This archive report was first published on 11 January 2020.
Contrary to popular belief, it is Sub-Saharan Africa that is a trailblazer in female entrepreneurship, with a higher number of women starting and running their own businesses compared to other regions of the world.
According to the Global Entrepreneurship Monitor Global Report (GEMGR), rates of female entrepreneurship in Sub-Saharan Africa are comparable to their male counterparts, with emerging economies like Ghana, Nigeria, and Zambia boasting significantly higher participation of women in the start-up space compared to advanced economies like the USA and France.
For instance, in Ghana, 28% of entrepreneurs are women, compared to 10% in the USA and only 3% in France. However, most of these women entrepreneurs tend to be owners of small businesses and local community shops serving the unmet needs of their homes and local community.
So, what is holding them back from achieving greater growth and success? Part of the answer lies in the lack of full-fledged societal support for women entrepreneurs, who continue to be held primarily responsible for the well-being of their family, even as they take on the challenges and complexities of managing their own business.
Pamela Muyeshi, owner of a GroFin-funded business Amaica, a restaurant specializing in authentic Kenyan cuisine, feels that striking a balance between running a family and a company can be difficult. She states matter-of-factly, “Women continue to face the dual responsibility of ensuring that their business is running and their family is stable.”
Fortunately for women entrepreneurs, it appears that the economy does need them, and would be a better place for their presence in it. Research from the World Bank has proven that women invest a greater portion of their earnings into household health and education, improving quality of life for the next generation and creating more meaningful social and community impact.
Women entrepreneurs in the GroFin portfolio are well-represented in high-impact areas covering schools, health clinics, pharmacies, MFIs, or other social and community-driven businesses. Finally, female-owned businesses tend to have higher turnover growth and much greater low-skilled job creation.
Thus, not only at a gender equality level but also at an economic level, it makes sense to convince talented and dynamic women who are considering starting their own business to cross the final hurdle.
Source: Grofin, published on January 11, 2020.
