What's holding SA back from achieving its female entrepreneurial potential?

Research conducted by Development Economics, on behalf of Facebook, reveals that if all South African women who voiced interest in starting a business did so, the South African economy could experience a boost of R175bn by 2022, which would create approximately 972 000 jobs within five years.

The stark reality, however, is that just 18,8% of Small and Medium Enterprise (SME) owners in South Africa are women. This is according to the most recent MasterCard Index of Women Entrepreneurs, which reveals that women remain grossly underrepresented among the ranks of entrepreneurs.

Speaking in light of the UN Commission on the Status of Women that is currently underway in New York, Gugu Mjadu, Spokesperson for the 2019 Entrepreneur of the Year competition sponsored by Sanlam and BUSINESS/PARTNERS, says that despite female involvement in the SME sector being a known key contributor to economic growth, as well as job creation in South Africa, many women still face major barriers that prevent them from reaching their full potential.

“There is no question that women entrepreneurs play an increasingly important role in driving South Africa forward – both socially and economically. Many of the country’s aspiring female entrepreneurs, however, remain constrained by cultural, social and economic barriers. This means that female entrepreneurs signify a vast untapped source of innovation, job creation and economic growth in South Africa.”

To break down these barriers and unlock the potential economic boost possessed by South African women, Mjadu says that both the public and private sectors need to band together in order to create an environment where women entrepreneurs feel well-supported in terms of starting and growing their businesses and accessing markets. “There isn’t a lack of capable and talented female entrepreneurs in the country, but there is a lack of perceived business opportunities and a shortage of support and resources for these women.”

From a public sector perspective, Mjadu says that while Government has programmes and funds in place that are aimed at empowering entrepreneurs, a greater focus on women would be welcomed. “During his State of the Nation Address, however, Ramaphosa said that expansion of the small business incubation programme will be a focus in 2019, so perhaps this will bring a greater focus on the empowerment and support of female entrepreneurs.”

Doing its bit for improving the entrepreneurial eco-system from the private sector, Mjadu says that the 2019 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS aims to build on the entrepreneurial successes celebrated for the last 31 years by encouraging and rewarding women business owners.

“We remain encouraged by the ever-increasing number of female entrepreneurs entering the competition, and over the last six years, we have seen 41 female entrepreneurs named finalists in the annual competition (out of 90 finalists), with 17 being named winners (out of 28 winners). This year, we are determined to continue uncovering and celebrating many more women who – to a large extent – remain unsung heroes of their communities.”

The 2019 edition of the Entrepreneur of the Year® competition (which is open to all South African business owners and closes on 31 May 2019) is hoping to see the biggest number of female entrants since its launch in 1988. We must continue to encourage women to embrace entrepreneurship and disrupt staid industries and to participate in competitions that highlight their success so we inspire the next generation of female entrepreneurs.

About the Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS:

The Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERSaims to honour, benefit and uplift South African SMEs. Now in its 31st year, the competition celebrates excellence in entrepreneurship, serving as an inspiration to others to succeed in the world of business. Visit www.eoy.co.za for more information.