Formal and Informal Institutional Factors and Women Entrepreneurship in Egypt: A Qualitative Perspective

Abstract

This paper aims to identify the constrains faced by female entrepreneurs in Egypt. This study also intends to examine the influence of formal and informal institutional factors on women’s entry into entrepreneurship in Egypt. In addition, to explore the factors enable women entrepreneurs to overcome the barriers they may face. The qualitative research approach was adopted in the study to explore the challenges experienced by Egyptian female entrepreneurs. Purposeful sampling was employed and twenty-five (25) women entrepreneurs were selected from five Egyptian governorates to conduct semi-structured interviews to collect primary data. The findings indicated that the main constraints faced Egyptian women entrepreneurs arise from difficulty in raising capital, socio-culture commitments, sexual harassment, work-family conflict and lack of managerial skills. The study found factors such family-husband support, religious values, personal traits and technological skills are crucial for overcome constraints faced by women entrepreneurs. The study recommends creating a funding program targeting female entrepreneurs and raise the awareness about the importance of women entrepreneurship as well as take necessary actions to prevent sexual harassment phenomenon. Minimal research has examined female entrepreneurship in Egypt. Therefore, this study offers valuable insights of constraints faced by women entrepreneurs in Egypt. The study contributes to the women’s entrepreneurship literature from the perspective of an Arab Islamic developing country.