South African women are continuously making strides in whichever industry they are in, from humble home businesses to owners of multi million Rand companies, they are proving themselves in once thought of male dominated businesses.They’ve overcome several challenges along their way. Much like their chant during the 9th August 1956, “Wathint’ abafazi, wathint’ imbokodo!” (You strike a woman, you strike a rock!), South African women proved they are a force to be reckoned with.
It was their fight for justice and equality during that August 1956 march that demonstrated women’s power in the anti-apartheid struggle. The government didn’t immediately change the pass laws. But the march raised awareness and strengthened resistance. In 1994, after South Africa’s first Democratic elections, President Nelson Mandela declared 9th August National Women’s Day, in honour of the women who fought against Apartheid and celebrates women’s contributions to South African society. Today South African Women’s Day is a day to reflect on the progress made towards gender equality and to recognize the efforts of women who continue to fight for their rights and empowerment.
Women Entrepreneurs in South Africa
South African women are leaving their mark in the business world, launching startups, growing companies, and reshaping the economy. However, there remains several trials they must overcome. Women entrepreneurs face challenges like limited access to funding, the challenge of balancing business and family responsibilities, gender bias in male-dominated industries, and a lack of established business networks and mentors.
The MasterCard Index of Women Entrepreneurs (MIWE) ranks 65 countries based on women’s entrepreneurial activity and highlights significant progress in less wealthy countries like Uganda, Ghana, Malawi, and Madagascar, alongside the Philippines and Vietnam. Women owned businesses in countries like these makeup 25% of all local businesses, while SMEs in Africa account for 80% of total employment. According to the World Economic Forum, women make up 58% of self-employment across Africa and contribute about 13% to Africa’s total GDP.
The 2021 MIWE report, published in 2022, shows a mixed picture for women entrepreneurs in South Africa. While the country’s overall MIWE score slightly decreased from 55.2 in 2020 to 54.9 in 2021, South Africa moved up one place in the global rankings to 37th position.
Key findings of the MIWE Report
- 9% of all businesses were owned by women in 2021, increased from 21.1% in 2020.
- South Africa ranked 21st globally in this component, which measures women’s progress in business leadership and entrepreneurship.
- 1% of working-age women engaged in early-stage entrepreneurial activities in 2021, up from 10.2% in 2020.
- The percentage of women starting businesses out of necessity rose from 62% to 91.2%, largely due to pandemic-related job losses.
- South Africa ranked 55th in ‘Knowledge Assets and Financial Access’, with declines in women’s access to finance and financial inclusion.
- The country’s ranking in cultural perceptions of entrepreneurship improved by nine places to 37th.
The report further highlights that women’s entrepreneurship is crucial for job creation and economic growth in South Africa. However, it also underscores the need for improved financial support and resources for women entrepreneurs to ensure sustainable, opportunity-driven business growth.
Improving South African Women Entrepreneurs
Despite making major strides in entrepreneurship women still face many challenges. Breaking down these barriers and making entrepreneurship more accessible is primary for creating opportunities for female entrepreneurs in South Africa.
1. Enhancing and Skills Acquisition
Many South African women start businesses out of necessity, without the correct skills of running or owning a business. For example, Dumezile Gumede, owner of Ubumba Poultry is one of the participants from Mtubatuba said: “After retiring from formal employment in 2021, I started my business just so I can make a living. I started with little knowledge about how to run a business.”
Women entrepreneurs in South Africa lack access to the education and skills necessary for running successful businesses. This gap in knowledge can hinder business growth and sustainability. Fortunately, there are several online courses, workshops and training programs women entrepreneurs can get involved in to build their skills. Areas where women business owners require most skills are in financial management, marketing, technology use, and leadership.
Engaging in continuous learning and skill development will empower them to make informed business decisions and stay competitive in the market.
2. Building Networks and Finding Mentors
Women entrepreneurs struggle to build business networks and find mentors who can guide them through their entrepreneurial journey. Engaging in networking events, industry conferences, and online communities provide platforms for women to connect, share experiences, and seek guidance from each other.
These strong mentorship programs and networking platforms can provide crucial guidance and support. Networking with other women offers advice, share experiences, and create opportunities for collaboration and business growth.
Mentoring and Networking programs run by the UN for example are a great way for women to get the mentoring they require. The UN’s Mentoring and Coaching of Women Entrepreneurs programme is supported by other key stakeholders, like the National Treasury, Department of Trade, Industry and Competition (DTIC), Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), National Empowerment Fund, Standard Bank & ABSA.
As a black-female owned business, YC Consulting has several years training and experience under their belt to assist, mentor and motivate women entrepreneurs.
3. Improving Access to Finance
Access to funding is a significant barrier for women entrepreneurs. Traditional financial institutions often have stringent requirements that can be difficult to meet.
Financial institutions and investors should develop programs specifically tailored to women entrepreneurs. This could include low-interest loans, grants, and investment funds focused on women-led businesses. Additionally, financial literacy programs can help women better navigate funding options.
4. Overcoming Gender Stereotypes
Gender bias and societal stereotypes can undermine women entrepreneurs’ credibility and create additional hurdles in their business endeavors. The cultural belief and social norms that present men as superior to women are severely restricting the ability of women to engage, both economically and socially. In addition, women are expected to take responsibility for most household and childcare needs, which severely restricts their options in economic participation. Organisations and businesses should address these issues as soon as they are identified to assist women entrepreneurs break societal norms.
Awareness campaigns, educational initiatives, and advocacy efforts are essential in breaking down stereotypes and discriminatory practices. Establishing safe and supportive environments where women feel empowered to express their ideas and concerns is essential for fostering progress.
5. Work-Life Balance
Unlike their male counterparts women entrepreneurs have a tougher challenge balancing work and home life. It’s tougher especially for women working from home, where they cannot separate their work life from home. To balance work-life women entrepreneurs should introduce flexible work arrangements, childcare support, and parental leave policies can significantly reduce stresses. This approach can be instrumental in encouraging and unlocking more opportunities for women entrepreneurs.
6. Embracing Technology
Ensuring women have access to and training in digital technologies can level the playing field. These are the current mobile and data rates compared to the rest of Africa and globally. As of 2021, South Africa had one of the highest rates of mobile phone ownership in Africa, with 90% of women in South Africa owning cell phones. This is number is higher than the Sub-Saharan African average of 75% for women. When it comes to using the internet and smartphones, as of 2021, about 68% of South African women used mobile internet, compared to 72% of men. On a positive note, smartphone adoption in South Africa was around 60-65% of the population, which is high for the African continent but lower than global leaders.
South Africa’s data costs were higher than many other African countries and higher than global averages. Taking these stats into account, empowering women to better utilize technology is a positive move forward. While South Africa leads much of Africa in women’s mobile phone ownership, high data costs remain a challenge for digital entrepreneurship.
Women entrepreneurs must be endowed with the right tech skills and knowledge. Adopting digital tools for marketing, e-commerce, and remote collaboration can broaden the reach and streamline operations for entrepreneurs. Providing digital literacy and technology training programs specifically designed for women can further enhance their skills and capabilities.
7. Advocacy and Policy
Governments should implement policies that support women in business, including tax incentives for women-owned businesses, quotas for government contracts, and laws against gender discrimination in lending practices. Implementing gender-inclusive procurement policies and regulatory reforms can help eliminate barriers and create opportunities for women-owned businesses. Collaboration with policymakers, industry leaders, and advocacy groups is crucial to driving this change Supporting women entrepreneurs and unlocking new opportunities is essential for creating a more inclusive business environment. Women entrepreneurs, may face many challenges, but it’s important to know what solutions are available to support them on their journey.
Explore the various business development and funding organizations available, both government-led and private-led. These organizations can provide significant value to women entrepreneurs dealing with common challenges.
Mentoring for Women Entrepreneurs
Mentoring is a professional relationship in which an experienced person (the mentor) provides guidance, support, and knowledge to a less experienced person (the mentee). In the context of South African women entrepreneurs, mentoring involves seasoned business owners or industry experts sharing their insights, experiences, and networks with aspiring or early-stage women entrepreneurs.
Exploring the Role of Mentors
Having a mentor to guide women entrepreneurs is essential. Mentors play several crucial roles for women entrepreneurs:
Reflective Feedback
Mentors help mentees recognize their strengths and areas for improvement. They offer constructive insights that enable self-awareness and growth.
Reassurance
By providing perspective, mentors help mentees manage stress and see challenges in a broader context. This emotional support is crucial during difficult times.
Confidence Building
Mentors boost mentees’ self-confidence through encouragement and recognition of their achievements, an essential part for entrepreneurial success.
Confidant
As trusted advisors, mentors serve as sounding boards for ideas and concerns, allowing mentees to explore thoughts openly without judgment.
Networking
Mentors introduce mentees to valuable business contacts, helping them integrate into the business community. These connections can lead to new opportunities.
Knowledge Sharing
Experienced mentors pass on crucial information about management practices, legal considerations, and industry-specific insights.
Role Modeling
By exemplifying successful business practices, mentors inspire mentees and demonstrate what’s possible.
Mentoring Styles for Women Entrepreneurs
Every teacher has a different teaching style. The same applies to mentors too. No two mentors demonstrate the same mentoring style, or they may combine several styles to achieve their target.
Mentoring styles can vary, and they play an important role in the mentorship relationship. Let’s break down these styles in simpler terms:
Facilitative Style
The mentor guides the mentee to find their own solutions. They ask open-ended questions and encourage self-reflection.
Collaborative Style
The mentor and mentee work together as partners. They share ideas and solve problems jointly.
Instructive Style
The mentor directly teaches or advises the mentee, providing specific instructions or solutions.
Experts sometimes prefer a combination of facilitative and collaborative approaches. This is sometimes called a “maieutic” or “non-directive” approach. In this style:
Mentors ask open questions to help mentees discover knowledge they already have.
This method helps mentees think for themselves and maintain their independence.
Interestingly, while some people used to think mentors should always be older and more experienced, this isn’t always the case. Effective mentors can be of any age, as long as they have relevant knowledge and skills to share.
Women mentors can provide role models for those women who are starting their businesses. Research proves that quality mentorship leads to positive outcome. Having a mentor share a women entrepreneur’s worries, and acts as a guide reassures an entrepreneur of her success.
Emotional intelligence is essential for women entrepreneur’s success. A mature, experienced mentor will advise and guide a female entrepreneur through their emotional breakdowns.
Conclusion
South African women entrepreneurs have an essential role in our nation’s economy, contributing to job creation, innovation, and economic diversity. Despite facing numerous challenges, these businesswomen continue to make significant strides.
By focusing on areas like improving access to finance, strengthening mentorship and networking opportunities, developing targeted skills training programs and implementing supportive policies, South Africa can create a more inclusive entrepreneurial environment, empowering women to start and grow successful businesses.
The resilience and innovation demonstrated by South African women entrepreneurs, despite the challenges they face, suggest a promising future. With continued support, policy improvements, and a shift in societal attitudes, women entrepreneurs are poised to play an even more significant role in shaping South Africa’s economic landscape.
References
https://www.topbusinesswomen.co.za/three-programmes-providing-women-entrepreneurship-skills/
https://www.linkedin.com/pulse/importance-mentorship-women-minority-entrepreneurs-rajat-ranjan-rgmjf