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Purpose

Female entrepreneurship remains a critical issue around the globe, particularly in developing economies where they confront various challenges during self-employment. This paper aims to investigate essential opportunities and challenges for Afghan women’s home-based enterprises (WHBEs) that may impact the decision of female entrepreneurs to establish a venture.

Design/methodology/approach

The study interviewed women home-based enterprise owners through a predesigned questionnaire to identify the main opportunities and challenges. The Delphi and Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach is employed to analyze casual relationships of the main obstacles confronting WHBEs.

Findings

The findings indicate that women home-based enterprise owners utilize substantial opportunities, such as family support and balancing home and business tasks. Challenges include cause and effect groups, while lack of access to finance, insecurity, social restrictions and limited access to digital platforms belong to the cause group. Notably, limited markets, lack of professional knowledge and legal limits have links with the effect group. However, among the identified challenges, legal restrictions remain the highest obstacle, while the lack of access to finance is the lowest challenge in women’s home-based enterprise context.

Research limitations/implications

The cultural and legal barriers that still exist in Afghanistan have made it difficult for researchers to contact female entrepreneurs.

Originality/value

This study fills the gap in investigating casual relationships in an under-researched stream of disadvantaged entrepreneurship, i.e. the WHBE context of female entrepreneurship. It generates value for researchers interested in female entrepreneurship and international organizations that empower women and promote gender equality in developing economies.

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