Gugu Mjadu | Executive General Manager | Marketing | BUSINESS/PARTNERS | mail me |
South African women are closing the gender gap in entrepreneurial activity.
Driven by many factors ranging from perceived opportunity to job scarcity, they are starting businesses which in turn creates employment opportunities for others, with the country boasting one of the highest proportion of women-led companies employing 20 or more people globally. Furthermore, 59.3% of these entrepreneurs plan on hiring an additional one to five employees within the next five years.
The critical need for more female entrepreneurs
With 16.7 million citizens being unemployed – 5.8 million of whom are women – the need for more female entrepreneurs is vital. This becomes all the more crucial when one considers that only half of the female population in South Africa is currently economically active.
Entrepreneurship could enable more women to gain control of their financial futures and contribute to the growth of the country’s economy.
Starting and growing a business is possible for anybody. While university degrees, startup capital, and luck can be helpful, they’re not essential. The key ingredients are a clear purpose for your venture, a strong support network, and the tenacity to never give up no matter what.
– Shona McDonald, founder of Shonaquip (PTY) Ltd and Lifetime Achiever award winner in the 2023 Business Partners Limited Entrepreneur of the Year® awards
Empowering women in business unlocks potential for all
While the entrepreneurial gender gap in South Africa has been declining over the years, women are still less inclined to pursue entrepreneurship as a career path than their male counterparts.
Factors holding women back include fear of failure, fewer networking opportunities, and perception of own capabilities. Gender bias is unfortunately still alive and well, as demonstrated by women-led businesses’ limited access to capital.
Referring to the latest Women Entrepreneurship in South Africa Report, 21.5% of female entrepreneurs cite difficulty securing funding as the reason for the failure of their ventures, compared to only 17.8% of males. As women, we also undersell ourselves and our businesses and often stand back when we should step forward with confidence.
While the report shows that 66.2% of women perceive themselves as competent, that number falls short compared to 72.4% of men. This self-doubt can manifest in reluctance to pursue larger opportunities or unfamiliar sectors. Ultimately, this limits the potential for growth and high-profit ventures.
Women-led businesses must be given space to enter this male-dominated game. Doing so will be an investment in everyone’s future, especially with female entrepreneurs creating close to one million jobs over the past decade and boosting the South African economy by R175 billion annually. Additionally, supporting women entrepreneurship is key to broader societal upliftment, with the United Nations reporting that women reinvest around 90% of their income in the health and education of their children and community, compared to just 35% by men.
Helping women-led businesses bloom
According to the most recent Global Entrepreneurship Monitor Report for South Africa, showcasing successful female entrepreneurs could translate to more women launching startups.
We aim to do just that through the annual Entrepreneur of the Year® awards which celebrates established entrepreneurs and their contributions to the country through recognition and a share of R2 million that includes cash prizes, mentorship support, and exposure for the business. This year’s competition is open to entrepreneurs who own small and medium-sized enterprises in South Africa.
Categories include Emerging Entrepreneur, Small Business Entrepreneur, and Medium Business Entrepreneur. Five finalists will be chosen in each category and the finalist who employs the most individuals will be awarded the Job Creator prize. After the judging process, the winners will be announced at an awards ceremony in November 2024 where the overall Entrepreneur of the Year® will be awarded. Entries close on 31 August 2024.
It’s a platform to celebrate and promote entrepreneurial excellence, highlighting success stories that inspire others. Don’t hesitate, take this opportunity and use it to learn from the people you meet.
By levelling the entrepreneurial playing field and equipping women business owners with the necessary support, we can ignite a surge in new businesses, generating employment and economic opportunities, often among those who need them most.
Related FAQs: Women entrepreneurs in South Africa
Q: What challenges do South African women entrepreneurs face in the business world?
A: South African women entrepreneurs often face significant challenges such as limited access to venture capital, a gender gap in entrepreneurship, societal stereotypes and a lack of mentorship opportunities. These barriers can hinder their ability to succeed and expand their businesses.
Q: How can female entrepreneurship be empowered in South Africa?
A: Empowering female entrepreneurship in South Africa can be achieved through initiatives such as providing access to funding, enhancing entrepreneurship education and creating networking opportunities. Programs aimed at mentoring and supporting women in business can also help bridge the gender gap in entrepreneurship.
Q: How has the gender gap in entrepreneurship changed in recent years?
A: The gender gap in entrepreneurship has seen some improvement in recent years, particularly with increased recognition of successful women entrepreneurs and ongoing efforts to support female-led businesses. However, significant disparities remain and continuous efforts are needed to achieve equality.
Q: What are some successful women entrepreneurs’ strategies for overcoming barriers?
A: Successful women entrepreneurs often utilize strategies such as building strong networks, seeking mentorship, embracing resilience and leveraging technology to reach wider markets. These strategies help them navigate challenges and achieve sustainable growth in their businesses.
Q: How does entrepreneurship in South Africa contribute to the economy?
A: Entrepreneurship in South Africa significantly contributes to the economy by creating jobs, driving innovation and empowering communities. Women entrepreneurs play a vital role in this process, contributing to South Africa’s total GDP and fostering economic development across the region.
Q: What initiatives exist to support women in business in South Africa?
A: Various initiatives exist to support women in business, including government programs, non-profit organisations and private sector initiatives focused on mentorship, funding and training. These programs aim to enhance the skills and resources available to female entrepreneurs, helping them succeed.
Q: How can aspiring female entrepreneurs find mentorship opportunities?
A: Aspiring female entrepreneurs can find mentorship opportunities through networking events, industry associations, online platforms and local business incubators. Engaging with established female leaders and participating in entrepreneurship development programs can also lead to valuable mentorship connections.
Q: What is the impact of successful women entrepreneurs on future generations?
A: Successful women entrepreneurs serve as role models for future generations, demonstrating that women can excel in the business world. Their achievements inspire young girls to pursue their entrepreneurial dreams, helping to break down barriers and change perceptions about female leadership in South Africa.
