For far too long, women – representing over half of the global population – have been sidelined and marginalised in society and economic activities. This exclusion has robbed economies of the rich insights, perspectives and invaluable contributions that women can bring to business.

However, the aftermath of the coronavirus pandemic has ushered in the winds of change – the technology industry has boomed and, according to the 2021 Mastercard Index of Women Entrepreneurs (MIWE), there’s been a significant rise in female business ownership and entrepreneurial activity. South Africa was identified as one of the 12 countries that have seen an uptick in female economic participation.

This rise is significant for South Africa. Despite being one of Africa’s largest and most industrialised economies, we grapple with an unemployment rate above 30%, particularly among the youth and women. We also contend with infrastructural challenges, such as loadshedding and the deterioration of our roads.

Women entrepreneurship in South Africa

In its fifth edition, MIWE provides a comprehensive insight into women’s leadership and entrepreneurship across 65 economies worldwide. The survey highlights the evolution of women in three critical areas:

1. South Africa has seen a surge in women's participation in leadership roles, professional sectors and entrepreneurship, with a notable increase in women's involvement in early-stage entrepreneurial activities.

2. There’s a need for more knowledge assets and financial access. These challenges, evident in both the private and governmental spheres, mirror women's hurdles in securing capital and navigating favourable entrepreneurial conditions.

3. With South Africa ranked 37th in nurturing entrepreneurial conditions, a composite of factors ranging from property rights and skilled workforce availability to cultural aspects, is influencing female entrepreneurship.

But why emphasise women's entrepreneurship?

The answer lies in the myriad benefits that predominantly stem from women-led initiatives. These advantages include fostering entrepreneurial activity, driving economic development, enhancing socioeconomic progression and promoting inclusivity.

The focus should be on shaping an ecosystem that

• recognises and uplifts women entrepreneurs,
• challenges traditional barriers, and
• strives for an equitable economic horizon.

Navigating challenges: barriers for women entrepreneurs

Understanding the obstacles female entrepreneurs face is paramount. Funding remains a significant challenge, with governmental and private sector support often needing improvement. Regulatory complexities and the need for bespoke initiatives tailored to women-driven ventures are further hurdles.

Their journey also encompasses the challenges of accessing strategic sectors, thorough training and the burdens of societal norms and family responsibilities. While these issues affect many entrepreneurs, the mantle of domestic duties distinctly affects women, acting both as a motivator and a barrier.

Bridging the gender gap and drawing inspiration from global markets

Countries at the top of MIWE primarily come from developed regions, spanning Asia Pacific, Europe and North America. These nations serve as models, underscoring the significance of female workforce participation, government-led entrepreneurial initiatives and unfettered access to markets and capital. They demonstrate how the right policy mix can magnify women's economic roles.

So, how can we bolster and empower female SMEs?

Addressing the disparities in South Africa's entrepreneurial landscape demands a diverse approach. Crafting financial opportunities suited to female entrepreneurs is vital, including dedicated venture capital or low-interest loans for women-led startups.

Besides financing, streamlining market accessibility is crucial. Legislative measures that boost and prioritise women-owned enterprises can help level the playing field.

Mentorship is also instrumental in entrepreneurial success. Encouraging mentorship programmes can offer budding female entrepreneurs vital insights, facilitating knowledge transfer and networking.

However, supporting female entrepreneurs extends beyond just financial and educational support. It’s pivotal to recognise their unique challenges, which vary from juggling family duties to managing societal expectations. Creating dedicated support spaces where women can discuss obstacles, brainstorm solutions and seek understanding can bolster their success pathways.

Lastly, while strategic planning is vital, its impact is felt only when implemented with dedication. A stellar plan on paper needs unwavering commitment to effect genuine transformation in South Africa's entrepreneurial landscape for women. Elevating women's economic roles is both a societal and economic necessity. While MIWE’s survey suggests progress, practical strategies are crucial for South Africa to pave the way for an inclusive financial future that champions women entrepreneurs and stimulates national growth.

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