In South Africa, the rise of female entrepreneurship is making significant strides in closing the gender gap, driven by a mix of opportunity and necessity. As more women launch their own businesses, they are not only creating jobs for themselves but also for others, positioning the country among global leaders in women-led enterprises with 20 or more employees.
Notably, 59.3% of these female entrepreneurs plan to hire an additional one to five employees within the next five years, signaling a promising trend of job creation. “With 16.7 million citizens unemployed—5.8 million of whom are women—the need for more female entrepreneurs is vital,” emphasizes Gugu Mjadu, Executive General Manager of Marketing at Business Partners Limited. She notes the importance of entrepreneurship as a means for women to take control of their financial futures and contribute to the nation’s economic growth.
Shona McDonald, founder of Shona quip and Lifetime Achiever awardee at the 2023 Business Partners Limited Entrepreneur of the Year awards, underscores that starting a business is attainable for anyone. While resources like university degrees and startup capital can be beneficial, McDonald argues that a clear purpose, a supportive network, and resilience are the true keys to success.
Despite progress, challenges persist. Mjadu points out that women are still less inclined to pursue entrepreneurship compared to men, often due to fear of failure, limited networking opportunities, and self-perception issues. McDonald adds that gender bias continues to restrict women-led businesses, particularly in accessing capital. According to the latest Women Entrepreneurship in South Africa Report, 21.5% of female entrepreneurs struggle to secure funding, compared to 17.8% of their male counterparts.
McDonald stresses that supporting women entrepreneurs is crucial not only for economic growth but also for societal upliftment. “Women reinvest around 90% of their income into their families and communities, a stark contrast to the 35% reinvested by men,” she notes, calling for greater support and inclusion of women in the entrepreneurial landscape.
