This study delves into the dynamics of women entrepreneurship in Iran, emphasizing the intricate interplay of socio-cultural, economic, and regulatory factors shaping their business pursuits. Women entrepreneurs in Iran navigate a landscape marked by significant challenges, including stringent socio-cultural norms and economic constraints that influence their operational strategies, growth opportunities, and the pursuit of innovation. The research employs a qualitative methodology with semi-structured interviews to extract nuanced insights into the motivations driving these women, alongside the substantial barriers they face, such as limited access to capital, pervasive gender biases, and regulatory hurdles. Their resilience and adaptability emerge as critical enablers, allowing them to effectively leverage digital technologies and informal networks to mitigate risks and facilitate business operations. Additionally, the study introduces the concept of “regulatory adaptation” to depict how Iranian women entrepreneurs strategically align their business models with the existing regulatory frameworks to sustain their entrepreneurial activities. The findings contribute to the entrepreneurship literature by illustrating how contextual factors in restrictive environments influence women's entrepreneurial activities, suggesting policy interventions aimed at enhancing access to resources, supporting gender equality, and fostering an enabling environment for women-led enterprises in Iran.