white collar job, with its more benefits, flexible hours, and security, in spite of relatively low wages Prominent activity for women in both rural and urban areas Restrictions and segregation Significant low female representation Slow demand for ICT Slowed or stagnated work force employment Social and family pressure Socio-cultural dimensions toward ICT Specific and higher activity rates are concentrated among younger women towards other areas Statistical comparisons among the work activities Undermining the quality of girls’ education Unorganized ICT sector Women appear to be underrepresented in the informal sector Women’s work in the formal sector are restricted to particular spheres including ICT
28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.
Case study Oman—Entrepreneurial growth and ICT Brief country profile Sultanate of Oman with the capital city Muscat has been located capping the Eastern end of the Arabian Peninsula, having 212,460 sq km (82,031 sq. miles) area rich in natural and beautiful location with resources. Saudi Arabia, UAE and Yemen share the neighboring country boundaries having good relationship politically. The population of the country touched the mark of 2,903,165 (2004 estimate) includes 577,293 non-nationals. The resident includes Arab, Baluchi, South Asian (Indian, Pakistani, Sri Lankan, Bangladeshi), African. Women in Oman In 2000, rate of women participation in the labor force was 13% compared to a rate of 58.8% for men. The unemployment rate, at 70% is high for females with secondary school degrees, compared to an unemployment rate of 3.7% for female
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university graduates. Female participation in the private sector is low; in 2003 it reached nearly 18%. Women work mainly in administrative jobs, 39% and only 11% are specialists. (IFC 2006) In a study (IFC Oman GEM Study 2005) Ministry of Commerce and Industry and Chamber of Commerce and Industry registered total of 120,000 out of which approximately 4,000 are women-owned and operated establishments. This number of businesses owned and operated by women does not suffice the real purpose of the actual data as these include the male-owned businesses registered in the wife’s name. The majority of female operated small and medium enterprises is small in size and operates with 1 to 2 workers with a starting capital of less than (RO = Rial Omani) RO 25,000 (US $65,000) (IFC Oman GEM Study, 2005—Chamber of Commerce and Industry and the Ministry of Commerce and Industry. 70% of female entrepreneurs are concentrated in the service sector with 30% concentrated in education and child care. Major obstacles to women’s enterprises in Oman Obstacles to women enterprises in Oman are: Access to Finance
Various institution and schemes are exists in Oman to finance and promote small and medium enterprises especially women owned and managed business. Oman Development Bank (ODB), Self- Employment and National Autonomous Development (SANAD) Program, and a private Fund for Development of Youth Projects.
Access to Markets Access to Networks Initiative promoting women-owned entrepreneurs/businesses in Oman Various systems for promoting women owned and managed business promoted by various institutions includes; In 2002–2004, the SANAD program has benefited 8581 entrepreneurs, of which 37% of the funds were provided to women; The Oman Women’s Business Association is in the process of being established for upbringing of women to the development track; and donor activities for providing assistance to women entrepreneurs and women owned and managed MSMEs. Intilaaqah (Arabic for “rapid take-off”) entrepreneurship training program by Shell Oil Company, has started in 1995, providing training, counseling and consultancy services creating professionalize operation helping to start and operate businesses. These programs aim at promoting the small and medium enterprises in Oman (Kamoonpuri 2004:13). Initiatives toward women entrepreneurs and business women in Oman 1. Two day conference conducted from June 2 & 3 in Muscat under the wise leadership of His Majesty Sultan Qaboos bin Said, to enrich Omani business-
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women’s experience and help business women to accustomed with various business tools. (Omani women urged to explore business avenues, MENAFN— Times of Oman, Newspaper Times of Oman—27/05/2007). Further details can be accessed by visit www.womeninbusiness-oman.com. 2. The Knowledge Mine (TKM) a business incubator program based at Knowledge Oasis Muscat (KOM) welcomed its first female entrepreneurs, Success Technology, a scientific and medical software technology start-up founded and managed by Dr. Zahra Al Rawahi and Munira Al Mahrooqi. Omani incubator program attracts female entrepreneurs (KOM press release—Oman: Wednesday, April 26-2006) ‘TKM was set up in April 2004 to help create jobs, enhance Oman’s entrepreneurial climate, retain businesses, build and accelerate growth in Oman’s ICT industry and help diversify the national economy.’ Michael Porter sighted as “Oman could become a role model for the region if the country focuses on certain priorities related to entrepreneurship and developing strategy to attract investment and developing a cluster strategy (Times of Oman, Dec. 2, 2004). Skilled ICT workers are scarce in Oman and are reluctant to join the private sector and/or start their own businesses. A survey conducted by the Ministry of Manpower found only 31 private sector ICT firms, and they work in either applications production or promotion, or both (Ministry of Manpower 2005). The Ministry (2003, 2005) identified the following challenges: – – – – – – –
Absence of an independent ICT entity to regulate and monitor the sector Lack of ICT sector support from public and private institutions Oman’s IT graduates do not meet the labour market’s required skills levels Insufficient resources for ICT courses within higher education and vocational training General education course content lacks crucial English language and mathematical skills necessary for ICT graduates a plentiful supply of qualified and experienced immigrant ICT workers competing for work Inequity between public and private sector employees, with government employees having superior working conditions
The United Nation’s group findings specify that the exception of telecommunications, there is low IT investment in Oman and that there is insufficient government support to develop the ICT sector appropriately (ESCWA 2003). With specific reference to Oman ICT can act as gender-sensitive indicators are useful tools in measuring and evaluating the impact of development initiatives in provoking the policies. ICT implementation is becoming a major focus for a wide range of development for and leads to duplication of effort, reducing gender gaps, incompatibility of solutions, motivating to undertaking entrepreneurial activities and compromised sustainability. ICT in used in Oman to fulfill the women’s needs for information, networking, raise their awareness and mentor, transforming the perspective about the gender based issues of the individuals and the institutions, coordinate women’s empowerment, developing skills, rising gender and ICT awareness, planning processes, female development support etc.
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Case of UAE UAE women entrepreneurs—support system During the past few years, the UAE is promoting, concentrating and giving much attention to SMEs and their development. A number of SME support programs have been established from various authorities in UAE to bring up the SME sector. It is required that policy towards the SME sector should be reformed and dedicated to the SME institution in operation. In the small emirates, SME promotion is still largely lacking (Haan 2003). SME support system towards the UAE women entrepreneurs is taking place to improve and motivate the women to manage SMEs. Due to the lack of awareness and orientation among women entrepreneurs in UAE the support programs provided by the various authority has been mere waste. Creation of awareness through establishing network among the SME owned and managing women will result to assist maximum from the program. Various organizations providing support services to small business entrepreneurs in the UAE are highlighted below: 1. 2. 3. 4.
UAE Women’s Organizations (Women’s Union or Association) Umm Al Moumineen Women Association in Ajman Khorfakkan Women’s Association Abu Dhabi Women’s Association
1. UAE Women’s Organizations (Women’s Union or Association) UAE women’s organization is engaged in: & & & & & & &
Providing social services in the areas of education for women Recognize the need to support small-scale economic activities among women-managed small enterprises. Provide assistance to women entrepreneurs Support often has social and cultural objectives Provide piecemeal assistance to women involved in home-based activities. Provide income support to women and to preserve traditional activities Conducting small workshops for women who are engage in traditional/ business activities
2. Umm Al Moumineen Women Association in Ajman The Umm Al Moumineen Women Association was established in 1974 for providing support and develops women engaged in small business activities funded by the ruler of Ajman and the Ministry of Labour. The activities include: & & & & & &
Training and education Cultural activities Social and public relations Health, and arts Continuous education for young married girls Conducting skill development workshops
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3. Khorfakkan Women’s Association The Women’s Association in Khorfakkan focuses mainly on: & & &
Social services. Support for small-scale economic activities Providing assistance involving women with the opportunity to market their products.
MARKET STUDY 4. Abu Dhabi Women’s Association Abu Dhabi Women’s Association (AD-WA) is concerned with: & &
Assisting women to find employment Supporting women for: ○ ○ ○ ○ ○ ○ ○ ○ ○
start a business get a trade license arranging finance overcome risk apprehensive marketing exhibitions for their product provision of training developing network lobby for development of business other business supports
Emirates businesswomen council Established by Federation of UAE Chambers of Commerce and Industry (FCCI) in with the objective of: (i) (ii) (iii) (iv) (v) (vi) (vii)
Lobbying on behalf of UAE women entrepreneurs, Facilitating research into the problems of women small enterprises (WSEs), and Functioning as a platform with national and international organizations interested in supporting UAE women entrepreneurs. Important force on the promotion of UAE WSEs Establishing UAE businesswomen Promote the SME sector in UAE Clear focus on business development
Various branches of Emirates Business women Council are: &
Businesswomen Council—Dubai Major objectives are: ○ ○ ○ ○
provide opportunities for informal networking informal business promotion useful advice Conducting workshops for women entrepreneurs
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&
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Businesswomen Council—Sharjah Major objectives are: ○ ○ ○ ○ ○ ○ ○ ○ ○
Raising awareness among women Training courses for women Exposure visits Conducting conferences for development Support needs for WSMEs Business orientation trips Sponsoring participation of women’s businesses for marketing purposes Assistance for arranging capital for WSEs Other support needs
Other organization and support programs for Women Entrepreneurs There are a few organizations in the UAE which gives relevant support for UAE businesswomen. They are: Dubai—Department of Economic Development’s Intilaq Program The Department of Economic Development (DED) in Dubai started the Intilaq program to provide & & & & & & & &
Support to home-based micro-enterprises Support for the legal and financial aspects Providing special licences at reduced rates Support to home-based business operation in Dubai, Employ only members of the household Entrepreneurship and management training Counseling services: for exploring the new possibilities Process of creating a small business association
Conclusion The paper will elaborate the barrier which is faced by women in carrying out entrepreneurial activity in the Middle East. The use of ICT tools and techniques will help the women in business and developing the activity to receive consideration in the society. The women in Middle East countries face various challenges which restrict them to undertake entrepreneurial activities and use of ICT. The cases related to Oman and UAE is just an idea of the initiatives taken by the countries to face the challenge and develop women and create entrepreneurial activities and support the economic development. The women in various other Gulf countries are facing socio cultural challenges which restrict them for doing business. References Albarwani, A., Alghabshi, H., & Alzadjali, T. (2006). Gender equal access to IT. Final Year Project Report, Sultan Qaboos University.
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