Factors that influence female entrepreneurship in Saudi Arabia Essay

Factors that influence female entrepreneurship in Saudi Arabia - Essay Example The first issue is that it puts further pressure on the male jobseekers; second, it contradicts social customs that prelude women from working in environments where they can openly mix with men. As such, women prefer to work in environments that respect the local customs and traditions, but also allow them to contribute fully to the country’s economic development. The current economic status of Saudi women is unknown, as there are no recent government figures. However, a 2004 study carried out by King Abdulaziz University in Jeddah states that women held nearly 30 percent of the bank accounts in the kingdom, with deposits worth SR62 billion, held 20 percent of corporate shares, own 15 percent of private companies and 10 percent of the real estate sector (Abdul Ghafour, 4 June 2004). The status of the Saudi economy remains untouched by the recent global financial crisis because of high oil revenues. Thus, the lavish lifestyles of Saudis, particularly women, have not changed at all. Despite all of these socioeconomic figures, the beauty salon industry is being squeezed in this economy because businesswomen prefer to invest in safe business opportunities. The Saudi beauty salon industry is huge, yet it is not a trouble-free industry. There are large risk factors in this industry, particularly inherent operational risk. This type of risk can be divided into two subcategories: (1) internal risk, which comes from within the industry and its daily practices; and (2) external risk, which is derived from outside factors such as governmental amendments or social ethics. According to a study carried out by Ghaida Aljerfani, who is a member of the Eastern Province Chamber of Commerce, more than 150 beauty salons are put up for sale every month. This number is quite significant compared to similar industries.