How can we grow young female entrepreneurship in South Africa?
How can we grow young female entrepreneurship in South Africa?
By Linda McClure, Raizcorp COO
South Africa, like many countries globally, grapples with the challenge of youth unemployment. This is supported by statistics indicating a 45,5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32,9% in the first quarter of 2024. It’s clear, though, that the struggle continues for many South African women – specifically in the area of small business and entrepreneurship.
According to the World Bank, Africa boasts the highest growth rate of female-run businesses in the world. But down on the southernmost tip of the continent, women are still in the minority when it comes to entrepreneurship. While more than half of South Africa’s population is female, only 38% of SMEs are women owned and led.
Despite these benefits and the potential of entrepreneurship to improve the socio-economic empowerment of women in South Africa, the important contribution that women could make in various sectors continues to be underestimated, especially in less industrialised countries. Small businesses hold the key to transforming South Africa’s economy and unemployment, we need to encourage more women to take the leap and start their own businesses.
The problem is that female entrepreneurs continue to face challenges not shared by their male counterparts. They typically have fewer assets. They have access to less capital, fewer business-oriented networks and a lower status in our often-patriarchal society. The lion’s share of opportunities available in the market today are still reserved largely for male and youth-owned businesses.
The table just isn’t set for women entrepreneurs. And perhaps the biggest problem is that while men are free to go off and run their businesses, women are still largely expected to keep their households running and take care of the kids.
Even in two-parent homes, there is usually a subtle – often sub-conscious – belief that the women will look after the children. In many households, the oldest daughter often has the role of childminder and quasi-mother thrust upon her at a sometimes very young age, particularly in rural areas.
But I believe that this traditional role of “household manager” could be one of the things that sets women apart from men. Would-be female entrepreneurs already have a range of useful skills such as managing budgets, facilities, logistics, time, calendars and even staff. In fact, I’d go so far as to say that managing a household is like managing a small business.
Women also tend to start businesses for different reasons. Male entrepreneurs start businesses for any number of reasons – vision, opportunity, flexibility, passion – but many women who start informal businesses do so because they have no choice.
So, what do we need to do to grow the rate of female entrepreneurship in South Africa? For a start, we must give them the entrepreneurial skills they need to run and grow sustainable and profitable businesses which can also create employment in their communities.
What’s at stake? McKinsey estimates that if women started businesses at the same rate as men, the global GDP might increase by $28 trillion by 2025. In South Africa, our GDP can do with all the help it can get. More than that, though, the businesses women start usually help make the world a better place. If we can do more to give our women entrepreneurs the right tools and knowledge, we can create a diverse, vibrant small business landscape that can change the fortunes of entire communities.
We at Raizcorp have seen our share of inspiring female success stories over the years, where women are making their mark in a challenging economic landscape, providing jobs and livelihoods to more and more people. It’s time to make the entrepreneurial circle bigger.
South Africa, like many countries globally, grapples with the challenge of youth unemployment. This is supported by statistics indicating a 45,5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32,9% in the first quarter of 2024. It’s clear, though, that the struggle continues for many South African women – specifically in the area of small business and entrepreneurship.
According to the World Bank, Africa boasts the highest growth rate of female-run businesses in the world. But down on the southernmost tip of the continent, women are still in the minority when it comes to entrepreneurship. While more than half of South Africa’s population is female, only 38% of SMEs are women owned and led.
Despite these benefits and the potential of entrepreneurship to improve the socio-economic empowerment of women in South Africa, the important contribution that women could make in various sectors continues to be underestimated, especially in less industrialised countries. Small businesses hold the key to transforming South Africa’s economy and unemployment, we need to encourage more women to take the leap and start their own businesses.
The problem is that female entrepreneurs continue to face challenges not shared by their male counterparts. They typically have fewer assets. They have access to less capital, fewer business-oriented networks and a lower status in our often-patriarchal society. The lion’s share of opportunities available in the market today are still reserved largely for male and youth-owned businesses.
The table just isn’t set for women entrepreneurs. And perhaps the biggest problem is that while men are free to go off and run their businesses, women are still largely expected to keep their households running and take care of the kids.
Even in two-parent homes, there is usually a subtle – often sub-conscious – belief that the women will look after the children. In many households, the oldest daughter often has the role of childminder and quasi-mother thrust upon her at a sometimes very young age, particularly in rural areas.
But I believe that this traditional role of “household manager” could be one of the things that sets women apart from men. Would-be female entrepreneurs already have a range of useful skills such as managing budgets, facilities, logistics, time, calendars and even staff. In fact, I’d go so far as to say that managing a household is like managing a small business.
Women also tend to start businesses for different reasons. Male entrepreneurs start businesses for any number of reasons – vision, opportunity, flexibility, passion – but many women who start informal businesses do so because they have no choice.
So, what do we need to do to grow the rate of female entrepreneurship in South Africa? For a start, we must give them the entrepreneurial skills they need to run and grow sustainable and profitable businesses which can also create employment in their communities.
What’s at stake? McKinsey estimates that if women started businesses at the same rate as men, the global GDP might increase by $28 trillion by 2025. In South Africa, our GDP can do with all the help it can get. More than that, though, the businesses women start usually help make the world a better place. If we can do more to give our women entrepreneurs the right tools and knowledge, we can create a diverse, vibrant small business landscape that can change the fortunes of entire communities.
We at Raizcorp have seen our share of inspiring female success stories over the years, where women are making their mark in a challenging economic landscape, providing jobs and livelihoods to more and more people. It’s time to make the entrepreneurial circle bigger.
Comments
Post a Comment