The Top 3 Stressors and Solutions for MENA Social Impact Entrepreneurs and their Startups
While startups worldwide encounter various challenges that can significantly impact their success, such as infrastructure limitations, resource scarcity, and a lack of support, social impact startups in the Middle East and Africa encounter unique challenges and stressors.
While the startup ecosystems in the Middle East and Africa have great potential, they also face challenges that require attention to ensure sustained growth and success. Some of the key challenges include access to funding, regulatory hurdles, talent acquisition and retention, a lack of diversity, infrastructure, and community support.
Most entrepreneurs experience chronic stress due to the pressure they face to sustain their businesses, and many develop depression and other health problems. Incorrect management of work-related stress can lead to critical mental health issues among new entrepreneurs, including symptoms like lack of sleep, constant fatigue, work-life balance, isolation, hyperfocus, anxiety, and self-criticism.
This article will explore the top 3 stressors for women-led social impact startups in the MENA region.
Funding and Financial Sustainability
Startups in the Middle East and Africa (MEA) face many challenges when securing funding and achieving financial stability. These challenges stem from the region’s economic, regulatory, and socio-cultural factors.
Navigating through the complex and often bureaucratic regulatory frameworks in many Middle Eastern and African countries can be challenging for startups. There is usually a lack of clear, startup-friendly financing regulations. Banks in the MEA region are typically conservative, preferring to lend to established businesses with substantial collateral rather than riskier startups. The loan sharks give out loans at a very high interest rate, which puts an extreme financial burden on the enterprise to sustain over the years. Social enterprises in the Middle East and Africa region face a funding gap of almost $270 billion.
Solution
Look for microfinance options and establishments, such as Rama Impact, that provide interest-free loans for social impact enterprises' expansion and sustainability. Working with non-traditional, safe financial institutions allows you to avoid high interest rates and secure a loan without significant collateral. These institutions are created in the MEA region to help female entrepreneurs prevent undue financial strain.
Partnering with angel investors can be a transformative step for a startup. They provide not only funding but also valuable mentorship and networking opportunities. Having a solidified business plan and a strong team structure can help a great deal with acquiring partnerships with angel investors.
Actively participate in the incubators and accelerator programs such as HerMeNow available in your region. Not only do they provide you with funding opportunities, but they also provide mentoring and networking opportunities.
Market Access and Expansion
In some regions in the Middle East and Africa, women-led social enterprises face restrictions on their mobility and societal expectations that can limit their ability to engage in business activities. In some regions, gender bias can undermine women's credibility, thereby impeding their access to potential clients and stakeholders.
Access to business networks can be difficult in such regions, as most businesses and networks are male-dominated. Furthermore, women entrepreneurs often have fewer opportunities for mentorship and support from experienced business leaders, all of which can become barriers to market access, establishing a business network and contacts, and expanding their business.
Solution:
Join or form women-focused business groups and associations to create supportive networks, share knowledge, and gain access to market opportunities. Exchange ideas, ask for support, and share resources within your support group. This can reduce the stress of working in isolation and enhance problem-solving.
Engage with local communities to build trust and better understand customer needs. Community-based marketing can be particularly effective in areas where traditional advertising may not reach. Actively participate in farmer’s markets and community events, and plan marketing days to highlight your products and services.
Use e-commerce platforms to reach a wider audience beyond local markets. Online marketplaces can give women entrepreneurs greater market access without requiring physical mobility. To facilitate transactions and financial management, adopt mobile banking and payment solutions, especially in areas with limited banking infrastructure.
Talent Acquisition and Retention
Social impact enterprises often have restrained budgets compared to traditional businesses, making offering competitive salaries and benefits difficult. Hiring skilled employees and retaining top talent can be challenging due to limited resources, which impacts business operations and the organization's sustainability.
It can be challenging to find individuals who have the necessary skills and share the enterprise’s mission and values, resulting in a restricted talent pool. Furthermore, limited resources can hinder the development of internal leadership and career advancement opportunities, leading to potential stagnation and dissatisfaction.
Solution:
Leverage non-monetary benefits, such as highlighting the social impact and meaningful work that the enterprise offers. Seek candidates who prioritize purpose over profit. This helps attract the right fit for the organization—individuals who align with the organization’s vision and mission.
Due to limited resources, it can be difficult to offer a competitive salary. Therefore, organizations can offer benefits such as remote working options, flexible hours, and a working style that promotes work-life balance to attract talent who values these benefits and is looking for such opportunities.
Develop volunteer programs as a pipeline for future hires, allowing potential employees to experience firsthand the organization’s culture and impact. Collaborations are another excellent strategy to reach a wider talent pool. Partner with universities and colleges to create internship programs and recruit fresh talent passionate about social impact.
The challenges faced by social impact organizations in the Middle East and Africa are unique due to a lack of resources and infrastructure, as well as many cultural biases. Many social impact startups die down in this region within the first few years of their inauguration. The lack of funding and mentorship makes it even more difficult for these organizations to survive; therefore, accelerator programs such as HerMeNow and funding and mentorship programs such as Rama Impact provide much-needed support to these organizations.
For more information on HerMeNow please visit https://www.hermenow.com/program
For more information on Rama Impact please visit https://www.ramaimpact.com/
If you are a HerMeNow participant or alumni, book your free coaching session now through the HerMeNow website https://www.hermenow.com/wellness.
Anam Anjum
Wellness Consultant
+971 52 629 9656