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The development of female entrepreneurs in Indonesia is an integral part of Muslim women's economic contributions and empowerment. However, there is a lack of reliable research about female entrepreneurship and how gender may affect the experiences of business ownership in Indonesia. Therefore, the aim of this study is to explore the challenges encountered by these women entrepreneurs on a daily basis. Qualitative in-depth interviews were conducted with 30 female Indonesian entrepreneurs. Participants were recruited using theoretical and maximum variation sampling techniques. Content analysis was then used to analyze the data. Results revealed high levels of variations, both within and between women, suggesting that the quality of business entrepreneurship and success depended largely on the personal characteristics of these women, rather than on any system of formal education or training. This study also found that many women displayed resilient coping strategies when dealing with business failures. As a consequence, they were able to thrive despite restrictive social, cultural and political constraints. The paper highlights the importance of the experiences of female entrepreneurs in a developing country and the need to integrate the development of female entrepreneurship as a part of women empowerment effort.

The most important aspect of women’s economic empowerment in Islam is that it has recognized their separate and independent identity and gave them numerous economic rights such as right to own property, share inheritance, engage in various economic activities to increase their fortune, etc. Their economic roles in Islam are governed by the broad principle of division of labor. This division of labor is based on their natural comparative advantages. Man has to look after the affairs outside the home while woman has to take care of the inside. All are accountable in his or her sphere of jurisdiction. Her services have economic value no less than man’s. It is therefore obligatory for husbands to spend on their wives. The division of work and different sphere of activities prescribed by Islam is applicable in general and in normal conditions. In emergencies and special circumstances there may be change of their roles or they can join hands to share responsibilities of one another. However, a woman is never required to spend on herself or her family. Her economic support is responsibility of her father before marriage and her husband after marriage. In their absence, other near relative has to take care of her expenses. Failing that the society and finally the state will have to take this responsibility.

The Israeli ultra-religious (Haredi) population is estimated at about 12% of the Jewish Israeli population, and is expected to more than double within two decades. The norm in a typical ultra-religious household is that the husband is fully devoted to the study of Torah, while his wife provides financial support for the family. The typical occupation of Haredi women is teaching at schools of Haredi girls — usually in part-time, low-pay jobs. This type of occupation matches their culture and is adjusted to their values, but has unfavorable consequences in terms of labor market integration, poverty, and economic status.

We suggest a rather novel policy (borrowed from the field of Career Psychology) that could lead to more successful integration of Haredi women into the labor market, coupled with elevated job satisfaction and empowerment: The design of tailor-made training programs that respond to work motives; coupled with a working environment that caters to special needs; and complemented with counseling and monitoring.

The suggested strategy is illustrated and investigated using a case study of Israeli ultra-religious young women. The motives behind their occupational choices are explored, based on data collected by a field experiment. Three types of motives behind occupational choice are discussed: (i) a “calling” motive; (ii) intrinsic/internal motives — the interest in work, as a means for self-fulfillment, and self-expression; and (iii) extrinsic/external motives that are related to receiving something apart from the work itself, such as a reward (income) or societal benefits. Based on the empirical findings, policy implications are suggested.