Research has found that for every woman assisted on the road to entrepreneurship, seven others benefit indirectly – through food on the table, paid school fees, new shoes, books, knowledge and the like.

Research by the United Nations Development Programme shows that the returns on investment in women are much higher than for men, particularly as women are most likely to share their gains in education, health and resources with their families and their communities, creating a positive and ongoing ripple effect.  The Global Entrepreneurship Monitor (GEM) has found that ignoring the proven potential of women’s entrepreneurial activity means that countries put themselves at a disadvantage and thwart their opportunity to increase economic growth. For this reason, it is vital that investment in women be placed at the forefront of the government’s agenda going forward.

Areas in which women need assistance include not only financial aid, but also support in areas such as mentorship, financial management training and skills development.

The main challenges we see women entrepreneurs in South Africa facing are:

Lack of skills

Poor education, coupled with a lack of entrepreneurial-specific education, both inhibit an individual’s ability to run a successful business. In countries where access to education is commonplace, these skills are automatically passed on to the next generation, but this is not happening in South Africa, where only 5% of the population is involved in entrepreneurial activity. A holistic model that covers technical, business and life skills is vital therefore, as it gives learners the opportunity to ‘practice’ running businesses through specific projects, with mentors and networking opportunities giving them on-going access to skills.
                                                             
Access to markets

Breaking into markets is a big challenge for many potential entrepreneurs in South Africa. Look for a need, do research into what is appropriate for the market you are targeting, and don’t try and sell cushions in an area where cushions are already being sold! And once you’re successful, ‘pay it forward’ to help others in your community to help themselves.
   
Capital Expenditure Investment Opportunities

This is often listed as a barrier for entrepreneurs, but large amounts of money are not always required to get a business off the ground. Ironically, banks frequently seem to favour applicants who ask for big loans, whereas very often only R5 000 to R20 000 is required.
 
Self-confidence and motivation

For most entrepreneurs, surviving the initial phase of their new business development is the toughest, which is why employing an innovative process of guiding, supporting and equipping them is key. Encouraging self-actualisation must be combined with business skills development, particularly for the many previously disadvantaged entrepreneurs who lack the motivation to start their own businesses due to years of deprivation and poverty. In turn, their success has a positive effect on the surrounding community as more and more women prove themselves capable.

Research has found that for every woman assisted on the road to entrepreneurship, seven others benefit indirectly – through food on the table, paid school fees, new shoes, books, knowledge and the like. This not only benefits these individuals, but also the country through a reduction in social grants, an increase in employment and a lowering in crime and poverty levels. This is the bottom line when it comes to developing women entrepreneurs.


Marion Pearce is Deputy CEO of The Hope Factory - an Enterprise Development initiative that seeks to empower previously disadvantaged people through an Entrepreneurial Development Programme so that they can become financially sustainable. Marion is passionate about the upliftment of previously disadvantaged women in South Africa. Marion is also a Project Director for Enterprise Development at The South African Institute for Chartered Accountants (SAICA). Her main focus here is to provide a platform for SAICA members to get involved in Enterprise Development. http://www.thehopefactory.co.za/

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