84pc of women in UAE eye entrepreneurship yet funding challenges persist, says report

UNITED ARAB EMIRATES: A recent study by Mastercard reveals a remarkable trend in female entrepreneurship in the UAE, with 84 percent of women considering starting their own businesses.

This surge in interest comes just ahead of International Women’s Day on March 8, highlighting not only the ambition of women in the region but also the broader societal shift toward entrepreneurship, reported nukta.com

The research indicates that 49 percent of women and 47 percent of men in the UAE identify as business owners, signalling a growing entrepreneurial spirit among both genders. Key motivators driving women toward entrepreneurship include financial independence, flexibility, and the potential for social impact.

Among the women exploring business ventures, millennials are leading the way—53 percent are considering entrepreneurship, compared to 44 percent of Gen Z women. The study highlights popular sectors for women-led businesses, including food and beverage (26%), online retail (22%), and cosmetics (19%).

Gina Petersen-Skyrme, the Country Manager for UAE and Oman at Mastercard, remarked on the entrepreneurial zeal among women across Eastern Europe, the Middle East, and Africa. She stressed the need for ongoing support to maintain this momentum: “While we have made significant strides, challenges remain. At Mastercard, we are dedicated to fostering an inclusive digital economy and empowering small businesses with the essential tools for growth.”

Despite the challenges, optimism prevails among women entrepreneurs, with 98 percent expecting revenue growth over the next five years, compared to 85 percent of their male counterparts. However, 31 percent of women still believe that starting a business is “not possible for someone like them,” reflecting a notable confidence gap. Women report a lack of confidence as a barrier three times more often than men—30 percent versus 10 percent.

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Funding remains the primary hurdle, with 67 percent of women citing insufficient financial resources as their biggest challenge. Additionally, 40 percent struggle with developing effective business plans or accessing vital infrastructure, underscoring the necessity for mentorship and support resources.

In light of these challenges, many women are turning to side hustles as a means of achieving financial independence. The study indicates that 56 percent of women in the UAE engage in side businesses, slightly outpacing men at 52 percent. Common side income streams include freelancing, tutoring, and content creation.

Technology is playing a pivotal role in the operations of female entrepreneurs, with 75 percent regularly using AI tools. Despite this, men utilize AI for decision-making more frequently than women (61% versus 54%). Notably, 85 percent of women entrepreneurs report significant time and cost savings from AI adoption.

However, cybersecurity remains a pressing concern; 35 percent of women entrepreneurs have been targeted by fraud. While fewer women express worries about digital fraud compared to men, securing online transactions is still critical for business growth.