Aspiring Entrepreneurs: UAE Women's Ambitions Soar

In the UAE, 84% of Women Aspire to Start Businesses – What Motivates Them and What Challenges Do They Face?

According to research published before International Women's Day, 84% of women in the United Arab Emirates (UAE) are considering starting their own businesses. Meanwhile, 98% of female entrepreneurs expect revenue growth over the next five years, reflecting impressive optimism. These data not only highlight the entrepreneurial spirit of women but also show how the UAE's dynamic business environment can be inspiring and supportive for both genders.

Gender Equality in Entrepreneurship

The research conducted by Mastercard indicates that entrepreneurial spirit is nearly equally prevalent among women and men in the UAE. Of those surveyed, 49% of women and 47% of men consider themselves entrepreneurs, suggesting that the country's business environment creates opportunities for both genders. Women are primarily motivated by financial independence, flexibility, and social impact in their entrepreneurial pursuits. Millennial women (53%) are leading this change, but women from the Gen Z category (44%) are also increasingly engaging in the entrepreneurial sphere.

The Most Popular Sectors

In the UAE, the most popular sectors for women-led businesses are food and beverages (26%), online commerce (22%), and the cosmetics industry (19%). These sectors are linked to consumer demands and offer strong opportunities for women entrepreneurs. The research suggests that in these sectors, women are not only participants but also innovators, contributing to the economy's diversity.

The Optimism of Women Entrepreneurs

The optimism of women entrepreneurs is impressive: 98% expect their revenues to grow in the next five years, compared to only 85% of men making the same prediction. This difference shows that women are not only ambitious but also confident about their future. However, another finding from the research deserves attention: 31% of women feel that starting a business is "not possible for someone like them." This clearly indicates that lack of confidence can still be a significant barrier for women.

Confidence Gaps and Financial Constraints

The research reveals that women are three times more likely to feel that lack of confidence hinders them from starting a business (30% of women compared to 10% of men). Moreover, 67% of women identified lack of financing as a primary challenge, a higher rate than that of men. The initial steps of starting a business also present difficulties: nearly 40% of women struggle with how to begin writing a business plan or how to access critical infrastructure. These findings highlight that mentorship and access to resources can be crucial to women's success.

Side Jobs and Financial Independence

Interestingly, increasingly more female entrepreneurs in the UAE are using side jobs to achieve financial independence. Among those surveyed, 56% have side jobs, a higher rate than 52% among men. The most popular side jobs include freelance work, education, and content creation. These alternative income sources not only provide financial security but also offer opportunities to gain necessary experience for future entrepreneurship.

The Role of AI and Digital Security

Artificial intelligence (AI) and digital security are playing an increasingly important role in the lives of female entrepreneurs. 75% of women regularly use AI, although men use AI for decision-making at a higher rate (61%) compared to women (54%). Nonetheless, women experience greater increases in efficiency: 85% reported significant time and cost savings, while 78% of men did the same. However, challenges remain in digital security: 35% of female entrepreneurs have been targeted by fraudsters. Despite this, fewer women are worried about fraud risk compared to men, perhaps reflecting women's confidence in the digital space.

The Importance of Support

The research results clearly show that while women are ambitious and optimistic, more support is needed for them to achieve success. Mentorship, financing opportunities, and access to infrastructure are essential to enable more women to venture into entrepreneurship. Mastercard is also committed to promoting an inclusive digital economy and offers tools that help small businesses grow and develop.

Summary

The entrepreneurial spirit among women in the UAE is evidently strong, with optimistic prospects for the future. The desire for financial independence, flexibility, and social impact all contribute to more women daring to venture into businesses. However, lack of confidence, financing difficulties, and initial steps remain challenges. Adequate support and mentorship can be crucial for more women to realize their dreams and contribute to the economic growth of the UAE.