Female Entrepreneurial Activity and Institutions: Empirical Evidence from Saudi Arabia

Abstract

This study investigates the role of institutions on female entrepreneurial activity in Saudi Arabia, using institutional economics as the theoretical framework for developing the hypotheses. Primary data were collected and used to analyse the role that institutions play and continue to exercise in developing entrepreneurial activity among female citizens. The findings indicate that the most significant barriers to involvement in entrepreneurial activities for Saudi women are a fear of failure and intervention policies, while their perception of existing female business owners and the support they receive from their families mediates their ability to become entrepreneurs. The study also investigated female perceptions of lifting driving banning, though it showed no significant impact on their probability of becoming entrepreneurs. The results will aid policy makers and future research seeking the institutions' effect on female entrepreneurship in the Middle East and Gulf regions.

Keywords

• Female entrepreneurs
• Institutional economics
• Emerging economies
• Saudi Arabia