Supporting Women-Led Enterprise in South Africa

7 Min Read

Supporting Women-Led Enterprise in South Africa. In 2025, South Africa is experiencing a dynamic shift in the entrepreneurship ecosystem, with women taking the lead in building resilient and innovative businesses.

Supporting women-led enterprises is no longer just a social responsibility, it has become a strategic economic imperative. With 57% of South African women identifying as business owners in 2025, compared to just 34% a few years ago, the country is witnessing a profound transformation.

This movement is timely, especially during Women’s Month in August, as the nation honours the strength, resilience, and contributions of women to economic and social development. From township entrepreneurs to boardroom leaders, female entrepreneurs in South Africa are breaking barriers and driving inclusive growth.

Rise of Female Entrepreneurship in South Africa

South African women have surpassed the regional average for entrepreneurship across Eastern Europe, the Middle East, and Africa, which stands at 51%. This remarkable growth stems from necessity, innovation, and the desire for financial independence. According to MANCOSA (Management College of Southern Africa), this upward trend reflects not just economic survival, but a cultural shift in how women view their role in society.

YearPercentage of Women Entrepreneurs
A few years ago34%
202557%
Regional Average (EMEA)51%

This steady rise showcases how female-led SMEs are becoming a driving force in job creation and community development.

Women Taking Charge of Their Future

Younger generations are at the forefront of this transformation. A staggering 89% of Gen Z women express interest in entrepreneurship. Gen X women lead the pack, with 59% identifying as business owners or community leaders. Millennials and younger Gen Z women follow closely, with 59% and 58%, respectively.

Moreover, the culture of side hustles has become prominent, especially among Gen X women (58%), as many seek:

  • More income (80%)
  • Financial independence (52%)
  • Safety nets (45%)

These side businesses often evolve into full-time ventures, showing the organic growth of entrepreneurship in a highly competitive economy.

Changing the Economic Narrative

For too long, male entrepreneurs were seen as the default breadwinners and economic leaders. However, South African women are now changing the narrative. While their businesses may be smaller in size, their social impact is often greater.

characteristics of women-led SMEs include:

  • Focus on community upliftment
  • Inclusive hiring practices, especially of other women
  • Operations in labour-intensive sectors such as:
    • Education
    • Healthcare
    • Retail

These businesses are critical in job creation and often demonstrate greater resilience during economic downturns.

The Gender Financing Gap

One of the biggest challenges facing female entrepreneurs is limited access to finance. Dr Omolola Arise from MANCOSA highlights that traditional banks exhibit structural biases, making it difficult for women to access credit due to lack of collateral.

Innovative financing solutions that empower women include:

Financing ModelDescription
CrowdfundingLow-barrier entry to raise capital while building community engagement
Peer-to-peer lendingEnables funding without traditional bank restrictions
Blockchain solutionsSmart contracts and digital IDs ensure transparency for women with limited credit history

At MANCOSA, financial technology education is now being integrated into academic programs to empower women to utilise these financing models effectively.

Long-Term Impact of Women Entrepreneurs

The impact of women entrepreneurs extends far beyond profits. They are significantly enhancing human capital by reinvesting in:

  • Education
  • Skills development
  • Community programs

This results in:

  • Increased economic mobility
  • Reduced gender inequality
  • Stronger communities

However, to fully realise this potential, persistent barriers, like limited funding, societal expectations, and lack of support systems, must be tackled.

Policy Recommendations to Support Women-led SMEs

For South Africa to unlock its full economic potential, policymakers need to implement targeted strategies. These include:

  • Gender-specific funding schemes
  • Credit guarantee programs
  • Equity crowdfunding
  • Gender-lens investing
InitiativePurpose
Isivande Women’s FundProvides funding and support to women-owned enterprises
Black Industrialists SchemeEmpowers black female industrialists
Women’s Development BankOffers financial services to underserved women

Mentorship, networking platforms, and simplified regulations are also crucial to remove structural barriers and build entrepreneurial capacity among women.

MANCOSA’s Role in Women Empowerment

Founded post-apartheid, MANCOSA has consistently worked to empower historically excluded groups—particularly women. Today, the institution is equipping female students and Gen Z learners with:

  • Digital business acumen
  • Strategic leadership skills
  • Real-world learning through virtual internships and masterclasses

Flagship initiatives include:

  • Women in Leadership Accelerator
  • Emerging Leaders Programme
  • Digital Business Masterclasses

MANCOSA’s Centres of Excellence also contribute to policy reform and innovation, especially through their MBA and DBA programmes, which enable graduates to:

  • Lead sustainable business initiatives
  • Drive financial inclusion via fintech
  • Influence national policy through research

Towards a More Inclusive Entrepreneurial Future

The last decade has proven that female entrepreneurs are central to South Africa’s economic growth. Despite making up only 21.1% of formal SMEs, their role in driving GDP growth, community upliftment, and job creation is disproportionate and immensely valuable.

Looking forward, the following actions are crucial:

  • Give women a voice in policy creation
  • Prioritise entrepreneurial funding for women
  • Encourage digital adoption and leadership training

Supporting women-led enterprises is more than a gender equality issue—it’s a national economic imperative.

Conclusion

South African women are no longer just participating in the economy, they are shaping it. From boardrooms to townships, their entrepreneurial drive is building resilient, inclusive, and socially conscious enterprises. The need of the hour is to continue empowering them with funding access, policy support, and skills development to create a thriving, gender-balanced economy. With the right backing, female-led SMEs can become the cornerstone of South Africa’s economic transformation in the next decade.

Share This Article
Ndãê Léẞédy is a part-time writer at Portal Publishing with a strong background in computer science. She is passionate about sharing reliable, well-researched information that helps readers better understand the world of technology and education. Ndãê completed her Master’s in Computer Science in 2020 and currently works at a government university, where she combines her academic expertise with a commitment to public service and lifelong learning. Through her writing, she aims to simplify complex topics and empower readers with practical knowledge. Her academic journey and professional experience have shaped her into a focused, detail-oriented communicator — always striving to make a meaningful difference through the power of words.