Developing a Networking Structure for Women Entrepreneurs in the MENA Region: Formal and Informal Networking Elements

Abstract

Women entrepreneurs face multiple issues in the Middle East and North Africa (MENA) region, given the large number of cultural barriers, gendered expectations, reliance on mainly families for capital, poor access to venture capital and other funding options, and limited networks among other related issues. In line with this, the current study explores barriers faced by women entrepreneurs in the MENA region, outlining opportunities related to accessing formal and informal networks for better funding and other growth opportunities. The research integrates institutional theory and resource dependence theory to analyse how women entrepreneurs navigate sociocultural, institutional and financial barriers. The study further develops a networking framework to support women entrepreneurs in the MENA region by facilitating access to formal and informal networks, ultimately enhancing business growth and access to venture capital.
The study adopts a qualitative research design with an interpretivist and inductive approach to explore the challenges and opportunities faced by women entrepreneurs, specifically those who operate in Saudi Arabia, Egypt and the United Arab Emirates. The data was collected using purposive sampling and the sample was 32 participants, from which 25 were women entrepreneurs and seven were male.
The findings of the study reveal that cultural norms, economic instability, human resource constraints, regulatory frameworks, and limited technological adaptability significantly impact women entrepreneurs’ success. It was also found that access to venture capital remains a major challenge due to gender biases, along with other challenges, such as lack of investor confidence, and limited formal networking opportunities. Women rely predominantly on informal networks, such as family and social circles, which provide emotional and initial business support but lack the scalability required for long-term business growth. Conversely, formal networks, though less accessible, are crucial for securing financial capital and fostering business expansion.
The study proposes a dual-channel networking strategy, integrating formal and informal networks, to create a supportive ecosystem for women entrepreneurs. By leveraging government initiatives, mentorship programmes and digital platforms, women can strengthen their networks and enhance their business prospects. The findings will contribute to entrepreneurship, gender studies and networking literature by demonstrating that integrating formal and informal networks can mitigate systemic barriers. The study also provides practical implications for policymakers, investors and business communities to foster inclusive and resource-orientated entrepreneurial environments. Future research should explore digital networking advancements and the intersectionality of gender with other socioeconomic factors to develop more targeted support mechanisms.