Female entrepreneurs’ access to capital in Saudi Arabia

Almohanna, Rawan (2024). Female entrepreneurs’ access to capital in Saudi Arabia. University of Birmingham. Ph.D.

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Abstract

Efforts to empower women for economic development are a global priority, notably in Saudi Arabia following Vision 2030, where promoting female entrepreneurship is key. However, accessing start-up capital remains a major challenge for many women, with only a small fraction able to transition from intention to business. Research exploring this issue draws from theories like the Entrepreneurship Variant of the Resource-based Theory (EVRBT) and the feminist theory of intersectionality. While past studies highlight barriers and stereotypes hindering female entrepreneurship, there is a gap in understanding how women challenge these stereotypes, navigate barriers, access capital, and establish businesses, influenced by national policies according to their intersectionality characteristics.

Consequently, this study aimed to examine the impact of Saudi national policy on female Entrepreneurs, their challenges in accessing capital, barriers to funding, processes for obtaining resources, and how their unique identities and experiences shaped their entrepreneurial journey. Ultimately, the research sought to address gaps in understanding the dynamic intersecting identities and experiences, including age, marital status, network, family support, occupational stereotyping, and cultural influence. Through qualitative interviews with 32 Saudi female entrepreneurs, the research identified a shift in policy post-2016, creating a more conducive environment for female entrepreneurship. Despite reforms, women still faced various barriers post-establishment, including stakeholder, cultural, and environmental challenges.

Women employed diverse strategies to access different forms of capital, as per EVRBT, with older entrepreneurs leveraging savings and networks more effectively. Younger entrepreneurs relied on family and cultural capital. However, women from conservative backgrounds or unsupportive marital situations lacked family support. Entrepreneurs followed six pathways to establish businesses, with older, married women often shifting pathways after initial ventures. This dynamic process highlighted the role of intersectionality role but also revealed inconsistencies, challenging theoretical assertions.

Overall, the study contributes to extending the existing body of knowledge by enriching it with an intersectionality analysis of how women challenge stereotypes to become entrepreneurs, the hindrances they face, the processes they use to access capital, the pathways they follow to establish new enterprises, and how national policy influences their entrepreneurial initiatives in the context of Saudi Arabia. It contributes to theory by recommending extending the entrepreneurship variant of resource-based theory by including extra types of capital. Another contribution to theory is a recommendation to include intra-sectionality and other factors “intersectionality plus” in the feminist theory of intersectionality. The study also explains how women can challenge stereotypes held against them to become entrepreneurs. Practically, the study contributes to policy and managerial remedies that can be adopted in Saudi Arabia to address personal weaknesses, environmental, stakeholder, cultural, gender, and occupational stereotypes as well as challenges still lingering and hindering women’s success as entrepreneurs even after undertaking varied policy reforms.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):