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The main purpose of this chapter is to analyze the women entrepreneurhip status in Afghanistan. The study comprises and analyzes three levels, namely, individual, societal, and institutional. All zones in Afghanistan are covered under this study. A total number of 104 women entrepreneurs are interviewed and filled out questionnaires. To ensure the appropriateness of data and accuracy of the model the authors used the required test. Reliability statistics, KMO and Bartlett's Test of Sphericity, and goodness of fit tests are applied. Factor analysis and structural equation modeling are used as econometric models to obtain the results. Two processes are applied, i.e., for motivational and psychological factors. Motivational factors and psychological factors are the latent variables where every latent variable has four and three observed variables, respectively. Factor loadings for observed variables were well above 0.5 and hence significant. The results show desire for achievement, desire for wealth, and desire for independence are motivational factors for women entrepreneurs. Furthermore, propensity to risk and locus of control are found to be the psychological drivers for women entrepreneurship in Afghanistan. The Government of Afghanistan needs to provide an environment for women entrepreneurs where they feel safe and undisturbed. Additionally, education, technical know-how, and financial support require serious government and institutional attention.

Women Entrepreneurship has received increasing attention over the past decade. In particular, a new area dealing with women entrepreneurs in the developing societies. The aim of this study is how is women entrepreneurship in developing economies? More specifically, we are excavating various questions at the individual and institutional level. The results of this study contribute to understanding the importance of the context on women entrepreneurs’ activities. Additionally, it systematically provides a comprehensive framework at multilevel analyses to cover all aspects of women entrepreneurship in developing countries. Ultimately, knowing women entrepreneurship in developing countries helps policymakers provide a firm ground for self-employment of women.