In Lebanon, women entrepreneurs running small businesses perceive the economic crisis as their most significant obstacle to keeping their businesses afloat, even in the face of inherent gender-related barriers within society and the business world.
The economic crisis in Lebanon, aggravated by the COVID-19 pandemic and the Beirut explosion, has further diminished economic opportunities for women.
According to the International Labor Organization’s Labor Force and Household Living Conditions Survey (LFHLCS), women lagged far behind men, with only 30 percent participating in the labor force between 2018 and 2019.
Despite these challenges, some Lebanese women have managed to tap into their potential for labor force participation and business creation. In comparison to other Levantine countries like Jordan or Iraq, Lebanon exhibits a higher rate of female participation in business ownership.
The World Bank’s Enterprise Survey 2019 shows that female ownership of firms ranges from 6.8 percent in Iraq to an impressive 43.5 percent in Lebanon. Moreover, in Lebanon, firms with majority female ownership tend to be concentrated within small (5-19 employees) and medium (20-99 employees) enterprises.
Therefore, Lebanese female entrepreneurs must navigate intersectional needs and identities, including social, cultural, and religious considerations that manifest in legal and financial aspects.
Legally, Lebanese women enjoy the same opportunities as men to register a business, sign a contract, and open a bank account. However, the law fails to protect them from gender discrimination in accessing credit. Randa Bdeir, an e-commerce expert in Lebanon, argues that the financial sector must view women as equally creditworthy as their male counterparts, ensuring female entrepreneurs can access credit regardless of their gender.
It is important to note that the obstacles mentioned above appear less significant than the economic crisis in determining the number of women entrepreneurs. The recession exacerbates the difficulties in physically accessing markets and leveraging e-commerce to promote their products.
Rachel Ayoub, a teacher interviewed by This is Beirut, shared her experience of starting a small handmade jewelry business in a local souk to supplement her day job. However, her business struggled to grow as people were unwilling to spend money on her items and the cost of inputs continued to rise. “From year to year, there is less and less income because every time prices go up, due to the rise of the exchange rate and since people buy everything in US dollars,” Ayoub lamented. As a result, the prospect of leaving the souk and establishing her own shop seems unfeasible at this point in time.
Rania Bdeir, owner of a clothing store called “Nothing to Wear,” told This is Beirut that she started her business before the crisis. “The business was stable then; even after the Beirut blast, I fixed everything and reopened my shop.” However, the ongoing economic crisis complicates her financial situation. Rania’s revenues largely depended on summer sales from tourists and the Lebanese diaspora. She revealed that her electricity bill, which used to be around $30 or $50, has skyrocketed to $500. Rania had intended to launch her brand with exclusive designs, but production in Lebanon has become difficult due to high manufacturing prices and the unavailability of fabrics locally, forcing her to import them from Turkey.
The Central Administration of Statistics in Lebanon reported that inflation in 2022 exceeded 170 percent, causing labor costs and raw materials prices to soar for industries.
As a result, women entrepreneurs like Rachel and Rania continue to grapple with a challenging business environment, even as they strive to overcome gender-related barriers.