While several women-led businesses are flourishing in the Kingdom because of recent policy changes and government support, many challenges remain.

These challenges relate to the conservative nature of the Kingdom, access to finance, opportunities and training.

A Saudi woman who runs a cake shop in Riyadh said that the restrictive conditions in the country did not stop her from starting her own business to earn money to feed her family. Going out on her own was the best option, considering the few jobs available for women.

She said that many other women want to do the same thing. They want to compete on an equal basis with men in the marketplace and seek to be part of the Kingdom’s growing economy.

Ahlam Bagader, founder of Property Mall, a high-end real estate agency offering local and international properties in Jeddah, said female entrepreneurs can be equally productive and in many areas outperform men.

“The main aim of the business is to seek alliances, network and outsource to minimize cost, with social responsibility in mind. This keeps the business competitive in the market.”

Such women-led businesses are becoming increasingly prevalent in emerging economies, where legislative changes and the growth of equal opportunities are beginning to create optimistic and sustainable change.

A survey on women’s career aspirations was organized recently by a Jeddah university's business and economics department. Rana F, who was a member of the team conducting the survey, found that 40 percent had taken up the challenge and set up their own enterprises. However, the majority had backed out because they did not have sponsorship, funding and had to face lengthy official procedures.

Although things are changing for the better, women still face several hurdles in venturing into startups. There is a long list of problems preventing women from becoming business owners in Saudi Arabia. They include lack of support from family, banks, promotional agencies, inadequate technical and marketing training, and poor access to information regarding startups.

Fadwa Alwazir, an engineer and interior designer who runs her own small interior design company in Jeddah, said: “To run a profitable business it is important to have more favorable government policies related to small businesses for women.”

Women lag behind men on key measures of startup activity, and their firms tend not to grow or prosper as much. The drawback is due to the gender gap that makes all the difference between men and women in terms of the number engaged in entrepreneurial activity, motives to start or run a business, industry choice and business performance and growth.

Bagader said a major problem is that women perceive there are less opportunities for them compared to men. Women also fear failure and are therefore less likely to engage in entrepreneurship.

Bagader believes the gender gap can be solved by encouraging young girls to pursue a career in business. Education makes the person positive and lowers the fear of failure.

Bagader urged young educated women to find jobs because this would give them confidence and work experience, which is necessary prior to setting up their own business. It is important to establish a network and understand the services required by the market, she said.

There is a view in Saudi Arabia that women lack socialization and cannot become economically independent or entrepreneurial because of religious considerations. Fadwa, an engineer, said: “It is necessary to bring about social change without compromising cultural and religious considerations, to have a proper environment.”

Most of the women interviewed agreed that there are many social obstacles women entrepreneurs must overcome to achieve parity with their men counterparts and be part of the global trend for a more stable and equitable business environment.