Opportunities and challenges for Omani women entrepreneurs

Opportunities and challenges for Omani women entrepreneurs Rahma Al-Riyami, Lorraine Warren and Gerard McElwee Abstract: This study presents a preliminary report of an exploratory, qualitative investigation of the role of Omani women entrepreneurs in Muscat. It establishes the factors that motivate women to become entrepreneurs. Opportunities for the growth and expansion of women’s entrepreneurship in Oman, as well as barriers that women encounter, are discussed. Suggestions are offered as to how women’s entrepreneurship in Oman might be encouraged, along with questions for future research. Keywords: women’s entrepreneurship; barriers; Oman Rahma Al-Riyami, recently with the University of Lincoln, can be contacted at PO Box 206, Mina Al-Fahal, Postal Code 116, Muscat, Sultanate of Oman. Lorraine Warren is with the Department of Corporate Strategy, Faculty of Business & Management, University of Lincoln, Brayford Pool, Lincoln LN6 7TS, UK. Tel: +44 1522 886159. Fax: +44 1522 886032. E-mail: [email protected]. Gerard McElwee is Head of Department of Corporate Strategy, Faculty of Business & Management, University of Lincoln, Humberside Campus, Cottingham Road, Hull HU6 7RT, UK. Tel: +44 1482 463564. Fax: +44 1482 463828. E-mail: [email protected].

Women form a large, untapped potential human resource reserve and their role in economic development has become a very important issue in developing countries. Whilst the participation of men in all arenas — whether political, economic or social — is unquestioned, the participation of women in the labour force is complicated by the fact that the woman is the childbearer and carries the major responsibility for child rearing in a patriarchal, male-dominant society. In Arab society these functions ascribed to women are given a very high value (Khoury and Moghadam, 1995, p 35). In Oman, interest in diversifying the economy from a dependence on oil and gas, ie non-renewable resources, has increased. This has led to a focus on human resources, with a drive to ‘Omanization’, that is, encouraging the employment of Omani nationals, as distinct from relying on a high proportion of expatriates in the labour force. Clearly, as women form nearly 50% of the population, they have an important role to play in this shift of emphasis. Little is known about the careers and problems faced by Omani entrepreneurs in general and women entrepreneurs in particular. Consequently, the experience and

ENTREPRENEURSHIP AND INNOVATION May 2002

knowledge of successful women entrepreneurs cannot be shared with other women and are unrecognized by government policy makers. This paper is intended to make a contribution to filling that gap. It addresses the role of Omani women entrepreneurs in Muscat, the capital of Oman, and investigates factors that motivate women to become entrepreneurs, examining the existing opportunities for growth and expansion and obstacles that hinder their progress.

Context Prior to 1970, the borders of Oman were sealed to the outside world. With the exception of a few missionaries, there were restrictions on people travelling in and out of the country. There were only two boys’ schools, no schools for girls, just five miles of road, two health centres run by missionaries and no local currency (the Indian rupee was used). In 1970 Sultan Qaboos deposed his father in a bloodless palace coup and began what is regarded as Oman’s renaissance. Oman utilized its modest oil revenue to develop the country and improve

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Opportunities and challenges for Omani women entrepreneurs

public access to health care, education and social services. Despite its late entry into the modern world, it has made significant advances in establishing a strong infrastructure. This has facilitated improvements in transport, social and economic development, and particularly in education, which has generally benefited women. Oman has a historic dependence on foreign labour, which has developed through a reliance on expatriate skill levels at the professional grades, and the possibility of cheap, unskilled labour at wages unattractive to native Omanis. The downside of this reliance is a large transfer of money out of Oman by foreign workers, and little benefit to the nation in transfer of knowledge and technology. With 44% of the population under the age of 15 and 68% under 25 in 2000, there is a potential workforce to support the Omani government’s commitment to the process of Omanization. Increasing educational opportunities for women and levels of education for both genders will ultimately increase productivity, which will far outweigh any potential costs in wages/salaries and finance repatriation. In addition, the benefits will spill over to enhance social life, and decrease the dependence on foreign labour. Yet while the government has introduced measures to restrain foreign labour in order to accommodate more Omanis in the labour force, it could be argued that this policy has been undermined by paying too little attention to the participation of Omani women in the labour force. Women as a resource are highly underutilized due to the interactions of cultural, economic and educational forces that influence their choices of career, career progression and labour marketability. To understand Omani women entrepreneurs’ motives and determination, it is necessary to consider their role as women in society, and the effect of the environmental forces that they encounter in their daily lives, which influence their personalities, purpose and general outlook on life. Most of these are shaped by the Omani culture, which is influenced by Islam: Oman is an Arab, Muslim, patriarchal nation. Its culture is firmly rooted in the Islamic religion. Islam is more than a religion; it is a way of life that guides a Muslim in his or her everyday life — from what to eat, to how to behave and how to dress. For Arabs, the family lies at the core of society, playing a major role in political, economic, social and religious spheres. People are conscious of each other’s family memberships, identities and status. Family links facilitate access to institutions, jobs and government services (Sabbagh, 1998, pp 194–195). Gender differences are enshrined in the Muslim Holy Book, the Qur’an, and in the Shari’a, the Islamic Law. A woman’s primary role in the family is as a wife and mother. Many

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employers feel that these roles will interfere with women’s work productivity. Hence, there is a tendency for them to give priority to men, even when women have the same qualifications. With a gender population of almost 50/50, the percentage of female employees in the labour force is 9.7%. Al-Mandhry (2000, p 20) reported that the low percentage of women participating in the labour force was mainly attributable to a lack of suitable work opportunities, rather than lack of interest. Many single, unemployed women are searching for jobs. The challenges facing Omani women wishing to participate in the labour force, as highlighted by the Ministry of Social Affairs (Anonymous, 2000, p 3), are as follows: (1) The illiteracy level of women in terms of providing them with the skills required for improving family life and earning a living: the last population census carried out in 1993 reported a women’s illiteracy level of 54%, compared with 29% for men. (2) Traditional practices still restrict women to their maternal role and other family-bound tasks, thus limiting their social and economic participation. (3) Women are ill-informed regarding their rights under Islamic Shari’a and other laws of the state. (4) Support services such as nurseries, kindergartens, vocational training, employment-related information and access to development loans, which can enhance women’s participation in economic activity and increase their contribution to development, are in short supply. Clearly, these barriers present obstacles to women wishing to establish and maintain their own businesses, as well as those trying to obtain mainstream employment. There has been little systematic study of entrepreneurship in Oman, although some inferences can be drawn from government data. Businesses in Oman are classified according to their capital investment. The majority of businesses started by women in Oman are small, classified as Grade 4, with a capital of less than RO25,000. Women own far fewer businesses than men, but numbers have remained stable over the past three years. This reflects a global picture in which women’s ventures are qualitatively different from men’s, typically tending towards small businesses in the service industries, responding to traditionally unsatisfied needs. In this study, we seek to generate new knowledge concerning women’s entrepreneurship in Oman. We undertook an exploratory study; the research was, however, guided by the following themes, which have been well established in the literature on women’s entrepreneurship:


Opportunities and challenges for Omani women entrepreneurs Table 1. Current age of the entrepreneurs and age at start of business. Current age Up to 30 years old 31 to 40 41 to 50 Over 50

No of women

Age at start of business

No of women

3 (12%) 7 (28%) 7 (28%) 8 (32%)

Up to 30 31 to 40 41 to 50 Over 50

6 (24%) 15 (60%) 3 (12%) 1 (4%)

(1) Family support and encouragement usually has a positive influence on women, both in venturing into and in making progress in business. (2) The presence of a role model or mentor can influence women in their decisions and choice of careers. (3) Women tend to define success differently from men. Women may be satisfied by micro-level entrepreneurial activities — aiming for stability rather than growth. (4) Women generally have less access to external funding than men; hence women’s businesses tend to be concentrated in the service sectors, which usually require small initial capital outlay and less technical knowledge. (5) For local markets, there may be limited support to forecast market and financial trends because of lack of data, which means that good networking is essential.

Methodology The purpose of this study is to try to understand the experience of Omani women entrepreneurs and what they derive from that experience. In-depth, face-to-face meetings were used to enable participants to discuss what was important for them, their perceptions and feelings. Initial contact was made by telephone, and participants were informed of the purpose of the study and given a guarantee of anonymity. Out of 31 attempted contacts, only two declined, two were unavailable and in two cases it was not possible to arrange a meeting. The study initially started with eight names of entrepreneurs; many of the initial participants were generous in providing names of additional potential participants to be contacted. Through a ‘snowballing’ process, 25 entrepreneurs from a diverse range of ventures eventually participated. The women entrepreneurs in this study are either owners of, or hold a controlling interest in an enterprise and manage it on a day-to-day basis. While many business people in Oman may fully or partly own enterprises (large or small), the running and managing of such enterprises is often left entirely to Asian expatri-


ates for a monthly financial return. Such business owners cannot be considered as entrepreneurs if others take the risks and make innovations while they provide some of the finance and reap most of the rewards. Data collection and analysis were carried out simultaneously. Emerging themes and issues from the perspective of the respondents were identified in accordance with the tenets of grounded theory (Strauss and Corbin, 1997). Data were continuously reviewed, particularly in the light of additional information, in order to be able to categorize and group the information in a more illuminating way. Participants are identified by initials in the quotations below so as to protect their anonymity.

Analysis The categories developed for analysis of the data include demographics; reasons for business venture; entrepreneurs’ background — experience, education, family, role models, balance between work and family; decision making and networking; business aspects — market, customers, entrepreneur’s definition of success; cultural aspects; government aspects; financial aspects; and advice for women who wish to become self-employed. Demographics The 25 entrepreneurs were of various ages, with 32% over the age of 50. At the start of business, 60% of the women were between 31 and 40 years old (see Table 1). The businesses consisted of private schools, tailoring, fabrics and leather goods enterprises, hairdressing, business centres, a bakery, restaurant, dental clinic, information technology services, producing art and cultural products, carrying out stage and hall decorations, laundry, supply of educational materials, consultancy services, tourism, photography, and enterprises involving vehicles, oil and gas, recruitment and secondment, building design, supervision and town planning. Ownership Sixty-four per cent of the women are sole owners, with the advantage of being in full control of all decisions. As T states: ‘as a business woman I would like to do

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Opportunities and challenges for Omani women entrepreneurs Table 2. Ownership categories.

Table 4. Reasons for undertaking the business venture. No of women

Sole ownership Partnership with others Family ownership

16 (64%) 5 (20%) 4 (16%)

Table 3. Sectoral distribution. Sector Services Retail/import and export Production

No of women 19 (76%) 4 (16%) 2 (8%)

business myself’. However, a sole owner has no-one to rely on, less available capital, less experience, fewer viewpoints to aid decision making and a lack of continuity. As F advises, if a woman has capital but lacks knowledge, ‘she should partner with someone with experience’. See Table 2 for ownership categories. Sectoral distribution Seventy-six per cent of the businesses are concentrated on the service sector and the local market, with a further 16% in retail (see Table 3). This is fairly typical of women’s enterprises, in which the initial investment is relatively small and life experiences/hobbies are developed into businesses. However, 20% of the businesses are concentrated on the international market, dealing with oil and gas, information technology, imports and exports and the provision of business and consultancy services. Reasons for undertaking the business venture Findings from a focus study of 129 American business women by Moore and Buttner (1997, p 27) stated that the main reason why women started business ventures was a desire to make it on their own. Vermond (2000, p 22) states that women often venture into a business that they have a passion for, as opposed to simply choosing an idea that will produce a great return in the market. Our findings suggest that Omani women prioritize enjoyment, although economic necessity is a key factor for divorced women (see Table 4). N was motivated by challenges and social reasons, as she was dealing with only men at work and felt that she was in an all-male world. She started a tailoring and fabrics business as a hobby: ‘I had no objective of money but of a kind of challenge and to occupy my mind. And I started to meet women because the nature of the business deals with the female world.’

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Reason

No of women (women cited more than one reason)

Enjoyment Finance Job dissatisfaction/corporate culture Perceived presence of business To occupy oneself/to utilize knowledge and skills To make others happy Self-recognition Economic necessity Challenge Corporate downsizing Family encouragement Social Ambition Independence

14 (56%) 8 (32%) 8 (32%) 7 (28%) 5 (20%) 5 (20%) 4 (16%) 4 (16%) 4 (16%) 2 (8%) 2 (8%) 1 (4%) 1 (4%) 1 (4%)

Experience How did these women manage to venture on their own? Four of the women had grown up in a family business environment; 15 had had paid jobs before going into business. Twelve of them had gained experience either in the same line of work or in a similar field (see Table 5). These included S, who: was working with the Ministry of Education for 14 years doing different things with the computer, the curriculum. I did not have time for business but I had an idea if I left the Ministry I would do something that I liked and in the same field that I liked. I learnt a lot, especially as I was the director of the department, which gave me qualities of leadership and taught me how to budget, because all these things you learn through experience not education.

Five women had been ‘moonlighting’ before they left their corporate jobs. One sold her business; three continued to moonlight between working in their paid jobs and their businesses. Three of the women had not had any corporate experience, but they moved into areas of business that had started off as hobbies as they were growing up. Only three women had been in paid jobs unrelated to their line of business and had not developed their hobbies into enterprises. A managed by undertaking college studies all over again in her line of business; L enlisted her daughter’s help; T, who sold her business, moonlighted between working at her corporate job and her business. Table 5. Experience prior to the business venture. Experience Grew up in business environment Experience in the same field of venture Experience related to business Hobby Experience related to neither business nor hobby

No of women 4 (16%) 6 (24%) 6 (24%) 6 (24%) 3 (12%)


Opportunities and challenges for Omani women entrepreneurs Table 6. Level of education. Education Not educated Secondary College Graduate Postgraduate Education related to business venture

Table 8. Family and/or husband’s support. No of women 1 (4%) 3 (12%) 6 (24%) 10 (40%) 5 (20%) 11 (44%)

Education level Twenty-one (84%) of the women had college, graduate or postgraduate degrees; 44% had undergone education that was not directly related to their business ventures (see Table 6). Three were involved in family businesses. La, the daughter of a prominent entrepreneur, stated: I grew up in a business environment. The experience I’ve had is since 1994. Maybe what is lacking in me is experience working in this particular field. I need more exposure.

Five of the women pursued their hobbies; these included Z, who had gained a diploma at the secretariat where she opened a restaurant. She claimed to have had ‘a lot of experience in cooking since a young age. No business experience; you can say I am gifted and I have learnt on the job.’ Entrepreneurship in the family environment There is a high probability that a child of an entrepreneurial parent will choose to become an entrepreneur. Such parents have been found to encourage their children to become independent and to achieve (see Table 7). Oman is a society with extended families, which means that entrepreneurial uncles, aunts and brothers (in addition to parents or a husband) can be a great influence on a girl while she is growing up. Sixty-eight per cent of the women had had one or more entrepreneurial family members. Those who did not have an entrepreneurial family member entered ventures that were based on their hobbies. Children who have grown up with a parent who was an entrepreneur are influenced in their choice of career when they are older. As Am says:

Table 7. Entrepreneurship in the family environment. Entrepreneurs in family Parent/husband Aunt/uncle/brother None None, but hobby

No of women 14 (56%) 3 (12%) 2 (8%) 6 (24%)


Support From family From husband From family and husband None

No of women 8 (32%) 4 (16%) 11 (44%) 2 (8%)

My father was an entrepreneur. I used to visit his office as a child. I have worked for my father since 1990 as a junior employee, and I became a managing director in 1999 and now I have started my own company.

A self-employed husband can offer his assistance in terms of business knowledge, experience and confidence, and can become a role model to his wife, influencing her choice of career. The likelihood of a wife becoming an entrepreneur increases with the success of her husband, with the number of children she has and with the availability of child care. L’s husband had an important influence on her choice of career: ‘My husband had a business of his own and encouraged me to open the school.’ Family or husband’s support Because Oman is a patriarchal society, it is very important for a woman to obtain support in her business from her husband or another male relative. Many of the women agreed on the important role of the family in their businesses (see Table 8). Husbands can play an important role in the public arena for these women, as Zu states: My husband encouraged me by giving me support at start-up, getting a loan from ODB [Omani Development Bank] and preparing all the forms for licensing, Ministry of Commerce and Industry, Municipality, and Ministry of Health.

Role models Sixty-four per cent of the women’s role models were family members — male and female — the majority of whom were involved in businesses. Za had a role model in the form of a businesswoman who influenced her choice of career: I was studying in secondary school with one girl and she brought a photo album of pictures taken by Fa. I was fascinated by the photos. I do not know F and never met her but was inspired by her photos and wanted to become like her.

For Am, her father was a role model for her when growing up, and now she is looking for a female role model, which she feels is lacking in Oman. ‘Now I do not have a role model at a stage where you want a woman role model you can connect with and that’s not available in Oman.’ See Table 9 for role models.

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Opportunities and challenges for Omani women entrepreneurs Table 9. Role models for the women entrepreneurs.

Table 12. Decision-making styles.

Role model

Influence on decision making

No of women

Family member involved in business Family member not involved in business A business woman in similar venture A political figure No role model

15 (60%) 1 (4%) 1 (4%) 2 (8%) 8 (32%)

Note: Some women cited more than one role model.

Table 10. Marital status. Status

No of women

Single, no children Married, no children Married with children Widowed with children Divorced with children

5 (20%) 2 (8%) 14 (56%) 1 (4%) 3 (12%)

Table 11. Balance between work and social life. Effect on social life Never had a social life to begin with Flexible timing of business Managed to balance Sacrificed social life

No of women 2 (8%) 4 (16%) 11 (44%) 8 (32%)

Balance between work and family Fifty-six per cent of the women were married with children and 12% were divorced with children (see Table 10). The average number of children was four. Sixty per cent of the women had no problems balancing their work with family responsibilities, with the flexible timing of their businesses an important element in this. However, they all had a full-time domestic helper to assist with the children and housework. Four of them felt, like Zu, that they were freer than when they had corporate jobs: I work part-time so I can spend time with my family. I can achieve balance between work and family. Timings of my clinic are very convenient. I work according to appointments. Mornings I get time to spend with my pre-school children. Evenings it’s from 4–8 and not full-time. I am freer now than when I was working for the government.

But not all were so lucky: eight of them had had to sacrifice their social life to look after their businesses (see Table 11). Decision making Omanis derive their status from tribalism, family connections and age. More respect is given to the older

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Family Colleagues Own (no outside influence) Business associates

No of women 18 (76%) 7 (28%) 3 (12%) 3 (12%)

Note: Some of the women cited more than one influence.

generation because Omanis look to the lessons learned from the past to determine the actions of the present. A study of Arab managers revealed that they preferred consultative decision-making styles (Parnell et al, 1995). This is reflected here, where the collectivist nature of Omanis means that individual interests are subordinated by the group. Most of the women consult their families on business decisions, in addition to making their own decisions and/or consulting colleagues and business associates (see Table 12). But N, with a wealth of business experience behind her, does not ‘consult anyone in decisions. That’s something missing in Oman. There are no networks in Oman.’ Networking Omanis have extensive informal networks among family, friends and colleagues and close personal relationships with clients and suppliers. In addition to consulting their families, colleagues and business associates for advice, 68% of the women have managed to form mainly informal networks where issues are discussed and information exchanged. Two women belong to different networks. Am has started a network of seven women from the public sector and two from the private sector, To help each other and get advice from each other, and to help the upcoming generation because they’ll need a place where they can go to discuss issues. Forming such a network, which is informal, would speak to the mind of the woman who is a working, career woman and, with all due respect, the Omani Women’s Association does not provide what the working, career woman wants.

M illustrates the purpose of the working women’s group, which meets once a month for lunch: If we want to know about Website design then we know who to get in touch with. We call it a working women’s group, a very informal group, totally networking, non-political. Networking is important for any businesswoman. It is a cushion for her to fall back on to and for her not to feel totally alone, especially if it is a female networking group.

Only three of the women have no network support. As Th says: ‘In Oman we’ve so much intermarried that everybody’s a relative.’ U, on the other hand, does not


Opportunities and challenges for Omani women entrepreneurs Table 13. Networking activities. Type of networking Not involved in any network Working Women’s Group Family and friends Relationships with ex-colleagues Professional association — formal networks International links with similar type of ventures Network of private and public organizations Multilateral technical cooporation Business people in Oman (men and women)

Table 15. Market issues. No of women 8 (32%) 6 (24%) 3 (12%) 2 (8%) 2 (8%) 2 (8%) 1 (4%) 1 (4%) 2 (8%)

Note: Some women cited more than one network.

Reputation of business Satisfy others Personal satisfaction To cover costs Business growth To be fully dedicated Control of one’s life Healthy balance sheet Very profitable

Competition Price versus quality Word-of-mouth advertising Customers’ perceptions Expansion Lack of standards Unfairness Long-term focus Corruption

No of women 16 (64%) 10 (40%) 10 (40%) 8 (32%) 8 (32%) 5 (20%) 4 (16%) 2 (8%) 1 (4%)

Note: Women cited more than one issue.

Table 14. Measurements of success. Measurement

Issue

No of women 7 (28%) 7 (28%) 5 (20%) 4 (16%) 4 (16%) 3 (12%) 2 (8%) 1 (4%) 1 (4%)

need a network as many customers recommend her by word of mouth — more than she can handle. See Table 13 for networking activities. Definition of success Women define success differently from men. Moore and Buttner (1997, p 166), in their focus group study of 129 women in the USA who had left their corporate jobs to become self-employed, concluded that women measured success ‘internally in terms of personal growth, professional development, and improving one’s skills, rather than measured externally in profits or business growth.’ This is reflected here. For example, Al defines success as being ‘not a destination but a means of living’. Fifty-six per cent define success in terms of the reputation of their business and of satisfying others, and 20% in terms of self-satisfaction, with only 16% seeing it in terms of business growth. Fort-eight per cent feel they have been successful, while 52% do not feel that they have achieved a level of success according to their measurement. See Table 14 for measurements of success. Market Sixty-four per cent of the women agree that market competition is too tight, with 40% stating that customers (including government) concentrate on price rather than on quality. Z faces competition from people working


from home who do not have to bear the costs of rent for a shop, government fees and overheads: ‘They can afford to sell their food cheaper and it is a big competition for any of us who have shops.’ Twenty per cent of them agree that there is a lack of standards, which also affects their businesses. See Table 15 for a list of market issues. Nu explains the problem in the field of consultancy, in which few of the Omani consultants run the offices themselves, but leave to the expatriates who, if they get paid a little, it’s a lot for them in the currency of their countries. They are lowering the standards of the consultants. This affects the business run by the Omanis themselves. Some of the Omanis are in paid jobs while they have consultancy offices managed and run by expatriates, which is against the Royal Decree that required Omanis to be fully dedicated and become selfemployed in their businesses.

Cultural aspects Twenty-three (92%) of the women agree that ‘the system’ makes gender distinctions, which may sometimes work to their advantage. Sa states that women are constrained by their families, while men: are able to do much more than a woman and are able to attend or to appear in various places much more than what a woman would do. [The men] look at you as a “woman”, in a different way at some places. You are encouraged to stay longer, hence they do not give you answers. I personally have experienced this and have cut down my visits to such government institutions.

However, Z disagrees, arguing that men do not treat her any differently because she is a woman: Last week, I went to the Department of Labour and the window for women was closed. The girl was sick and I was standing with men for hours. I suppose they should increase the number of female staff.

B explains that government offices have separate windows for women because:

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Opportunities and challenges for Omani women entrepreneurs the kind of talk and the kind of jokes men make, it’s just embarrassing for them to find a woman amongst them. It’s true as women we have the advantage of having our papers processed quicker than men as we do not have to queue.

As Al confirms, there is no difference between men and women and goes further to say: Actually I have advantages from being a woman — I get a lot of openings and overseas they are impressed to see a woman from the Gulf and a woman in IT.

Two professional women have encountered customers who were surprised to see a woman running a business. Nu states: Even if they see me in my seat they do not think I am the owner and a professional and when they realize most of them are surprised for an Omani lady to be an engineer in architecture.

Zu’s male patients are used to her, but initially she faces the same experience: They are surprised to see a female Omani dentist as I am the only Omani female dentist in the private sector and they expect to see an expatriate.

Government aspects Generally, in dealing with the government there is a lot of bureaucracy involved and there can be difficulties in obtaining payments. The main concerns with the Ministry of Commerce are the number of licences, the bureaucracy and the high fees involved. See Table 16 for a list of government issues. S states that the Ministry of Commerce: takes a lot of money at renewals and we have to register in so many places that charge a lot of money. We have people to deal with the ministries, as it’s very time consuming. They should have only one form instead of so many forms. They should also send reminders before expiry of the different licences, but we pay fees and we do not get any assistance from them. They need to facilitate their procedures and reduce the fees, especially for small businesses. They charge a lot of money.

its meetings in order to make the environment right for women. After going to one meeting many years ago, N stopped attending because: You go there and do not find any women; men do not bring their wives, and I felt unwanted there . . . if they want to encourage women, they need to make the environment right.

There is a consensus amongst women who employ expatriates that the Labour Office is rigid in understanding their needs, especially when it is difficult to get Omanis with skills that are lacking in the market. Th could not upgrade her business due to a lack of Omani welders and she could not obtain labour clearance to employ an expatriate: ‘My husband had to put on overalls and weld.’ As Am states: You submit for 10 labour clearances; you get 3. There is nothing for free and if you want to do it properly you have to go to the minister and under-secretary and I do not think it’s the job of the minister or under-secretary to do authorization every time.

U cannot expand due to a lack of tailors, ‘which has an adverse impact on the production and hence affects the finance’. Lack of sufficient tailors means that she turns away clients. She has four tailors, although she needs 10. Some of the Omanis employed do not have the right work attitude, as N elaborates: What they [Labour Office] do not realize is that the nonproductive Omanis’ salaries depend on the expatriates. The Omanis have been trained with local industrial training institutes for manufacturing, not for boutique stitching . . . I have to absorb the cost of training these Omanis on the job. Training is a hurdle because the type of business I am in, there are no training opportunities. There will come a time when there will only be tailoring of traditional clothes and factories, which depend on the present quota system for exports to USA. The main market from government will have to close down as there’s no training to be creative. Hence, what will happen to all these employed Omanis?

The issues with regard to municipality include the bureaucracy involved, paying fees with no service, and their tendency to fine instead of guide people. Z has improved her dealings with municipalities, but as she says they keep changing staff, and:

Financial aspects Only seven (28%) of the women have obtained business and Omani Development Bank (ODB) loans. See Table 17 for sources of start-up finance. Financial experts from three prominent banks in Oman had the following comments:

Each member of staff has his own rules — there are no standard rules. They tell me according to this and that rule, but I am not a good reader and do not follow up the news to know every time rules change. We are Omanis; the Municipality should be guiding us and not fining us. Fines can go up to RO150, but normally RO5 to RO50 — it is a lot of money.

I don’t know if we have ever issued business loans to women. They have never come to ask. Maybe it is because most women have small businesses so they use personal loans. The interest rate for personal loans is 13%, whereas for business loans we can give 11%. Business loans also have an overdraft facility, which personal loans do not have.

The Chamber of Commerce needs to include women in

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Opportunities and challenges for Omani women entrepreneurs Table 16. Government issues. Issue

No of women

Need to focus more on quality than price Difficulty in doing business with government because of delays in payments Need to train staff in customer service One body that coordinates all ministries and private sectors Delays in arranging meetings due to lack of empowerment and delegation Delays in making decisions

3 (12%) 2 (8%) 1 (4%) 1 (4%) 1 (4%) 1 (4%)

Ministry of Commerce To centralize all licences for business in one office/to facilitate process and remove bureaucracy involved Too many fees/very high fees involved To reduce the number of licences needed To subsidize fees for businesses run by Omanis To control licences of private schools and clinics per location/per population To remove first year fees as many businesses fail during the first five years To simplify and reduce the number of forms to one To be flexible in registering businesses that do not tally with information on computer

9 (36%) 5 (20%) 3 (12%) 2 (8%) 2 (8%) 1 (4%) 1 (4%) 1 (4%)

Municipality Too much paperwork, plus time-consuming — one form and shorter process No services seen for the fees To give guidance to businesses instead of fining companies Health certificate inconsistent with type of business

1 (4%) 1 (4%) 1 (4%) 1 (4%)

Chamber of Commerce Trade delegations need more organizing and planning — one-to-one focus; including women from Majlis Shura and Majlis Dawla to encourage women to attend Should not be made mandatory as this means government-driven One accessible, central library with information to assist entrepreneurs To re-introduce meetings with all school owners To formulate a committee for women

2 (8%) 1 (4%) 1 (4%) 1 (4%) 1 (4%)

Labour Department Difficulties and delays in getting labour clearances; to facilitate and be less rigid Lack of standard rules; rules change with different people Need to have the right ‘to hire and fire’ Treat services, such as schools, as industries

11 (44%) 3 (12%) 2 (8%) 1 (4%)

Omanization Difficulty in establishing the right work attitude Difficulty in obtaining certain skills, such as IT, welding Not implemented in the right way Education needs to be made compulsory To focus more on large companies and higher-level jobs and less on grade 4 companies and lower-level jobs Need a national youth service for drop-outs from education

9 (36%) 7 (28%) 3 (12%) 2 (8%) 2 (8%) 1 (4%)

Omantel Need to remove monopoly so that it can become more customer-oriented

1 (4%)

Note: Women highlighted more than one issue.

I have not seen women come with their proposals, other than daughters of established businessmen. We have given hardly any business loans to women, but we have given them to women who partly own a family business.

*** 99.9% men and 0.1% women have taken on business loans. If you look at Oman, I think you have a lot of women doing businesses in the background. They are not in the forefront. They would either use their brother, husband, father or other relative as a front for registering the business and then the actual running of the business is by them. I think they put somebody


else in the front because of the various procedures that they have to go through, ministry procedures, registration processes, and so on. Whereas, if their name appears, then they have to be seen to be going to the ministries, getting labour clearances and in general they become liable and responsible and accountable for that business. A lot of times, they have the capacity, but I think they are sometimes shy. And maybe society does not permit them to take an active role. If any dispute occurs, then the owner has to go to the Labour Department, for example, to explain why so-and-so was fired, why so-and-so was not hired, why so-andso was given a letter of warning. They do not want to do that. We are not at the stage where these people can hire professionals to appear on their behalf.

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Opportunities and challenges for Omani women entrepreneurs Table 17. Source of start-up finance. Source of finance Savings/own funds Personal loans Husband/family Business loan from commercial bank ODB loans Oman Youth Fund Partners’ own money Not applicable (entered into an established family business)

No of women 12 (48%) 1 (4%) 2 (8%) 5 (20%) 2 (8%) 0 (0%) 1 (4%) 2 (8%)

Summary of outcomes So, what are the opportunities and barriers facing Omani women entrepreneurs? There are opportunities, but what factors are preventing women from taking advantage of them? Returning to the themes that informed this research, we can say:

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The majority of women’s businesses are concentrated in the service industry and are small in size because the women either have previous experience, knowledge acquired from education or a corporate job, or because the venture started off as a hobby. This makes them less attractive customers for business loans to enable them to pay less interest and acquire credit facilities. Banks need collateral and some of the commercial banks require personal guarantees — which they cannot obtain. Hence they depend on internal sources of finance for business start-ups, which forces them to start small. Most of them enjoy what they do, and initially went into business for personal reasons, to gain autonomy, or out of economic or financial necessity, inspired by a role model rather than by the prospect of making money. Many women have benefited from family support in starting a venture, in managing their businesses and in coping with the demands of running a business. Families often provide encouragement, financial assistance or business advice. Husbands, especially those who are themselves entrepreneurs, have also helped — from providing business and financial advice to providing human resources and playing a public role. The majority of the women feel that there is a lack of networks for business women or for women in similar fields to exchange information, discuss issues and seek advice on common topics, which is vital for businesses. Some of these women have started to form such networks, which they feel are an advantage, as the women support each other. In addition, due to the collectivist nature of Omanis,

the majority include their families, colleagues and business associates in seeking advice. Some women have suggested that relationships and knowing the right people in the right places can help women overcome some of the hurdles in business and facilitate the processes involved, thereby obtaining fairer deals and gaining business opportunities. The administrative system makes gender distinctions. However, some women feel they get more assistance than men and have to spend less time queuing for government services. Nonetheless, there is a consensus that the processes need to be simplified and fees need to be reduced. Some women feel that the government concentrates on prices rather than on quality and specialization in certain services. Both a lack of the required skills and the correct work attitudes locally, and the difficulty of obtaining labour clearances to employ expatriates hamper business growth and have an adverse impact on their businesses.

Conclusion and recommendations This study addressed the role of Omani women entrepreneurs in Muscat, investigating factors that motivate women to become entrepreneurs, the existing opportunities for growth and expansion and the obstacles that hinder their progress. The environment and issues that they encounter in their daily lives influence their personalities, purpose and general outlook on life, and are largely shaped by the Omani culture, which is influenced by Islam. In this section, we begin by offering some practical recommendations that have emerged during this study. The study also afforded the potential to develop questions for future research. Practical recommendations The opportunities and problems faced by the entrepreneurs in a young and rapidly growing country are enshrined within the cultural and ideological doctrines of an Arab, Muslim and patriarchal society. Women increasingly occupy important roles, be they political, educational or economic. However, more women are needed in high positions within the government in order to influence the policies that will strongly support a move towards a change in values and work ethics. The women entrepreneurs in this study face many challenges that hamper their business growth and expansion. In many ways their experiences reflect those of women entrepreneurs in society generally. However, there are aspects unique to Oman that can be addressed through internal initiatives and policy. Government can play a very important role in promoting entrepreneurship, particularly in supporting the policy of ‘Omanization’.



Culture, tradition and religious practices tend to restrict women: if single, they are usually regarded as being under the guardianship of a male relation such as a father or brother; if married, of a husband. Hence, women are restricted as regards mobility and interaction with the opposite sex. As a result they regularly face difficulties, particularly when processing official documentation in government institutions. In order to facilitate documentation and encourage more women to become entrepreneurs, several changes need to be implemented. The following recommendations are proposed as a means of facilitating and encouraging entrepreneurship in general and women entrepreneurs in particular: (1) There is a need to create a body or institution that will deal with and check complaints from the private sector so as to simplify official procedures, eg an ombudsman’s department. It should have full authority to investigate, propose and implement changes that will clearly facilitate and assist the private sector, encouraging more nationals, and in particular women, to engage in entrepreneurship. This should lead to more openness, and businesses should be able to obtain fairer deals with the government institutes. (2) There is a lot of bureaucracy and form-filling: there are at least three institutions with which a business person must deal. This is not only time-consuming, expensive and cumbersome, but culturally discouraging for women. This problem was recently the subject of a public symposium by the Ministry of Commerce and Industry in an effort to acknowledge the difficulties encountered by the business community in meeting the requirements of starting a new venture, and in recognition of the need to simplify procedures. To date very little has been done to carry out the recommendations of the symposium. There is a need to condense the various forms currently required for starting a business into one form. This will not only save time and effort for the entrepreneur, but will also save government institutions the costs of printing many forms, administering and handling them. The cost savings can then be transferred to the businesses in the form of reduced taxes, particularly in the first three years after start-up. (3) There is currently a business men’s council in Oman, which is dominated mainly by men (except for one single business woman); it does not fully serve the interests of the woman entrepreneur. In accordance with the cultural norms and values, which mean that women face different cultural problems from men, a business women’s council is


essential as a forum on issues that adversely affect women. The business men’s and the business women’s councils can interact to discuss issues of common concern and come up with possible solutions to put forward to the authorities. They will also be able to tackle issues pertaining solely to men or to women. (4) Good quality information is essential for the design of sound, appropriate policies. Oman should establish a ‘centre for documentation, information and research’ to house all documents relating to feasibility studies, research and statistics on economic, political, social and educational issues involving Oman. Such information can easily be made accessible to all interested parties, and will help government research departments, entrepreneurs and students undertaking entrepreneurial studies. Potential benefits will include: focusing on more relevant studies on Oman, or continuing previous studies; saving time and effort in searching for information scattered in different places; enabling businesses to undertake a sound feasibility study based on up-todate facts and figures that will indicate the viability or otherwise of the business; and well organized, easily accessible, up-to-date information. (5) Without special financing on the part of the government, only women with personal or family backing are able to venture into business. However, the classic example of the Grameen Bank for rural Bangladeshi women would not be impossible to emulate, particularly if it were linked with an already existing network, such as the Omani Women’s Association or community centres. However, if the enterprise creation field is to develop and grow, and learn from its own mistakes, rigorous programme evaluation is crucial. (6) The Omani Women’s Association is the country’s oldest non-governmental organization, formed in 1972 as a centre for women’s activities. The aims and goals of the Association have not, unfortunately, changed much since that time. It exists in at least 11 large towns across the country and there is at least one in each region. This network can be used as a catalyst to create income-generating activities. More focus can be placed on women in the rural areas in order to identify talents, local resources and the extent and type of assistance and support required for them to become entrepreneurs and earn an independent income for themselves and the community at large. Further research This exploratory survey has generated useful knowledge in line with the themes presented earlier, which guided

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the research. It has also suggested some potentially interesting avenues for further exploration. These include the following: (1) Comparative studies on women’s entrepreneurship in other Arab countries should yield interesting cultural issues. For example, how does women’s experience of entrepreneurship in Saudi Arabia or Iran compare with that in a small Gulf state such as Oman? (2) By and large, the sample was drawn from the educated professional classes. Further studies should explore other strata, particularly the less well off (nationals and expatriates). (3) The social shaping of women’s entrepreneurship in a patriarchal society merits further study. Clearly, the women are successful by their own definition, and whilst they recognize differences, they do not characterize themselves as oppressed. Narrative analysis/case studies would yield valuable insights into how processes unfold at the micro-level. Interesting aspects include: (a) the role of male family members in supporting women’s endeavours by proxy (extent and nature); and (b) the perception of entrepreneurship generally — war-like Western conceptualizations of entrepreneurs as heroes and mavericks may not be useful in a collectivist society where the importance of the family network is paramount. (4) The issues highlighted in (3) above impact on our understanding of the potential of successful women

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entrepreneurs, such as those in this study, to become not only role models in their own right within their families, but also to become established on a wider level in society. In conclusion, it is hoped that this research will assist in paving the way towards the formulation of appropriate programmes, policies and action plans by policy makers in the government, effectively to promote and encourage entrepreneurial activities undertaken by Omani women.

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