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[Abstract] Although there is a well developed corpus of knowledge concerning female entrepreneurs in developed nations, relatively less is known about counterparts in developing and transitional economies. This paper uses a survey of 180 women entrepreneurs in Bahrain to examine the influence of various socio-economic factors on their decision to choose entrepreneurial careers. We find human capital to be instrumental in respondent's choice of business, type of financing sought, and level of networking. The expectation that ties to religious groups would confer an advantage when doing business in an Islamic country was not supported. Nevertheless, women who abided by Islamic customs were accepted in a typically male-dominated business world.
[Keywords] Islamic female entrepreneurship; Shari'a and entrepreneurship; Bahraini women entrepreneurs
Female entrepreneurship is a rapidly growing phenomenon in high, middle, and low-income countries. However, despite worldwide growth, it is less common in Middle Eastern and North African countries (MENA) than other parts of the world. Data from the World Bank Country Enterprise Survey (20032006) report the following frequencies of female businesses ownership-North America (31%), Europe and Central Asia (24%), East Asia (20%), Latin America (20%) and MENA countries (13%). This difference is particularly striking given significant progress by MENA women in education, social development, and labor force participation since 1970. Between 2000-2005 MENA women's share of the labor force increased from 25% to 27% and they comprised 36% of new entrants in the labor market in 2005 (World Bank, 2007).
MENA countries are predominantly Muslim with the Koran shaping the fabric of daily life for Muslims and Shari'a (Islamic law) governing the legal and economic framework in which businesses operate. The Koran prescribes for women rights, responsibilities, and restrictions that differ greatly from non-Muslim countries. For example, the precept qiwama, stipulates patriarchal responsibility towards women along with their support and protection. As a result, workplaces are segregated by gender and in conservative countries women require permission of a male family member to engage in activities outside the home (Kavossi, 2000). The precept wasta± establishes the predominance of male networks and requires men to assist women in gaining entrée to those networks. Consequently, women rely on men for access to business networks because the Koran enjoins direct contact with males who are not related by...