Women entrepreneurs need real support and investment

A recent 2023/2024 South Africa report by the Global Entrepreneurship Monitor (GEM), highlighted that South African women are exiting their businesses at a higher rate than they are starting, with the gap between men and women entrepreneurs widening as businesses mature, with almost double the number of men owning established businesses (7.9% vs 4.1% of women).

This indicates that women find it more challenging to sustain a business than to start one.

Closing the gender gap in entrepreneurship has significant economics for South Africa, by creating jobs, spurring growth, and driving change where it’s needed most. But that kind of impact won’t happen through token gestures and Women’s Day speeches. It requires deep structural change.

This isn’t a new problem. As the G20 refocuses global attention on inclusive growth and gender equity – reminding us that no economy can reach its full potential without full participation - it’s a good time to reflect on how far women entrepreneurs have come; but also, how much further they could go with real backing.

Here in South Africa, Women’s Month is a further reminder that women are already having a powerful economic impact, but they’re still being held back by the very systems that are meant to support them.

It's a troubling situation; particularly when you consider the economic benefits that women-owned businesses deliver. Globally, women-led businesses outperform their male counterparts in return on investment, employee satisfaction and social impact.

In South Africa, women entrepreneurs are more likely to reinvest in their communities, support dependants and drive solutions in areas like food security, education, and climate resilience. Yet despite this, less South African SMEs are majority women-owned, and even fewer scale up successfully or gain access to the formal funding and procurement opportunities they deserve.

It’s not a question of a lack of ambition. South African women are driven and determined. The 2024 Working Women Report found that 78% want to grow in their careers, and 80% support dependants - with over a third acting as the sole breadwinner in their households. Many are also better educated than their male peers. Yet despite all this, women’s participation in the labour force still lags that of men.

As a result, many women entrepreneurs - especially in male-dominated industries - find themselves operating in isolation. They lack access to the networks, mentorship and market opportunities that could help their businesses grow.

It's not just emotionally, physically, and financially draining for women entrepreneurs to have to operate without the support they should be getting; it’s economically shortsighted for our country to not be providing them with that support.

We need to rethink how we finance women entrepreneurs in this country. Traditional collateral-based lending doesn’t reflect many women’s realities. They need access to inclusive financial tools that consider non-traditional assets and alternative credit histories. Policy reform is also essential - especially in procurement, where women-owned businesses currently receive less than 6% of total government spending.

Investment in flexible work models and childcare infrastructure is just as critical. Women can’t be expected to grow businesses while also carrying the full burden of the extensive unpaid household labour many of them still do. The Working Women report shows that while 55% of women want full-time work, many also want flexible hours or shorter work weeks so they can balance entrepreneurship with caregiving.

All of this doesn’t rest on the shoulders of government policymakers. Financial institutions and corporates have a vital role to play.

Women aren’t a side market or consideration; they are the economy. The question isn’t whether they can lead us to a more inclusive and sustainable future. They already are. The real question is whether our country has the will to provide them with the support they need and remove the barriers that keep them from doing business at scale.

If we’re serious about real, sustainable, and uplifting economic growth in South Africa, then the answer to that question must be yes.

Nicole Sykes, Head of Women in Business at FNB South Africa. 

BUSINESS REPORT