Maroc - dailynews.co.za - Business - 14/Aug 16:26

Invest in Her: Empowering women entrepreneurs in SA

South Africa has distinguished itself as a leader in supporting women-owned businesses and providing formal backing for women entrepreneurs. According to the latest Mastercard Index of Women Entrepreneurs (MIWE), South Africa achieved a score of 54.9, ranking just behind Botswana, which leads with a score of 56.3. This places South Africa as the second highest in Africa for both the proportion of women-owned businesses and the level of formal support available to female entrepreneurs.This is attributed to factors such as increased access to education, government support programmes, and a growing awareness of women’s economic empowerment. However, gender gaps in entrepreneurship still persist as South African women’s total early-stage entrepreneurial activity is sitting on an average of 16% compared to 19% for men.Women like Phuti Mahanyele, the CEO of Naspers South Africa, and Dineo Lioma, the founder of CapeBio Technologies, are redefining the business environment. They exemplify the success possible when women break through traditional barriers. South African women benefit from more structured support networks and more favourable policies than many of their counterparts elsewhere in Africa. However, they face challenges such as navigating a competitive market, dealing with gender biases, and accessing funding. According to the Southern African Venture Capital Association, women-led start-ups in South Africa receive only about 13% of total venture capital funding. This highlights a significant funding gap that needs to be addressed in the country.Across Africa, female entrepreneurs are making their mark in diverse sectors, from technology to agriculture. According to the African Development Bank, women represent about 60% of the continent’s entrepreneurs. Countries such as Nigeria, Kenya, and Ghana are witnessing a surge in women-led start-ups. For instance, the success story of Rebecca Enonchong, the founder of AppsTech, is an indication of how African women are leading in tech innovation despite systemic challenges.Yet, African women entrepreneurs face unique hurdles, including limited access to capital, infrastructural deficits, and political instability. The International Finance Corporation (IFC) notes that African women-owned businesses are 20% less likely to access financial services compared to their male counterparts. Additionally, societal norms and cultural barriers often hinder their progress.Both South African and African female entrepreneurs share common challenges: securing funding, navigating bureaucratic red tape, and overcoming gender biases. Nevertheless, they also have unique opportunities. South Africa’s relatively more developed financial ecosystem offers better access to resources, while other African nations are witnessing increasing support from international donors and NGOs.One notable opportunity is the rise of digital platforms, which have democratised access to global markets and resources. Women-led businesses can now reach broader audiences through online channels, reducing traditional barriers to entry. Programmes such as the African Women Innovation and Entrepreneurship Forum (AWIEF) and African Bank’s Female Entrepreneurship Programme are also playing a critical role in providing training, mentorship, and networking opportunities.The journey of female entrepreneurs in South Africa and across Africa underscores both their resilience and the pressing need for systemic change. Support for women-led businesses must go beyond tokenism; it should include equitable access to funding, mentorship, and resources. Integrating men into women empowerment initiatives is also crucial as gender equality cannot be achieved in isolation. Men play an essential role as allies and advocates in dismantling systemic biases and fostering a more inclusive environment. Collaborative efforts between men and women can drive cultural shifts and policy changes necessary for broader societal impact.We must all take action, whether through supporting women-owned businesses, advocating for policies that address gender disparities, or developing impactful female entrepreneurship programmes. By fostering an environment of collaboration and inclusivity, we can pave the way for a more equitable and thriving entrepreneurial landscape for women across Africa.Empowering women is not just a matter of fairness; it’s a critical driver of economic and social progress. Let’s commit to supporting female entrepreneurs today to build a brighter, more inclusive future for all.Mahlatse Tolamo is the Stakeholder Relations Manager at 22 On Sloane, Africa’s largest entrepreneurship campus.BUSINESS REPORT