The Arab Spring and women entrepreneurs

Citation

Ali, A.J. (2012), "The Arab Spring and women entrepreneurs", Competitiveness Review, Vol. 22 No. 5. https://doi.org/10.1108/cr.2012.34722eaa.001

The Arab Spring and women entrepreneurs

Article Type: Editorial From: Competitiveness Review: An International Business Journal, Volume 22, Issue 5

Elusiveness is a hallmark of the Arab political and social scene. In fact, it is futile to try to predict exactly where emerging events will eventually lead. This is especially true in the context of the Arab Spring. The latter, triggered by a powerless Tunisian vegetable seller in December 2010 who set himself on fire and initially carried out as a mass protest by the youth and labor unions, has led to the demise of certain regimes, disorder in some countries, and the rise of conservative religious groups on the political front. In the new Arab political scene, each actor/movement has generally advocated vague issues but asserted a claim on representing what is best for the economy and the people.

Women have participated heavily in the Arab Spring. Their presence has strengthened women’s roles in the society, socially and politically. This has created opportunities and challenges for women in business. More importantly, it has brought to the fore a lingering question, “Can Arab women entrepreneurs flourish in a society where contradictory ideologies are promoted simultaneously and by competing actors and movements?”

The undisputed fact is that the Arab Spring has created an intriguing environment in the region. Certain developments have emerged: the “wall of fear” has rapidly crumbled and economic growth and access to business opportunities have become a focal point of political discourse. The first has unleashed untapped energy, new perspectives, and induced governments in the region to release billions of dollars into the economy, addressing long ignored social and economic grievances and appealing to the youth and unemployed. And, though disorder is still looming and uncertainty is a reality, the youth continue to maintain their combative spirit.

The second development is characteristically linked to the first one. Both public and private sectors understand that the Arab Spring has changed the rules of the political game, unveiled widespread corruption, questioned illegitimate conduct and operations, and demanded responsiveness. To demonstrate legitimacy and commitment to change, both sectors have rethought their strategic involvements and invested in projects that offer various opportunities to broad social segments. Though investment schemes generate opportunities and revitalize the economic scene, governments’ broadening of public expenditures and job offers for citizens could trap the entrepreneurial spirit. In fact, in their attempts at political appeasement and to avoid chaos and social instability, governments lure citizens to jobs in the public sector with lavish benefits and the promise of employment security.

While both developments create a fertile ground for entrepreneurs, women in particular stand to reap a lion’s share of the benefits. This is because while the old political order in the region purposefully marginalized women politically and severely constrained their economic engagement, the new regimes which have emerged in the region, especially Tunisia, have had no choice but to revive the economy and court the women and the youth.

Severe restrictions on women’s participation in economic activities imposed by the old Arab political order not only obstructed women entrepreneurial development but also contributed, according to “Education for development: realizing Arab youth potential” Report, to a high unemployment rate among females, reaching and exceeding 30 percent across the Arab World.

However, some women took initiatives to challenge the existing order and engaged in economic activities on their own. Though names like Buthaina Rawashdeh (Jordan), Rania Al Bastaki (UAE), Hazar Salam (Lebanon), Jalilia Mezni (Tunisia), Areej Derwishe (Oman), Mona Almoayyed (Bahrain) have often been mentioned in the media, the Arab Spring has further created an environment hospitable to the cultivation of women’s entrepreneurship and start-up firms. The New York Times reported (Sleiman, 2012) that:

[…] conditions for entrepreneurs are in some ways improving […] Previously, start-up companies were sometimes discouraged by authoritarian regimes eager to protect the interests of small groups of privileged business cronies. Now they are more often welcomed as tools to create jobs.

The seriousness of the Arab governments in keeping their promise of political and economic openness and in supporting emerging entrepreneurs has been debated in the region. There are those who doubt that such governments are willing to fulfill their promise and embark on profound political and economic transformations that will ease and sustain women’s engagement in economic activities. Those who advocate this view assert that neither the incumbent regimes nor the emerging religious groups are willing to initiate changes that will enable women and the general public to play a role in designing their futures and building sound economic institutions. That is the entrepreneurial spirit is there, but governments intentionally restrict it. Saadi (2012) stated that:

While the legal system differs from one Arab country to another, limits on foreign ownership and the need to have a local sponsor... will limit the extent to which entrepreneurs can flourish. Bankruptcy laws also remain opaque and the interpretation of investor rights is often arbitrary. Censorship of Web sites and the banning in some countries of alternative phone providers like Skype also pose hurdles.

According to critics, the Arab regimes will not undertake dramatic changes needed to release the entrepreneurial spirit. Indeed, writing in Alquds Al Arabi, Egyptian author, Hasienien Karum (2012), argues that even the rising religious groups do not offer a credible economic program and more likely will utilize their newly emerging power to establish corporations using economic aids provided by international institutions and foreign governments to Egypt.

However, increasing numbers of people in the region from all walks of life argue that the Arab Spring has profoundly shaken the old order, created a sense of purpose, strengthened the spirit of discovery and economic and social engagement, and generated a totally new environment where there is no way to go but forward. This sentiment has been voiced by growing numbers of entrepreneurs in the region, especially among women. A recent survey by Gallup shows that women entrepreneurs in the Arab Gulf region display a sense of optimism even when things go wrong (Bugshan, 2012).

In a recent visit to Dubai I met two women entrepreneurs, Ramia M. El Agamy and Wafa Farhoud. Ms. El Agamy serves as editor of Tharawat Magazine and Ms. Farhoud is the Assistant Editor. The magazine focuses on family business; an area neglected in the region until recently. El Agamy is an intellectual business entrepreneur who has had the foresight and the determination to make a difference in the Arab Gulf countries and the entire Arab region. Her optimism is tempered with a sense of pragmatism and keen knowledge of global affairs.

While Ramia M. El Agamy has focused primarily on building a sound foundation for her magazine, she has not neglected the fact that family business in the region is the mainstay of the national economy and must not be left to whims and arbitrary judgments. She and her sister, Farida, run Tharawat Family Business Forum and Arabian NextGen. The first is an institution for knowledge creation and an educational center that offers needed resources to sustain family businesses. It aims to cultivate both the business and social skills of family business owners, while institutionalizing professional conduct and enhancing effective operations. NextGen offers the young generation coaching and training to get their businesses off on the right foot. Both initiatives are needed as the Arab World experiences a turning point in its history.

Ramia M. El Agamy represents an emerging and new breed of Arab women entrepreneur. She and other like minded individuals, from Morocco to Iraq, are determined to change the landscape of Arab business and economy. They are new pioneers and their work takes on an historical significance, primarily because they are venturing into unfamiliar terrain full of minefields and challenges. The changes that have accompanied the Arab Spring, however, make their journey intriguing and rewarding.

Like in many other parts of the world, the rise of women entrepreneurs gives opportunities for a large segment of the population to take part in the formal economy, break hiring and promotion barriers, and offers women the chance to leave their mark and shape the economy in their respective societies. In the Arab World, women entrepreneurs are an expression of hope and aspiration for a better and promising future. Simply, it is an act of freedom.

Though these women face multiple challenges, the most difficult are the familiar ones: deeply rooted male domination of business activities and tribal and uninformed backward-looking interpretation of religious instructions. Both are powerful and immediate potent forces that could severely curtail progress and obstruct innovative ideas and application. Nevertheless, these pioneering women entrepreneurs are spirited and courageous. The Arab Spring strengthens their mission and hope for a political and business environment where inclusiveness and appreciation of innovative and productive activities are not only recognized but also desirable.

Abbas J. Ali