Across the Middle East, women are playing an increasingly visible role in entrepreneurship, from fintech startups in the UAE to family businesses and SMEs in Saudi Arabia. As their presence grows, so too does interest in understanding the social dynamics that shape women’s entrepreneurial journeys.
To explore this, Gulf Business spoke with researchers Aneeta Rattan, professor of Organisational Behaviour at London Business School; Raina A Brands, professor at UCL School of Management; and Ezgi Ozgumus, assistant professor of Management at NYU Stern Abu Dhabi.
Their insights are drawn from their 2025 research titled “When Form Leads to Function: Network Closure and Social Identity Threat Among Women Entrepreneurs.” The study examines how the structure of professional networks affects women founders’ confidence, resilience and ability to navigate entrepreneurial ecosystems. Their findings suggest that tightly connected networks can help women entrepreneurs overcome stereotype-based pressures and focus more fully on growing their ventures.
A growing force in the region
The Middle East has witnessed a rapid rise in female entrepreneurship over the past decade, supported by government initiatives, funding programmes and growing recognition of women’s role in economic diversification. “The Middle East has experienced a significant, rapid rise in the number of female entrepreneurs,” says professor Aneeta Rattan. Women now own more than 45 per cent of small and medium-sized businesses in Saudi Arabia. In the UAE, a report by the Emirates Businesswomen Council shows that businesswomen make up 18 per cent of all entrepreneurs.”
The figures reflect an ecosystem gaining momentum and creating new opportunities for women entrepreneurs. “While this figure highlights that there is still room for growth, it also points to a strong and expanding base of women-led ventures supported by an increasingly dynamic ecosystem,” Rattan notes.
Despite this progress, women founders in the region still encounter many of the same challenges faced by entrepreneurs globally. “Female entrepreneurs around the globe face challenges accessing capital,” says Ezgi Ozgumus. “Our research has also revealed another subtle but powerful dynamic shaping women’s entrepreneurial journeys: the interplay between the social networks they access, which provide both tangible resources (for eg., funding, advice) and intangible support (e.g., trust, emotional backing), and concerns about negative gender stereotyping.”
Why networks matter in entrepreneurship
Entrepreneurship is often framed as an individual pursuit. But in reality, success rarely happens in isolation.
“Entrepreneurship is often described as a lonely road, but in reality, it is anything but solitary,” says Raina Brands. “Business success depends on access to resources, information, and support—assets that flow through social networks.”
The researchers examined the concept of “network closure,” which refers to how interconnected someone’s professional network is. “Network closure’ refers to how tightly knit or interconnected a person’s network is,” Brands explains. “In a closed network, most members know each other, forming a cohesive, trusted circle. This can foster trust and facilitate the sharing of sensitive information, which is especially valuable in the high-risk world of startups.”
By contrast, open networks provide different advantages. “In an open network, people get a different benefit – they access new ideas and opportunities and may have more chances to meet people they are not yet connected to,” says Ozgumus.
However, building networks remains one of the most difficult aspects of entrepreneurship. “As essential as networks are, entrepreneurs also find building their network to be one of the biggest challenges they face,” says Rattan.
For women founders, this challenge can be compounded by what researchers call social identity threat. “Women entrepreneurs are further burdened by the anxiety or concern that being a woman will cause them to be devalued or lead to discrimination,” Rattan explains. “This threat of being judged based on gender stereotypes can undermine their confidence, ambition, and persistence.”
At the same time, the region’s entrepreneurial landscape is evolving. “In the MENA region, however, we are seeing a meaningful shift,” says Ozgumus. “As entrepreneurship ecosystems mature, there is growing recognition of the value women bring as founders, leaders and innovators.”
“Here, women are playing an increasingly visible role in shaping the region’s entrepreneurial future, supported by governments, investors, and institutions that are expanding opportunities for women to launch and grow successful ventures.”
The power of trust-based networks
To explore how network structure affects entrepreneurs, the researchers surveyed 150 early-stage founders and analysed their professional networks.
“In our research, we examined how the structure of entrepreneurs’ networks shapes women’s experiences in building their ventures,” says Ozgumus. “Surveying 150 early-stage founders, we mapped their professional networks and measured how interconnected their contacts were.”
The findings revealed a striking pattern. “We found a striking pattern: women with tightly knit, interconnected networks felt significantly less worried about being judged through negative gender stereotypes,” says Rattan.
“For men, network structure made no difference.” The effect was not simply about having supportive individuals in a network. “This effect held even after accounting for factors such as network size, prior experience, and who was in the network,” says Brands. “In short, it was the overall connectedness of the network, not just having supportive individuals, that mattered for women.”
To better understand the mechanism behind this effect, the researchers conducted an experiment involving nearly 500 entrepreneurs. “Participants who formed more interconnected networks reported higher levels of trust among their contacts,” says Ozgumus. “That trust, in turn, reduced women’s concerns about being evaluated unfairly because of their gender; again, there was no comparable effect for men.”
Other explanations did not account for the results. “Other explanations, such as simply feeling more comfortable or more confident in one’s identity, did not explain the findings,” Brands adds.
The implication is significant: trust within networks can shield women founders from the psychological burden of stereotype-based scrutiny. “The takeaway is clear: tightly knit networks foster trust, and that trust can shield women entrepreneurs from the psychological toll of stereotype-based scrutiny at a critical stage of building their businesses,” says Rattan. “This means that women in these interconnected, high-trust networks would feel freer to focus on their business goals, without the distraction of worrying about bias.”
Implications for the MENA ecosystem
For the Middle East, the findings offer important insights as governments and institutions continue to invest in entrepreneurship and women’s economic participation.
“These findings have important implications for women entrepreneurs in the MENA region,” says Brands. “The entrepreneurial ecosystem in the region is rapidly evolving, with governments and organisations investing in women’s empowerment and economic participation.”
However, cultural and structural barriers remain. “Yet, cultural norms and structural barriers persist,” Brands notes. “In this context, women’s networks can be both a lifeline and a potential constraint.”
The researchers argue that unlocking the full potential of women founders requires addressing both sides of the network equation. “To unlock the full potential of women entrepreneurs, both sides of the network closure equation must be addressed,” says Rattan. “This means creating environments where women feel safe to engage with broader, more diverse networks without fear of gender discrimination. It also means challenging the biases, conscious and unconscious, that fuel social identity threat in the first place.”
Building more inclusive networks
According to the researchers, organisations, investors and policymakers all have a role to play in fostering stronger, more inclusive networks. “First, organisations and policymakers must prioritise reducing the biases that women face,” says Ozgumus. “This involves not only formal policies against discrimination but also active efforts to create cultures of inclusion.”
Initiatives such as mentorship programmes, networking events and incubators can be particularly powerful when designed with women’s experiences in mind. “Mentorship programmes, networking events, and incubators should be designed with an awareness of the unique challenges women face, ensuring that all participants feel valued and respected,” Ozgumus adds. “Our research suggests that when these programs are designed, they may be most positively impactful if they bring women together in ways that encourage them to develop interconnected networks.”
The researchers also emphasise the importance of engaging men as allies. “Second, men must be engaged as allies,” says Brands. “Too often, the burden of navigating bias falls solely on women. Male leaders and peers can play a transformative role by advocating for inclusion, challenging stereotypes, and opening doors to new opportunities.”
Finally, women’s networks themselves can evolve into platforms for broader engagement. “Third, women’s networks themselves must evolve,” says Rattan. “While closed networks provide crucial support, they should also serve as springboards to broader engagement. Women can be encouraged to leverage their trusted circles as launching pads for reaching out to new contacts, exploring cross-sector collaborations, and accessing untapped resources.”
Unlocking the full potential of women entrepreneurs
For the researchers, the study ultimately highlights how invisible social dynamics shape entrepreneurial success. “The barriers facing women entrepreneurs are not just external; they are woven into the fabric of social interactions and networks,” says Rattan. “By understanding the dynamics of network closure and social identity threat, we can begin to dismantle these invisible barriers.”
But lasting change will require more than policy reforms or funding programmes. “Empowering women entrepreneurs in the MENA region requires more than investment and policy change,” Rattan adds. “It demands a cultural shift, one that values diversity, fosters psychological safety, and encourages women to step beyond the confines of closed networks.” If that shift continues, the region’s growing community of women founders could play an even greater role in driving innovation and economic growth.
