Empowering women through entrepreneurship has gained international attention and this paper aims to explore the nature of female entrepreneurship in Iran. In reviewing the case, it should be noted that women have become increasingly educated and have been joining the labor force in large numbers. At the same time, female unemployment has increased, especially among educated young women, and is now twice that of men’s; this is seems a fairly typical pattern for the region. It has been argued that female owned enterprises employ more women than men (World Bank 2007) and the assertion has been put to text in a survey funded by World Bank in Iran which took place in 2011 using the same questionnaire utilized in other MENA countries for comparative cross national purposes. The findings show that women in Iran have been highly present as entrepreneurs and do in fact employ more women. Moreover, they tend to be in enterprises which are highly dynamic and relay on high technology some of which is dependent on external expertise. In view of the fact that Iran is under sanctions, many have found ways to challenge some of the sanctions, nonetheless, they continue to be victims of international embargo on Iran. The paper will highlight women’s role in the economy as entrepreneurs of large and medium as well as small firms and argues that that female entrepreneurship can act as a catalyst for combating high unemployment and create opportunities for women not just to be employed but to enter into higher ranking positions. The research result was go beyond quantitative findings and contains qualitative and field work results from different parts of Iran including Tehran, Isfahan, Shiraz and Gillan. Ironically, qualitative field findings brings out a highly mixed picture, some have reported being a woman a major hindrance while others view no difference between themselves and their male counterparts. Interestingly, some have stated that being a female in highly male dominated professions is an advantage. Since Iran has a highly gender segregated labor market the paper will focus on some of nuances that are seemingly contradictory and explores challenges and opportunities of female entrepreneurs in the country.