CAIRO: Female entrepreneurship has increased significantly in Saudi Arabia, establishing the kingdom as a world leader in women-led small and medium-sized enterprises.
This growth comes as Saudi Arabia’s entrepreneurship flourishes and small and medium-sized enterprises become increasingly dominant.
According to a report by Monshaat, the Saudi authority with jurisdiction over the sector, Saudi Arabia will boast 1.27 million small and medium-sized enterprises by the third quarter of 2023, demonstrating the country’s commitment to economic diversification.
In an interview with Arab News, Stephanie Noor Prince, a partner at Riyadh and Dubai-based venture capital firm Nuwa Capital, highlighted the dramatic changes in the environment for female entrepreneurs in Saudi Arabia.
“In recent years, the situation surrounding female entrepreneurs in Saudi Arabia has undergone remarkable changes, both socially and professionally,” said Prince.
She went on to stress that this change is in line with a broader vision and has already produced impressive results, as evidenced by the increasing number of women in leadership positions within companies. did.
As Monshaat newspaper reported in January 2023, 45 percent of small and medium-sized enterprises in Saudi Arabia are led by women. Moreover, the participation rate in the information technology sector has increased significantly, from 11% in 2017 to 24% in 2021, 8 percentage points higher than Silicon Valley’s figure.
A new era of entrepreneurship
As Saudi Arabia moves forward with its technological revolution, female entrepreneurs like Noor Taher, co-founder of Saudi-based artificial intelligence startup Intella, are making great strides toward success.
Under her leadership, Intella has experienced impressive growth, secured multiple funding rounds, and relocated its headquarters from Egypt to Saudi Arabia.
The move not only signals Intel’s commitment to Saudi Arabia’s burgeoning technology ecosystem, but also highlights a broader trend of women-led companies gaining positions in traditionally male-dominated fields. There are also things.
Reflecting on this evolution, Taher told Arab News: This change is reshaping traditionally male-dominated industries and ushering in a new era of entrepreneurship. ”
VC story
According to Prince, a new era has arrived in the world of venture capital, with an increased focus on female entrepreneurs.
“The venture capital community has become increasingly aware of the diverse perspectives and innovative approaches that women bring. The success stories of women entrepreneurs in the region demonstrate the potential of women-led businesses. ” she said.
Prince also points to the industry’s important role in enabling women to not only start but significantly expand their businesses.
“Venture capital is not a prerequisite for starting a business, but it is critical for rapid growth and success,” she explains.
Prince elaborated that Nuwa Capital’s portfolio includes female leaders in a variety of sectors, from healthtech to fintech.
“Equally important is the hiring of women across our portfolio,” she said, noting that the 20 companies participating in the company’s early-stage offering currently employ around 1,000 women combined. It revealed that.
“That’s an average of about 50 women per company, which is unheard of in a large company, let alone a start-up. This is something we’re very proud of,” Prince added.
She also advocates for a venture capital ecosystem that is more inclusive and meets the unique needs of women entrepreneurs, including access to investment and mentorship networks.
Echoing Prince’s sentiments, Taher emphasizes the importance of networking in entrepreneurship.
“Women often have fewer networking opportunities, in part because men tend to benefit from more informal networks that emerge from social interactions. For this reason, when looking for angel investors, women can be put at a disadvantage,” explains Taher.
She recommends overcoming this challenge by being actively involved in the ecosystem and leveraging your network to facilitate introductions to active angel investors.
overcome challenges
Although Saudi Arabia has made great strides in removing barriers for women to become entrepreneurs, there is still room for further progress.
“I have seen many initiatives in Saudi Arabia to support female founders, and I am very happy to see women occupying the space they deserve,” Taher said. .
As a champion of women in the Saudi entrepreneurial ecosystem, she emphasized continued efforts to promote women’s participation in this sector.
Despite this progress, Prince, a strong advocate for women entrepreneurs, points out that the journey towards full empowerment and inclusion is still far from complete.
“Unfortunately, there is still a lot of work to be done and we have only scratched the surface,” Prince said.
“But we’re seeing early signs of change, but we’re also seeing early signs of self-awareness. It’s heartening to see Saudi women championing each other.” she added.
Prince pointed out that the lack of women in startup leadership is a global challenge and is not limited to the Middle East.
“But we have a chance to be a trailblazer to the world and demonstrate how Saudi Arabia supports women in innovation,” she added.
lighthouse to the world
Observing the growing number of women entrepreneurs entering the business realm, Prince offered guidance on navigating the hurdles of entrepreneurship.
“Being an entrepreneur is tough, but being a female entrepreneur comes with unique challenges. We are building an inclusive and diverse ecosystem where other companies around the world have failed.” We need to collectively solve this problem by doing so,” she said.
Building on Prince’s point, Taher advised women entrepreneurs to believe in themselves and their reasons for embarking on a difficult journey, noting that the real journey begins from within.
“Don’t be afraid to take risks and challenge social norms. Seek out mentorship and networking opportunities within and outside of your industry. Setbacks are inevitable, but they are valuable learning experiences that will help you develop resilience. Be humble in everything you do, and most importantly, be kind to yourself,” Taher said.
“Surround yourself with a supportive network of like-minded people. This doesn’t have to be such a lonely journey,” she concluded.
Mr Prince also outlined a multi-pronged approach to support the Government’s vision.
She emphasizes the importance of the private sector, especially international companies within the startup ecosystem, to integrate and adapt best practices on women’s empowerment from global markets to local contexts.
“Second, venture capital firms must ensure that their portfolios have established appropriate measures to foster career growth for women. “We need to ensure we eliminate gender bias to help develop gendered teams,” she added.
“Finally, women need to actively support each other in the form of capital, mentorship, and training,” Prince explained.
