29/08/2016 05:23 AST
SME's led by women in the GCC manage assets worth $385 billion, and are at the forefront of the economic transformation of the region, the latest report by Al Masah Capital has revealed.
The report titled 'GCC Women - Entrepreneurs in a New Economy', shows that these women are backed by increased literacy and educational opportunities, slowly changing cultural attitudes, and government policies aimed at reducing dependence on foreign labour.
Women economic power has been growing multifold in the GCC region on the back of bulging female population. The female population has grown at a 10-year compound annual growth rate (CAGR) of 3.3 per cent, which when coupled with successful modernisation and progress in the field of education, has led to higher growth of 6.8 per cent CAGR in the female labor force.
Though marginally, the gap between the male and the female workforce participation rate has come down over a decade to 56.4 per cent from 56.8 per cent earlier. In the UAE alone, about 70 per cent of college graduates are women, while 60 per cent of the government workforce is female, a third of which are in senior positions.
Furthermore, the availability of diverse employment opportunities, technological advances, and information democratisation, is inspiring several women to start their own businesses. According to the report, women entrepreneurs in the region increased from four per cent to 10 per cent in the period 2011-14, significantly narrowing the gender gap in entrepreneurial intentions.
This has spurred regional governments to collaborate with non-governmental bodies to identify and develop programs to support women entrepreneurial intentions and activities. The report states that women in the GCC are fast approaching gender equality in business start-up intentions, possibly resulting in greater parity in the next wave of entrepreneurship in the region. However, this calls for increased formal entrepreneurial education and training to bring their ideas to fruition and successfully own and manage established businesses. Although the success rate stands at 40 per cent, this number is rapidly rising.
The report also highlighted that high unemployment rates, limited access to formal finance, regulatory and social constraints, striking a work-life balance, inadequate training and access to information, and lack of female-friendly entrepreneurship policies are key barriers and challenges faced by women entrepreneurs in the GCC. Hence, GCC governments have amplified their efforts towards addressing existing challenges faced by women entrepreneurs, and have introduced a range of empowerment measures across the political, business and educational arenas such as marked regulatory improvements, lower entry and exit barriers, increased representation in chambers of commerce, and improved female literacy rates. On the other hand, improvement in social conditions driven by changing demographic patterns and gender diversity in the private sector are some of the key growth drivers of women participation in the workforce.
As a result, adult female (25+) participation in the GCC's labor force in 2015 increased to 32 per cent, growing at 6.8 per cent CAGR in the last decade. Female literacy rate in the GCC is also at par or above the developing nations across the world; nearly 100 per cent among 15-24 year olds and almost 90 per cent on average among adult females (age 25-64).
Khaleej Times
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