Women entrepreneurs in South Africa: Overcoming challenges and driving economic growth
Supporting women entrepreneurship has positive ripple effects for society as women entrepreneurs tend to allocate more of their funds towards the improvement of health, education, and overall welfare of their families and communities.
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South Africa has the second-highest proportion of women-owned businesses in Africa, after Botswana.
This is according to the 2024 Mastercard Index of Women Entrepreneurs.
Research has also shown that companies with diverse leadership and ownership are more likely to produce superior financial results and foster a positive corporate culture.
Moreover, empowering women in business has ripple effects that extend beyond the individual entrepreneurs.
However, women business owners face immense obstacles to keep operating. According to the Global Entrepreneurship Monitor (GEM) South Africa Report 2023/2024 by Stellenbosch Business School, released last year, the gap between men and women entrepreneurs widens as businesses mature, with almost double the number of men owning established businesses (7.9% vs 4.1% of women).
Natanya Meyer, lead-author of the report and associate professor in the Department of Business Management at the University of Johannesburg, said in a statement that the lack of business support tailored to women’s specific challenges and needs, puts South Africa’s women entrepreneurs on the back foot in realising their potential to make a greater contribution to economic growth and job creation.
She noted that supporting women entrepreneurship has positive ripple effects for society as women entrepreneurs tend to allocate more of their funds towards the improvement of health, education, and overall welfare of their families and communities.
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