Women's Social Interaction and Feminist Entrepreneurship: A Comprehensive Analysis of Challenges and Opportunities: An Overview of the Creation Reality and Business Climate Challenges in Algeria

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Entrepreneurship is one of the key drivers of economic growth, contributing to job creation, innovation, and the advancement of sustainable development. In this context, women’s participation in entrepreneurship has garnered increasing attention due to its pivotal role in achieving social and economic balance. However, female entrepreneurs face a range of challenges, including limited financial resources, institutional structural barriers, and cultural and social norms that may restrict their chances of success.

Social interaction plays a fundamental role in facilitating women’s integration into the business environment by providing familial support, professional networks, and social connections, which enhance their opportunities for success in this field. Despite growing academic interest in women’s entrepreneurship, there remains a noticeable gap in studies focusing on the role of community interaction in ensuring the sustainability and growth of women-led ventures. This highlights the need to analyze the impact of such interaction on women's entrepreneurial success and identify the social factors contributing to it, relying on various research studies to clarify the causal relationship between these elements and their development potential.

• 1 . Research Problem Statement: In light of the above, the study poses the following central research question: "How does community interaction affect women's entrepreneurship, and what are the associated challenges and opportunities?"

From this main question, several sub-questions emerge:

• ■    What is the nature of the community interaction experienced by female entrepreneurs, and what are its main forms?

• ■     What are the key challenges facing women entrepreneurs in society?

• ■     How do different forms of support influence the financing and expansion opportunities of women-led businesses?

• ■    What opportunities exist to promote women's entrepreneurship through community interaction?

• ■    How can community interaction contribute to women’s economic empowerment and enhance their role in

sustainable development?

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• ■    What is the reality of the Algerian experience in women's entrepreneurship, and what challenges does it face?

• 2.    Research Hypotheses: To answer the research problem, the following hypotheses are proposed:

• ■    There is a positive relationship between effective community interaction and the empowerment of women in the field of entrepreneurship.

• ■    Social and cultural challenges act as barriers to women’s participation in entrepreneurship.

• ■    Community interaction contributes to strengthening women’s entrepreneurship through institutional support and social networking.

• ■    Community interaction enhances the role of women in sustainable development through economic empowerment.

• 3.    Significance and Objectives of the Study:

Studying the impact of community interaction on women's success in entrepreneurship is both a scientific and societal necessity for several reasons. Chief among them is the need to enhance women's participation in the economy to promote economic growth, reduce poverty and inequality, and understand the mechanisms by which social and professional networks influence the success of entrepreneurial ventures. The study also aims to address cultural and social challenges related to women’s work and financial independence, contribute to women’s empowerment and the development of female leadership, and ultimately ensure the sustainability of their entrepreneurial initiatives. Moreover, it seeks to enrich academic literature, especially in developing countries, and provide analytical data that can inform strategies for women's empowerment.

This study aims to achieve the following key objectives:

• ■    Analyze the nature and forms of community interaction experienced by women entrepreneurs.

• ■     Assess the impact of community interaction on the sustainability of women-led entrepreneurial ventures.

• ■    Explore the role of professional and social networks in providing training, funding, and marketing opportunities for women entrepreneurs.

• ■    Examine the social and cultural challenges that limit women’s interaction with their entrepreneurial environment.

• ■    Propose actionable recommendations to strengthen community interaction and create a more supportive ecosystem for women entrepreneurs.

• 4.    Key Terms of the Study

  • ■    Social Interaction: Refers to the relationships and communications that occur among individuals within a community, which influence behaviors and decisions. Social interaction plays a critical role in providing learning opportunities, access to resources, and expanding support networks. It contributes to a supportive entrepreneurial environment through knowledge sharing, business opportunity exchange, and the provision of guidance and mentorship (Jabeen & Ahmad, 2018).

  • ■    Social Capital: Defined as the sum of resources accessible to individuals through their social networks, including mutual trust, shared norms, and social relationships that facilitate the achievement of goals. Social capital is a key factor in accessing financing, identifying business opportunities, and overcoming societal barriers (Laleh, 2012).

  • ■    Social Support: A network of relationships that provide psychological and material resources to individuals, enhancing their ability to cope with challenges. This includes encouragement from family, friends, and community, which helps women entrepreneurs overcome social pressure and economic barriers that hinder their success (Said & Enslin, 2020).

  • ■    Professional Networks: These are relationships built by women entrepreneurs with actors in their work environment, including fellow entrepreneurs, investors, and mentors. Such networks offer women access to new opportunities, exposure to current trends, and strategic support that contributes to the success of their ventures (Ahmad & Naimat, 2011).

  • ■    Cultural Barriers: A set of obstacles imposed by social norms and traditions that may hinder women’s involvement in entrepreneurship. These include constraints on women’s roles in the workforce, gender biases, and stereotypical perceptions of their economic and managerial capabilities (Tlaiss, 2014).

  • ■    Women’s Empowerment: A comprehensive process that involves strengthening women’s capabilities through access to education, training, economic resources, and political support. Empowerment enhances women’s ability to control their lives and make strategic decisions that shape their future by providing them with resources, building self-confidence, and expanding their range of choices (Cornwall & Rivas, 2015).

• II.    Previous Studies

Due to the significant importance of the topic and the challenges associated with it, numerous studies and research efforts have addressed one or more aspects of this subject from different perspectives. Below is a selection of previous studies that have tackled this topic:

Baharudin et al. (2020): This study aimed to propose a model for women's success in entrepreneurship, aligning with the role of social capital and entrepreneurial competencies. Social capital was used as a mediating factor, and Structural Equation Modeling (SEM) was adopted as the primary statistical method for analysis. The study concluded that social capital plays a fundamental role in the success of female entrepreneurs, helping them access resources, secure funding, and receive necessary guidance. It also emphasized the importance of entrepreneurial competencies such as strategic capabilities, commitment, relationship management, opportunity exploitation, and conceptual abilities. When social capital is present, the impact of these competencies becomes more evident, indicating that social relationships enhance the effectiveness of entrepreneurial skills.

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Williams (2024): This study highlighted the significant yet complex role of social media as a tool for the success of female entrepreneurs of African descent. It explored the challenges and strategies that these entrepreneurs can adopt to build a strong presence on social media despite systemic limitations. The study found that social media provides a supportive environment for female entrepreneurs by enabling interaction with customers, brand promotion, and business expansion. However, despite these opportunities, women face challenges such as algorithmic bias, underrepresentation, and social barriers that limit their access to available opportunities. The study emphasized the importance of training on social media algorithms and leveraging supportive policies for female entrepreneurs.

Huang et al. (2021): This study examined the impact of social interactions on entrepreneurial behavior within families, using data from the 2015 China Household Finance Survey (CHFS). It employed various regression methods to ensure analytical accuracy and concluded that increased social interactions among women raise the likelihood of initiating entrepreneurial ventures. The relationship between social interaction and entrepreneurship was stronger in households with financial flexibility, indicating that social interaction alone is insufficient under strict financial constraints. The study highlighted that social interaction enhances self-confidence and the ability to make entrepreneurial decisions.

Upton et al. (2019): This study investigated gender-related differences and structural gaps in the networks of nascent entrepreneurs, aiming to determine how these factors affect startup success using data from the PSED. It found that women involved in business communities or who possess strong professional networks exhibit higher success rates. The study stressed that the quality, not just the quantity, of social relationships is crucial. Supportive and influential relationships directly contribute to improved business performance. It also suggested that mentoring and networking with successful entrepreneurs increase women’s chances of entrepreneurial success.

Erdur (2021): This study focused on how entrepreneurship can serve as a means for women's economic empowerment. It utilized qualitative research to analyze a successful entrepreneurial initiative in Turkey known as Çöp(m)Adam. According to the study, social interaction helps shift societal perceptions of women's roles. The initiative contributed to both economic and psychological empowerment by providing job opportunities and financial independence, which enhanced women's self-confidence and social standing. It also showed that women engaged in social entrepreneurship initiatives gain greater respect within their communities. The study emphasized the role of family and community support in enhancing women's chances of success in self-employment.

Huq et al. (2020): This study confirmed that women use social interaction to build strategic relationships that support growth, such as developing trust with clients and negotiating with suppliers and partners. Women tend to adopt collaborative leadership styles based on social relationships, in contrast to the traditional leadership approaches more commonly favored by men. The study explained that these approaches are shaped by values and traits acquired through socialization processes, making them effective tools for achieving sustainable growth in women-led enterprises. It also found that social interaction positively influences innovation and expansion strategies among female entrepreneurs.

Maimunah et al. (2023): This study sought to identify the impact of social and entrepreneurial stigma on the performance of female entrepreneurs and investigated whether psychological capital could act as a mediating factor. It concluded that women face social stigma when entering the entrepreneurial field, which affects their self-confidence and business performance. The study emphasized that social support and engagement with support networks are among the most crucial factors in helping women overcome societal stigma. It recommended the development of policies to support women against negative stereotypes.

In summary, all studies indicate that social interaction plays a pivotal role in the success of female entrepreneurs by boosting self-confidence, facilitating access to resources, building brand identity, and overcoming societal challenges. However, the quality of social relationships, financial support, and enabling policies remain complementary factors that influence the effectiveness of social interaction in achieving entrepreneurial success. Most of the previous studies share methodological similarities with the current study, guiding the development and enrichment of the theoretical framework and contributing to a better understanding of the forms of social interaction among female entrepreneurs.

• III.    Women’s Entrepreneurship: Concept, Importance, and Challenges

• 1.    Concept of Women’s Entrepreneurship

  Women’s entrepreneurship is defined as the process of creating and managing economic ventures led by women with the aim of achieving financial independence, fostering innovation, and generating social impact (Brush et al., 2018). According to Hisrich & Brush, female entrepreneurs are women who engage in organizing business activities, generating business ideas, and managing resources to achieve sustainable success (Hisrich & Brush, 1984). Greene et al. (2003) argue that women differ from men in how they establish and manage their businesses, showing a greater preference for collaboration, innovation, and community engagement.

• 2.    Importance of Women’s Entrepreneurship

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  Research highlights the vital role played by female entrepreneurs in driving economic and social development. Their ventures contribute to job creation, innovation promotion, and the strengthening of local economies (Kirkwood, 2009). Increasing the number of women in the workforce positively influences economic growth and enhances the financial stability of families and communities (Terjesen & Elam, 2012).

• 3.    Challenges Facing Women Entrepreneurs

Women’s entrepreneurship is characterized by its distinct nature influenced by gendered cultural norms. Women tend to start businesses in service-oriented sectors such as healthcare and education, rather than in technical or industrial fields (Kelley et al., 2017). Recent studies suggest that women are more likely to establish ventures with social objectives rather than those driven solely by profit, thereby enhancing their role in community development (Welter et al., 2017).

Additionally, women’s entrepreneurship emerges as a powerful tool for reducing the gender gap in business by encouraging more women to enter the private sector and by improving the investment climate (Carter et al., 2015). A study by Henry et al. (2015) also showed that women entrepreneurs significantly contribute to social innovation by developing sustainable solutions to societal problems.

Women face a range of challenges that hinder the establishment and development of their ventures. These challenges span economic, social, cultural, and structural dimensions. The most prominent among them include:

• A.    Economic and Financial Barriers: Access to funding remains one of the greatest challenges for women entrepreneurs. Women often encounter difficulties in obtaining loans and investment capital due to a lack of financial guarantees or investor skepticism regarding their managerial capabilities (Amrita et al., 2022). Research indicates that investors tend to favor male-led ventures, owing to ingrained gender biases within financial systems (Coleman & Robb, 2016). Marlow & Patton (2005) also note that women frequently face stricter conditions when applying for credit.

• B.    Cultural and Social Barriers: Cultural and social factors significantly influence women’s ability to engage in entrepreneurship. In some societies, traditions and norms impose restrictions on women, limiting their opportunities to establish and manage businesses (Jabeen & Ahmad, 2018). Social norms can also affect funding decisions, often favoring male-led ventures (Ahl, 2006). Stereotypical perceptions of women’s societal roles may restrict their access to professional support networks. Weak professional and social connections make it difficult for women to access business opportunities and valuable information necessary for growth (Brush et al., 2001).

• C.    Psychological and Emotional Barriers: Psychological factors represent a fundamental challenge preventing many women from entering the business world. Studies reveal that fear of failure, low self-confidence, and negative social influences significantly affect a woman’s intention to start her own business (Ali & Himel, 2019).

• D.    Gender Discrimination and Limited Skills/Experience: Women may encounter difficulties in building trust with partners and investors due to gender stereotypes (Huq et al., 2020). Research also highlights the need for women to acquire additional skills in management and marketing to ensure business success. Despite progress in training initiatives, limitations in managerial and technical experience continue to impact the viability of some ventures (Kirkwood, 2009).

• IV .    The Role of Social Engagement in Women’s Entrepreneurship

• 1.    Concept of Social Interaction:

• 2.    Types of Social Engagement and Its Impact on Women’s Entrepreneurship

Multiple factors enhance women's engagement in the community, including family support, education, societal culture, supportive government policies, as well as access to professional and social networks, funding, and mentorship programs. These can be detailed as follows:

• a.    Building Social and Professional Networks: Social and professional networks are crucial tools for supporting women entrepreneurs by facilitating the exchange of experiences, offering professional mentorship, and boosting selfconfidence. Studies show that women with strong professional networks have a higher chance of succeeding in their ventures (Ajiva et al., 2024). Joining entrepreneurial support groups or women's organizations also improves their chances of building fruitful professional relationships (McAdam et al., 2019).

• b.    Mentorship and Guidance: Mentorship programs help women develop entrepreneurial skills by providing specialized training and education in areas such as financial management, marketing strategies, and crisis management. Having qualified mentors enhances the likelihood of success and guides women in making effective entrepreneurial decisions (Sullivan & Meek, 2012).

• c.    Family and Community Support: Research confirms that support from families and communities directly contributes to the sustainability of women-led businesses and reduces work-related stress. Family and community support are essential in helping women overcome economic and social barriers (Brush & Cooper, 2012). Families that offer financial

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  and moral support reduce psychological pressure and increase the likelihood of success. Family support is also vital for helping women balance work and family responsibilities (Powell & Greenhaus, 2019), as it builds confidence and creates an environment conducive to risk-taking and innovation.

• d.    Economic Empowerment and Government Policies Supporting Women: Studies indicate that supportive governmental policies, such as financial incentives and assistance programs, can bridge the gender gap in entrepreneurship and eliminate barriers to women’s participation in the economy (Gaweł & Głodowska, 2021). Enhancing gender inclusion policies also promotes women's participation in various entrepreneurial fields. Supportive government policies play a strategic role in encouraging women’s engagement by creating a regulatory and legislative environment that fosters participation. These policies include:

• ■    Funding programs and tax incentives: Facilitating women’s access to financial resources for starting their ventures (United Nations, 2021).

• ■    Legislative reforms: Ensuring women’s rights in the workforce and providing legal protection.

• ■    National and regional initiatives: Focusing on training women in entrepreneurial skills and providing support and innovation centers (OECD, 2019).

These policies emphasize the need for an institutional framework that encourages innovation and minimizes the administrative and financial barriers women may face.

• e.    Education and Women’s Capacity Building: Education plays a pivotal role in preparing women to engage effectively in entrepreneurial fields. Specialized educational and training programs can equip women with the necessary technical and managerial knowledge and skills for starting and running businesses. The Human Capital Theory (Becker, 1993) underscores the importance of investing in education to expand women's capacities and improve their opportunities in the business environment. Furthermore, education goes beyond academics to include the development of personal skills such as leadership, creativity, and strategic decision-making (Sen, 1999).

• f.    Societal Culture: Societal culture plays a decisive role in shaping perceptions and behaviors related to women's participation in entrepreneurship. Societal values and traditions influence how women perceive themselves and their economic roles. In communities that promote equality and value personal achievement, women are more likely to engage in economic activities and take entrepreneurial initiatives. Conversely, negative stereotypes and traditional constraints may hinder women from fully realizing their potential and integrating into the business sector (hooks, 2000). Therefore, awareness-raising and cultural discourse transformation are fundamental to activating women’s roles in entrepreneurship.

• g.    Access to Funding: Access to financial resources is a critical factor for the sustainability of women-led ventures. Women often face challenges in securing funding due to underrepresentation in financial institutions or strict banking requirements. Thus, adopting flexible financial policies and specialized funding programs helps mitigate these obstacles (Smith & Doe, 2020). Crowd funding platforms also offer new alternatives for securing capital and building brand identity.

• h.    Technology and Innovation: With the rapid pace of technological advancement, access to technology and information has become a pivotal factor in entrepreneurship. Digital technologies facilitate communication and marketing through various platforms and social media, offering new opportunities for innovation and allowing women to expand their businesses and integrate into the digital economy (Roig-Tierno et al., 2015).

• 3.    Success Indicators in Women’s Entrepreneurship

Despite the many challenges hindering women's entry into entrepreneurship, social interaction remains an effective tool for overcoming these barriers by providing professional and familial support, boosting self-confidence, and offering access to training and funding opportunities.

The success of women-led entrepreneurial ventures is measured by multiple indicators related to financial performance, social impact, and sustainability, as illustrated in the following diagram: Social engagement plays a fundamental role in building both individual and collective skills, as well as expanding the range of opportunities available to individuals within their communities. This phenomenon is grounded in a set of social and psychological theories that explain how social relationships are formed and how they influence learning, employment, and social integration:

• V .    Theoretical Perspectives Explaining the Impact of Social Engagement on Women’s Entrepreneurship

  • 1.    Social Capital Theory: Social capital is a core concept that explains how individuals benefit from their social networks to enhance their opportunities and develop their skills. It refers to the resources accessible to individuals through their social relationships, including emotional support, information, and economic opportunities (Ebrahim et al., 2022). Recent studies have shown that expanding social networks improves employment prospects and professional integration, especially among marginalized groups such as people with disabilities. This theory highlights the importance of social relationships in achieving economic success; women with strong social capital are more likely to access funding, knowledge, and mentorship.

  • 2.    Social Exchange Theory: This theory posits that social relationships are built through reciprocal exchanges between individuals, where people seek to gain benefits through their interactions with others. In the context of skill development, social networks provide opportunities for knowledge exchange and collaborative learning, which contribute to enhancing personal and professional competencies (Marković et al., 2024). The theory is particularly relevant in educational and workplace settings, where individuals rely on their social networks to acquire new skills and improve their performance.

• 3.    Social Learning Theory: Developed by Albert Bandura, Social Learning Theory emphasizes the role of social interaction in skill development. According to this theory, individuals learn by observing and imitating the behavior of others, making social networks powerful tools for transferring knowledge and skills (Shafipour et al., 2017). Studies have demonstrated that using social networks in learning environments can significantly improve communication skills and critical thinking.

• 4.    Social Network Analysis (SNA): Social Network Analysis is employed to understand how learning communities evolve and how social relationships impact skill acquisition. This approach involves measuring interactions within digital and professional communities to identify the most influential individuals in disseminating knowledge and fostering capacity development (Grippa et al., 2012). Research findings indicate that greater interconnectedness within social networks enhances opportunities for professional learning and the development of personal competencies.

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Source: Prepared By The Researchers

Social networks play a vital role in supporting entrepreneurship by facilitating access to resources and information. Studies have shown that entrepreneurs with strong social ties tend to achieve greater success in developing their ventures, as these networks provide opportunities for partnerships, investment, and professional mentorship (Oproiu, 2014).

• VI . Efforts and Mechanisms for the Promotion of Women’s Entrepreneurship in Algeria

Like many countries around the world, Algeria is actively working to promote women’s entrepreneurship, encourage women to enter the world of business and investment, and increase their contribution to various economic indicators. This commitment is evident through the policies adopted in recent years.

• 1.    Key Mechanisms Supporting Women’s Entrepreneurship in Algeria

Among the main entities and initiatives supporting women’s entrepreneurship in Algeria are:

• ■    The Ministry of Knowledge Economy, Startups and Microenterprises.

• ■    The National Unemployment Insurance Fund (CNAC).

• ■    The National Entrepreneurship Support and Development Agency (NESDA).

• ■    The National Investment Promotion Agency (ANDI).

• ■    The Loan Guarantee Fund for Small and Medium Enterprises (FGAR PME).

• ■    The National Agency for Microcredit Management (ANGEM).

• ■     Business incubators, facilitation centers, and accelerators.

• ■     In addition, several associations are devoted to promoting women’s entrepreneurship, including Savoir Et Vouloir

• 2.    Outcomes of Support Mechanisms and Their Impact on Women’s Entrepreneurship

• 2.1    Number of Women Entrepreneurs According to the National Center of the Commercial Register (CNRC): According to CNRC statistics at the end of 2023, women represented 8.39% of individual economic operators, totaling 172,096 women-led economic activities—a modest figure compared to 91.61% for men. Most of these women fall within the 39–48 age group, accounting for 32.81% of the total.

• 2.2    Outcomes from the National Agency for Microcredit Management (ANGEM): As of March 31, 2025, ANGEM reported funding 1,003,073 projects, with women benefiting from 62.4% of them-equivalent to 626,110 microcredit loans. This strong participation highlights the growing determination among Algerian women to launch their own ventures.

Entreprendre (SEVE) and the Association of Algerian Women Business Leaders (AME).

The establishment of multiple support institutions has led to an expansion of the female entrepreneurial sector, as illustrated by the following:

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Geographically, women-led businesses are mainly concentrated in major cities: Algiers: 8.05%, Oran: 6.21%, Tizi Ouzou: 4.06% and Constantine: 3.53%

Moreover, women manage only 6.53% (15,645 companies) out of a total of 239,547 registered companies (CNRC, 2024).

ANGEM offers a wide range of services, including:

Nevertheless, there are certain developments that reflect a genuine intent to improve the business climate, such as the implementation of the electronic commercial register, issuance of the self-employed entrepreneur card, and the digitalization of several administrative procedures.

However, according to the 2020 Mastercard Index of Women Entrepreneurs (MIWE), Algeria ranks near the bottom among the 58 evaluated countries, scoring just 37 points. In contrast, other African countries such as Ghana and Uganda performed considerably better, with scores of 60 and 56 respectively. While 36.5% of businesses in Ghana and 39.6% in Uganda are owned by women, this figure barely reaches 6% in Algeria.

It is also important to highlight a critical issue: the statistics reported by some international and local organizations may be misleading. Many men register businesses under the names of their wives, mothers, or sisters, either to conceal personal assets and reduce declared income (thus avoiding additional taxes), or because, as government employees, they are legally prohibited from owning private businesses.

• VIII .    Conclusion:

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Women’s entrepreneurship represents a vital platform for empowering women and enhancing their participation across all aspects of society. The analysis reveals that women's engagement with the community—whether through family support, education, or government policies—is closely linked to the success of female-led enterprises. It is essential to intensify efforts to overcome obstacles such as discrimination, lack of funding, and the challenge of balancing professional and family life. Implementing supportive policies and strategies that foster social and institutional networking is a key step toward achieving sustainable development and inclusive economic growth.

Through the examination of the Algerian experience in women’s entrepreneurship, it is evident that Algerian women are striving to assert themselves in the business sector. However, the business climate remains a significant barrier, despite the various facilitations provided by supporting institutions and agencies.

To elevate the role of female entrepreneurs, expand their businesses, increase their contribution to economic indicators, and enhance their social integration and community engagement, it is imperative to focus on facilitating access to financing resources, consulting services, remote training, and offering tax incentives. Moreover, leveraging information and communication technology and social media can help overcome geographic and social barriers. Activating exceptional funding programs, awareness and training initiatives through chambers of commerce, enhancing international cooperation programs, and modernizing and revising governmental and legislative policies are crucial to keeping pace with developments. Strengthening professional networks and support institutions by establishing alliances and support networks that promote the exchange of expertise and best practices will significantly contribute to the growth and advancement of women-led enterprises.

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